Structuring Islamic Transactions

Ashraf Muneeb

Gain a deep understanding of the foundational theories of Islamic finance through exploring the characteristics of a wide range of Islamic contracts and their applications. Topics include modern corporations, possession, defaulting, guarantees, collateral, bonds, and loans.


ISF121-220x220
Department
Starting From
TBA
Duration
5 weeks
Price
TBA

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At-A-Glance

  • Gain a deeper understanding of the foundational theories of Islamic finance
  • Develop both the knowledge and skills necessary to understand both modern conventional and Islamic financial markets
  • Appreciate the Shariah principles and parameters by which you can structure Islamic products
  • Identify the different stipulations and rules regarding giving and taking loans
  • Understand the nature and practices of collateral as practiced by Islamic institutes
  • Learn about the investment option of sukuk
  • For the average person who wants a deeper understanding of Islamic finance, and also for people who want to understand alternative solutions to conventional banking, bank employees involved in Shariah transactions, employees of Islamic and conventional insurance companies, and investors who want to invest in a Shariah-compliant manner

 

Details

Islamic finance is a complex and vast topic. At the root of it, however, are fundamental Shariah standards and principles that are essential for anyone involved in banking or investing to properly understand. Modern Financial Transactions covered the basics of buying, banking, and investing the Halal way. This course will take the concepts you learned a step further by giving you a deeper understanding of the foundational theories of Islamic finance.

Structuring Islamic Transactions provides an invaluable opportunity to develop both the knowledge and skills necessary to understand both modern conventional and Islamic financial markets. Through understanding the characteristics of a wide range of Islamic contracts and their applications, you will be able to recognize and follow Shariah standards for finance. Lessons will cover modern corporations, possession, defaulting, guarantees, collateral, bonds, and loans.

By the end of this course, you will be able to appreciate the Shariah principles and parameters by which you can structure Islamic products. You will be able to identify the different stipulations and rules regarding giving and taking loans. You will gain insight into the nature and practices of collateral as practiced by Islamic institutes. You will understand the investment option of sukuk and its advantages and disadvantages. Finally, you will be able to explain the major Islamic banking instruments.

This course is for the average person who wants a deeper understanding of Islamic finance. In particular, it is perfect for people who want to understand alternative solutions to conventional banking, bank employees involved in Shariah transactions, employees of Islamic and conventional insurance companies, and investors who want to invest in a Shariah-compliant manner. The course is a prerequisite for the next level course covering takaful (insurance), waqf (endowment), zakat, and online financial dealings.

  1. Modern Corporations
    1. Stock company
    2. Joint liability
    3. Partnership
    4. Company limited by shares
    5. Allotment/particular partnership
  2. Types of Legal and Physical Possession
    1. Mode of taking possession
    2. Expenses of possession
  3. Defaulting
    1. Default by debtor
    2. Guarantor
    3. Contractor
  4. Guarantees
    1. Personal guarantee
    2. Pledges
    3. Different types of Guarantees
      1. Letter of guarantee
      2. Documentary credits
      3. Checks or promissory notes
      4. Insurance
  5. Collateral and Its Modern Applications
    1. Rulings of the debt on the collateral
    2. Collateral of paper money and sukuk
    3. Insurance on collateral
    4. Zakat on the collateral
  6. Sukuk, Shares & Bonds
    1. Definition
    2. Types of investment
    3. Characteristics
    4. Issuing of investment sukuk
  7. Loans
    1. Elements of a loan and its conditions
    2. Excess benefit in a loan contract
    3. Service charges
    4. Modern applications of a loan

  • Successful completion of Modern Financial Transactions (LAW120/ISF120) is a required prerequisite or equivalent.
  • Quduri’s Manual Explained, Part 2 (LAH212) is a recommended complementary course.
  • You are recommended to have a copy of An Introduction to Islamic Finance by Mufti Muhammad Taqi Usmani, Meezan Bank’s Guide to Islamic Banking by Dr. Muhammad Imran Ashraf Usmani, and Sharia’ Standards by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).