Learn how to develop Islamic Banking Products and to launch a new Responsible Finance Institution..

This is a product developer’s workshop – a hands-on product development exercise – just like doing the real world Islamic Product Development job, rather than just theory. It is a Product Management and Leadership training course.

Despite tremendous awareness and phenomenal growth rates, most institutions are far from taking full advantage of the enormous growth of Islamic Banking. This partly stems from a lack of deep understanding of the opportunities that Islamic finance offers, and also from the fact that most financial institutions have not developed the required functional and operational capabilities.

Success in this market will require developing differentiated and segmented offerings, streamlining product development to boost innovation and designing efficient processes. If you want to make a product and take it back to your work with you, may be on your current or next job to further enhance it and even launch it, then this practical training class is for you!

Methodology

This workshop adopts the approach of firstly imparting the underlying philosophy and objectives of Islamic Finance and comparing it with the conventional finance. It will then progress to explain the various Islamic products currently applied by Islamic institutions globally.

The course will make extensive use of Product Development group projects in parallel to instruction modules. Class will be divided into working group teams, which shall acquire hands-on experience of developing a Product and its successful launch.

About the course

This advanced 3 months course will offer you the best practices in how to plan, develop and launch successful Islamic banking products.

  • Product development best practices: strategy, structure and process
  • Hands-on experience of Islamic Finance product development and launch
  • Shariah Coordination
  • Islamic Jurisprudence of Financial Transactions
  • Islamic Accounting and Auditing
  • How to develop quality products & strategies that will help you meet your goals from scratch to end.

Course Outline

Fundamentals of Islamic Finance
  • Understanding Islamic Financial System
  • Islamic Banking and Finance
  • Musharakah Islamic Business Partnerships
  • Mudarabah Islamic Investment Partnerships
  • Ijarah Islamic Leasing
  • Murabaha Cost Plus Financing
  • Understanding Salam And Istisna Forward Sales And  Manufacturing Contracts
  • Sukuk Islamic Securitization
  • Islamic Insurance / Takaful
The Islamic Economic System
  • Factors of Production in Islam, Capitalism & Socialism
  • Objectives of distribution of wealth in Islam
  • Prohibition of Riba in Holy Quran. & Hadith
  • Definition of Riba & its types (Riba Al Fadl, Riba Al Naseah)
  • Usury & Commercial Interest
  • Simple and Compound Interest
Islamic Finance Contracts
  • Sample Islamic Finance Contracts (SBP / AAOIFI Standard)
  • Murabaha Agreement
  • Musharakah Agreement
  • Mudarabah Agreement
  • Lease Agreement
  • Salam Agreement
  • Istisna Agreement
  • Musawamah Agreement
  • Syndication Mudarabah Agreement
  • Agreement For Interest Free Loan / Salary Advance
  • Islamic Credit Card Structures
Applied Islamic Banking – Practical Calculation Exercises
  • Ijarah Schedule
  • Diminishing Musharakah Schedule
  • Structure Mudarabah Deposit Account
  • Murabaha Calculation
  • Asset Pool Management
  • Profit Calculation
Asset & Liability Side of Islamic & Conventional Banks
  • Islamic contracts – necessary ingredients and conditions
  • The concept and ruling on Gharar
Sale (Bai)
  • Conditions of a valid sale
  • Five Khiyars
  • Murabaha (Its concept, conditions for its validity, its usage as a mode of financing, its necessary conditions)
  • Salam – definition, condition and its use as a mode of financing
  • Istisna – definition, condition and its use as a mode of financing
  • Istijrar
  • Ijarah (Islamic leasing)
Partnerships
  • Musharakah (definition of Shirkah, Mudarabah and Musharakah with their meaning, kinds and rules)
  • Mudarabah
  • Diminishing Musharakah
  • Features of Conventional Bank
  • Musharakah In Bank Deposit
Business/Corporate Banking
  • Project Financing
  • Working Capital Financing
  • Import Financing
  • Export Financing
  • Securitization
Investment Banking & Insurance
  • Islamic Investment Fund
  • The Principle of Limited Liability
  • Takaful, Kafalah, insurance and its alternatives
Pre-Launch Considerations, Planning and Launching of Islamic Banking Model
  • Case Studies of Actually Implemented Islamic Banking Business Models
Challenges in Islamic Banking Practice
  • How To Sell Islamic Finance Products to Clients and answer questions
  • “What’s The Difference Between Profit And Interest?”
  • “What’s The Difference Between Murabaha and Commercial Loan?”
  • “Is Benchmarking Permissible?”
  • Islamic Financial Innovation
  • Liquidity Management
  • Risk Management
  • Islamic Accounting Standards

Develop your skills in 2018 and beyond…

Progress your career to the next level and enhance your potential earnings. Alleviate the stress of your work, by gaining skills to enhance your productivity. Network with peers, benchmark your strategies and uncover what is proving effective for other industry professionals.

Who must attend this course?

This comprehensive program will benefit professionals already involved in Islamic finance, as well as those new to the market. This includes financiers, bankers (from Islamic banks as well as those operating under Islamic windows) and end investors. The course is specifically targeted at:

  • Islamic bankers
  • Investment bankers
  • Corporate and commercial banker
  • Private bankers
  • Corporate treasurers
  • Analysts
  • Asset managers
  • Consultants
  • Regulators and government representatives
  • Auditors

Case Study Method

Role Play Actors/Stakeholders organized in Teams:

Group Leader shall act as “Head of Products and Shariah Coordination” Group Members shall act as “Product Managers” Members of one special group of participating students shall act as the Islamic Bank’s functional department heads, who shall be dealing with all the Product Manager Groups individually, one by one.

This will be in regards to helping the participants with their own respective area of responsibility, in the product development process of each of the group’s respective products, for example, each functional head shall advise the product managers on the following aspects:

  • Chief Marketing Officer – Marketing Brief, Marketing and Advertising Plan, Media Plan, Special Email/SMS Offers and Customer Loyalty Campaigns
  • Head of Finance & Accounting – Product Profitability, Projections, Payback estimate, Mudarabah Profit Distribution Management System
  • General Counsel (Legal) – Bank’s liability exposure, Legal review and approval
  • Head of Compliance – Compliance risk exposure, Compliance review and approval
  • Head of Credit Policy – Bank policies
  • Head of IT – Functional System Requirements
  • Head of Sales – Annual Sales Budget Targets and Sales Force Incentive Plan. Sales Contests
  • Head of Customer Service Excellence –
  • Alternative Sales Channels: ATMs; Internet Banking; Mobile Banking; Call Centers

Course Instructor shall act in multiple roles as CEO/Head of Retail Banking and Shariah Board Advisor.