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Exam preparationPaidIslamic banking

Trade-Based Islamic Financing

Murabahah, tawarruq, commodity markets, salam, istisna'a and digital dealings

Intermediate · 9 hours · 17 lessons · Language: English and Arabic

USD 9USD 19

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ifSPACE provides independent preparation courses. ifSPACE is not AAOIFI, is not an AAOIFI-authorized training provider, and completing a preparation course does not confer any AAOIFI qualification. AAOIFI examinations are taken separately with AAOIFI.

Sale contracts are the workhorses of Islamic banking. This course explains how the Shari'ah standards govern murabahah to the purchase orderer, tawarruq and the sale of commodities in organised markets, salam and parallel salam, istisna'a and parallel istisna'a, concession contracts such as build-operate-transfer, online financial dealings and the transfer of financial rights.

The course covers the trade section of Part B of the AAOIFI CPSS syllabus. Each module has a reading, slides, study notes and a practice quiz built around practical cases. The course ends with a final exam.

This course is independent educational material written by ifSPACE in its own words. It does not reproduce AAOIFI texts, is not affiliated with AAOIFI and is not a fatwa.

What you will learn

  • Structure a murabahah to the purchase orderer step by step and identify the controls at each step
  • Distinguish permissible tawarruq from 'inah and apply the rules for commodities in organised markets
  • Apply the conditions of salam and istisna'a and their parallel contracts
  • Explain how concession contracts are characterised and financed
  • Apply Shari'ah rules to online contracts and to the transfer of financial rights

Syllabus

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  1. 1.Murabahah to the purchase orderer

    • Welcome to the courseFree preview1 min
    • How murabahah works and the controls at each stage (SS 8)Free preview30 min
    • Module 1 presentation15 min
    • Module 1 practice quiz15 min

  2. 2.Tawarruq and commodities in organised markets

    • Monetization and commodity trading (SS 30 and SS 20)30 min
    • Module 2 presentation15 min
    • Module 2 practice quiz15 min

  3. 3.Salam and parallel salam

    • Paying today for goods delivered later (SS 10)30 min
    • Module 3 presentation15 min
    • Module 3 practice quiz15 min

  4. 4.Istisna'a and concession contracts

    • Financing manufacture, construction and infrastructure (SS 11 and SS 22)30 min
    • Module 4 presentation15 min
    • Module 4 practice quiz15 min

  5. 5.Online dealings and financial rights

    • Contracting online and transferring rights (SS 38 and SS 42)30 min
    • Module 5 presentation15 min
    • Module 5 practice quiz15 min
    • Course summary and next steps10 min