Islamic Banking Course for Lawyers

Course Content:

An Introduction to the Principles & Development of Islamic Finance

• The Islamic World
• Islam & Economic development
• Development & growth of Islamic finance
• GCC and the Far East

Modern Islamic Retail Banking – Brief history

• History
• Pilot schemes for Islamic banking
• The “Islamisation” of retail banking
• Problems for Islamic retail banks in Western markets
• Islamic retail banking in the developing world
• The current marketplace

The Principles of Islamic finance

• The prohibition of Riba
• Uncertainty
• No debtor/creditor relationship
• Agency
• Haram activities
• Profit & loss sharing
• Islamic Banking products – “Deposit”
• Islamic Products – “lending” side

Account and Deposit Gathering (“Investments” under Islam)

• “Current” Accounts
• Amanah, Wadia, Wakala
• “Deposit Accounts”
• Mudaraba – restricted
• Mudaraba – unrestricted
• Investment Accounts
• Musharaka

Application of Funds – Detailed examination

• Murabaha
• Musharaka
• Mudaraba
• Ijara.
• Istisn’a
• Salam
• Why are Murabaha and Ijara the key products?

Islam & Takaful

• Why do we need to know about this?
• Islamic attitudes towards risk
• Muslim objections to insurance
• What is Takaful
• Insurance practice in Islamic states
• Insurance & Islamic law
• Permitted forms of insurance
• Re-Takaful

Corporate Governance – brief overview

• Why do we need to know about this?
• Jurisdiction
• Conflicts between Sharia law, local law, international law
• Differences between Islamic states
• Which law prevails
• Basel and world Trade Agreements.
• Regulatory framework
• Fairness & suitability
• Islamic bank issues

Islamic Asset & Fund Management – brief overview

• Why do we need to know about this?
• How is it done
• Shariah rules
• Permitted Investments
• Link to Shariah precepts & ethics.
• Moral behaviour & social objectives.
• Limitations

Islamic Bond Market (Sukuk) – Overview

• Why do we need to know about this?
• Conventional debt securities
• Why is this relevant to us
• What is a Sukuk
  • Investment process.
  • Share of assets not right to revenues.
  • Profits & losses.
  • Proof of ownership.
  • Ownership costs.
  • Term matches project.
  • Lack of guarantee.
  • Subject to Shariah rules.

Islamic Talking Points & Challenges

• Summary
• Revision & Refresher
• Open discussion