Islamic Finance & Capital market Short courses

Islamic Finance & Capital market
Short courses


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,


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


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


The insurance industry is an important sector in the conventional markets and Takaful has become the rapidly emerging field of insurance industry. TAKAFUL has been growing over 25% in recent year superseding conventional insurance of 10% growth both in life insurance and in commercial insurance. Re-Takaful growth

• 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

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 assets,
• Liabilities Disclosure
• Balance Sheet Structure ad analysis
• Basel III account reporting requirements for Islamic Banks

Global Finance and regulations

9- Basel II & Base III for Islamic Banks

Basel III in Islamic Banks
• An overview of the Basel II
• The new minimum capital requirement
• Capital conservation buffer
• Counterparty credit risk
• Liquidity risk management
• Loss based provisioning

Operational Risk for Islamic Banks
• The identification of operational risk
• The key issues of operational risk
• Operational loss database
• Developing key risk indicators

Basil III and Capital Management Strategies in Islamic Banks
• Risk based economic capital and capital management
• Risk Adjusted Performance Measurement
• The internal capital adequacy assessment process
• The implications of Basel III for Islamic Banks
• Liquidity changes impact the Islamic banking model
• The implications of Basel III for risk and capital management strategies
• Basel III implementation challenges

Capital Market & conventional banking

10- The Regulatory Response to the Global Banking Crisis
• Market efficiency,
• Securitisation,
• Market discipline,
• Quantity and quality of bank capital,
• Hybrid capital,
• Trading book capital, monetary and fiscal policy,
• Macro-prudential regulation and counter-cyclicality,
• Cyclical capital buffers,
• Gross leverage ratios,
• New supervisory approach,
• Bank risk management –
• Firm skills, processes and structures,
• Utility banking and investment banking,
• Group-wide liquidity,
• Cross-border banking.

11- Capital Management
• Market and credit risk management,
• Basel II,
• The IRB approach,
• Model validation,
• Capital quality,
• Basel II7III Tier 1 capital ratio v tangible equity to tangible asset ratio,
• The role of CRAs,
• Stress testing,
• Asset encumbrance,
• The ongoing role of securitisation,
• Capital allocation between business units

12- Liquidity Management
• The New FSA Liquidity Regime,
• Individual Liquidity Adequacy Standards (ILAS) and Individual Liquidity Guidance (ILG),
• Liquidity risks and mitigates,
• Measurement and reporting,
• Sources of funding,

13- Investment complaints
• Anti-Money Laundering Issues
• Market Abuse Issues
• Communicating Compliance
• How to build and develop a world class Compliance Function
• Conflicts of Interest
• Influencing and Negotiation Skills for Compliance Officers
• Advanced Risk Management for Compliance Professionals

14-Trading and Compliance
• Current Regulatory and Compliance Challenges in Investment Banking
• Distinguish between exchange-traded and OTC interest rate derivatives
• Price and settle an interest rate swap
• Structure a basis options strategy
• Hedge and arbitrage forward foreign exchange positions
• Understand how to trade volatility
• Gain a practical understanding of option pricing
• Learn to be an options market maker
• Learn to hedge the volatility risk of an options portfolio
• Get hands-on experience of trading options using state-of-the-art simulation software
• Learn standard option trading strategies with the CME strategy guide
• Benefit from a practitioner-led approach

15-Commodity fundamentals

• Identify the links between different commodity markets
• The main traded commodity markets
• Why commodity markets are essentially forward markets
• Forward pricing
• The concept of a forward price
• Why normal forward pricing conditions do not apply in commodity markets
• Conditions of contango and backwardation and the situations in which they are most likely to occur
• The main commodity participants and their likely activity along the forward curve
• Financial market participants
• How market participants can invest in commodities (e.g. index funds vs. ETPs vs. MTNs)

• The main commodity indices used by the market

• The main sources of return from index investing (i.e. the concept of the roll yield)

• The main features of exchange traded products
• Structured commodity products

16-Sales Contracts, Conventional and Islamic

• Conventional sales contracts
• Murabahah/Bai bi Thamin al Ajil as Credit Instruments
• Tawarruq and Bai Al Ainah concepts
• Original Tawarruq
• Organized Tawarruq and London Metals contracts

Mixing Sales Contracts with Other Forms
• Why do they seem to be favored by some Islamic scholars?
• What are the salient features for pricing these concepts?
• How can they be used to meet simple cash flow needs of companies and fit within banking regulations?
• How could we combine them with the sales contracts?

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