Training Material

Professor Dr. Kahf provides professional training and consultations to bankers, finance and investment specialists, legal advisors, etc. in the area of Islamic finance, banking and economics. He also provides expert opinions to courts in disputes related to Islamic finance. This is of course in addition to lecturing in the community on financial and economic awareness and financial and estate planning. Prof. Kahf's training programs have always been evaluated top by both participants and training companies he works with. He has developed several training modules in Islamic banking and finance, Zakah, Trusts (Awqaf) and Islamic economics in general that he offers directly to financial institutions as in-house training or through reputed training companies such as Euromoney, Islamic Finance Training and others. Professor Dr. Kahf also offers in house courses in direct relation with Banks and other financial institutions. For info on Dr. Kahf's Training courses you may contact him at monzer@kahf.com. Please click on the desired module for a brief introduction: Structuring Islamic Financial Products Fundamentals of Islamic banking and Finance Islamic Financial Engineering and Advanced Products Islamic Capital Markets Risk Management and Compliance with of Basel II in Islamic Banks Islamic Leasing (Ijarah) Islamic Insurance (Takaful) Zakah Calculation and Distribution Islamic Estates Planning Fundamentals of Shariah Issues in Wealth/Assets Management Training Shariah Scholars Additionally, modules can be customized on request for in-house training to suit special institutional needs Structuring Islamic Financial Products Statistics are routinely quoted to demonstrate the size and, more importantly, potential size of Shariah compliant finance on a global basis. One such estimate is that the market is valued at half a trillion US Dollar, and it grows at a yearly rate that exceeds 15%. In light of such achievements, this four day training program covers the most important and widely used Shariah compliant products. It examines the foundations of Islamic finance, as well as a discussion of the principal contracts. Delegates will develop a detailed understanding of financing contracts, as well as structured hybrid products and the rules governing the structure of Islamic financial products. This intensive and interactive course aims to demystify Islamic finance and show how products are developed and structured. The course also aims to show how Islamic financial products compare to conventional products and can provide viable alternatives to traditional forms of financing. The course is designed to provide a deep understanding of the following main points: Principles of Financial Contracts in Shariah Categories of Financial contracts in Shariah Shariah-Named Financing Contracts Characteristics of the Shariah-Named Financing Contracts Currency Transactions Prohibition of Riba (interest) and certain others such as Gharar, Riba al Fadl, gambling

Prohibition of Riba (interest) and certain others such as Gharar, Riba al Fadl, gambling Gharar and its effects on financial products Structured Hybrid Islamic Financing contracts Basic rules of Structuring Islamic Financial Instruments and Products Corporate Finance in South East Asia compared to the Middle East Personal Finance in South East Asia compared to the Middle East Islamic financing versus interest-based financing Principles of Islamic Securitization, Islamic Bonds and Certificates Shariah conditions for negotiability Agents of securitization, who can securitize? Process and steps of securitization and Case Studies

Fundamentals of Islamic banking and Finance This interactive and intensive course aims at providing the participants with the basic tools, concepts and principles of understanding how Islamic banks work, what are the fundamentals of their functions and how do they structure their financing and their resource mobilization without interest and without violating any of the rules and junctions of Shariah. This is a 4-day program that explains the background and most important characteristics of Islamic finance. The course will go on to examine the most commonly structured products, including capital markets instruments. Delegates will then have a chance to discuss the challenges facing Islamic finance. The course agenda includes: Foundations of Islamic finance Banking practices in the history of the Islamic society Development of contemporary Islamic banks Definition and nature of an Islamic bank Salient features of Islamic banks Comparison and contrast with conventional banks Characteristics of Islamic banking Regulation of Islamic banks Monetary Policy in Islamic Framework: Objectives, Tools. Islamic re-definition of banking services Conventional banking services that are not permitted in Islamic banks Finance contracts In Islamic banks Currency Transactions and Riba al Fadl Earning Return by ownership, labor and guarantee Islamic Financial intermediation Prohibition of Riba (interest), Gharar, gambling, sale of what you dont own, etc. Comparison between Islamic financing and interest-based financing Characteristics of the Shariah-Named Financing Contracts Hybrid Islamic Financing Contracts Growth of Islamic banking and new products Size of Islamic banking in Islamic Investment Funds New Products and Market financing Islamic Securitization and Sukuk Case Studies Islamic Financial Engineering and Advanced Products Islamic finance and financial products have undergone significant progress over the last three decades of the Twentieth Century. However the beginning of the new millennium witnessed a tremendous revolution in the Islamic financial products. New products and techniques are being continuously introduced day and night. This new intensive four day course on Islamic Financial Engineering and Advanced Products follows on innovations in Islamic financial products. It is an advanced level course intended for those who are involved in developing new Islamic financial products and it builds on the concepts. The course will enable participants to develop a detailed understanding of core products such as Sukuk and Ijarah, as well as requisites for Islamic financial engineering and the contracts involved. The course will also cover in detail contracts for project financing and Islamic swap structures and uses. The course outlines include: Why Islamic financing instruments?

