Islamic Capital Market and Investment Funds Deira, Dubai

Course details

The growth of Islamic bonds and securities is a rising trend in capital markets today is the. Islamic Sukuk are a new category and are developing rapidly. This course will provide an in-depth understanding of the Islamic capital markets and the forces that bring in Islamic bonds. 

The course will discuss the various structures of Islamic Sukuk, looking at their market rating and the legal and Shari’ah issues involved. It will also address issues involved in converting conventional bonds into Islamic securities and the rising Islamic investment funds and their structures.

• Provide an in-depth understanding of the Islamic capital market, its structure and growth.
• Understand Islamic securities, their nature and why and how they are introduced.
• Know who issues Islamic bonds and the market demand for them.
• Discuss the various structures of Islamic Sukuk, their market rating and the legal and Shari’ah issues involved with them.
• Understand issues involved in converting conventional bonds into Islamic securities.

Who Should Attend?

This is a comprehensive programme designed to give delegates an all round understanding of the issues involved in Risk management for Islamic banking.

The course specifically targets:

• Investment Bankers
• Corporate and Commercial Bankers
• Corporate Financiers
• Private Bankers
• Analysts
• Asset managers
• Risk Management Managers
• Consultants
• Lawyers
• Investment Advisors
• Regulators
• Auditors and compliance professionals

COURSE OUTLINE

Day 1

• Overview of Islamic Capital Markets
  • What are Islamic financial products?
    • Shari’ah requirements
    • Legal requirements
  • Conventional and Islamic products: similarities and differences
  • How do Islamic products fit?
• Structures of Islamic finance
  • Sale-based financing
  • Sharing-based financing
  • Lease-based financing
• Classical Finance Contracts in Shari’ah
• Financing elements in sharing finance contracts
• Structured Hybrid Islamic Financing Products
  • Classical Hybrids Islamic Products
  • New Hybrid Islamic Products

Day 2

• Case studies
• Bases of Islamic securities and Sukuk
  • Real estates
  • Usufruct
  • Services
  • Islamic financing contracts: sharing, Salam, Istisna’
  • Receivables
• Basic Shari’ah and Legal issues and documents involved
• Who issues Islamic securities?
• Current Trends in Sukuk (Islamic Bonds)
• Case studies: Temporary Mudarabah Bonds
• Sukuk Structure
• Financial assets versus real assets
• Are Islamic Sukuk only a veil?

Day 3

• Types of Sukuk
  • Fixed income
    • Ijarah (Leased-assets) Sukuk
    • Manafi’ (Usufruct-based) Sukuk
    • Khadamat (services) Sukuk
    • Bundle Sukuk
• Variable income
  • Revenue-generating assets’ Sukuk
  • Temporary Musharakah/Mudarabah Sukuk
  • Bundle Sukuk
• Key issues related to Sukuk
  • Shari’ah Board and acceptability
  • Critiques of Sukuk
  • Risks of Sukuk
  • Listing in conventional markets
• Current and Future developments in Islamic financial products
• Swaps of conventional issues into Sukuk
• Case Studies
  • Manafi’ Sukuk
  • Gross revenue Sukuk

Day 4

• Size of Islamic Capital Market and its future
• Islamic Investment Funds
  • Collective Investment Schemes
  • Equity & Real Estate Investing
  • Objectives of Islamic investment funds
    • Growth
    • Income
    • Balanced
    • Domestic, Regional, Global
    • Small / large Cap / Emerging
  • Shari’ah basis for management relation to unit holders
    • The Wakalah principle
    • Wakalah employment
    • Wakalah Mudarabah
    • Special management (Wakil) functions and responsibilities
  • Kinds of Islamic investment funds:
    • General equity Investment funds
    • Special Project Funds (al Mursa, Financial City)
    • Real Estate Investment funds (REIT)
    • Islamic Ijarah Funds
    • Salam funds
    • Murabahah investment funds
    • Sukuk funds
    • Closed / open funds
    • Market or region specialized funds
  • Capital-Guaranteed funds
    • Murabahah-cum investment arrangement
    • Third party guarantee

Day 5

• Growth of Islamic investment funds
• Major Islamic investment funds
• Mutual funds and family Takaful
• Hedging:
  • Objectives
  • Shari’ah tenets on hedging:
  • The Salam principle
  • Murabahah leveraging
  • The Arbun principle
    • Arbun in margin
    • Arbun in options
  • The Mutual Wa’d principle
  • Third party Guarantee principle
• Shari’ah rulings on:
  • Hedging stocks
  • Hedging commodities
  • Hedging currencies
  • Other derivatives
    • Indices and Islamic indices
    • Trading options
    • Fixed/variable income swap
  • Short sale
• Islamic hedge funds
  • Objectives
  • Establishment of IHF
• Takaful, family Takaful and Takaful funds