Introduction to Islamic Economics and Finance

Introduction:

Islamic economics and finance offer a unique approach to wealth management and economic transactions based on Shariah principles. This system emphasizes ethical practices, social justice, and risk sharing to promote fairness and sustainability in economic activities. This training program provides a foundational knowledge on Islamic economics and finance, exploring key principles, financial instruments, and the differences between Islamic and conventional systems.

Program Objectives:

By the end of this program, participants will be able to:

• Explore the core principles of Islamic economics and finance.

• Identify key Islamic financial instruments and their applications.

• Differentiate between Islamic and conventional financial systems.

• Assess the ethical and social justice aspects of Islamic economics.

• Recognize the role of risk sharing and prohibition of Riba (interest).

Target Audience:

• Islamic Bankers and Financial Professionals.

• Policy Makers and Regulators.

• Shariah Advisors.

• Economists and financial analysts.

Program Outline:

Unit 1:

Foundations of Islamic Economics:

• Definition and objectives of Islamic economics.

• Key principles including justice, equity, and risk sharing.

• The role of wealth distribution and social welfare.

• Ethical considerations in economic activities.

• Differences between Islamic and conventional economic systems.

Unit 2:

Core Concepts in Islamic Finance:

• Prohibition of Riba (interest) and Gharar (uncertainty).

• The importance of profit-and-loss sharing (PLS).

• The concept of Halal (permissible) and Haram (prohibited) transactions.

• Zakat (obligatory almsgiving) and its economic impact.

• The role of Waqf (endowment) in Islamic economics.

Unit 3:

Islamic Financial Instruments:

• Institutional contracts including Murabahah, Mudarabah, Musharakah, Ijarah, and Salam.

• Structural models and regulatory dimensions of Sukuk (Islamic bonds).

• Principles and mechanisms governing Takaful (Islamic insurance).

• Frameworks of Shariah compliant investment funds and portfolios.

• Comparative analysis of conventional and Islamic financial instruments within governance systems.

Unit 4:

Islamic Banking and Finance Systems:

• Introduction to Islamic banking operations.

• Differences between Islamic and conventional banking models.

• The role of Shariah Supervisory Boards (SSBs).

• Regulatory frameworks and global standards in Islamic finance.

• Challenges and opportunities in the growth of Islamic finance.

Unit 5:

Ethical and Social Dimensions of Islamic Economics:

• Frameworks of social justice and equity in Islamic economic systems.

• Ethical principles regulating financial transactions.

• Institutional structures for responsible investment and financing.

• Role of Islamic economics in addressing poverty and inequality.

• Sustainable development models grounded in Islamic financial principles.