Introduction to Islamic Economics and Finance

Overview:

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 understanding of 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.

• Explain 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 and Scholars.

Program Outline:

Unit 1:

Foundations of Islamic Economics:

• Definition and objectives of Islamic economics.

• Key principles: 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:

• Overview of key contracts: Murabahah, Mudarabah, Musharakah, Ijarah, and Salam.

• Structure and applications of Sukuk (Islamic bonds).

• Takaful (Islamic insurance) principles and mechanisms.

• Shariah-compliant investment funds and portfolios.

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:

• Promoting social justice and economic equity.

• The role of ethics in financial transactions.

• Encouraging responsible investment and financial practices.

• Impact of Islamic economics on poverty alleviation.

• Sustainable development through Islamic financial principles.