| Description |
Expert Course Director
Dr Taha Eltayeb
Head of Islamic Banking at the Bahrain
Institute of Banking and Finance.
Course Objectives
Islamic finance is emerging as one of the fastest growing areas of international finance. One routinely-quoted estimate puts the value of this market at between US$200 and US$300 billion, with 10-15% annual growth expected over the next five years.
Islamic finance has come a long way since the early days of simple cost-plus structures. New products are emerging all the time, attracting new players and increased investment. However, the rules and conventions governing Islamic finance are significantly different to conventional finance. One of the most important differences is the complete absence of interest, making the structuring of Islamic financial products a complex and daunting task. To be eligible to offer such products, market participants must be well-versed in the groundings of Islamic finance. It is a characteristic of the market that there remains a significant shortage of such professionals.
As such, Islamic Finance Training are pleased to bring you this new, intensive course that will demystify this exciting sector. The 3-day programme will explain the background and most important characteristics of Islamic finance. The course will go on to examine the most commonly structured products, as well as equity investing, Sukuk and Takaful.
Who should attend
This is a comprehensive programme designed to give delegates an all round understanding of the issues involved in Islamic finance. The programme will benefit professionals already involved with Islamic finance, as well as those new to the market. This includes corporate treasurers, financiers, bankers (including those operating under Islamic windows), as well as end investors.
The course is specifically targetted at:
Corporate Financiers
Investment Bankers
Corporate and Commercial Bankers
Private Bankers
Analysts
Portfolio Managers
Consultants
Lawyers
Investment Advisors
Regulators
Government representatives
Insurance specialists
Auditors and compliance
3-Day Course Outline
Islamic Jurisprudence-the main rules:
Figh Al-mamalat.
Riba
Gharar
Jahalah
Maysir
Effects on contracts & Products
Conventional VS. Islamic Finance
An overview of Balance Sheets
Mobilization of Funds by Islamic banks:
Mudaraba Contract:
What is Mudaraba?
Terms & conditions
Al-Wakalah
Terms & conditions
Unrestricted Vs. Restricted Investment Accounts- profit-sharing
o Saving Accounts
o Term Deposits (investment Accounts)
Risks inherent in Mudaraba transactions
Mudaraba Reserves
Case: Shamil Unrestricted Mudaraba Contract (Term Deposits)
Case: IDB Wakalah (agency) contract (Inter-bank Placements)
Quard Hassan contract as basis for Current Account
Murabaha Contract
Principles, terms & conditions
Request based Murabaha
Pricing Murabaha
Collateral, Penalty & re-scheduling
Products Based on Murabaha:
Consumer Finance
Corporate Finance
Inter-bank Placements
Bank funding (commodity Murabaha)
Tawarug
Murabaha VS. term loans
Case: Bank of Beirut Funding Murabaha
Case: GIB & Gulf Air syndicated Murabaha
Risks inherent in Murabaha Based Products
Musharaka:
What is Musharaka?
Principles, terms & conditions.
Types of Musharaka:
o Permanent Vs diminishing Musharaka.
o Scholars Classification (Al-mufawada, Al-anan etc).
Products based on Musharaka:
Corporate finance
Project finance
Musharaka Certificates (Sukuk)- Case of Sudan
Case: Airport cleaning Musharaka (Bank Al-Gazira-Saudi Arabia)
Risk inherent in Musharaka Based products
Ijarah (Islamic Leasing):
What is Ijarah?
Principles, terms and conditions
Islamic Vs. conventional leasing
Pricing Ijarah transactions
Collateral and penalty clauses
Products based on Ijarah:
Corporate Finance
o Case: Jamjoom & Faisal Islamic Bank trucks lease transaction
o Case: Sale-leaseback Islamic transaction (BAIT)
Islamic Credit Cards
o Case: Kuwait Finance House
Sukuk
o Sovereign Sukuk
o Corporate Sukuk
Risks inherent in Ijarah Based Products
Islamic Forward delivery Sale Contracts
Salam and Istisnaa:
What is Salam?
Principles, terms and conditions
Pricing, Collateral and Default
Products based on Salam:
o Crop Finance
o Corporate Finance (Case: Alba Aluminum)
Risk Inherent in Salam Based Products
Istisnaa:
What is Istisnaa?
Principles, Terms and Conditions
Pricing, collateral & Default
Collateral and Penalty clause
Products based on Istisnaa:
o Project and corporate finance.
o Case: Real estate Istisnaa contract
Risks inherent in Istisnaa based products
Structuring Islamic Tradable securities (Sukuk)
Need for Islamic capital/money markets
Reasons for lack of Islamic money market
Main features of money market products
Sharia requirements of acceptable securities
Islamic sukuk-Salam (non-tradable)
Islamic sukuk-Ijarah- Sovereign Sukuk (Bahrain, Malaysia & Qatar)
Islamic Sukuk Ijarah- Corporate Sukuk (IDB)
Equity Investing
Why investing in equity poses a religious concern?
What is Shariah-compliant equity?
Rules governing equity investing
Dow Jones Islamic equity indexes
An Overview of Takaful
Insurance and Islam
Why does conventional Insurance model contradict Sharia?
The Solution: Takaful
Meaning of Takaful
How does a Takaful company work?
Takaful Models:
o Mudaraba Model.
o Wakalah (agency) model
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