Professional Certificate in Islamic Capital Markets
Course Overview
The Professional Certificate in Islamic Capital Markets is designed to provide participants with a comprehensive understanding of the principles and practices of Shariah-compliant finance. In today’s global financial markets, Islamic finance has emerged as an alternative and ethical approach to investing, attracting both Muslims and non-Muslims alike who seek socially responsible investment opportunities. This course serves as an introduction to Islamic finance within the context of capital markets, providing insights into various financial instruments that comply with Islamic law. Islamic finance operates on the premise that investments should align with the ethical guidelines set out in Shariah law, which includes the prohibition of Riba (interest), Maysir (gambling), and Gharar (uncertainty). The course explores how these prohibitions shape the landscape of investment opportunities, ensuring fairness, transparency, and ethical conduct in all financial dealings. It focuses on understanding key Islamic financial instruments such as Sukuk (Islamic bonds), Islamic equity financing, and Islamic investment funds.
Participants will be exposed to the underlying principles of Islamic finance, such as risk-sharing, ethical investing, and socially responsible finance, and how these principles create a financial system that is rooted in moral responsibility. By the end of the course, participants will be well-equipped to evaluate Shariah-compliant financial products and incorporate them into their investment portfolios. This course is designed for individuals who are either new to finance or those who are familiar with conventional finance and are looking to expand their knowledge into the field of Islamic finance. It is also suitable for professionals looking to diversify their investment strategies or financial analysts who wish to better understand the growing sector of Shariah-compliant investments.
Instructors
Professor Dr. Obiyathulla Ismath Bacha is currently Professor of Finance and Head of PhD Program at INCEIF University, a post graduate university specialising in Islamic Finance, established by Bank Negara Malaysia. Prior to joining INCEIF, he has held several key positions at the International Islamic University Malaysia, including as Director and Founding Head of the university’s MBA Program. Professor Obiyathulla began his working career at Malayan Banking Berhad. On completing his doctoral studies, he was appointed an Assistant Professor of Finance at Boston University, where he received the Allen E Beckwith Award for teaching excellence, having taught at both the MBA and undergraduate levels. Prof. Obiyathulla was President of the Malaysian Finance Association for 5 years from 2013-2017. He has also been a trainer at several institutions such as the Securities Commission of Malays... Read More
Course Outcomes
Upon successful completion of the course, participants will achieve the following outcomes:
Understanding Islamic Finance Principles- Participants will develop a deep understanding of the fundamental principles of Islamic finance, such as the prohibitions of Riba, Maysir, and Gharar. They will understand how these principles impact wealth management and investments, ensuring financial transactions that are fair, transparent, and socially responsible.
Proficiency in Sharia-Compliant Financial Products- The course will enable participants to identify, evaluate, and incorporate Shariah-compliant financial products such as Sukuk, Islamic mutual funds, and Islamic equity investments into their investment portfolios. They will understand the specific features and legal underpinnings of these financial products.
Building an Ethical Investment Portfolio- Participants will learn how to create and manage a diversified investment portfolio that adheres to the principles of Islamic finance. They will focus on constructing portfolios that align with ethical investment standards, while ensuring long-term financial growth.
Risk Management in Islamic Finance- A key element of Islamic finance is risk-sharing, which contrasts with conventional finance models that rely on risk transfer. Participants will understand how Islamic finance uses profit-sharing arrangements, equity participation, and asset-backed financing to mitigate risk in a fair and ethical manner.
Integrating Charitable Giving into Wealth Management- The course will educate participants on how to incorporate Zakat (obligatory charity), Sadaqah (voluntary charity), and Waqf (endowment) into their wealth management strategies. They will learn how to align their investments with Islamic teachings on social welfare and charity.
Practical Application of Islamic Wealth Management- The course uses case studies and real-world examples to enable participants to develop practical, Shariah-compliant financial plans for individuals and organisations. Participants will gain the skills needed to apply their knowledge in various contexts, including personal finance and corporate finance.
Ethical Decision-Making in Wealth Management- Ethical decision-making is a key aspect of Islamic finance. Participants will develop a strong sense of responsibility to ensure that their financial decisions not only benefit their own wealth but also contribute to the broader well-being of society.
