MBA-Finance

Vision Statement

To be a leading source of finance education and its applications through research and innovation in the
financial industry.





Mission Statement

The MBA-Finance program produce world-class graduates who can participate effectively in managing the growth and change of the local and regional economy. This is accomplished by weaving together theory and practice in a sustainable fashion enabling our graduates to successfully participate in the transformation of the country into a regional and global financial centre.

Goals and Objectives

  • Qualify a national cadre capable of working in corporations, financial institutions, and markets.
  • Participate in financial transfer and knowledge exchange.
  • Promote collaboration between Alfaisal University and other private and governmental universities and financial institutions.
  • Participate in establishing knowledge-based economy.
  • Participate in the transformation of the country into a regional and global financial center.

Job opportunities

MBA-Finance graduates are highly sought in the market and enjoy many different career options— from consulting to financial services, private equity, venture capital, government agencies, and entrepreneurs. Prospective employers include: finance managers, investment and corporate banks, brokerage firms, financial data providers, asset managers, hedge funds, pension funds, venture capitalists, ratings firms, consulting firms, insurance companies, and the treasury and finance departments of major corporations and sovereign funds.

Admission Requirements

All the standard existing MBA admission requirements apply. The standard MBA admission process is competitive and based upon the requirements:
  • A relevant bachelor's degree with a minimum GPA of high good; this may be interpreted as minimum GPA of 2.5 out of 4. Fields of study considered as relevant include: Finance, Economics, Operation Research, Business Administration, Accounting, Mathematics, Statistics, Actuarial Science, and Engineering.
  • Full-time professional employment of at least one year. Priority will be given to candidates with prior experience or training as well as those currently working in the financial institutions.
  • English proficiency demonstrated at IELTS 6, or equivalent TOEFL of 520 or higher.
  • A valid GMAT or GRE or the equivalent Post-Graduate Qudurat certificate from Qiyas Centre showing an above-average total score and displaying the scores for abstract and quantitative reasoning.
  • Verification of the requirements during an admission on-campus interview.

Program schedule for MBA- Finance:

In addition to the eight Alfaisal MBA core courses, the following four core and two elective finance courses must be taken.
A. Core Finance Courses

Core Courses

Course No

Course Title

CHs

MBA 561

Investments and Portfolio Theory

3

MBA 549

Corporate Finance

3

MBA 553

Bank Management

3

MBA 551

Derivative Securities

3

Total

4

12


B. Elective Finance Courses (at least two from the list)

Elective Courses

Course No.

Course Title

CHs

MBA 540

Islamic Finance

3

MBA 560

Financial Econometrics

3

MBA 570

Risk Management

3

MBA 580

Insurance

3

MBA 544

Financial Statement Analysis and Valuation

3

Total

5

15



MBA Finance Course Discerptions

MBA 540 Islamic Finance (Prerequisite: MBA 511)

This course introduces and explains the basic pillars of Shari'ah Law as applied to finance, explores its various interpretations, and highlights the best practice. The course discusses the functions of the Islamic financial System including their products and services such as Murabaha, Mudarabah, Musharakah, Bai Salam, Istisna, Ijarah, Sukuk and other instruments. The course will be taught by two professor (Shari'ah Law and Finance). While Shari'ah Law professor explains the principles of each instrument. The Finance professor develops pricing formulas for those derivatives.


MBA/ACC 544 Financial Statement Analysis and Valuation (Prerequisite: MBA 510)

The objective of this course is to provide students with a comprehensive understanding of financial statement analysis fundamentals and valuation. In this course student will learn how to use financial statement analysis to evaluate a firm’s past performance, make judgment about its earnings quality, determine its current financial position, examine the underlying accounting assumptions of its major assets and liabilities, forecast its future prospect and estimate its fundamental value. The core emphasis of this course is on using financial statement analysis for equity valuation purposes. The course has a very practical emphasis. Students will apply methods of fundamental analysis and equity valuation in a serious of assignments and projects using financial data of publicly traded Saudi companies.

MBA 549 Corporate Finance (Prerequisite: MBA 516)

This course looks at theoretical issues in corporate finance and their practical application. Topics include capital structure and the preferences for debt or equity as suggested by agency models, including leases, pecking order theory and timing models; dividend policy; two fund separation theorem, convertible securities and executive compensation; initial public offerings and the under-pricing puzzle; mergers and acquisition, and capital budgeting under risk.

MBA 551 Derivative Securities (Prerequisite: MBA 561)

This course is designed to expand students' understanding of derivative-related financial instruments (forwards, futures and options) and their use in investment and corporate financial management. The course focuses on the usage of these instruments for speculation and tactical asset allocation strategies. Hedging strategies are also covered. Valuation models are explored and used for the purpose of arbitrage. The course develops the basic mathematical tools necessary for analysis and pricing. The course covers forwards, futures, options, and swap contracts, hedging, arbitrage, and derivatives-pricing models like binomial tree and Balck-scholes models.

MBA 553 Bank Management (Prerequisite: MBA 516)

This course is designed to provide techniques for the financial management of commercial banks. Topics include: industry structure, basic asset, liability, liquidity and interest-rate risk management, primary lending functions, pricing techniques, risk management, bank organization and familiarization with international banking, Rules and Regulations, Basel II and III accord and capital management, Financial gap and duration analysis, The purpose and functions of central banking are studied with attention to monetary targets and policies.

MBA 560 Financial Econometrics (Prerequisite: MBA 511)

This course provides introduction to basic principles and tools of econometrics which helps to understand finance theories and their empirical applications. It helps with appropriate statistical software such as SPSS and Eviews for conducting applied financial research. After covering essential theoretical concepts and statistical tools, the emphasis will be on developing and applying regression-based techniques in dealing with financial issues. The first part of the course will cover the fundamentals of probability, statistics, and regression analysis. The second part will cover a set of tools and models which are useful for modeling financial data and testing how markets work and prices are formed. It will introduce ARCH and GARCH models as well as some more recent modeling innovations that allow for the covariance between assets to change through time.

MBA 561 Investments and Portfolio Theory (Prerequisite: MBA 516)

This course provides a comprehensive coverage of Portfolio theory. It aims to provide students with basic knowledge about how financial assets can be combined to give an optimal level of return, given the risk. The course gives a basic insight into portfolio management, which is relevant for banks, insurance companies and pension funds, for example. The course covers both theoretical pricing models for financial assets (CAPM, APT) and methods for evaluating the results of portfolio management. It also covers topics related to market efficiency, performance evaluation of portfolio managers, mutual funds and other investment companies.

MBA 570 Risk Management (Prerequisite: MBA 560)

This course is designed to be an introduction to the concepts, theories and practical applications associated with the measurement and management of financial risk, interest rate and exchange rate risks. The unit introduces students to forward markets, futures markets, and option markets as a means of reducing financial risk. This course also offers an overview of the global financial crisis since 2007. The causes, the consequences, and the rescue measures are introduced and discussed and related to the measurement and management of financial risk.

MBA 580 Insurance (Prerequisite: MBA 511)

This course will present risk exposures with regard to individuals and firms. A wide variety of techniques for reducing risk will be studied including life, property and casualty insurance. Other topics includes; liability insurance, health insurance, employee benefits, social insurance, legal principles, and functional and financial operations of insurers. In addition, the course will examine the problems faced by insurers, such as re-insurance and investment policy. The course will place primary emphasis on issues of interest to the student, with a focus on consumer considerations, coverage of personal risk management and financial planning topics.





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