Executive Diploma in Islamic Banking & Finance

Executive Diploma:

The Executive Diploma in Islamic Banking & Finance is intended to impart the comprehensive knowledge of Islamic Banking and Islamic Insurance with its true sense and concepts among the people related or unrelated to the banking or insurance professions.

The purpose of the course is to equip the graduates with the Shariah principles of Islamic banking and finance to fulfill the global needs of human resources and to produce well-equipped professionals with the knowledge of Islamic financial and economical products and services.

The goal and objective of this course are to provide educational facilities for their educational uplift under Islamic financial system and training to facilitate people who cannot leave their homes or jobs.

The distance learning course comprises of four modules, and each module has two months duration. Strong tutorial support is an integral part of the distance education system. The material provided by the tutorial sessions helps the students to update their knowledge according to the latest globally used terms and concepts on Islamic Banking & Finance. The students are required to submit their assignments that are given to them, during or at the end of the tutorial sessions. The assignments given to students are based on the course contents.

AlHuda CIBE has brought seasoned professionals on its advisory panel to direct and guide the students of Executive Diploma in Islamic Banking & Finance.

Executive Diploma in Islamic Banking and Finance


 For the successful completion of this Diploma, a student should devote an average of 18 hours a week for study and submit the assignments accordingly. As the duration to complete this course is 8 months, however it may be completed in one year.

Duration:12 Months
Number of Modules:4
Duration of each Module:12 Weeks
Total Number of Courses:12

Module I

(Introduction to Riba & Islamic Economic System)

IB&F: 401: Riba & Its Prohibition

  • What is Riba (Interest)? Prohibition of Riba in Islam.
  • Types of Riba.
    • Riba tul Nissayah
    • Riba tul Fadle
  • Riba in Modern Banking and Finance.

IB&F: 402: Islamic Economics

  • Introduction to Islamic Economic System.
  • Land, Labor, Wages and Entrepreneur Laws in Islamic Economics.
  • Comparison of Islamic Economic System with Socialism & Capitalism.

IB&F: 403: Islamic Banking and Financial Mechanism

  •  Introduction to Islamic Banking and Finance.
  • Overview of Islamic Banking and Financial Industry – Worldwide.
  • Shariah Perspective of Islamic Banking and Finance

Module II

(Islamic Banking and Financial Products)

IB&F: 404: Partnership Based Mode of Islamic Banking & Finance Mudarabah & Musharakah)

  • Mudarabah
    • The basic rules and features of Mudarabah
    • Distribution of Profit & Loss in Mudarabah
  • Musharakah
    • The basic rules and features of Musharakah.
    • Distribution of Profit & Loss in Musharakah.
  • Diminishing Musharakah
    • Determine the Rental in Diminishing Musharakah
    • Unit Sale mechanism in Diminishing Musharakah
    • Diminishing Musharakah as Ideal product for Islamic Housing Finance.

IB&F: 405: Trade Based Mode of Islamic Banking & Finance (Murabahah, Musawamah, Salam & Istisna)

  • Basic Rules & Kind of Bai ( Trade) in Islamic Banking and Finance.
    • Some Basic Types of Bai ( Murabahah, Salam, Istisna, Tawarruq, Musawamah Surf, Urboon, Eenna,  Touliya, Wadhia etc )
    • Bai according to Quality (Bai Salah, Bai Fasid, Bai Batil, Bai Maqoof, Bai Majool, Bai Muqayaddah, Bai Mu’ajal etc. )
  • Murabahah
    • Basic features of Mudarabah
    • Murabaha as financing mode
    • Stages involve in Murabaha transaction.
    • Shariah compliance & legal documentation of Murabaha contract.
    • Murabaha in international trade.
    • Practical aspects & issues of Murabahah
  • Salam & Istisn’a
    • Basics of Bai Istisna
    • Difference between Salam & Istisna
    • Practical implementation of Salam & Istisna.

IB&F: 406: Rental Based Modes of Islamic Banking & Finance

  • Ijarah (Islamic Lease)
    • Introduction and brief perspective of Ijarah.
    • Sharia’h alternative of Conventional Leasing – Ijarah.
    • Ijarah (Operating Lease)  vs. conventional leasing (Financial Leasing)
  • Sharia’h compliance of Ijarah
    • Legal framework & documentations for ijarah products
    • Basic feature of Ijarah contract & its Operational Mechanism
  • Practical aspects & Issues of Ijarah.
    • Practical implementation of Ijarah
    • Ijarah as ideal mode for Vehicle, Machinery & Fixed asset Financing.
    • Some common misconception of Ijarah.

