Course Details
Course Outline
10 days course
An introduction to Islamic financial markets
- Provision of sharia’a compliant financial services.
- Defining the Islamic financial market
- The rationale for growth in sharia’a compliant financial services
- Islamic finance:
- Gharar and maysir (uncertainty and speculation) in Islamic finance
- understanding the core principles of Islamic investment and finance
Rules that recur in structuring for Islamic finance.
- Islamic law
- Understanding the role and importance of the sharia’a
- Islamic vs. conventional finance
- Prohibitions under Islamic law
- Process of structuring a sharia’a compliant product
- Understanding Islamic finance guidelines
Understanding Islamic finance asset classes
- Murabaha contracts (sales)
- Defining murabaha contracts
- Murabaha on credit – deferred payment
- Late payment treatment
- Murabaha syndicate trade mechanics
- Revolving murabaha
Islamic finance products
- Letters of credit and guarantees in Islamic finance
- sharia ’a perspective
- Role of wakala and kafala in developing the structure
- Islamic credit cards
- Rules governing sharia’a compliance for credit card finance
- Credit card features and sharia’a hotspots
Islamic finance asset classes
- Ijara (leasing) in Islamic finance
- Jara muntahia bi tamleek
- salam (forward sales) in Islamic finance
- Defining the forward contract
- Parallel salam
- istisna (construction or manufacturing)
Defining the istisna contract
- Parallel istisna
- AAOIFI and IFSB standards
- Applications in the modern world
- organizational structures for Islamic finance
- Profit and loss sharing contracts in Islamic finance: musharaka and mudaraba
- Broad Islamic rules for profit sharing
Musharaka (partnership),Mudaraba (silent partnership)&Wakalah (agency)
- musharaka and mudaraba
- Key ideas behind Sharia’a compliant business organisation
- Applications and considerations for wealth management and private banking
- Understanding the application of core Islamic finance principles
- Screening issues
- Considerations for the investment manager working in Islamic finance
Providing clients with sharia’a compliant financial products
- Islamic finance & advisory services
- Islamic finance fund management challenges
- Stock market funds
- Islamic hedge funds
- Islamic finance capital markets
- Structure of Islamic finance capital markets
Understanding financial risk management
- Limitations on derivatives in sharia’a and Islamic finance
- Risk and sharia’a compliance
- Managing profit, yield, market and foreign exchange risks in Islamic finance
- Islamic finance: regulatory and capital issues
- Main regulatory bodies for Islamic finance
Key regulatory bodies and the international financial system
- Regulatory challenges for Islamic financial institutions
- Profit sharing deposits – equity, debt or quasi-equity
- Displacing commercial risk
- Understanding instrument risk in Islamic finance
