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5R Strategic Consultancy Sdn Bhd - Islamic Banking : Principles And Operations


Upon completion of the programme, participants will be able to:

·        have a better understanding of the Shari’ah framework for Islamic finance

·        examine the application of Shari’ah contracts for Islamic financial instruments

·        explain the Islamic banking operations and instruments



1.     Overview of Islamic Banking and Finance

·        Shari’ah framework for Islamic finance

·        Fundamental prohibited Elements in Islamic Finance

                                          i.     Prohibition of Riba

                                        ii.     Prohibition of Gharar

                                       iii.     Prohibition of Gambling (Maysir)

·          Mutuality of Risk-Sharing


2.     Application of Shari’ah contracts

·        Elements of Shari’ah contracts

                                          i.     Form of Contract

                                        ii.     Subject Matter of the Contract

                                       iii.     Contracting Parties

·        Classification of Shari’ah contracts

                                          i.     Exchange-based Contracts

                                        ii.     Charity-based Contracts

                                       iii.     Partnership Contracts


3.     Concept of Exchange-based Contracts

·        Bay’ Al-Murabahah (Mark-up Sale)

·        Bay’ Al-Istisna’ (Manufacturing Sale)

·        Bay’ Al-Salam (Forward Sale)

·        Bay’ Al-Inah (Sell and Buy-Back)

·        Bay’ Al-Tawarruq (Cash Financing)

·        Ijarah (Lease)


4.     Partnership Contracts in Islamic Finance

·        Musharakah

·        Mudhabarah


5.     Sources of Funds

·        Savings Deposit

·        Current Deposit

·        Term Deposit

·        Investment Deposit


6.     Uses of Funds

·        Islamic Retail Financing

·        Corporate Financing

·        Working Capital Financing


7.     Islamic Trade Financing Instruments and Practices

·        Islamic Letter of Credit

·        Islamic Trust Receipt

·        Islamic Accepted Bills

·        Islamic Bank Guarantee

·        Islamic Shipping Guarantee



Duration                                  : 2 days

Maximum participants             : 30 persons per class