This essential session provides a refresher of key Islamic finance and Shariah principles and how they dovetail with commerce, banking and finance.
Classification of Shariah and its key and vital components
Objectives of Shariah with regard to transactions and commerce
Shariah from the commercial & banking perspectives – what you need to know
Application & Product Features of Shariah Contracts
In this session we shall examine key product structures and how they fit into the Islamic finance system. At the same time we shall be considering where crucial risks and potential problem areas may lie.
Bai’ Bithaman Ajil and Bai’ Inah
Murabahah
Wakalah
Bai’Al-Dayn
Kafalah
Murabahah Tawarruq
Al Ijarah Thumma Al Bai (AITAB)
Modus Operandi via Case Study Analysis
Documentation for Business Financing Products
This session will analyze documentation issues with regard to specific business financing structures. Again, we shall be looking for potential flashpoints and where problems may occur in the case of default.
Bai’ Bithaman Ajil and Bai’ Inah
Murabahah
Murabahah Tawarruq
Al Ijarah Thumma Al Bai (AITAB)
Legal Documentation for Islamic Financing Facilities
This session will help delegates understand the legal framework governing Islamic banking, as well as the key differences between how an Islamic bank may act as compared to an Islamic bank.
Differences between Islamic & conventional banking
Issues & challenges faced by Islamic financial institutions
Legal framework governing Islamic banks – what Islamic finance institutions can and cannot do
How significant is this?
Day Two :9.00am – 5.00pm
Types of Legal Documentation
What are the key documents that bankers need to be familiar with? Effective structuring and legal drafting early on can avoid significant problems in the case of default.
Letter of offer/supplementary LO
Primary & secondary documents
Uses and structure of guarantees
Charge documents
Others (RD, option to purchase, undertaking and others)
Sharing of security with conventional loans – how can this be done?
Early settlement/Ibra’ issues
Common Mistakes & Issues in Legal Documentation
Rescheduling & Restructuring of Islamic Financing
Debt Recovery Procedures
Understand the tools and courses of action available to an Islamic bank and how the case of default under Islamic finance differs significantly to conventional finance. What can an Islamic bank do and what steps can practically be taken from a legal perspective?
Objectives of recovery
Recovery techniques & strategies – what courses of action are realistically available to an Islamic bank
Foreclosure proceedings – know the process and avoid the pitfalls
The situation with civil proceedings
Statement of claim
Mediation, Arbitration and Dispute Resolution Options for Islamic Financial Products
