Introduction to Islamic Finance

Overview:

Introduction:

This training program provides a concise yet comprehensive overview of the fundamental principles, practices, and principles of Islamic finance. Participants gain insights into Sharia-compliant financial concepts, enabling them to understand, evaluate, and engage in Islamic financial transactions effectively.

Program Objectives:

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

• Understand the fundamental concepts of Islamic finance and its principles.

• Recognize the role of Shariah in guiding financial transactions.

• Analyze the Islamic perspective on wealth and its implications for financial practices.

• Evaluate the growth trajectory and future potential of Islamic finance.

• Apply their knowledge to make informed decisions in Islamic financial contexts.

Targeted Audience:

• Finance professionals seeking to broaden their understanding of Islamic finance principles.

• Banking professionals interested in incorporating Islamic finance practices into their institutions.

• Entrepreneurs and business owners aiming to explore Islamic finance options for their ventures.

• Academics and researchers interested in the intersection of finance, economics, and Islamic principles.

Program Outline:

Unit 1:

Introduction:

• Define Islamic Finance.

• Define Shariah.

• The Islamic perspective of wealth.

• Islamic finance growth and future potential.

Unit 2:

Islamic Law & Contracts: 

• Sources of Islamic Law (Shariah).

• The actions of Islam.

• Common elements of a contract.

• Different ownership categories.

• The classification of contracts.

• Key contract conditions.

Unit 3:

Modes of Finance:

• Prohibition of Interest (Riba) and Prohibition of uncertainty/risk (Gharar).

• How Islamic insurance (Takaful) works.

• Debt and equity-based finance.

• Different modes of finance.

• The difference between Islamic and conventional banks.

• A key consideration when choosing an Islamic product.

• How Islamic housing finance works.

Unit 4:

Regulatory Issues:

• The role of independent Shariah boards?

• Legal and regulatory environment.

• Islamic finance potential. 

Unit 5:

Contemporary Challenges and Innovations:

• Addressing contemporary challenges facing Islamic finance.

• Innovations in Islamic financial products and services.

• Technological advancements in Islamic banking.

• Sustainability and ethical considerations in Islamic finance.