Course Objectives
- Trainees will be able to learn about various economic systems. Islamic Economic System and its core principles will be discussed in detail and will be able to learn about different aspects of wealth distribution in terms factors of production.
- The concept of interest and its prohibition in Islam will be discussed.trainees will understand the logical reasons for prohibition of Riba in Islam
- The trainer will cover the essentials of Islamic contract.
- Sales contracts will be the focus of the trainer.
- Valid and invalid sales will be differentiated
- The trainer will cover the essentials of conventional bank and its major functionalities as a comparative study from Islamic banking
- The idea of Islamic modes of financing will be discussed.
- Here the focus will be on participating mode of financing.
- Musharakah will be introduced.
- Trainees will learn the basic structure, types, and operations of Musharakah.
- Musharakah will be differentiated from interest-based financing.
- The Trainees will understand the structure, operations, types, and usage, as a mode of financing, of mudarabah and Murabaha in Islamic banking
- Trainees will understand the structure, operations, types, and usage, as a mode of financing, of Salam & Istisna’ in Islamic banking
- they will also understand the structure, operations, types, and usage, as a mode of financing, of Ijarah in Islamic banking. Ijarah will be differentiated from traditional leasing.
- Trainees will understand the structure, operations of various tools of financing and the process of investment securitization in different modes of Islamic financing.
- Trainees will understand the structure, operations, types, and usage, as a mode of financing, of Sukuk in Islamic banking
- Trainees will understand the structure, operations, types, and usage of Takaful in Islamic Financial Markets
Course Main Topics
- Capitalism
- Communism
- Islamic Economic System Capital and
- Entrepreneur
Factors of Production
- Capitalist View
- Socialist View
- Islamic View
- The Objectives of the Distribution of Wealth in Islam
- Eradicating the concentration of wealth
Riba, Its Prohibition, and its Classification
- History and meaning of Riba
- Usury and Riba
- Riba in Qur’an
- Riba in Hadith
- Riba in Fiqh
- Types of Riba
- Rationale for the prohibition of Riba
- Arguments in Favor of Riba
- Arguments against Riba
Islamic Contracts
- Four Basic Rules for Judging the validity of Contract
- Rights, Responsibility, and Obligations in a Contract
- Types of Sales
- Four Elements in valid Sales
- Conditions of Valid Sales
The features of Conventional Banking
Major Activities
- Role of Bank as Agent
- Role of Bank as Guarantor
- Financing Under Profit and Loss Sharing
MODULE II.Islamic Modes of Financing
Musharakah
- Definition of Musharakah
- The Basic Rules of Musharakah
- The Management of Musharakah
- Basic Rules of Distribution of Profit and Loss
- Power and Rights of Partners in Musharakah
Types of Musharakah
- Termination of Musharakah,
- Termination of Musharakah without Closing the Business,
- Distinction between Interest Based Financing & Musharakah
- Diminishing Musharakah
- Meaning and Concept
- Uses of Diminishing Musharaka
- Musharakah Deposits in Banks
Mudarabah and Murabaha
Types of Mudarabah
- Difference between Mudarabah & Musharakah,
- Investment,
- Mudarabah Expenses
- Distribution of Profit and Loss,
- Roles of Mudarib
- Termination of Mudarabah
Murabaha
- Definition
- Basic Structure
- Models of Murabaha as Financing
Salam, Istisna
Salam
- Basic Rules
- Salam
- Purpose of Use
- Conditions of Salam
- Parallel Salam
Istisna
- Concept of Istisna
- Difference between Istisna and Salam
- Istisna as a Mode of Financing,
Ijarah (Leasing) and Applications of Islamic Financing
- Basic Rules
- Lease as a Mode of financing
- Difference between Murabaha and Leasing
- Project Financing
- Working Capital Financing
- Import Financing
- Export Financing
Islamic Investment
- Securitization
- Securitization of Musharakah
- Securitization of Murabaha
- Securitization of Ijarah
Sukuk
- Meaning and understanding
- Advantages of Sukuk
- Challenges of Sukuk
- Parties in Sukuk
- Types of Sukuk
Islamic Insurance (Takaful)
- Understanding and Concept
- Contract of Takaful
- Different Operating Modes
- Difference with conventional Insurance
- Applications