Islamic Finance Training

Structuring Islamic Financial Products

COURSE BACKGROUND

Statistics are routinely quoted to demonstrate the size and, more importantly, potential size of Shariah compliant finance on a global basis. One such estimate is that the market is valued at over US$200 billion, and is expected to grow at 15% per annum. This, linked to the impressive rate of product innovation associated with Islamic finance over the past 5 years has meant bankers, consultants, issuers and investors have been attracted in significant numbers. Benefits of Shariah compliant finance are many: cheaper funding with access to a larger investor base being two of the most important. Investors themselves have shown enormous interest in Islamic finance: in just 2 years, Malaysia has seen the number of Shariah funds operating increase by 85% as the market develops.

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This is a comprehensive program designed to give delegates an all round understanding of the most important and widely offered Islamic financial products. The program will benefit professionals already involved with Islamic finance, as well as those new to the market. This includes corporate treasurers, financiers, bankers (from Islamic banks as well as those operating under Islamic windows), as well as end investors.

The course is specifically targeted at:

Corporate Financiers
Investment Bankers
Corporate and Commercial Bankers
Private Bankers
Analysts
Portfolio Managers
Consultants
Lawyers
Investment Advisors
Regulators
Government representatives
Insurance specialists
Auditors
Risk Managers

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COURSE AGENDA

Islamic Finance and Islamic Economics
Islamic Finance and the Islamic
Economic System:
Shariah and Islamic Finance

Objectives of Shariah
Scope of Shariah

Aptitude
Consent
Balance
Moral commitment/ Ethical Foundation
Shariah permissibility
Viability/reality

Musharakah
Mudarabah
Muzara'ah
Deferred-payment sale
Salam
Leasing

Sharing contracts:

Fairness and balance: No Interruption of Sharing
Implications of Wakalah
Profit per agreement and losses per capital

Exchange Financing Contracts:

Social and contractual justice
Moral boundaries
Level of Disclosure

Lease Contracts:

Flexibility
Amenability to Hybrids

One-Sided contributory Contracts:

Easy Conditions

Traditional Islamic hybrids:

Murabahah
Installment Sale
Investment Deposit
Current Account Deposit

Non-Traditional Islamic hybrids:

Three party Istisnah
Leasing to the purchase orderer
Lease/Purchase
Buy/lease back
Local Tawarruq
Commodity market (International) Tawarruq

Combination of Contracts
Third party Guarantee
Redemption Guarantee: Open Offer
The Rules of Bundling
Relying on Flexible contracts
Output-Sharing Products
Ijarah Instruments

Long-term lease
Purchase/lease
Lease-Financing of Construction projects

Islamic financing versus interest-based financing

Assets that can be securitized:

Fixed physical assets
Inventory
Rights to a material flow
Usufructs
Services
Physical debts: Salam, Istisnah?
Bundles (packages)

Agents of securitization, who can securitize

Islamic and conventional banks
Central banks and monetary authorities
Government and government agencies
International development financing agencies

Process and steps of securitization and Case Studies

Ijarah Sukuk
Service Bonds
Variable-income securities
Output Sharing Securities
Salam Sukuk

Potential of securitization

Islamic Hedging Funds

Currency Hedging
Stock Hedging Funds and Salam

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EXPERT COURSE DIRECTOR

Dr Monzer Kahf has written more than 25 books in English and Arabic, on Islamic banking and finance, Islamic economics, Zakah and Awqaf, including some which have become the standard reference manuals in the field. He has had more than 70 articles and encyclopedia entries published on Islamic economics, Islamic public and private finance, Islamic banking, Zakah, Awqaf, including entries in the Oxford Encyclopedia of the Modern Islamic World.

Dr. Kahf has undertaken scores of training programs and served for 15 years as a Senior Research Economist, specializing in Islamic economics, finance and banking, at the Islamic Development Bank in Jeddah, KSA. His training programs, both public and private, have been conducted throughout the Middle East, Asia, Africa, Europe and North America . In 2001, Dr Kahf was awarded the Islamic Development Bank Prize in Islamic Economics in recognition of his valuable contributions to the sector. Dr Kahf graduated BA in Business from the University of Damascus, Syria, and obtained his PhD in Economics from the University of Utah , Salt Lake City , USA . He is a founding member of the International Association of Islamic Economics and of the Association of Muslim Social Scientists of the United States and Canada .

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