COURSE BACKGROUND

Despite impressive growth in terms of market size and product development, there remains no standard documentation process for structuring Islamic Financial Products like mudarabah, musharakah, murabahah, istisna, salam, ijara, sukuk and Sanduq.

As such, Islamic Finance Training is pleased to bring you a comprehensive 2-day course tailored to provide you with a clear understanding of the characteristics and parameters underlying Islamic financing structures.

The course will be led by a leading practitioner Mr. Sohail Zubairi, allowing you an excellent opportunity to learn and hear about the practical issues through substantive real-life case studies covered. At the end of the course, you will leave with a detailed understanding of the various points of contention over Shariahh documentation and how these issues can be overcome.

This is a comprehensive programme designed to give delegates an all round understanding of the issues involved in Islamic finance. The programme will benefit professionals already involved with Islamic finance, as well as those new to the market. This includes lawyers, financiers, bankers (including those operating under Islamic windows), as well as end investors.

The course is specifically targeted at:

• In House Counsel
• Private Practice Lawyers
• Investment and Corporate Bankers
• Internal Auditors
• Risk Managers
• Compliance Professionals
• All Islamic Banking Professionals
• Senior Management
• Consultants
• Regulators
• Government representatives

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Who Should Attend
This is a comprehensive programme designed to give delegates an all round understanding of the issues involved in Islamic finance. The programme will benefit professionals already involved with Islamic finance, as well as those new to the market. This includes corporate treasurers, financiers, bankers (including those operating under Islamic windows), as well as end investors.

The course is specifically targetted at:

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

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DAY ONE

Islamic Financing Structures: A Review This section is designed to provide delegates with an understanding of the characteristics and parameters of sale, partnership and leasing in Shariahh, covered by the following structures:

• Mudarabah
• Musharakah
• Murabahah
• Istisna
• Salam
• Ijara
• Sukuk
• Sanduq

The course will then focus on specific Islamic financial products. For each of the following products, the course will take the following format:

•  The first section will provide a detailed review of the various points of contention between Islamic and Conventional banks over the Shariahh documentation in a co-financing situation for the product in question.

•  The course director will then work through a substantive case study of a high profile transaction covering all issues usually encountered by the participating Islamic and Conventional banks in a syndicated transaction.

1. Difference between Shariah title and registered title
2. Commencement of lease. Lease termination in case of total damage to the leased asset
3. Use of conventional terms into Islamic leasing documentation
4. Other key Shariah structural issues in facility documentation

DAY TWO

Istisna ( Sale of asset to be Manufactured or Developed)
Shariah Documentation and Legal Issues: Istisna

1. Realization of profit on floating rate basis during the manufacturing / development stage
2. Ownership risks during the manufacturing / development period
3. Inter-dependence of Master and Parallel Istisna
4. What if the seller under the parallel Istisna fails to deliver the asset to financiers?

Case Study: Istisna
The case study will be based on the issues faced in a recently concluded high-profile transaction for extraction and liquification and transportation of natural gas in the Gulf

Question and Answer Session

Murabaha ( Sale with Profit)

1. Responsibilities of an agent bank, representing the participating banks
2. Issues relating to the ownership risks before delivery of the goods / assets to the customer
3. Prohibition on sell-down by a participating financier after the delivery and before the realization of Murabahah proceeds
4. Limitation on realization of financiers' profit based on a floating benchmark

Case Study: Murabahah
The case study will be based on the issues faced by the two sets of banks in a large oil related syndicated transaction in Indonesia

Musharakah (Partnership)

1. Ownership issues faced by conventional banks in a Musharakah
2. Restriction on borrowings by the Musharakah entity
3. Distribution of profit or loss between participating banks and client in the Musharakah. Should the banks share the loss, if any?
4. Transfer of gradual title to the asset in a diminishing Musharakah

Case Study: Musharaka
The case study will be based on a Musharakah transaction where a shopping mall in Sharjah was co-financed by a consortium of Islamic and conventional banks

Question and Answer Session

Group Discussion
The course director will lead delegates in an interactive group discussion on the future growth and development of Islamic finance globally. This will provide an opportunity to discuss issues and challenges facing the sector and how these can be overcome.

Course Review and Conclusion

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EXPERT COURSE DIRECTOR

Mr. Sohail Zubairiis qualified banker, having held senior banking positions in prestigious financial institutions. He has over 2 decades' experience in the Middle Eastern financial market, attained mainly in the Corporate Finance, Project & Structured Finance (bilateral and syndication), Credit Risk Management and Islamic Finance.  

In Credit Risk Management he was instrumental in setting up a focused RMD function at a prime European bank for its GCC operation and a large PJSC with activities including acquisition and takeover.

Mr. Zubairi designed and successfully implemented various innovative Credit and Risk Management tools and provided training to colleagues on their usage and benefits.

He successfully completed acquisitions of various medium to large industrial concerns in the UAE and was instrumental in bringing substantial improvement in their performances by way of introducing new efficiency measures.

Since joining Islamic banking in 2001, Mr. Zubairi has taken several initiatives in promoting the cause, including starting a weekly column (Wednesdays) in Dubai's widely circulated daily 'Gulf News', which is widely read and pasted on their website by numerous law firms and business-portals. In addition, he delivers a weekly lecture to the final year students of a Dubai-based business and finance collage run by Dubai Chamber of Commerce & Industry.

Mr. Zubairi regularly makes presentations in the conferences and seminars on Islamic finance and investment and also holds workshops.         

He has been part of structuring various ultra large and high-profile Islamic financing and investment transactions such as world's largest DCA Sukuk (US$ 1B), Nakheel Sukuk (US$ 350M), DMCC Sukuk (US$ 200M), Emirates Airline leasing (US$ 112M), and various other transactions.

Mr. Zubairi is presently associated with the chief of Sharia Board for Dubai Islamic Bank and looks after the structuring, documentation and product development of the Islamic financing products within the bank.

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DATES & PRICE

Discounts

• Register 3 or delegates for the same programme, and the second and subsequent delegates receive a 7.5% discount each.

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