Diploma Islamic Banking and Finance (8 Modules)

1 – INTRODUCTION TO ISLAMIC FINANCE

A detailed understanding of Islamic finance terminology and principal within instrument in of conventional finance as well as the recent international actions to Islamic finance engineering Sukuk, hedge funds and capital market products, and overview of Islamic finance from the perspective of conventional finance.

• Understanding Shariah law
• Characteristics of Shariah Financing Contracts
• Principal Islamic Finance contracts
• Securitization
• Islamic Financial Engineering Sukuk
• Hedge funds
• Islamic capital market products
• Sales Contracts,

2 – SUKUK CONTRACTS – DESIGN, ISSUANCE AND TRADING

A detailed examination of this most widespread type of Islamic finance instrument in comparison with conventional debt issuance and trading as well as the recent international actions to encourage Sukuk issue in conventional capital markets

• Project Finance
• Conventional Bond Design
• Sukuk
• Types of Sukuk
• Sukuk Issuance
• Sukuk Development
• Islamic Indices

3 – RISK MANAGEMENT AND PRODUCT INNOVATION

Analysis of two related topics – the management of risk and the creation of new, usually securitized products.

• Risk Management in the conventional financial market
• Risk management in Islamic finance
• Liquidity Management
• New Products in Islamic finance
• Bonds and the Future of Securitization
• Islamic Innovation
• Basel III in Islamic Banks
• Operational Risk for Islamic Banks
• Basil III and Capital Management Strategies in Islamic Banks

4 – INSURANCE AND TAKAFUL

Detailed examination of the widespread type of Islamic insurance “TAKAFUL” comparison with conventional insurance and re-insurance. TAKAFUL has been growing over 25% in recent year superseding conventional insurance of 10% growth both in life insurance and in commercial insurance. The insurance industry is an important sector in the conventional markets and Takaful has become the rapidly emerging field of insurance industry.

• Conventional insurance
• Introduction to Islamic Takaful and Insurance Markets
• Mutual Insurance
• Takaful and insurance market
• Takaful and conventional insurance co-operation
• Re-Takaful business
• Risk management in Takaful
• Solvency and Capital Adequacy
• Waqf and Islamic Trusts

Islamic Finance Diploma (IFD)

5- corporate governance and related issue

Islamic Contracts and Corporate Governance for Islamic Financial Institutions The aims of this module are to provide delegates with a clear understanding of how and when different types of Shari’ah compliant contracts should be applied and the corporate governance issues raised by the structure of Islamic financial institutions (banks, insurance undertakings and collective investment schemes).

• Classifications of nominate contracts by type of application.
• Functional need and type of contract
• Overview of Corporate Governance and forms of Islamic financial institutions
• Corporate Governance and transparency issues in Islamic banks
• Financial reporting for Islamic banks and the review process
• Governance issues in Islamic Collective Investment Schemes (ICIS)
• The general problems of financial regulation and supervision in emerging market environments

6- Islamic Project finance and Transactions

This course examines the structure of the most important Islamic finance contracts and their application in project finance transactions. It compares and contrasts the different applications of Islamic products in project finance and the important regulatory, insurance, ratings, and risk issues that accompany them.

• Review of Key Islamic Concepts and Business Applications
• Business concepts that require project finance
• Contrast between Islamic and conventional project finance
• Other forms of Islamic project finance
• Hedging Review and Suggested Methods
• Alternative investment for project finance
• Structuring Islamic funds for project finance
• Structuring Sukuk for project finance
• Islamic Bank Risk identification and management
• Important issues for Islamic project finance

7- Islamic Asset Management

An Islamic bank may have different priorities, in terms of investment, fund structure, administration and return, than does a conventional bank. However, both types of institution face the same market and credit risks, and effective treasury and asset/liability management is as vital for Islamic banks as it is for their conventional counterparts. This course examines the ways in which the different structures within Islamic finance present opportunities treasury teams to make returns and to manage risk.

• Concept of asset portfolio management
• Shari’ah Compliant fund management
• Hedging
• Shari’ah compliant private banking and asset management services
• Principles of Islamic credit sales
• Islamic Bank Balance Sheets and Management
• Managing Currency Risks
• Managing Profit Rate and Other Non-currency Risks
• Islamic Mutual funds
• Islamic pension funds

8- Account reporting for Islamic banking & finance

Key concept of an Islamic bank
• AAOIFI Accounting & Risk Management
• IFSB Standard
• Shariah framework for compliance review and audit
• Regulation & governance role of Shariah board
• Shariah Audit Role & Reporting
• General lay out of Balance Sheet
• Disclosure
o Disclosure of assets
• Liabilities
o Disclosure of liabilities:
o Analysis of the Balance Sheet Structure
• Basel III account reporting requirements for Islamic Banks