Islamic Financial Management Course

Course Objective:

•          Developments of Islamic Economics, Banking and Finance.
•          Understanding of the main principles of Islamic banking and finance
•          Identifying a range of commonly used Islamic Financial products and services
•          Considering  the nature and scope of Islamic finance and its relationship with conventional finance
•          Creating awareness of the principles, trends and economic benefits of Islamic portfolios.
•          Critically evaluate the key differences between the Islamic and conventional securities market
•          Examine various risk management tools and techniques from an Islamic point of view.
•          Differentiate between conventional insurance and Takaful
•          Demonstrate practical skills of ethics for Islamic corporate governance.
•          Compare and contrast differences between Islamic accounting and conventional accounting

Course content

•          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