Islamic Banking and Finance Training Course

Duration 10 days 20 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends Islamic Banking Managers, Relationship Managers and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 9 Nov 2026 Course code SD-BI-064

Before you join: Participants should have practical familiarity with banking products, lending, deposits, financial statements, risk, audit or compliance.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Islamic financial institutions must offer commercially viable products while maintaining clear compliance with Shariah principles, contractual requirements, prudential rules and customer-protection duties. Errors in ownership transfer, documentation, profit calculation, investment account management or Shariah oversight can create financial loss, regulatory findings and reputational damage. Professionals need to understand not only the terminology of Islamic finance, but also how contracts, controls, accounting and risk management work together in daily banking operations.

This course examines the structures and operating requirements of Islamic banking and finance. Participants study the principles of riba, gharar and maysir; the roles of Shariah boards; AAOIFI and IFSB standards; Islamic deposit products; Murabaha, Ijara, Mudarabah, Musharakah, Salam, Istisna and Tawarruq; Takaful; Sukuk; treasury; credit; accounting; and risk management. The course connects each structure to its customer purpose, contractual sequence, operational controls, financial reporting treatment and governance requirements.

Instructor-led sessions combine short briefings with banking cases, document reviews, financial calculations, process mapping, group analysis and simulated product approval discussions. Participants build work from the first week, including contract flowcharts, product-control matrices, risk assessments and profit calculation schedules. They leave with a structured Islamic financing product approval pack that can be adapted for retail, corporate, trade finance or treasury proposals.

The course is suited to professionals working in Islamic banks, conventional banks with Islamic windows, Takaful operators, central banks, audit functions, advisory firms and corporate finance teams dealing with Shariah-compliant funding.

What you will be able to do

  • Apply Shariah principles to assess Islamic banking transactions and contract structures
  • Distinguish Murabaha, Ijara, Mudarabah, Musharakah, Salam and Istisna financing arrangements
  • Prepare contract flowcharts showing ownership, cash, risk and obligation transfers
  • Evaluate Islamic banking products against AAOIFI, IFSB and Shariah governance requirements
  • Calculate profit allocations, rental schedules and financing cash flows for Islamic products
  • Assess credit, liquidity, market, operational and Shariah non-compliance risks
  • Develop product approval memoranda with controls, disclosures and accounting treatment
  • Present a complete Islamic financing product proposal to a review committee

Benefits of attending

For you

  • Ability to explain Islamic finance structures accurately to customers, colleagues and senior management
  • Practical confidence reviewing Murabaha, Ijara and partnership financing documentation
  • Stronger capability to identify Shariah non-compliance risks before product launch
  • Working knowledge of AAOIFI and IFSB requirements relevant to banking roles
  • A reusable product approval pack for Islamic financing proposals

For your organisation

  • Better product documentation and ownership controls for Islamic financing transactions
  • More consistent Shariah governance reporting and issue escalation
  • Reduced risk of profit calculation, contract sequencing and disclosure errors
  • Improved collaboration between business, risk, finance, legal and Shariah functions
  • Stronger internal capability to develop and review Shariah-compliant products

Course modules

20 modules over 10 days

Participants can explain the Shariah principles that distinguish Islamic finance from interest-based banking.

  • Quranic prohibitions on riba, gharar and maysir in financial transactions
  • Maqasid al Shariah as criteria for product purpose and fairness
  • Asset ownership, risk bearing and profit entitlement under Shariah
  • Distinguishing permissible trade income from prohibited interest based lending
  • Substance over form assessment for Islamic transaction structures
  • Core terminology: aqd, waad, kafalah, rahn and hibah

Participants can identify the standards and regulatory sources governing Islamic banking activities.

  • AAOIFI Shariah Standards structure, scope and use in product approvals
  • IFSB principles for capital adequacy, governance and risk management
  • National regulator rules and central bank Shariah resolutions
  • Shariah board mandates, independence requirements and fit assessment
  • Three lines model for business, compliance and internal audit
  • Product approval papers with legal, Shariah, risk and accounting sign offs

Participants can design key governance, review and escalation arrangements for Islamic banking operations.

  • Shariah governance framework: board, committee, management and control functions
  • Terms of reference for Shariah committee decisions and escalation
  • Annual Shariah review plans, sampling methods and evidence files
  • Internal Shariah audit testing against approved contracts and procedures
  • Non-compliance event registers, rectification actions and charitable disposal
  • Management information reporting for unresolved findings and recurring breaches

Participants can map contractual relationships and identify documentation risks in Islamic transactions.

  • Contract formation requirements: parties, offer, acceptance, subject matter and consideration
  • Unilateral promises, agency appointments and purchase undertakings distinguished
  • Ownership transfer points mapped before customer financing documentation
  • Legal enforceability risks arising from inconsistent contract sequences
  • Documentation hierarchy: master agreements, schedules, notices and operational procedures
  • Contract flowcharts tracing title, cash, risk and obligations

Participants can distinguish Islamic deposit products and manage their key profit-sharing features.

