INTRODUCTION

This course provides participant with a thorough grounding in Islamic finance. The course covers the principles behind Islamic finance and the relationship between Islamic and conventional financing. During the course participants will explore recent history and trends in Islamic finance. Course participant are also provided with the opportunity to learn how to structure cash flows for Islamic finance.

COURSE OBJECTIVES

At the end of course participants should be able to:

• Understanding of the main principles of Islamic banking and finance
• Developments of Islamic Economics, 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.

DURATION

10 Days

WHO SHOULD ATTEND

The course targets:

• Directors
• Managers
• Operations staff
• Marketing persons
• Shari'ah scholars
• Auditors

 COURSE CONTENT

Module 1

• 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

Module 2

• 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

 Module 3

• 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

Module 4

• 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

Module 5

• 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)

 Module 6

• 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

Module 7

• 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

Module 8

• 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

 Module 9

• 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

 Module 10

• 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

GENERAL NOTES

• This course is delivered by our seasoned trainers who have vast experience as expert professionals in the respective fields of practice. The course is taught through a mix of practical activities, theory, group works and case studies.
• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.
• We can also do this as tailor-made course to meet organization-wide needs. Contact us to find out more: training@data-afriqueconsultancy.org
• The training will be conducted at DATA-AFRIQUE TRAINING CENTRE, NAIROBI KENYA.
• The training fee covers tuition fees, training materials, lunch and training venue. Accommodation and airport transfer are arranged for our participants upon request.
• Payment should be sent to our bank account before start of training and proof of payment sent to: training@data-afriqueconsultancy.org