This training covers all the fundamental aspects of the selection and management of Islamic law (sharia)-compatible funds.
Learning Objectives:
At the end of this session, participants will be able to:
- Define sharia and sharia compliant funds;
- Apply the concept and practice of islamic finance;
- Identify haram, gharar, riba, murabaha, ijara, istisna, mudaraba, mousharaka, sukuk etc.;
- Design islamic finance compliant investment products.
Course Outline
- Islamic finance main instruments roundup
- Islamic finance principles: bans on riba, gharar, and maysir
- Financing operations related to the assets: murabaha, ijara, istisna'a
- Mudaraba-type contracts and Islamic trust mechanics
- Advance purchase transactions (bai salam, bai muajjal) and options (arbun)
- Setup of a sharia-compliant equity fund
- Defining the range of available investment options: industry exclusion criteria and financial exclusion criteria
- Defining of a sharia-compatible management style and a sharia-compatible turnover strategy
- Validation by a sharia board and implementation of a sharia compliance function
- Liquidity management, risk management and reporting
- Portfolio liquidity management: murabaha contracts and reverse murabaha contracts
- Portfolio hedging through Islamic Dow Jones index-based bai salam contracts
- Setup of a long/short Islamic fund under constraint
- Total returns swaps and use of the "purification" technique (tanqyya)
- Legal aspects, regulatory aspects and tax aspects
- Rights and duties of the investors (rabb'al mal) and brokers (mudarib)
- Levy on capital gains and dividends
Course Booking
Please use the “book now” or “inquire” buttons on this page to either book your space or make further enquiries.