Why Islamic financing instruments? Financial contracts in Shariah and in common law Compatibility of f Financing contracts with Shariah Requisites for Islamic financial engineering Engineered Islamic financing contracts New approaches to Islamic financial engineering New financing contracts for liquidity engineering New financing contracts for corporations New financing contracts for government Securitization and Sukuk Ijarah-based Sukuk Revenues-generating property Sukuk Islamic swaps

Islamic Capital Markets A new and rising trend in capital markets today is the growth of Islamic issues. Islamic securities are a new category and are developing rapidly. This three-day course will provide an in-depth understanding of the Islamic capital markets and the forces that bring in Islamic securities. It will look at the nature of the Islamic issues and why they are introduced, who issues them, how this is done and what is the market demand for them. It will discuss the various structures of Islamic Sukuk, looking at their market rating and the legal and Shariah issues involved. It will also address issues involved in converting conventional bonds into Islamic securities and the rising Islamic investment funds and their structures. The course is designed to show participants how the Islamic market is continuing to develop and opening up new structures. Participants will be able to gain a greater understanding of the dynamics of Islamic finance and this course would be most beneficial to practitioners who are focused on becoming involved in the opportunities this rising segment can offer. This intensive three-day course provides a practical insight into: ?___ How Islamic products fit ?___ Who issues Islamic securities ?___ Structures of Islamic finance ?___ Bases of Islamic securities ?___ Types and structures of Sukuk ?___ Islamic investment funds ?___ Islamic hedge funds Risk Management and Compliance with of Basel II in Islamic Banks This four day course is designed for participants seeking an in depth understanding of Risk Management Islamic banking principles. The course sets out the Concept of Risk management in Islamic Banking principles and then moves on to the practical aspects of applying them.It includes real life case studies and interactive exercises throughout the program. Specifically this important training course aims at: Understanding how Islamic banks work and the kind of risk they are exposed to and discussing the criteria of risk management from Shariah point of view and the Shariah-intrinsic techniques of risk management. It will also focus on studying the Basel II proposals of risk mitigation and how should they apply to Shariah banking and understanding the methodologies of calculating capital adequacy in Islamic banks and processes of monetary authorities supervision on Islamic banks The agenda of this course includes: Islamic Banking in todays World Islamic Law and finance Islamic Banking relation with Central banks Risks in Islamic banks Implications of the prohibition of interest Credit risk in Islamic banks Operational Risks in Islamic banks Market risks in Islamic banks Other risks: legal, withdrawal, Shariah confidence, litigation, etc. Capital adequacy and risks addressed by Basel II

 Capital adequacy and risks addressed by Basel II The First Pillar Calculation of Minimum Capital Requirement to offset: The Second Pillar Supervisory Review Process The Third Pillar Market Discipline Sensitivity of Islamic banking operations to Basel II proposals The effect of restricted deposits, unrestricted deposits and deposits in current accounts on credit and other risks exposure in Islamic banks Monetary authority supervision: Does it make a difference? Market disclosure in Islamic banks: a serious administra-political problem! Managing risks in Islamic Banks Shariah-Intrinsic risk mitigation techniques Management processes and techniques of specific risks Islamic Leasing (Ijarah) This three-day Islamic Leasing course gives a new dimension to the concept and market of leasing; it is highly interactive and practical. The course is designed for professionals who are interested in Islamic financing and the Islamic capital market. The course provides an opportunity to develop the skills and knowledge necessary to compete effectively in this rapidly growing market of Islamic leasing. It aims to provide the participants with a comprehensive understanding of Islamic leasing and leasing-based securities. This training course is designed for professionals who are newly involved in Islamic leasing as well as those with some experience. It demonstrates the benefits of Shariah-compliant lease transactions for both the lessor and lessee and the variety of lease contracts the Shariah has to offer. The course is designed for executives from banks, leasing companies, finance houses and equipment manufacturers. It will provide invaluable information particularly to risk managers, financial products developers and lawyers and analysts involved in financial innovation. The agenda of the course includes: The Islamic Lease Contract The lease agreement in Shariah and civil laws: Islamic finance and leasing Object of lease contract: Usufruct/service; rentals Rental payment Conditions in lease Disposition of leased assets: Assignment of lease contract Hybrid Lease Financing Products Time value of money versus time value of properties Islamic lease and time value of money Islamic lease market Characteristics of Shariah-compliant lease financing Discounting of lease notes Financing lease documentation Islamic Lease hybrids Case Studies: Leasing Sukuk Securitization fervor Financing from outside the balance sheet Creation of a secondary market Development of Sukuk What are the Islamic Sukuk Processes of Ijarah Sukuk Issuance Risks of Ijarah Sukuk Sukuk and Fund Units Sukuk and Treasury Bonds Sukuk market 2006 Sukuk Case Studies

Islamic Insurance (Takaful) This three-day Intensive course provide practical information and drilling on one of the highly growing sub-sector of

