Musharakah-Mudharaba and their application

Instruction Language

English

Country

Bahrain

English Abstract

The Musharakah-Mudharabah and their applications course provides an in-depth understanding of the two main partnership contracts in Islamic banking and finance : Mudharabah and Musharakah, and how they are applied in the current Islamic banking industry.

It also presents a detailed explanation on the many aspects of the original Mudharabah and Musharakah contract, covering their principles, legal foundations, and variations.

The course makes use of cases that utilise sample contracts to further the concepts of both Mudharabah and Musharakah.

Program Duration

Objectives

- Upon successful completion of this course, participants will be able to : -Review the history of Islamic banking and the current Islamic banking and finance landscape. -Discuss the key principles of Islamic banking, referencing the sources of Islamic law, and then specifically relating it with the contract of Mudharabah and Musharakah. -Describe the essential rules of Mudharabah and Musharakah and explain how they are applied to the modern products of Islamic banking. -Distinguish and evaluate the key differences between Mudharabah and Musharakah-based financing and other types of financing products used in both conventional banking and Islamic banking. -Discuss the contemporary issues related to the current practice of Mudharabah and Musharakah financing. -Explain the key points of AAOIFI Shariah Standards no. 12 and no. 13 and FAS no. 3 and 4 on Musharakah and Mudharabah respectively and, and apply them in solving accounting-related questions. -Explain the key points of Mudharabah and Musharakah-based Sukuk .

Field work

This course is aimed at individuals who would like to gain an in-depth understanding on the partnership contracts of Mudharabah and Musharakah and how it is applied in the current Islamic banking products, and for those who deal directly with Mudharabah and Musharakah-based products.

Pre-session Requirements

BIBF course Introduction to Islamic banking and finance-part 1 600E.

Features of the course

-The course is conducted using a combination of lectures, discussions, case studies, and an end-of-course assessment. Students are also expected to complete an additional 4 hours of self-study. Note : this course is assessed.

Certificate / Course Program

-A review on the history of Islamic banking and its current financial landscape. -Key principles and rules of the Islamic nominate contracts of Mudharabah and Musharakah. -A discussion on Islamic banking products that utilise the contract of Mudharabah and Musharakah : Mudharabah financing, Musharakah home financing, syndicate financing, Islamic mutual funds, Mudharabah-based unrestricted investment accounts, Mudharabah-based restricted investment accounts, Sukuk al Musharakah, Sukuk al Mudharabah, Mudharabah and Musharakah in trade financing. -AAOIFI Shariah standards no. 12 and no. 13 on Mudharabah and Musharakah respectively. -Accounting for Mudharabah and Musharakah transactions under AAOIFI FAS no. 3 and FAS no. 4 respectively. -Key points of Mudharabah and Musharakah-based Sukuk. -Case studies related to Mudharabah and Musharakah contract analysis.