  • Wadiah, qard and mudarabah accounts: rights, returns and liabilities
  • Profit sharing investment accounts versus capital guaranteed current accounts
  • Profit distribution management and displaced commercial risk indicators
  • Weightages, profit equalisation reserves and investment risk reserves
  • Account opening disclosures, expected returns and withdrawal conditions
  • Liquidity treatment of unrestricted and restricted investment accounts

Participants can structure and review Murabaha financing from customer request through settlement.

  • Murabaha cost disclosure, mark up calculation and deferred payment terms
  • Purchase orderer sequence from promise through bank ownership and sale
  • Agency arrangements preventing customer purchase before bank acquisition
  • Commodity, vehicle and trade finance Murabaha documentation requirements
  • Late payment clauses, actual loss recovery and charity treatment
  • Murabaha pricing schedules, effective yield and profit recognition

Participants can structure Ijara arrangements and allocate asset-related responsibilities correctly.

  • Ijara asset ownership, usufruct transfer and rental payment mechanics
  • Operating versus finance Ijara structures and balance sheet effects
  • Maintenance responsibilities allocated between owner and lessee contractually
  • Variable rentals indexed to permissible, objectively determinable benchmarks
  • Ijara muntahia bittamleek transfers through sale, gift or promise
  • Asset insurance and Takaful obligations during lease periods

Participants can assess partnership-based financing structures, returns and loss allocation arrangements.

  • Mudarabah roles, capital contribution, profit ratios and loss allocation
  • Musharakah diminishing ownership schedules for home and business finance
  • Partner negligence, misconduct and guarantee restrictions under Shariah
  • Working capital Musharakah using agreed profit sharing ratios
  • Equity participation valuation, exit provisions and shareholder rights
  • Comparing debt based and partnership based financing risk profiles

Participants can select and control specialised contracts for trade, agriculture and construction finance.

  • Salam specifications, advance payment and delivery risk controls
  • Istisna construction milestones, change orders and parallel contracts
  • Qard Hasan structures and treatment of voluntary borrower gifts
  • Rahn collateral custody, valuation and enforcement boundaries
  • Kafalah guarantees, ujrah fees and contingent liability recognition
  • Tawarruq arrangements, commodity controls and Shariah concerns

Participants can explain Takaful operating models and their relationship with Islamic banking services.

  • Takaful risk sharing model, tabarru fund and operator roles
  • Wakalah and mudarabah Takaful operating models compared for participants
  • Family Takaful savings elements and protection benefit structures
  • General Takaful underwriting, claims and retakaful arrangements
  • Qard support to deficit funds and repayment priorities
  • Surplus distribution policies, participant consent and governance controls

Participants can prepare an Islamic banking product proposal with defined controls and approvals.

  • Customer need statements translated into permissible contract structures
  • Product development stage gates from concept to post launch review
  • Shariah risk assessment covering structure, documents, systems and conduct
  • Target market definition, suitability criteria and customer disclosures
  • Product approval memorandum using legal, financial and Shariah analysis
  • Control design linking contract conditions to operational checkpoints

Participants can assess and administer Islamic financing exposures using sound credit practices.

  • Islamic credit appraisal using cash flow, collateral and character
  • Debt service capacity tested against payment schedules and volatility
  • Security documentation aligned with asset ownership and recourse rights
  • Early warning indicators for impaired Islamic financing exposures
  • Restructuring options without compounding profit or disguising interest
  • Collections conduct, charity clauses and customer hardship treatment

Participants can identify, assess and report the principal risks facing Islamic banking products.

  • IFSB risk categories: credit, market, liquidity, operational and Shariah
  • Shariah non-compliance risk events quantified through loss scenarios
  • Rate of return risk measured against benchmark movements
  • Equity investment risk assessed through valuation and governance controls
  • Liquidity mismatch analysis for investment accounts and financing assets
  • Risk appetite statements with limits, triggers and escalation routes

Participants can identify major accounting treatments and reporting issues for Islamic banking products.

  • AAOIFI Financial Accounting Standards compared with relevant IFRS requirements
  • Murabaha profit recognition using effective profit rate schedules
  • Ijara asset, depreciation, rental income and impairment accounting
  • Investment account presentation, reserves and profit allocation disclosures
  • Expected credit loss modelling considerations for Islamic financing assets
  • Chart of accounts mapping for Islamic product transaction flows

Participants can analyse Sukuk structures, cash flows, governance requirements and tradability considerations.

  • Sukuk structures distinguished from bonds through asset ownership and risk
  • Ijara, Murabaha, Musharakah and Wakalah Sukuk structures compared
  • Special purpose vehicle roles, asset transfer and investor recourse
  • Cash flow waterfalls, periodic distributions and redemption mechanics
  • Shariah certification, offering documents and ongoing compliance reporting
  • Tradability rules based on asset composition and receivable proportions

Participants can evaluate Islamic treasury instruments and liquidity management constraints.

