About Workshop
Sharia Issues, Techniques and Practices
Islamic finance is becoming increasingly attractive as a sector and it is impossible to work efficiently in finance ignoring this sector. All economic indicators prove that Islamic finance has reached a critical mass and changed from just a “market niche” to a main component of the field of finance.
As sharia’a issues stand at the heart of Islamic finance, being compliant with sharia’a is imperative for Islamic financial institutions. A diverse collection of techniques are available to carry out Islamic finance and insurance businesses and making profit while conforming to Islamic financial principles. This course is designed to introduce the participants with key sharia’a laws applicable in finance and insurance. The course also will provide a very good understanding of different techniques that are being practiced by today’s modern Islamic financial institutions.
At the end of the course, the participants will be able to understand—
• All Sharia’a principles relevant to Islamic finance and insurance;
• Islamic commercial jurisprudence and Islamic law of contracts;
• Different traditional and newly invented Islamic financial techniques used by banks and Islamic financial institutions.
• The features financial statements of Islamic Banks and understand how to prepare financial statements considering zakat issues;
• Principles of Islamic corporate governance;
• Islamic Asset and Fund Management;
• Sukuk-Islamic Bond;
• Takaful- Islamic Insurance
Workshop topics to be covered:
SESSION 01
The Basis of Islamic Banking and Finance
Islamic Banking and Finance: Conceptual Framework
Islamic Fundamentals
An Introduction to Islamic Banking and Finance
The History of Islamic Finance
The Structure and Scope of the Islamic Finance Industry.
Islamic Law of Contracts
Islamic Teachings Related to Business
The Islamic Law of Contract
Contracts of Exchange
Contracts allowing the transfer of the usufruct (right of using an asset)
Partnership and Security Contracts;
Wakala (Agency Contract)
SARF- The Rules regarding foreign exchange.
SESSION 02
Financial Techniques Applied by Islamic Banks
Sources and uses of funds;
Fixed income versus Profit-loss sharing modes of finance;
Mudaraba, Musharaka and Murabaha – Sharia’a standards;
Contracts
Ijara and Ijara Muntahia Bitamleek
Salam and Parallel Salam
Istisna’a and Parallel Istisn’a
Off-balance sheet financing.
SESSION 03
Financial Statements for Islamic Banks
Conceptual framework of IFRS;
Basic Principles of Accounting—The UK case;
The need for Islamic Accounting Standards;
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
The Accrual Accounting method;
Islamic Corporate Governance
Mechanisms of corporate governance
The corporate governance debate: The UK/US approach versus that of continental Europe
Islamic Financial Institutions: The need for a different approach
Corporate governance implications for Islamic Insurance (TAKAFUL)
SESSION 04
Islamic Asset and Fund Management
Principles and Constraints of Islamic Investing
Islamic fund structures
Islamic investment products: Risk-Reward profile
The Islamic stock selection process
Islamic fund performance
Liquidity strategies
Structure, Marketing and Distribution
Incorporation, Authorisation and Regulation
The Sharia’a Board and Islamic fund management
SESSION 05
The Islamic Bond Market - Sukuk
Definition, Management and Characteristics of Sukuk
Structuring sukuk transactions
Sukuk: AAOIFI Standards
Capital Market considerations relating to Sukuk
Islamic Insurance: Takaful
Introduction
Types of Takaful undertaking
Structure of Takaful Undertakings
Underwriting surplus and technical provisions
Insurance industry considerations
Reinsurance and Retakaful
Sharia’a governance and compliance
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