Our Course Contents



What is Islamic Banking?

What are the principles of Islamic Banking?

What are the driving principles of Islamic banks?

The characteristics of an Islamic financial system:-


Risk sharing; profit sharing; loss sharing.

Time value of money Islamically interpreted.

Prohibition of Speculation

ü Sanctity of contract.

Shariah approved activities.

The key characteristics of the liabilities of Islamic banks:-

Current accounts

Saving accounts

Investment accounts

  • Restricted investment accounts
  • Unrestricted investment accounts

Bank capital

Nature of Islamic Contracts

Intermediation contracts:-

  • Mudaraba
  • Kifala
  • Amana
  • Takaful
  • Wikala
  • Ju’ala

Transactional contracts:-

  • Murabaha
  • Bay salam
  • Bay mu’ajal
  • Ijara
  • Istisna
  • Musharaka.




[The One-Day Course contents are included, plus]


v Murabaha

ü What is Murabaha?

ü What are the characteristics of Murabaha?

ü Murabaha terminology.

ü What are the applications of Murabaha?

ü Practical steps in constructing a Murabaha transaction.

ü Bank guarantees with Murabaha.

ü Murabaha and the shariah.

ü How does Murabaha differs from conventional bank lending?

ü What are the risks for Islamic banks providing Murabaha facilities?

v Mudaraba—Tier One and Tier Two

ü What is Mudaraba?

ü What is Mudaraba Tier One?

ü What is Mudaraba Tier Two?

ü Mudaraba terminology.

ü The Two-Tier Mudaraba System

ü What are the similarities and differences between the Two Tiers?

ü Application of Mudaraba.

ü Characteristics associated with Tier-One Mudaraba.

ü Unrestricted and Restricted Mudaraba.

ü Characteristics associated with Tier-Two Mudaraba.

ü Implementation of a Tier-Two Mudaraba.

ü Mudaraba case study.

ü What is the difference between Tier-Two Mudaraba and conventional lending?

ü How does Mudaraba compare with Musharaka?

ü What are the risks for Islamic banks providing Mudaraba facilities?

v  Musharaka

ü what is Musharaka?

ü Characteristics of Musharaka

ü Musharaka terminology

ü Applications of Musharaka

ü Structure of a Musharaka contract.

ü Term structure of Musharaka:-

  • Permanent Musharaka
  • Ø Implementation of Permanent Musharaka
  • Ø Case-study: profitable Musharika
  • Ø Case-study: loss making Musharaka
  • Diminishing Musharika
  • Ø Implementation of Diminishing Musharaka.
  • Temporary Musharaka

ü What are the risks with Musharaka partnership?

ü What is the difference between Musharaka and Mudaraba?

v Ijarah and Ijarah-wa-Iktina

ü What is Ijarah?

ü What is Ijarah-wa-Iktina?

ü Ijarah: operational leasing

ü Ijara terminology

ü Application of Ijarah

ü Advantages of Ijara over bank borrowing.

ü Characteristics of Ijarah.

ü Case study

ü Implementation of Ijarah.

ü Why is Ijarah-wa-Iktina Shariah compliant?

ü What is the difference between Ijarah and Murabaha?

v Istisna and Parallel Istisna.

ü What is Istisna?

ü What is Parallel Istisna?

ü The characteristics of Istisna

ü The characteristics of Parallel Istisna.

ü Istisna terminology

ü Application of Istisna

ü Implementation of Istisna and Parallel Istisna.

ü Why is Istisna Shariah compliant?

ü What are the banking risks associated with Istisna contracts?

v Salam and Parallel salam

ü What is Salam?

ü What is Parallel Salam?

ü The characteristics of Salam?

ü The characteristics of Parallel Salam.

ü Salam terminology.

ü Implementation of Salam and Parallel Salam

ü What are the critical limitations of each of these contracts?

ü What is the difference between Salam and Murabaha?





