This course is designed to explain the features of Islamic project finance and highlights the parallels to, and principal differences with, conventional project financing.
Common among all Islamic finance structures is that no interest can be charged. Rather, the financier charges a mark-up or shares in the profits of the venture by doing any of the following:
- Entering into sales and purchase transactions.
- Entering into leasing arrangements.
- Participating in equity investments.
There are several standard products which have been developed to meet the financing needs of projects. Some of these products are based directly on structures described in the Quran, while others have been developed with the guidance and approval from eminent Sharia scholars, in each case combining acceptable returns with acceptable risks based on Sharia principles
The course will require delegates to undertake exercises based on real-life transactions:
- Understand the role of project finance today, and how Islamic techniques can be incorporated
- Reminder of main Islamic concepts
- Understand the structure of the most important Islamic finance contracts, as used in project finance transactions
- Compare and contrast different uses and applications for Islamic products in project finance such as Murabahah, Tawarruq, Musharakah, Wakalah, Ijarah, Salam and Istisna
- Assess key regional differences: Southeast Asian versus GCC practices
- Understand the real-life application of Islamic financing techniques through interactive case studies
- Understand important regulatory, insurance, ratings and risk issues
For further information on this course please contact Jahangir Ahmed, Operations Manager at firstname.lastname@example.org