Islamic trade finance is trade finance performed in a way that complies with Shariah laws. The idea of a set of rules for Islamic finance was introduced around 1950-70 as a solution and a response to the increasing influence of western economies. In Islamic trade finance, trade transactions can be financed either on credit or on a participatory basis. Topics covered in this course includes:
- Introduction to Shariah principles in Islamic trade financing
- Key aspects of trade financing: Payment facilitation, financing, risk mitigation and documentation
- Shariah principles in Islamic trade financing: Musharaka, murabaha and wakala
- Basis for Islamic trade financing
- Credit basis involving the delay of the price or delivery of the purchased commodities.
- Participatory finance in the form of participation of the financier in the profits and losses brought in to resell the financed goods or put them into an income-generating production process.
- Different credit techniques to comply with Shariah principles
- Standardization in international trade within an Islamic economy
- Legal aspects of trade finance structuring and documentation
- Managing risks in Islamic trade financing
- Shariah issues in Islamic trade financing: Islamic trust receipts, Islamic shipping guarantee, Islamic accepted bills.
AVP (International Business & Licensing)
DID: +65 6632 9530
Timing: 9 AM – 5 PM
Venue: Lifelong Learning Institute