Course Structure
Week 1: Introduction to Islamic Finance and Capital Markets
The course begins with an introduction to the core principles of Islamic finance. This week focuses on the ethical guidelines that form the foundation of Shariah-compliant investing. The prohibitions of Riba (interest), Maysir (gambling), and Gharar (uncertainty) will be discussed in-depth, exploring how these principles shape investment strategies. Risk-sharing is emphasized as the cornerstone of Islamic finance, offering an alternative to conventional financial models that prioritize risk transfer. Participants will learn about Islamic capital markets and how they differ from conventional markets, with a focus on key instruments such as Sukuk (Islamic bonds) and Islamic equity financing. The week will also explore the importance of transparency, fairness, and social responsibility in Islamic finance, setting the tone for the rest of the course.
The course begins with an introduction to the core principles of Islamic finance. This week focuses on the ethical guidelines that form the foundation of Shariah-compliant investing. The prohibitions of Riba (interest), Maysir (gambling), and Gharar (uncertainty) will be discussed in-depth, exploring how these principles shape investment strategies. Risk-sharing is emphasized as the cornerstone of Islamic finance, offering an alternative to conventional financial models that prioritize risk transfer. Participants will learn about Islamic capital markets and how they differ from conventional markets, with a focus on key instruments such as Sukuk (Islamic bonds) and Islamic equity financing. The week will also explore the importance of transparency, fairness, and social responsibility in Islamic finance, setting the tone for the rest of the course.
Week 2: Sukuk (Islamic Bonds) – A Unique Investment Opportunity
Sukuk are central to Islamic capital markets, and this week provides participants with a detailed understanding of Sukuk as an investment instrument. Unlike conventional bonds, Sukuk are structured to comply with Islamic law by providing a return that is linked to the performance of an underlying asset rather than interest payments. Participants will learn the various types of Sukuk, such as Ijarah (leasing), Mudarabah (profit-sharing), and Murabaha (cost-plus financing). The week will also examine the challenges and opportunities in the issuance of Sukuk in non-Muslim majority countries. Participants will explore the global market for Sukuk, which has grown significantly in recent years, and understand its role in diversifying investment portfolios with ethical assets.
Sukuk are central to Islamic capital markets, and this week provides participants with a detailed understanding of Sukuk as an investment instrument. Unlike conventional bonds, Sukuk are structured to comply with Islamic law by providing a return that is linked to the performance of an underlying asset rather than interest payments. Participants will learn the various types of Sukuk, such as Ijarah (leasing), Mudarabah (profit-sharing), and Murabaha (cost-plus financing). The week will also examine the challenges and opportunities in the issuance of Sukuk in non-Muslim majority countries. Participants will explore the global market for Sukuk, which has grown significantly in recent years, and understand its role in diversifying investment portfolios with ethical assets.
Week 3: Islamic Equity Financing and Investment Opportunities
In Week 3, participants will delve into Islamic equity financing, one of the core components of Shariah-compliant investment strategies. The concept of equity financing in Islamic finance differs from conventional equity financing in that it is based on shared risk and profit. Participants will learn how to screen stocks for Shariah-compliance, ensuring that investments are made in industries and companies that adhere to Islamic ethical principles. The week will also explore Islamic equity funds, which provide investors with diversified access to Sharia-compliant stocks and other equity-based assets. Participants will understand the various screening processes used to identify halal (permissible) investment opportunities, and how to build a diversified portfolio of ethical stocks.
In Week 3, participants will delve into Islamic equity financing, one of the core components of Shariah-compliant investment strategies. The concept of equity financing in Islamic finance differs from conventional equity financing in that it is based on shared risk and profit. Participants will learn how to screen stocks for Shariah-compliance, ensuring that investments are made in industries and companies that adhere to Islamic ethical principles. The week will also explore Islamic equity funds, which provide investors with diversified access to Sharia-compliant stocks and other equity-based assets. Participants will understand the various screening processes used to identify halal (permissible) investment opportunities, and how to build a diversified portfolio of ethical stocks.
Week 4: Islamic Investment Funds and Real Estate
Week 4 will cover Islamic investment funds, which are structured to comply with Shariah principles. Participants will learn how these funds are different from conventional investment funds, particularly in terms of their investment strategies and ethical guidelines. The week will also focus on Islamic real estate investments, which have become increasingly popular as an ethical and profitable investment opportunity. Participants will gain insights into how real estate projects can be financed and structured in compliance with Islamic law. They will learn to evaluate Islamic real estate investment opportunities and assess their potential for long-term returns. Case studies of successful Islamic real estate projects will be used to illustrate how these investments are structured and managed.
Week 4 will cover Islamic investment funds, which are structured to comply with Shariah principles. Participants will learn how these funds are different from conventional investment funds, particularly in terms of their investment strategies and ethical guidelines. The week will also focus on Islamic real estate investments, which have become increasingly popular as an ethical and profitable investment opportunity. Participants will gain insights into how real estate projects can be financed and structured in compliance with Islamic law. They will learn to evaluate Islamic real estate investment opportunities and assess their potential for long-term returns. Case studies of successful Islamic real estate projects will be used to illustrate how these investments are structured and managed.
