Applications of Financing Forms in Islamic Banks Course

Islamic banks are one of the pillars of the Islamic financial services industry. Islamic banking engages in the trade of goods and services within the economy through a diverse range of contracts and formulas. These have gained acceptance not only in many Islamic and Arab countries but have also extended to include Western nations. The contracts and financing formulas in Islamic banks differ from those in traditional banks, which are primarily based on a single product, loans, varying in nature and the purpose they finance. The stages, pillars, and Shariah guidelines for implementing Islamic financing contracts differ among sale-based formulas such as Murabaha, Istisna, Salam, and Tawarruq, participation formulas such as Mudarabah and Musharakah, and donation contracts such as Qard Hasan. Adhering to these guidelines is essential to ensure the legitimacy of the profit derived from these contracts, preventing corruption and avoiding losses resulting from the failure of the profit-seeking bank to apply the contracts in accordance with Shariah guidelines for each contract

By the end of this program, the trainee will be able to:

• Identify the fundamental differences between Islamic banks and traditional banks.
• Identify the Shariah principles governing Islamic banking operations.
• Differentiate between traditional financing operations and Islamic financing.
• Outline the steps and stages of implementing Islamic financing formulas individually.
• Apply Islamic financing formulas in the process of providing financing to clients.

Applications of Financing Forms in Islamic Banks Course