Islamic Trade Finance
The course aims at introducing participants to the traditional Import and Export letters of credit process, and compares the same with the Islamic trade finance structure and process. It also includes discussion of important terms such as confirmed irrevocable; revolving; red clause; standby LC/Guarantees; Back to Back, etc.
• Review of the traditional Import and Export letters of credit process
• Common issues and defects in letters of credit/Bills for collection and related potential Risk
• How do the traditional concepts and problems square with Islamic rules?
• Comparison between Islamic vs. Conventional Letters of Guarantee
• Letters of Credit and Kafalah
• Pure Murabaha Import, Agency Murabaha, Murabaha Purchase order and other Islamic instruments (Salam, Istisnaa and Tawarroq)
• Bills for collection and related Shari'a Fatwa to mitigate the risk
Upon completion of this course, the participant will have knowledge of the:
• Principles of Islamic Finance
• Role of Shari'a Supervisory Board
• Islamic Financing structures
• Review of the UCP600
• Export/Import letters of Credit & Collection Cycle
• Confirmation & Advices of Letters of Credit
• Islamic Products Shifting into Credit Instruments
• Shari'a Standards (AAOIFI) in relation to trade finance
4 days; 24 hours
“The trainings conducted by SKILLS (previously BFST) has always been a huge success among BIsB's employees! The employees have been able to obtain a new sense of confidence and have been able to communicate their ideas & concerns. Their input has given us the opportunity to implement new strategies and procedures to improve our banking services. Thank you SKILLS for your professionalism and commitment to excellence. I unequivocally recommend SKILLS to those interested in improving their employees' skills”.
Reem Al Mutawaj
Manager - Training & Development
Bahrain Islamic Bank
Kingdom of Bahrain