Module III

(Takaful & Risk Mitigation tools in Islam)

IB&F: 407: Takaful (Islamic Insurance)

  • Introduction to Takaful (Islamic Insurance)
    • Takaful in Islamic Era.
    • Basic features of Takaful.
  • Structural & Operational details of Takaful,
    • Structure of Takaful products
    • Operation and performance of Takaful.
  • Legal and regularity framework in Takaful.
    • Organizational Principles, Basis, Value Proposition, Law, Ownership, Management Status, Management and Invest Status in Conventional Insurance and Takaful
    • Legal and Regularity requirement of Takaful.

IB&F: 408: Different Models, Products & Type of Takaful

  • Different Takaful Models.
    • Mudarabahah Model
    • Wakalah Model
    • Wakalah Waqf Model
  • Takaful products and Its Applications.
    • General Takaful Products
    • Faimly Takaful Products.
  • Other Kind of Takaful
    • Re – Takaful
    • Banca Takaful
    • Micro Takaful.

IB&F: 409: Risk Management in Islam Banking & Finance

  • Introduction of Risk and its management.
    • Concept of Risk and its type
    • Use of Derivative, Future, Hedging & Swaps instruments.
    • Islamic Perspective for Risk Management
    • Fundamentals of risk Management in Islam.
  • Risk Management of Islamic Banking
    • Types of Risk in Islamic Banking and Financial Instruments (other than insurance)
    • Credit Risk, Equity Risk, Market Risk, Liquidity Risk, Rate of Return Risk, Operational Risk, Political Risk, Internal Risk, External Risk etc.
  • Hedging in Islamic Banking
    • Concept of hedging in Islam.
    • Hedging product according to Islamic perspective.
    • Conventional vs. Islamic hedging instruments

Module IV

(Sukuk, Islamic Fund & Investments)

IB&F: 410: Sukuk (Islamic Bond)

  • Sukuk (Islamic Bond)
    • Introduction of Sukuk (Islamic Bond)
    • Sukuk in Islamic era.
  • Mechanism and Structuring of Sukuk
    • Structuring, Operation and performance of Sukuk
    • Advantages of Sukuk for Issuer and Investors
  • Latest Trends in Sukuk
    • Issues and challenges in Shariah Compliant Securitization.
    • Latest Trends & AAOIFI standards of Sukuk

IB&F: 411: Types and Structure of Sukuk (Islamic Bond)

  • Different types of Sukuk
    • Different type of Sukuk
      (Ijarah Sukuk, Murabahah Sukuk, Salam Sukuk, Istisna Sukuk etc.)
  • Opportunities in Sukuk Market.
    • Creating opportunities in emerging market.
    • Sukuk as Liquidity Market Instrument.
    • Issuance of Sukuk, factor to be considered
  • Different Specialized Models of Sukuk
    • Real Estate Sukuk, Infrastructure Development, Airline Sukuk, Energy Sector, Port Development etc.
    • Case Studies

IB&F: 412: Islamic Fund, Investment, Stock Exchange & REIT’s

  • Islamic Funds.
    • Mechanism of Islamic Fund.
    • Type of Islamic Fund e.g. Equity Fund, Commodity Fund, Bai’-al-dain, Mixed Fund, REITs Fund, Sukuk Funds, Hedging Funds etc.
    • Market Opportunities of Islamic Fund Industry.
    • Policy, Procedure and Performance Assessment of Islamic Funds.
  • Islamic Investment.
    • Shariah Principle of Islamic Investment.
    • Shariah screening of Assets.
  • Shariah Indices, Shariah Stock Exchange
    • Structuring of Shariah Indices & Stock Exchanges
    • Role of Islamic Fund, Shairah Indices and Stock Exchanges for the strengthening of Islamic Banking and Financial Industry.
    • Islamic Indices – Worldwide

This course consists of four modules and each module has 3 months duration. Each Module builds up knowledge from the previous one. You are evaluated by subjective as well as multiple choice question on each lesson.

As you get registered an introductory material set is sent to you that include:

  • A username and Password to login into Student Section on AlHuda CIBE website.
  • Literature & Presentations in PDF format.
  • IB&F CD & PowerPoint Presentations.
  • Solved and unsolved case studies.
  • Books in PDF format, List of references Book and related websites.
  • E-mail IDs of Advisory panel to consult with the faculty members.
  • Free subscription of fortnightly online magazine “Islamic Banking and Finance”
  • Bi-Monthly home delivery Magazine named, ”True Banking”

The introductory material set includes comprehensive PowerPoint Presentations; topic related literature, useful web links, magazine & newspapers, articles and conference papers on Islamic banking and finance as well as the recommended book list. Students also utilize the Knowledge Centre section of AlHuda CIBE website (www.alhudacibe.com). The next module material is sent after the successful completion of the previous module. The study material would be sent in soft form.