Islamic Banking & Finance

Learn Islamic Banking & Finance to understand Shariah-compliant financial systems, banking principles, and ethical investment practices for professional growth.

Mode

Online & On-Site

Course Fees

30000

Duration

02 months

Certificate Of Completion

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Skills You'll Gain

Islamic Banking

Shariah Finance

Islamic Contracts

Takaful

Financial Compliance

What You'll Learn

Course Content

72 Learning Hours

1. The Main Principles of Islamic Economics and Shariah Boundaries

Shariah: Key to understanding Islamic banking
Seeking guidance from Quran and Sunnah and other sources of Islamic Law
The concept of Lawful and unlawful as per Shariah
Objectives of Islamic Economics and Finance
Adl and Ehsan; Distributive Justice
Market forces and the Role of the State and Regulators
The concept of Mal, wealth and the nature of money
Basic Prohibitions:
RIBA- DEFINITION AND INTERPRETATION
GHARAR
JAHL, GAMBLING, (MAISER AND QIMAR)
PROHIBITED ACTIVITIES

2. Basic Concepts & Philosophy of Islamic Banking

Characteristics of Islamic financial system: –
Principles governing loans and debts
Risk sharing /profit sharing (Al Kharaj bid Damam)
Assets backing and value addition
Time value of money in Islamic perspective
Sanctity of contracts
Shariah approved activities
Categories of Islamic Modes

3. Islamization Of Financial System In Pakistan

Global View Of Islamic Banking

- IB Models and Business nature
- Sudanese Model
- Bahrain / Middle East Model

4. International Institutions Dealing With Islamic Banking And Finance

Islamic Law of Contracts and Principles of trading:

- Introduction to Islamic Law of Contract
- Types of sales
- Sale of Assets (corpus) Versus sale of their usufruct
- Valid and invalid sales
- Possession of goods
- Sales and transfer of ownership
- Rules in Exchange of currencies (Bai as-Sarf)
- Exchange of the counter values
- Trading in goods vs. trading in money
- Differentiating trading, Riba based lending and leasing
- Khiyar (option for rescinding the sale contracts)

5. Accessory Modes

Jua’alah
Wakalah
Amanah
HAWALAH (Assignment of debts)
Kafalah (Guarantee)

6. Murabaha As A Financing Mode

Murabaha terminology and its variants
Characteristics and essentials of Shariah compliant Murabaha to Purchase Orderer
Practical steps for Murabaha transactions
Promise / request by the client
Agency contract and Murabaha
Agreement to sell and sale agreement
Stages, process and sequencing in Murabaha
Commodity Murabaha- applications
Murabaha and default by solvent / insolvent purchase-debtor
Difference between Murabaha based financing and conventional bank lending
Risks for Islamic banks in Murabaha transactions

7. Musawamah – Concept and Scope

Scope and application of Murabaha with case studies
Difference between Murabaha and Musawamah
Scope of Musawamah

8. Shirkah And Musharaka

Terminology of Musharakah
Characteristics of Musharaka
Types of Musharaka:-
Structures of Musharaka:-
Permanent Musharaka
Temporary (Redeemable)Musharaka
Diminishing Musharaka
Basic Rules in Musharaka
Termination of Musharaka
Constructive liquidation of Musharaka
Security / collateral in Musharaka
Musharakah Management and Liability
Profit / Loss Distribution
Application of Musharaka as a mode
Problems and Risks for banks in Musharaka Financing

9. Mudaraba

Mudaraba defined
Mudaraba Capital
Profit / Loss distribution
Appreciation in Mudaraba Capital
Mixing of Funds by Mudarib
Mudaraba distinguished from Musharaka
Termination of Mudaraba
Scope of Mudaraba for banking system
Problems and Risks for Islamic banks providing Mudaraba based financing

10. Concept of Ijarah (leasing)

Definition and juristic rules of Ijarah
Difference between Ijarah and Murabaha
Ijarah-operating lease

11. Ijarah as a mode of financing – Islamic Banks’ Ijarah Muntahia Bittamleek

- Shariah compliance aspects of Ijarah; Practical Issues in Ijarah
- Diminishing Musharakah
  - Concept of Diminishing Musharaka (DM)
  - DM in Shirkatul Milk or Shirkatal Aqad
  - DM and rules in respect of combination of various contracts
  - Basic features and Shariah Essentials of Diminishing Musharaka
  - Steps with sequencing in Diminishing Musharaka
  - Lease rentals in Diminishing Musharaka
  - Unilateral Promise and transfer of ownership title
  - Diminishing Musharaka as a financing mode

12. Concept of TAKAFUL AND Status of Takaful Industry

Role of insurance / takaful in islamic banking business
Basic concept of takaful
How it is different from insurance
Models of takaful
Islamic banks responsibilities in respect of takaful

13. Issues in Islamic Credit Cards

Characteristics of various cards
Use of various modes for various cards
Shariah rulings on various cards
Payment through cards and ‘Possession’ of goods traded
Purchasing gold, silver, currencies by using credit cards
Fee charging from the Card Holders
Commission charging from the merchants / businesses

14. Salam / SalAf

Salam : Definition and concept
Rules for Valid Salam Contract
Difference between Salam and Murabaha
Parallel Salam
Unilateral promise to sell Salam goods to third parties
Sale of Salam goods through agent
Salam combining with Murabaha
Risks in Salam application
Revoking the Salam Contract
Penalty for non performance
Scope and Potential of Salam

15. Istisna´a And Istisna´a Based Infrastructure

Financing

- Concept and definition of Istisna´a
- Rules for valid Istisna´a contract
- Difference between Salam and Istisna´a
- Parallel Istisna´a
- Application of Istisna´a and Parallel Istisna´a
- Risks associated with Istisna´a

16. Application of the System on Deposits & Assets Side

Funds/Resource Mobilization

Risk Averse and Risk Friendly Depositors
Profit and Loss distribution mechanism
Deposit mobilization and Product development
Current Accounts, Investment Deposits
Certificates of Deposit/Term Deposits, and COIs etc.
Fund management on Mudaraba and Wakalahtul istismar principle
Mutual Funds
Assets Side:
Working Capital Finance
Project Financing
Import Financing
Export Financing

Why take this course ?

Industry-Relevant Knowledge

Learn modern Islamic banking practices.

Shariah Compliance Focus

Understand ethical and Islamic financial principles.

Professional Development

Enhance expertise in Islamic finance.

Growing Career Opportunities

Prepare for careers in Islamic banking and financial institutions.

Frequently Asked Questions

Will I learn the difference between Islamic and conventional banking?

Yes. The course explains the philosophy, structure, and operational differences between both systems.

What Islamic financing modes are covered?

The course covers Murabaha, Musawamah, Musharakah, Mudaraba, Ijarah, Salam, Istisna, and Diminishing Musharakah.

Does the course include Takaful?

Yes. Participants will learn the concept, structure, and role of Takaful in Islamic finance.

Will I receive a certificate?

Yes. Participants will receive a Certificate of Completion upon successfully completing the course.

Islamic Banking & Finance

Mode

Course Fees

Duration

Certificate Of Completion

Skills You'll Gain

What You'll Learn

Course Content

Why take this course ?

Industry-Relevant Knowledge

Shariah Compliance Focus

Professional Development

Growing Career Opportunities

Frequently Asked Questions

This Course Includes

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