SlideShare a Scribd company logo
1 of 26
Islamic Banking – Products & Operations A practical introduction Duncan R. Smith Arab Banking Corporation March 2008
CONTENT OF PRESENTATION ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],UNDERSTANDING THE CONTEXT
WHAT  IS  ISLAMIC BANKING? ,[object Object],[object Object],[object Object],  
WHAT PROMPTED ISLAMIC BANKING? ,[object Object],[object Object],[object Object]
ORIGINS OF ISLAMIC BANKING Quran Hadith  &  Sunna  Interpretation  by  Shariaa Scholars Sayings of the Prophet Teachings & Life style of  the Prophet i) Sahih Al-Bokhari ii) Sahih Muslim 1) Hanbaly 2) Shafei 3) Hanafi 4) Maliki Two Sects of Islam Sunnah Shia’h 5) Ithna-Ashriah Qiyas - Ijtehad – Ijma’a Surah Verse(s) Al-BAQARRAH (#2) 275-279 AN-NESSA (#4) AL-EMRAN (#3) AR-RUM  (#30) 130 161 39
ISLAMIC FINANCE PERSPECTIVES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
LOOKING AT THE PRODUCTS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ISLAMIC FINANCE PRINCIPLES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
Saudi  Corporate Islamic Bank Commodity  Broker Deferred obligation of $ 20 million + mark up (3 months) Buys commodity on deferred terms Sells commodity for cash Cash price ($ 20 million) Commodity for cash Commodity for cash ,[object Object]
(2) LIBYAN CONSTRUCTION EQUIPMENT FINANCE TRANSACTION ,[object Object],[object Object],[object Object],[object Object],[object Object]
(2) LIBYAN CONSTRUCTION EQUIPMENT FINANCE TRANSACTION ABCIB Suppliers Client Contractor Equipment Contract payments Opens Letters of Credit $ payments Makes payments against documents Supply goods / equipment
(3) SYNDICATED FINANCING –  REVOLVING MURABAHA FOR KUWAITI CORPORATE ,[object Object],[object Object],[object Object]
 
 
(4) SUKUK ISSUE –  “ISLAMIC ABS”; SAUDI HOUSEBUILDER ,[object Object],[object Object],[object Object],[object Object],[object Object]
(4) SUKUK SUMMARY ABC Islamic Bank (E.C.); Arab National Bank; Deutsche Bank AG; Dubai Islamic Bank PJSC; Gulf International Bank B.S.C.; Kuwait Finance House (Malaysia) Berhad; Unicorn Investment Bank, B.S.C. (c)  Joint Lead Managers and Joint Bookruners Saudi law for property-related documents English law for Trust Deed and Certificates Governing Law Sukuk Al-Ijara Issue Type Application made to Dubai International Financial Exchange (DIFX) and Labuan International Financial Exchange (LFX) Public Listing US$ LIBOR plus 225bps Coupon 3-month US$ LIBOR  Floating Rate 5 years, bullet Maturity Dar Al-Arkan International Sukuk Company (a limited liability company incorporated in the Cayman Islands) Issuer 5 Year US$[*] Trust Certificates due 2012 Issue Dar Al-Arkan Real Estate Development Company (Dar Al-Arkan) Guarantor
Sale Proceeds (US$) Sale of Real Estate Assets (Transfer of Title Deeds) Issue Proceeds (US$) Guarantee 5 Year Lease  (Use of Real Estate Assets)  Lease Payments On-shore Offshore Certificates Payment for Real Estate  R ights (US$) Transfer of Real Estate Rights SAUDI SPV Dar Al-Arkan ISSUER (Dar Al-Arkan International  Sukuk Co.) SUKUK HOLDERS (4) TRANSACTION STRUCTURE (SUKUK AL IJARA)
(5) CONTAINER SUKUK ISSUE ,[object Object],[object Object],[object Object]
 
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Property / Asset Customer (20% share) (“Customer Share”) Bank (80% share) (“Bank’s Share”) (6) DIMINISHING MUSHARAKAH / IJARAH STRUCTURE Customer Bank Customer (as tenant) Bank’s Share Increasing ownership Acquisition cost instalments to purchase 80% share Joint Purchase Based on Shirkat-al-milk. Bank takes title Customer agrees to repay principal by the buying over time, the Bank’s share.  Consequently the customer’s ownership interest in the property increases and the Bank’s decreases The Customer leases the Bank’s share, with periodic adjustments made to rental to reflect the fact that a reducing bank share is being leased Rental Lease of reducing Bank’s share
ISLAMIC INVESTMENT PRODUCTS –    320 Worldwide; top 93 1 Non Investment Islamic Fund 1 Islamic Mutual Funds 1 Islamic Infrastructure Funds 1 Islamic Hybrid Funds 2 Islamic Hedge Funds 3 Islamic Growth Funds 3 Islamic Murabaha Funds 3 Islamic Index Funds 3 Islamic Funds of Funds  4 Islamic Commodity Funds 5 Islamic Leasing Funds 7 Islamic Balanced Funds 10 Islamic Real Estate Funds 18 Islamic Income Funds 31 Islamic Equity Funds
CONCLUDING REMARKS ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mille Grazie !

