About This Program

The Executive Diploma in Islamic Banking & Finance is intended to impart the comprehensive knowledge of Islamic Banking and Islamic Insurance with its true sense and concepts among the people related or unrelated to the banking or insurance professions.

The purpose of the course is to equip the graduates with the Shariah principles of Islamic banking and finance to fulfill the global needs of human resources and to produce well-equipped professionals with the knowledge of Islamic financial and economical products and services.

The goal and objective of this course are to provide educational facilities for their educational uplift under Islamic financial system and training to facilitate people who cannot leave their homes or jobs.

The distance learning course comprises of four modules, and each module has two months duration. Strong tutorial support is an integral part of the distance education system. The material provided by the tutorial sessions helps the students to update their knowledge according to the latest globally used terms and concepts on Islamic Banking & Finance. The students are required to submit their assignments that are given to them, during or at the end of the tutorial sessions. The assignments given to students are based on the course contents.

Reliable Advance Zone Training & Health Safety Environment (RAZ-HSE) has brought seasoned professionals on its advisory panel to direct and guide the students of Executive Diploma in Islamic Banking & Finance.

Executive Diploma in Islamic Banking and Finance

 For the successful completion of this Diploma, a student should devote an average of 18 hours a week for study and submit the assignments accordingly. As the duration to complete this course is 8 months, however it may be completed in one year.

Module I

(Introduction to Riba & Islamic Economic System)

IB&F: 401: Riba & Its Prohibition

What is Riba (Interest)? Prohibition of Riba in Islam.

Types of Riba.

Riba tul Nissayah

Riba tul Fadle

Riba in Modern Banking and Finance.

IB&F: 402: Islamic Economics

Introduction to Islamic Economic System.

Land, Labor, Wages and Entrepreneur Laws in Islamic Economics.

Comparison of Islamic Economic System with Socialism & Capitalism.

IB&F: 403: Islamic Banking and Financial Mechanism

 Introduction to Islamic Banking and Finance.

Overview of Islamic Banking and Financial Industry – Worldwide.

Shariah Perspective of Islamic Banking and Finance

Module II

(Islamic Banking and Financial Products)

IB&F: 404: Partnership Based Mode of Islamic Banking & Finance Mudarabah & Musharakah)

Mudarabah

The basic rules and features of Mudarabah

Distribution of Profit & Loss in Mudarabah

Musharakah

The basic rules and features of Musharakah.

Distribution of Profit & Loss in Musharakah.

Diminishing Musharakah

Determine the Rental in Diminishing Musharakah

Unit Sale mechanism in Diminishing Musharakah

Diminishing Musharakah as Ideal product for Islamic Housing Finance.

IB&F: 405: Trade Based Mode of Islamic Banking & Finance (Murabahah, Musawamah, Salam & Istisna)

Basic Rules & Kind of Bai ( Trade) in Islamic Banking and Finance.

Some Basic Types of Bai ( Murabahah, Salam, Istisna, Tawarruq, Musawamah Surf, Urboon, Eenna,  Touliya, Wadhia etc )

Bai according to Quality (Bai Salah, Bai Fasid, Bai Batil, Bai Maqoof, Bai Majool, Bai Muqayaddah, Bai Mu’ajal etc. )

Murabahah

Basic features of Mudarabah

Murabaha as financing mode

Stages involve in Murabaha transaction.

Shariah compliance & legal documentation of Murabaha contract.

Murabaha in international trade.

Practical aspects & issues of Murabahah

Salam & Istisn’a

Basics of Bai Istisna

Difference between Salam & Istisna

Practical implementation of Salam & Istisna.

IB&F: 406: Rental Based Modes of Islamic Banking & Finance

Ijarah (Islamic Lease)

Introduction and brief perspective of Ijarah.

Sharia’h alternative of Conventional Leasing – Ijarah.

Ijarah (Operating Lease)  vs. conventional leasing (Financial Leasing)

Sharia’h compliance of Ijarah

Legal framework & documentations for ijarah products

Basic feature of Ijarah contract & its Operational Mechanism

Practical aspects & Issues of Ijarah.

Practical implementation of Ijarah

Ijarah as ideal mode for Vehicle, Machinery & Fixed asset Financing.

Some common misconception of Ijarah.

Module III

(Takaful & Risk Mitigation tools in Islam)

IB&F: 407: Takaful (Islamic Insurance)

Introduction to Takaful (Islamic Insurance)

Takaful in Islamic Era.

Basic features of Takaful.

Structural & Operational details of Takaful,

Structure of Takaful products

Operation and performance of Takaful.

Legal and regularity framework in Takaful.

Organizational Principles, Basis, Value Proposition, Law, Ownership, Management Status, Management and Invest Status in Conventional Insurance and Takaful

Legal and Regularity requirement of Takaful.

IB&F: 408: Different Models, Products & Type of Takaful

Different Takaful Models.

Mudarabahah Model

Wakalah Model

Wakalah Waqf Model

Takaful products and Its Applications.

General Takaful Products

Faimly Takaful Products.

Other Kind of Takaful

Re – Takaful

Banca Takaful

Micro Takaful.

IB&F: 409: Risk Management in Islam Banking & Finance

Introduction of Risk and its management.

Concept of Risk and its type

Use of Derivative, Future, Hedging & Swaps instruments.

Islamic Perspective for Risk Management

Fundamentals of risk Management in Islam.

Risk Management of Islamic Banking

Types of Risk in Islamic Banking and Financial Instruments (other than insurance)

Credit Risk, Equity Risk, Market Risk, Liquidity Risk, Rate of Return Risk, Operational Risk, Political Risk, Internal Risk, External Risk etc.

Hedging in Islamic Banking

Concept of hedging in Islam.

Hedging product according to Islamic perspective.

Conventional vs. Islamic hedging instruments

Module IV

(Sukuk, Islamic Fund & Investments)

IB&F: 410: Sukuk (Islamic Bond)

Sukuk (Islamic Bond)

Introduction of Sukuk (Islamic Bond)

Sukuk in Islamic era.

Mechanism and Structuring of Sukuk

Structuring, Operation and performance of Sukuk

Advantages of Sukuk for Issuer and Investors

Latest Trends in Sukuk

Issues and challenges in Shariah Compliant Securitization.

Latest Trends & AAOIFI standards of Sukuk

IB&F: 411: Types and Structure of Sukuk (Islamic Bond)

Different types of Sukuk

Different type of Sukuk
(Ijarah Sukuk, Murabahah Sukuk, Salam Sukuk, Istisna Sukuk etc.)

Opportunities in Sukuk Market.

Creating opportunities in emerging market.

Sukuk as Liquidity Market Instrument.

Issuance of Sukuk, factor to be considered

Different Specialized Models of Sukuk

Real Estate Sukuk, Infrastructure Development, Airline Sukuk, Energy Sector, Port Development etc.

Case Studies

IB&F: 412: Islamic Fund, Investment, Stock Exchange & REIT’s

Islamic Funds.

Mechanism of Islamic Fund.

Type of Islamic Fund e.g. Equity Fund, Commodity Fund, Bai’-al-dain, Mixed Fund, REITs Fund, Sukuk Funds, Hedging Funds etc.

Market Opportunities of Islamic Fund Industry.

Policy, Procedure and Performance Assessment of Islamic Funds.

Islamic Investment.

Shariah Principle of Islamic Investment.

Shariah screening of Assets.

Shariah Indices, Shariah Stock Exchange

Structuring of Shariah Indices & Stock Exchanges

Role of Islamic Fund, Shairah Indices and Stock Exchanges for the strengthening of Islamic Banking and Financial Industry.

Islamic Indices – Worldwide