This three-day Intensive course provide practical information and drilling on one of the highly growing sub-sector of Islamic finance: the Islamic insurance. Islamic insurance is the Shariah-compliance version of general and life insurance. It started in 1979 but since the beginning of the new millennium its been growing at 15-20% per annum. This training course is designed for professionals who are newly involved in Islamic insurance as well as those with some experience. It demonstrates the principles, concepts and practices of Shariah-compliant insurance and insurance saving schemes. This interactive course is designed for executives from the insurance industry, banks, finance companies, finance houses and general practitioners. It will provide invaluable information particularly to insurance risk managers, financial products developers and lawyers and analysts involved in financial innovation. The main items of the agenda of this course are: Introduction: Insurance in the history of Islam How does Shariah view Conventional Insurance? Types of insurance and Shariah rulings ? By legal form of insurance provider: ? By object of insurance policy: ? By Approach to contracting: Why Takaful? The Takaful contract Salient Characteristics of a Takaful organization: Takaful versus Mutual Insurance: similarities/differences Size of Takaful industry today Takaful/Islamic Banking Integration Legal structures of Takaful Companies: Legal/Accounting treatment of funds and Profits and losses Challenges to Takaful: Shariah challenges: Ignorance challenges: life! Marketing challenges: Re-insurance/re-Takaful challenge Zakah Calculation and Distribution This is a two day community service course. Its objective is to create community awareness of Zakah and its role in attacking the phenomenon of poverty. It discusses this third pillar of the Islamic religion, its evaluation, calculations, collection and distribution and the role of Muslim NGOs in all these processes. The agenda of this course includes: The Objectives of Zakah: purification, growth, uplifting and redistribution Zakatable items: o Wealth items o Income items Items exempt from Zakah o Items for personal use, o Items not under control, o Items appropriated for exempt use o Agricultural land Zakatability criteria: Nisab Calculation of Zakah in North America Collection of Zakah: government, charities, direct payment Distribution of Zakah The eight deserving categories Preferences within these eight categories Islamic Estates Planning This is a two day interactive course of the Islamic inheritance system, Awqaf and estate planning. Its focus is how to implement the Islamic inheritance law while living under non-Islamic laws. This course is also offered as a community service for Muslims who live under conventional laws of inheritance, especially in North America. The main points covered in this course are:

The main points covered in this course are: ? Objectives of Islamic estate planning o Implementation of Shariah inheritance system o Secondary objectives ? Shariah rulings on estate planning ? Characteristics of Islamic inheritance system ? Objectives of the Islamic inheritance system ? Reconciling Shariah with common law and how? ? Options in estate planning for Muslims under non-Islamic laws ? Awqaf: concept and history ? Trusts: kinds, relation to Awqaf. ? Kind of Awqaf ? How can the principle of Awqaf be used in estate planning: ? Family Waqf ? Charitable Waqf ? Living trusts and last wills ? Family corporations FUNDAMENTALS OF SHARI'AH ISSUES IN ASSET MANAGEMENT This one day workshop on Islamic compliance in asset management provides a comprehensive coverage of the Shariah requirement is asset management; it is highly interactive and practical. The workshop is designed for professionals who are interested in Islamic asset management and the Islamic capital market. It provides an opportunity to develop skills and knowledge necessary to compete effectively in this rapidly growing market. The workshop is designed for executives from Islamic banks and banks in general, asset management companies and advisors and lawyers who deal with Islamic asset management and Islamic financing in general. It will provide invaluable information on the Shariah approaches of asset management. OUTLINES Why Shariah compliance in finance? The three-fold Shariah compliance issues ? Avoidance of interest and other prohibited transactions The myth and truth about interest! What is prohibited and why? Fixation of return is not an issue Diversification and hedging Gharar-cum-gambling transactions Sale of what one does not own The issue of possession in securities deals ? Avoidance of prohibited products Objective of the prohibition? Permanent and temporal consideration Main objected products ? Implications of realism Real versus unreal properties Shariah preferences in asset holdings Return of unreal asset utilizations Degree of tolerance Does the Shariah tolerate prohibitions? The Shariah principle in asset management Exceptional situations Criteria of tolerance and variation Purification principle and its objectives Islamic REIT and other trusts Training Shariah Scholars This is a one day interactive workshop that aims at identifying the role and perspectives of Shariah advisors in a complex financial market and providing in-depth understanding of the role of Shariah Advisory Board and the forces that influence it. The workshop is also designed to frankly discuss the prudence rules of Shariah external supervision and the dynamics of Shariah counseling in IBFIs Outlines:

Outlines: Exposure of Shariah advisers to financial practices Demarcation of the functions of Shariah advisers Relation of Shariah advices to the Banks customers Contracts versus practices in Shariah inspection Minute partial rulings and Maqasid Should the Shariah supervision cover revealed intents Shariah advisers reports Presenting actual case studies that deepen the participants understanding of the nature and implication of the provision of Shariah advices in BFIs

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