More Related Content

What's hot

What is Sukuk & Sukuk Strcuture
What is Sukuk & Sukuk StrcutureWhat is Sukuk & Sukuk Strcuture
What is Sukuk & Sukuk StrcutureWAQAS GULL
 
Fundamental of Islamic Banking - Principles of Islamic Banking
Fundamental of Islamic Banking - Principles of Islamic BankingFundamental of Islamic Banking - Principles of Islamic Banking
Fundamental of Islamic Banking - Principles of Islamic BankingMahyuddin Khalid
 
Inflation Indexed Bonds in India
Inflation Indexed Bonds in IndiaInflation Indexed Bonds in India
Inflation Indexed Bonds in IndiaPraveen Asokan
 
Fundamental of Islamic Banking - Application of Funds
Fundamental of Islamic Banking - Application of FundsFundamental of Islamic Banking - Application of Funds
Fundamental of Islamic Banking - Application of FundsMahyuddin Khalid
 
Fundamental of Islamic Banking - Treasury
Fundamental of Islamic Banking - TreasuryFundamental of Islamic Banking - Treasury
Fundamental of Islamic Banking - TreasuryMahyuddin Khalid
 
Perpetual bonds and masala bonds
Perpetual bonds and masala bondsPerpetual bonds and masala bonds
Perpetual bonds and masala bondsSEFALI SINGH
 
Is the Sukuk Structure Shari'ah Compliant?
Is the Sukuk Structure Shari'ah Compliant?Is the Sukuk Structure Shari'ah Compliant?
Is the Sukuk Structure Shari'ah Compliant?Camille Silla Paldi
 

What's hot (20)

What is Sukuk & Sukuk Strcuture
What is Sukuk & Sukuk StrcutureWhat is Sukuk & Sukuk Strcuture
What is Sukuk & Sukuk Strcuture
 
The History of Sukuk (11)
The History of Sukuk (11)The History of Sukuk (11)
The History of Sukuk (11)
 
Sukuk
SukukSukuk
Sukuk
 
ISLAMIC BOND (SUKUK)
ISLAMIC BOND (SUKUK)ISLAMIC BOND (SUKUK)
ISLAMIC BOND (SUKUK)
 
Fundamental of Islamic Banking - Principles of Islamic Banking
Fundamental of Islamic Banking - Principles of Islamic BankingFundamental of Islamic Banking - Principles of Islamic Banking
Fundamental of Islamic Banking - Principles of Islamic Banking
 
Inflation Indexed Bonds in India
Inflation Indexed Bonds in IndiaInflation Indexed Bonds in India
Inflation Indexed Bonds in India
 
Alhuda CIBE - Conventional vs Islamic Bond by Dr. Mohd. Ma’sum Billah
Alhuda CIBE - Conventional vs Islamic Bond by Dr. Mohd. Ma’sum BillahAlhuda CIBE - Conventional vs Islamic Bond by Dr. Mohd. Ma’sum Billah
Alhuda CIBE - Conventional vs Islamic Bond by Dr. Mohd. Ma’sum Billah
 
Deepakm
DeepakmDeepakm
Deepakm
 
Fundamental of Islamic Banking - Application of Funds
Fundamental of Islamic Banking - Application of FundsFundamental of Islamic Banking - Application of Funds
Fundamental of Islamic Banking - Application of Funds
 
Fundamental of Islamic Banking - Treasury
Fundamental of Islamic Banking - TreasuryFundamental of Islamic Banking - Treasury
Fundamental of Islamic Banking - Treasury
 
Dubai World Crisis
Dubai World CrisisDubai World Crisis
Dubai World Crisis
 
Islamic Finance 3
Islamic Finance 3Islamic Finance 3
Islamic Finance 3
 
Perpetual bonds and masala bonds
Perpetual bonds and masala bondsPerpetual bonds and masala bonds
Perpetual bonds and masala bonds
 
Masala bonds
Masala bondsMasala bonds
Masala bonds
 
Is the Sukuk Structure Shari'ah Compliant?
Is the Sukuk Structure Shari'ah Compliant?Is the Sukuk Structure Shari'ah Compliant?
Is the Sukuk Structure Shari'ah Compliant?
 