  • Islamic interbank placements using Wakalah, Mudarabah and commodity Murabaha
  • Liquidity coverage planning under constrained Shariah compliant instrument availability
  • Central bank facilities and eligible high quality liquid assets
  • Foreign exchange spot transactions and Waad based hedging structures
  • Profit rate swaps versus Shariah compliant tahawwut arrangements
  • Treasury limits, counterparty approvals and settlement controls

Participants can apply customer protection and financial crime controls to Islamic banking activities.

  • Consumer protection principles for transparency, fairness and informed consent
  • Suitability assessments for retail financing and investment account customers
  • Complaint handling root cause analysis and remedial action tracking
  • Financial crime controls for trade based Islamic financing transactions
  • Sanctions screening, beneficial ownership checks and transaction monitoring
  • Ethical conduct scenarios involving conflicts, incentives and vulnerable customers

Participants can design operational controls supporting accurate execution of Islamic banking contracts.

  • End to end process maps from onboarding to settlement and closure
  • Core banking parameter checks for profit, rentals and maturity dates
  • Maker checker controls for asset purchases and payment releases
  • Exception management logs, ageing analysis and corrective action ownership
  • Management dashboards for turnaround times, errors and Shariah exceptions
  • Business continuity procedures for collateral records and contract evidence

Participants can interpret Islamic bank performance using financial, risk and Shariah indicators.

  • Islamic bank financial statements analysed using profitability, liquidity and capital ratios
  • Return on assets, return on equity and cost income trends
  • Financing asset quality measured through arrears, impairment and coverage
  • Investment account performance compared against declared profit expectations
  • Branch and product profitability using funds transfer pricing principles
  • Board packs combining financial performance, risk metrics and Shariah findings

Participants can build, review and present a complete Islamic financing product approval proposal.

  • Capstone brief: Islamic financing product for a defined customer segment
  • Customer need, contract selection and process flow documented
  • Pricing schedule, profit allocation and financial performance assumptions prepared
  • Shariah governance, risk controls and accounting treatment specified
  • Approval memorandum assembled with disclosures, controls and implementation milestones
  • Peer review and executive presentation against a product approval rubric

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Islamic financing contract flowchart template
  2. Shariah product approval memorandum template
  3. Islamic product risk assessment matrix
  4. Murabaha profit calculation model
  5. Shariah governance reporting checklist
  6. Islamic financing product approval pack

Who should attend

  • Islamic Banking Managers — need stronger control over products, performance and Shariah requirements
  • Relationship Managers — need to explain and structure customer financing appropriately
  • Credit Analysts — need to assess Islamic financing cash flows, security and repayment risks
  • Risk and Compliance Officers — need to monitor Shariah, conduct and prudential exposures
  • Finance and Accounting Professionals — need to apply Islamic product accounting and reporting treatments
  • Internal Auditors — need to test contract execution, controls and Shariah review evidence

Skills and tools covered

Shariah contract analysisIslamic product structuringProfit calculationShariah governanceIslamic risk managementSukuk analysis

Tools and standards

AAOIFI Shariah Standards, AAOIFI Financial Accounting Standards, IFSB Standards, IFRS 9

How the course runs

Training methodology

The course uses short instructor briefings to establish principles, standards and product mechanics, followed by banking cases, contract reviews, financial calculations and group analysis. Participants map transaction sequences, assess control failures, review product approval papers and discuss decisions commonly made by Shariah committees, credit teams and risk functions. Simulations focus on financing approvals, customer disclosures and issue escalation. Application planning helps participants adapt course tools to their own institution, market and customer portfolio.

Requirements and prerequisites

Participants should have practical familiarity with banking products, lending, deposits, financial statements, risk, audit or compliance. Experience in a bank, Takaful operator, regulator, advisory firm or corporate treasury function is useful. Participants should be comfortable reading basic financial calculations, contracts and policy documents. Prior Islamic finance study is not required; key principles and terminology are introduced early in the course. Arabic language capability, Shariah scholarship, legal qualification and advanced quantitative modelling experience are not required.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants should understand basic banking, lending, deposits, financial statements or risk concepts. No prior Islamic finance qualification, Arabic language ability or Shariah scholarship is required.

Participants should bring a calculator and, where permitted, a laptop for working with course templates. Bringing a non-confidential product, process or control issue from their workplace will support application planning.

The course suits professionals in Islamic banks, Islamic windows, Takaful operators, regulators, audit teams, advisory firms and corporate treasury functions. It is particularly relevant for business, credit, risk, compliance, finance and operations roles.

This course focuses on Shariah-compliant contractual structures, governance, product controls, profit treatment and Islamic financial instruments. General banking courses usually focus on interest-based lending, conventional deposits and conventional capital-market products.

Participants can use the contract flowchart, risk matrix, governance checklist and approval memorandum in product reviews and control assessments. The capstone proposal provides a practical format for presenting a new or revised Islamic financing product.

Each training day runs from 08:30 to 16:30 and provides about 6.5 contact hours. The first week establishes contracts, governance and core products, while the second week covers risk, accounting, Sukuk, treasury, operations and the capstone.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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