Week 5: Risk Management, Ethical Investing, and Future Trends
The final week explores risk management principles in Islamic finance, which focus on equitable risk-sharing rather than risk transfer. Participants will learn about the different ways Islamic finance mitigates financial risk, including through profit-sharing and equity-based financing. The week will also address the growing importance of ethical investing in the global financial system, with an emphasis on sustainability, social responsibility, and long-term value creation. Finally, participants will examine emerging trends in Islamic capital markets, focusing on the future of Islamic finance and its role in the global economy. They will explore the growing demand for Sharia-compliant investment products and how Islamic finance can contribute to a more ethical and sustainable global financial system.
The final week explores risk management principles in Islamic finance, which focus on equitable risk-sharing rather than risk transfer. Participants will learn about the different ways Islamic finance mitigates financial risk, including through profit-sharing and equity-based financing. The week will also address the growing importance of ethical investing in the global financial system, with an emphasis on sustainability, social responsibility, and long-term value creation. Finally, participants will examine emerging trends in Islamic capital markets, focusing on the future of Islamic finance and its role in the global economy. They will explore the growing demand for Sharia-compliant investment products and how Islamic finance can contribute to a more ethical and sustainable global financial system.
Course Assessment
Throughout the course, participants will complete short quizzes at the end of each module or session. These quizzes will assess their understanding of key concepts, such as the core principles of Islamic finance (Riba, Maysir, and Gharar), the structure and function of Shariah-compliant financial instruments (like Sukuk and Islamic equities), and ethical investment strategies. The quizzes are designed to test participants’ retention of theoretical knowledge and their ability to apply these principles to real-life investment situations.
The passing mark for this program is 70%, and participants are required to maintain an overall minimum 75% attendance for each module to successfully complete the course.
Target Audience
This course is ideal for a variety of professionals and individuals interested in Islamic finance and its integration into capital markets. Key target groups include:
Finance Professionals in Conventional Finance: Bankers, financial analysts, and investment managers who wish to expand their expertise by incorporating Shariah-compliant products into their portfolios and serving clients seeking ethical investment options.
Government Bankers: Bankers working in government institutions who need to understand the application of Islamic finance principles in public sector investments and capital markets.
Investors Seeking Ethical Investment Opportunities: Individuals interested in socially responsible investments will learn how to assess and evaluate Shariah-compliant financial products aligned with Islamic principles.
Wealth Managers, Financial Analysts, and Portfolio Managers: Professionals aiming to build and manage diversified, Shariah-compliant investment portfolios for clients seeking ethical wealth management.
Regulatory and Compliance Experts: Individuals working in finance law and regulation who need to understand the legal frameworks governing Islamic financial markets.
Financial Advisors and Planners: Advisors looking to serve clients who prioritize ethical investing by expanding their knowledge of Islamic finance principles and relevant financial products.
Students and Academics: Individuals pursuing careers or research in Islamic finance, who want to gain a comprehensive understanding of Islamic capital markets.
Finance Professionals in Conventional Finance: Bankers, financial analysts, and investment managers who wish to expand their expertise by incorporating Shariah-compliant products into their portfolios and serving clients seeking ethical investment options.
Government Bankers: Bankers working in government institutions who need to understand the application of Islamic finance principles in public sector investments and capital markets.
Investors Seeking Ethical Investment Opportunities: Individuals interested in socially responsible investments will learn how to assess and evaluate Shariah-compliant financial products aligned with Islamic principles.
Wealth Managers, Financial Analysts, and Portfolio Managers: Professionals aiming to build and manage diversified, Shariah-compliant investment portfolios for clients seeking ethical wealth management.
Regulatory and Compliance Experts: Individuals working in finance law and regulation who need to understand the legal frameworks governing Islamic financial markets.
Financial Advisors and Planners: Advisors looking to serve clients who prioritize ethical investing by expanding their knowledge of Islamic finance principles and relevant financial products.
Students and Academics: Individuals pursuing careers or research in Islamic finance, who want to gain a comprehensive understanding of Islamic capital markets.
Recommended Resources
Participants will have access to a range of recommended readings, videos, and case studies through the LMS platform. These resources will provide deeper insights into the topics covered in each module and further enhance their understanding of Islamic finance and capital markets.
Certificates
Upon successful completion of the course requirements, participants will receive a
certificate of completion from ExpertGate.
