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FutureLearn

Sukuk Simplified: Mastering the Fundamentals

INCEIF University via FutureLearn

Overview

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Lay the groundwork for your career in Islamic finance

Sukuk, commonly known as ‘sharia compliant bonds’, are Islamic financial certificates representing existing or future assets.

The first in a series of Sukuk masterclasses from INCEIF University, this four-week course will provide an introduction to a crucial area of Islamic finance.

From definitions of Sukuk to their differences from conventional bonds, you’ll gain the foundation you need to analyse, evaluate, and engage in Sukuk-related transactions.

Understand Sukuk and how they differ from conventional bonds

After an overview of the history, evolution, and terminology of Sukuk, you’ll delve into the nitty gritty of different definitions.

You’ll learn how three important institutions of Islamic finance, the AAIOFI, IFSB, and Securities Commission in Malaysia, define Sukuk.

You’ll also explore the similarities and differences between Sukuk and conventional financial bonds.

Master the concept of securitisation

In the fourth and final week of the course, you’ll look more closely at the concept of securitisation. This principle lies at the heart of Sukuk and has become crucial to Islamic finance generally.

With the specialist knowledge you gain through this course, you’ll be equipped to begin navigating the evolving landscape of Islamic finance.

To further your knowledge, take masterclass #2 in our Sukuk series: Sukuk in Practice: Structures and Contracts

The first in a series of masterclasses on the topic, this course is designed for bankers and financial professionals who are interested in understanding the fundamental principles of Sukuk.

It will also be beneficial for corporate treasurers, investors, government officials, and academics.

Syllabus

  • Introduction to Fundamentals of Sukuk
    • Welcome to the Course
    • Fundamentals of Sukuk: Terminology, History and Evolution
    • Summary
  • Definitions of Sukuk
    • The Definitions of Sukuk by Three Primary Institutions: Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Islamic Financial Services Board (IFSB) and Securities Commission (SC) Malaysia
    • The Definition of Sukuk Related to the Underlying Assets in Its Issuance
    • Summary
  • Sukuk versus Conventional Bonds
    • The Differences between Sukuk and Conventional Bonds
    • The Similarities between Sukuk and Conventional Bonds
    • The Underlying Structures
    • Claim and Pricing Instruments
  • The Concept of Securitisation
    • What is Securitisation?
    • Summary
    • What's Next?

Taught by

Lidiana Bakar

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