Murabaha and Mudarabah Financing in Islamic Banking

Overview:

Introduction:

This training program offers a concise yet comprehensive exploration of two key financing methods within Islamic banking. Participants gain practical insights into Murabaha (cost-plus financing) and Mudarabah (profit-sharing partnership), learning how these Sharia-compliant mechanisms operate and their significance in Islamic finance.

Program Objectives:

At the end of this program, participants will be able to:

• Acquire comprehensive knowledge of the Islamic Banking System and its primary products.

• Demonstrate proficiency in comprehending and effectively utilizing the principles of the Islamic Finance System.

• Develop confidence in communicating with Islamic Bankers and Islamic Financial Institutions.

• Attain qualifications suitable for employment with consulting companies providing services to Islamic Banks.

Targeted Audience:

• Investment bankers. 

• Auditors, risk management experts, and compliance experts.

• Finance professionals seeking to expand their knowledge of Islamic economics and finance principles.

• Banking professionals interested in understanding Sharia-compliant financial practices.

• Entrepreneurs and business owners aiming to incorporate Islamic finance into their ventures.

Program Outline:

Unit 1:

 Foundations of Islamic Finance:

• Islamic Finance.

• Principles of Islamic Banking.

• The Role and Expansion of Islamic Banks.

Unit 2: 

Comparative Analysis of Banking Systems:

• Comparing the Islamic and conventional banking systems.

• Items provided by Islamic banks.

Unit 3:

Model and Structure of Murabaha Financing:

• Murabaha.

• Rules.

• Step by Step Process.

• Contract.

• Difference from conventional banking.

Unit 4:

Mudarabah Financing Models and Structures:

• Mudarabah.

• Types.

• Officials in Rabbul-Maal (Investor).

• Investments and Costs.

Unit 5:

Islamic Treasury Products

• Gains and losses.

• Discontinuation.

• Mudarabah Collective and Running.

• Deposit Side, Asset Side.