Islamic Finance forInfrastructure Projects

ProgrammeOverview

© PPP Experts Limited 2017. All rights reserved.

Course Summary

The course will require delegates to undertake exercises based on real-life transactions:

and ho incorporated

-

- Understand the structure of the most

applications for Islamic products in project

Musharakah, Wakalah, Ijarah, Salam and Istisna

Asian versus GCC practices

- Understand the real-life application of Islamic

studies

- Understand important regulatory, insurance, ratings and risk issues

s

Dr. Ibrahim Fahad AlghofailyCEO, Arriyada Financial & Economic Consultant Center

Dr Alghofaily has a long experience in Islamic Financing structuring, consultancy and advisory services. He developed a successfulpartnership between landowners, real estate developers, Islamic investment institutions, venture capital investors, real estate traders

mega real estate development projects in Saudi Arabia and GCC countries Dr Alghofaily served as assistant general manager of banking group and a member of the supreme management executive and credit committees at AlRajhi bank, where he

various mega projects and monitoring

transactions. He managed reengineering and development projects in banking, human resource management and IT with

such as AT Kearney, and EDS

Dr Alghofaily has over 18 years of extensive and outstanding knowledge and experience in Islamic Banking and Financing including ten years in Al Rajhi bankwhich is the largest Islamic bank in Saudi Arabia and the world. Dr Alghofaily started his career in 1975 as an assistant teacher in the college of Economic and Administration at King Abdul Aziz University (KAU), Jeddah, Saudi Arabia. He

Faculty of Economics and Administration at KAU, MA in management from California State University and PhD in organization development from Florida State University, USA

© PPP Experts Limited 2017. All rights reserved.

DAY ONE

1.1 Review of Key Islamic Concepts and Business Applications

- What is Riba? - - What is Gharar? - What are the Islamic rules of possession and contract? - Review of the Islamic business concepts: naturally certain and naturally uncertain contracts - Can we syndicate a transaction, basic ideas applied - What are the applicable business concepts that we wish to apply?

1.2 Core Islamic Financial Transactions: Sales Contracts and Murabahah

1.3 Sales Contracts: Murabahah/Bai bi Thamin al Ajil as Credit Instruments

- Diagramming a sales contract and shifting it into a credit instrument - A practical sales case

1.4 Sales Contracts: Tawarruq and Bai Al Ainah

- Diagramming the Tawarruq and Bai al ainah concepts - Organized Tawarruq and London Metals contracts - Original Tawarruq - Shariah and business pros and cons relating to these methods

1.5 Ijarah Methods Creating Flexible Extensions of the Credit Model

- Diagramming Ijarah, Ijarah wa iqtina and ‘guaranteed’ transactions - Managing existing balance sheet asset exposures -

1.6 Mixing Sales Contracts with Other Forms

- - Why do they seem to be favored by some Islamic scholars? - What are the salient features for pricing these concepts? -

- How could we combine them with the sales contracts?

DAY TWO

2.1 Salam & Istisna

- Is Salam simply a futures or options contract? - Istisna in the manufacturing and construction contexts - Could the fertilizer company transaction be structured applying Istisna? - Could Wakalah be applied to the fertilizer company? - Could Mudarabah be applied to the fertilizer company? - Could Salam be applied to SKS Power? - Could Wakalah be applied to SKS Power? - Could Musharakah be applied to SKS Power?

2.2 Co-Financing Issues

2.3 Sukuk and Islamic Capital Markets

What are Sukuk?

- - Shariah Basis of Sukuk

About Trainer

Refresher and Murabahah/Tawarruq

Salam & Istisna, Sukuk

Comments from past programmes

“ This course was delivered expertly and made some of the most complex subjects

understand. Best part was, it’s very much a case study driven programme which helped put everything in perspective. Excellent!”

S. Khatab OCI, Egypt

© PPP Experts Limited 2017. All rights reserved.

DAY TWO

2.4 Capital Markets & Securitization

- Types of Sukuk and comparison with conventional bonds and asset backed securities - High level considerations for issuers, structurers, buyers and regulators - Overview about recent issues of Sukuk and the market demand/ subscription - Overview of market growth, demand factors, and absence of secondary markets

Continued

DAY THREE

Advanced Techniques

3.1 Principles Reminders

- Contract & possession - Riba & gharar - NCC versus NUC

3.2 Declining Balance Partnership

- Musharakah reminder - How to mix naturally NUC and NCC

3.3 Applied Project Finance and Infrastructure Cases:

3.4 Hedging Project Finance Transactions

3.5 Hedging Review and Suggested Methods

- - Summary of hedging tools applied in the Islamic space - Review of natural hedges compared to structured hedges

Wrap-Up

- Overall review - Key points to re-iterate - Brief introduction to further exercises - Final questions and issues to discuss

Course Complete

www.pppexperts.c+44 (0) 203 137 043info@pppexperts.com

om

In-House Training SolutionsIf you have a number of delegates with

similar training needs, then you may

wish to consider having an In-House

training solution delivered locally

Who Should Attend & Why

are employed in the Islamic Financial Industry - in particular Shari’ah compliance personel, operations and risk management

programme will explore how Islamic Finance has played an important part in various PPP and Infrastructure projects

interest rates, and is regarded as apartnership between the bank and the private sector company involved, which means the bank as well as the company in question will share the risks andresponsibilities

In this three-day workshop, a wide-ranging and very detailed analysis will be conducted

innovations that have been employed for the development and reshaping of existing Shari'ah-compliant products

All our trainings are conducted on personalised tablets. Each delegate will receive his/her own tablet to keep, fully loaded with all the course materials and case studies!

Tablet Technology: