Islamic Banking and Finance Essentials
Islamic finance is built on distinct principles, from the prohibition of riba to the sharing of risk and reward.
About this course
Islamic finance is built on distinct principles, from the prohibition of riba to the sharing of risk and reward. This five-day course explains those principles and the main contracts in use today: murabaha, ijara, musharaka, mudaraba, salam, istisna and wakala.
You will see how Islamic banks offer deposits, financing and treasury services, how sukuk are structured, and how Shariah governance, risk management and reporting work in practice. Worked examples compare each product with its conventional counterpart.
What you'll learn
- Explain the core principles of Islamic finance, including the prohibition of riba, gharar and maysir
- Describe the main Islamic finance contracts and when each is used
- Compare Islamic and conventional banking products and balance sheets
- Outline how sukuk are structured and how they differ from bonds
- Describe the role of Shariah governance and standard-setting bodies
- Identify the specific risks and accounting issues in Islamic banks
Curriculum
- Sources and objectives of Islamic commercial law
- Prohibition of riba, gharar and maysir
- Risk sharing and asset backing
- Islamic and conventional finance compared
- Murabaha and its applications
- Salam and istisna
- Tawarruq and its debates
- Pricing and documentation
- Ijara principles
- Ijara muntahia bittamleek
- Maintenance, insurance and ownership risk
- Musharaka and diminishing musharaka
- Mudaraba
- Profit and loss sharing
- Use in deposits and financing
- Deposit and investment accounts
- Financing products for individuals and businesses
- Treasury and liquidity management
- Wakala and other agency contracts
- What sukuk are
- Ijara, murabaha, musharaka and wakala sukuk
- Sukuk compared with conventional bonds
- Islamic funds and takaful in brief
- Shariah supervisory boards and compliance
- Role of AAOIFI and IFSB
- Displaced commercial risk and rate-of-return risk
- Accounting and reporting considerations
Who it's for
Bank staff, finance professionals and auditors who work with, or are moving into, Islamic financial institutions.
Before you start
No formal prerequisites. Bring curiosity and a willingness to practise.
Part of these Alalamia diplomas
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