[The Two-Day Course contents are included, plus]

v Shariah Boards

ü What are the common Shariah principles underlying all Islamic financial instruments?

ü The key questions the Shariah Boards ask

ü What are the problems with the fatwas issued  by Shariah Boards?

ü Jurisprudence issues affecting Capital Markets.

ü Characteristics of key Capital  Market Instruments acceptable to the Shariah Boards.

v Islamic Capital Market Instruments

ü The hierarchy of Capital Markets: where do Islamic Products fit?

ü Is it halal or haram for Muslims to invest in the stock market?

ü Are companies with debt related activities excluded from Islamic investment portfolios?

ü What are the Islamic investment purification principles?

ü Commodity Morabaha

ü Islamic leasing

ü Islamic Equity Market Funds

ü Real Estate Investment Trusts

ü Islamic Hedge Funds

ü Islamic Rating Systems

ü Islamic Market indices:

  • Dow Jones Islamic Market Index (DJIM)
  • FTSE Global Islamic Index Series

ü Factors affecting innovation in Islamic banking and Capital markets.

v Islamic Securitization

ü Securitization for conventional banking products

ü Securitization for Islamic banking products

ü The driving forces behind securitization

ü What are the Shariah requirements for securitization?

ü Securitization structures, pass-throughs, Asset backed bonds, pay-throughs.

ü Ownership conveyance issues

ü Credit enhancement issues.







[The Three-Day Course contents are included, plus]

v Sukuk: Islamic Bonds

ü Sukuk basis

ü How do sukuk differ from conventional bonds

ü AAOIFI Sukuk Standards

ü How have Sukuk evolved?

ü Alternative Sukuk Structures

ü Sukuk and the private sector

ü Rating Sukuk

ü Risks associated with Sukuk

ü Case studies.




[The Four-Day Course contents are included, plus]


v Risk in Islamic banking

ü What are the risks faced by Islamic banks which are not faced by conventional banks?

ü Business risks:- displaced commercial risk, withdrawal risk, solvency risk

ü Governance risks:- fiduciary risk, operational risk, transparency risk.

ü Transaction risks:- credit risk, market risk, mark-up risk.

ü Treasury risks:- asset and liability management, liquidity risk, hedging risk.

ü Systemic risks:- regulatory risk, business environment risk, institutional risk.

ü CAMEL ratings for conventional and Islamic banks.

v Asset, Liability and capital Adequacy issues for Islamic banks

ü Liquidity management in conventional banks

ü Liquidity management in Islamic banks

ü Shariah requirements for Islamic Money Market Instruments.

ü Liability management in conventional banks

ü Liability management in Islamic banks

ü Asset management for conventional banks

ü Asset management for Islamic banks

ü Capital adequacy for conventional banks

ü Capital adequacy for Islamic banks

v Islamic Banking Business Model

ü What are the implications for Islamic banks using Profit and Loss share [PLS] principles?

ü What does the finance literature tell us about debt finance and PLS finance?

ü Agency problems, asymmetric risk and moral hazard issues

ü Problems associated with with PLS in practice

ü Agency theory solution for conventional banks and for Islamic banks.

v Challenges for Islamic Banks

ü Lack of uniform regulatory framework

ü No single totally Islamic financial center

ü Slow pace of innovation

ü Accounting issues not resolved

ü Inconsistent Shariah rulings

ü Corporate governance

ü Structure of the Industry

ü Personnel and training issues

v Islamic Financial innovation

ü Financial innovation for conventional banks

ü Financial innovation for Islamic banks

ü Barriers to entry within Islamic financial markets

ü Stages of financial innovation for Islamic banks

ü Which Islamic financial innovations have succeeded and failed?

ü Securitization and financial innovation

ü What are the pressures of Islamic  financial innovation?

ü What are the special factors affecting Islamic financial innovation?

ü Financial engineering for Islamic products.

ü Applying the Porter Model to Islamic banks.

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