BRIAN KETTELL, the Course Director, worked at the Bahrain Monetary Agency for several years and has extensive experience in Islamic banking.

He has published 13 books on banking and financial markets and over 20 case studies on Islamic banking and finance. His books are all available from Amazon.

Two-Day Course

The first day covers the contents of the One-Day Course, and then moves on to cover the key Islamic contracts in more detail.

1. Murabaha

• What is Murabaha?
• What are the characteristics of Murabaha?
• Murabaha terminology
• What are the applications of Murabaha?
• Practical steps in constructing a Murabaha transaction
• Bank guarantees with Murabaha
• Murabaha and the Sharia
• How does Murabaha differ from conventional bank lending?
• What are the risks for Islamic banks providing Murabaha facilities?

2. Mudaraba-Tier One and Tier Two

• What is Mudaraba?
• What is Mudaraba Tier One?
• What is Mudaraba Tier Two?
• Mudaraba terminology
• The Two-Tier Mudaraba system:
• What are the similarities and differences between the Two Tiers?
• Applications of Mudaraba
• Characteristics associated with Tier One Mudaraba
• Unrestricted and Restricted Mudaraba
• Characteristics associated with Tier Two Mudaraba
• Implementation of a Tier Two Mudaraba
• Mudaraba case study
• What is the difference between Tier Two Mudaraba and conventional bank lending?
• How does Mudaraba compare with Musharaka?
• What are the risks for Islamic banks providing Mudaraba facilities?

3. Musharaka

• What is Musharaka?
• Characteristics of Musharaka
• Musharaka terminology
• Applications of Musharaka
• Structure of a Musharaka contract.
• Term structure of Musharaka:-

a) Permanent Musharaka

• Implementation of Permanent Musharaka
• Case study –profitable Musharaka
• Case study-loss making Musharaka

b) Diminishing Musharaka

• Implementation of Diminishing Musharaka

c) Temporary Musharaka

• What are the risks with Musharaka partnerships?
• What is the difference between Musharaka and Mudaraba?

4. Ijara and Ijara-Wa-Iktina

• What is Ijara?
• What is Ijara-Wa-Iktina?
• Ijara-operational leasing
• Ijara terminology
• Applications of Ijara
• Advantages of Ijara over bank borrowing
• Characteristics of Ijara
• Case study
• Implementation of Ijara
• Why is Ijara Sharia compliant?
• Ijara-Wa –Iktina- financial leasing
• Characteristics of Ijara Wa-Iktina
• Case study
• Implementation of Ijara Wa-Iktina
• Why is Ijara Wa–Iktina Sharia compliant?
• What is the difference between Ijara and Murabaha?

5. Istisna and Parallel Istisna

• What is Istisna?
• What is Parallel Istisna?
• The characteristics of Istisna?
• The characteristics of Parallel Istisna?
• Istisna terminology
• Applications of Istisna
• Implementation of Istisna and Parallel Istisna
• Why is Istisna Sharia compliant?
• What are the banking risks associated with Istisna contracts?

6. Salam and Parallel Salam

• What is Salam?
• What is Parallel Salam?
• The characteristics of Salam
• The characteristics of Parallel Salam
• Salam terminology
• Implementation of Salam and Parallel Salam
• What are the critical limitations of each of these contracts?
• What is the difference between Salam and Murabaha?