This comprehensive course provides an in-depth exploration of the fundamental principles and diverse product offerings within Islamic banking and finance, focusing on Shariah-compliant financial systems and their global applications. Participants will gain thorough understanding of the philosophical foundations, contractual frameworks, and operational mechanisms that distinguish Islamic finance from conventional banking practices across different markets. The curriculum covers essential Islamic financing structures including Murabaha, Mudaraba, Musharaka, Ijara, and Sukuk, along with their practical implementations in modern banking and investment contexts. Through detailed case studies and comparative analysis, learners will develop the expertise to design, implement, and manage Shariah-compliant financial solutions that meet the evolving needs of Muslim consumers and ethical investors worldwide.
Principles and Products of Islamic Banking & Finance
Banking, Insurance and Financial Services
October 25, 2025
Introduction
Objectives
Upon completion of this course, participants will be able to:
- Understand and apply core Shariah principles governing Islamic financial transactions
- Differentiate between various Islamic banking products and conventional counterparts
- Structure Shariah-compliant financing solutions using appropriate Islamic contracts
- Navigate regulatory and governance frameworks specific to Islamic finance
- Assess Shariah compliance risks and implement mitigation strategies
- Develop innovative Islamic banking products for diverse customer segments
- Evaluate ethical and social dimensions of Islamic finance practices
- Manage Islamic banking operations per AAOIFI and IFSB standards
- Advise clients on optimal Shariah-compliant investment strategies
Target Audience
- Islamic Banking Professionals and Practitioners
- Conventional Bankers Transitioning to Islamic Finance
- Shariah Advisors and Compliance Officers
- Product Development and Structuring Specialists
- Relationship Managers in Islamic Banks
- Financial Consultants Serving Muslim Clients
- Regulatory and Supervisory Authorities
- Academic Researchers in Islamic Finance
Methodology
- Comprehensive case studies on Islamic product structuring
- Group exercises on Shariah compliance assessment
- Individual assignments on contract documentation
- Syndicate discussions on contemporary Shariah issues
- Role-playing scenarios for client advisory services
- Mini-case studies on Islamic banking challenges
- Comparative analysis of conventional and Islamic products
Personal Impact
- Enhanced understanding of Shariah principles in finance
- Improved ability to structure Islamic financial products
- Stronger Shariah compliance and risk management skills
- Better cross-cultural financial advisory capabilities
- Enhanced ethical decision-making in financial services
- Increased career opportunities in Islamic finance
Organizational Impact
- Access to growing Islamic finance markets globally
- Diversified product portfolio appealing to Muslim clients
- Enhanced reputation for ethical and Shariah-compliant operations
- Improved regulatory compliance in Muslim-majority markets
- Competitive advantage in global Islamic finance industry
- Stronger stakeholder trust and brand integrity
Course Outline
Unit 1: Foundations of Islamic Finance
Shariah Principles and Sources- Primary sources of Shariah: Quran and Sunnah
- Secondary sources: Ijma, Qiyas, and Ijtihad
- Prohibition of Riba and its commercial implications
- Prohibition of Gharar and Maysir in transactions
- Concept of Halal and Haram in financial dealings
- Maqasid al-Shariah and objectives of Islamic law
- Ethical and social dimensions of Islamic finance
- Risk-sharing versus risk-transfer concepts
- Asset-backing and real economic activity requirements
Unit 2: Islamic Contract Law
Fundamental Contract Principles- Essential elements of valid contracts in Islam
- Conditions for contract validity and enforceability
- Types of contracts: binding, non-binding, and options
- Contract termination and dispute resolution mechanisms
- Murabaha cost-plus sale structures and applications
- Mudaraba profit-sharing partnership frameworks
- Musharaka joint venture partnership arrangements
- Ijara leasing and Ijara-wa-Iqtina structures
Unit 3: Islamic Banking Products
Deposit and Investment Accounts- Qard Hasan benevolent loan accounts
- Mudaraba-based savings and investment accounts
- Wakala agency investment structures
- Restricted and unrestricted investment accounts
- Murabaha working capital financing applications
- Ijara asset financing for vehicles and equipment
- Musharaka diminishing partnership for home financing
- Salam and Istisna for project financing
Unit 4: Advanced Islamic Instruments
Sukuk Islamic Bonds- Principles and structures of Sukuk issuance
- Different Sukuk types: Ijara, Musharaka, Mudaraba
- Sukuk pricing, trading, and secondary markets
- Regulatory framework for Sukuk markets
- Islamic syndicated financing and club deals
- Project finance using Islamic principles
- Islamic export credit and trade financing
- Islamic microfinance and SME solutions
Unit 5: Takaful Islamic Insurance
Takaful Models- Fundamental principles of Takaful versus conventional insurance
- Mudaraba and Wakala Takaful models
- Hybrid and Waqf-based Takaful structures
- Takaful underwriting and risk management
- Family Takaful life insurance alternatives
- General Takaful property and casualty coverage
- Medical and health Takaful products
- Retakaful Islamic reinsurance arrangements
Unit 6: Shariah Governance
Governance Framework- Role and composition of Shariah Supervisory Boards
- Shariah compliance audit processes and procedures
- AAOIFI governance standards implementation
- Internal Shariah control mechanisms
- IFSB Islamic Financial Services Board standards
- Central bank regulations for Islamic banking
- Accounting standards for Islamic institutions
- Cross-border Shariah compliance challenges
Unit 7: Contemporary Issues
Modern Applications- Digital Islamic banking and fintech solutions
- Islamic wealth management and private banking
- ESG and sustainable Islamic finance
- Islamic crypto assets and blockchain applications
- Comparative analysis of Islamic banking markets
- Convergence and competition with conventional finance
- Innovation in Islamic financial engineering
- Future outlook and growth opportunities
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