Dubai Crisis
Dubai CrisisDubai Crisis
Dubai Crisis
 
Understanding Sukuk
Understanding SukukUnderstanding Sukuk
Understanding Sukuk
 
Overseas funds
Overseas fundsOverseas funds
Overseas funds
 
Islamic finance presentation
Islamic finance presentationIslamic finance presentation
Islamic finance presentation
 
PPT on NBFCs & CIC in India
PPT on NBFCs  & CIC in IndiaPPT on NBFCs  & CIC in India
PPT on NBFCs & CIC in India
 

Similar to Duncan Smiths Presentation

Securitisation Middle East Presentation
Securitisation Middle East PresentationSecuritisation Middle East Presentation
Securitisation Middle East Presentationsimonst
 
Islamic Finance - Capital Market
Islamic Finance - Capital MarketIslamic Finance - Capital Market
Islamic Finance - Capital MarketVipul Sonavane
 
Standards & guidelines issued by accounting, auditing, governance (aaoifi)
Standards & guidelines issued by accounting, auditing, governance (aaoifi)Standards & guidelines issued by accounting, auditing, governance (aaoifi)
Standards & guidelines issued by accounting, auditing, governance (aaoifi)Makhluk Hasan
 
Cross-Border Sukuk Issues
Cross-Border Sukuk IssuesCross-Border Sukuk Issues
Cross-Border Sukuk IssuesISEConsult
 
Canadian Banks Islamic FINANCE
Canadian Banks Islamic FINANCECanadian Banks Islamic FINANCE
Canadian Banks Islamic FINANCEbrighteyes
 
Islamic Banking and Finance
Islamic Banking and FinanceIslamic Banking and Finance
Islamic Banking and FinanceISEConsult
 
Ilorin
IlorinIlorin
Ilorinjubril
 
Islamic Finance by Zubair Mughal.ppt
Islamic Finance by Zubair Mughal.pptIslamic Finance by Zubair Mughal.ppt
Islamic Finance by Zubair Mughal.pptFarihaAmin7
 
Sukuk-Structures.pdf
Sukuk-Structures.pdfSukuk-Structures.pdf
Sukuk-Structures.pdfmehtabahmed76
 

Similar to Duncan Smiths Presentation (20)

Securitisation Middle East Presentation
Securitisation Middle East PresentationSecuritisation Middle East Presentation
Securitisation Middle East Presentation
 
Islamic Finance - Capital Market
Islamic Finance - Capital MarketIslamic Finance - Capital Market
Islamic Finance - Capital Market
 
Alhuda CIBE - Presentation on Sukuk by Hamad Rasool
Alhuda CIBE - Presentation on Sukuk by Hamad RasoolAlhuda CIBE - Presentation on Sukuk by Hamad Rasool
Alhuda CIBE - Presentation on Sukuk by Hamad Rasool
 
Standards & guidelines issued by accounting, auditing, governance (aaoifi)
Standards & guidelines issued by accounting, auditing, governance (aaoifi)Standards & guidelines issued by accounting, auditing, governance (aaoifi)
Standards & guidelines issued by accounting, auditing, governance (aaoifi)
 
Sukuk hamad rasool-211008
Sukuk  hamad rasool-211008Sukuk  hamad rasool-211008
Sukuk hamad rasool-211008
 
Alhuda CIBE - Issuance Procedures of Sukuk
Alhuda CIBE - Issuance Procedures of Sukuk Alhuda CIBE - Issuance Procedures of Sukuk
Alhuda CIBE - Issuance Procedures of Sukuk
 
Cross-Border Sukuk Issues
Cross-Border Sukuk IssuesCross-Border Sukuk Issues
Cross-Border Sukuk Issues
 
Canadian Banks Islamic FINANCE
Canadian Banks Islamic FINANCECanadian Banks Islamic FINANCE
Canadian Banks Islamic FINANCE
 
Islamic Banking and Finance
Islamic Banking and FinanceIslamic Banking and Finance
Islamic Banking and Finance
 
Ilorin
IlorinIlorin
Ilorin
 
Alhuda CIBE - Presentation on Sukuk by Ijlal Alvi
Alhuda CIBE - Presentation on Sukuk by Ijlal AlviAlhuda CIBE - Presentation on Sukuk by Ijlal Alvi
Alhuda CIBE - Presentation on Sukuk by Ijlal Alvi
 
Khawaja sb roadshow islamic banking
Khawaja sb  roadshow islamic bankingKhawaja sb  roadshow islamic banking
Khawaja sb roadshow islamic banking
 
Khawaja sb roadshow islamic banking
Khawaja sb  roadshow islamic bankingKhawaja sb  roadshow islamic banking
Khawaja sb roadshow islamic banking
 
Agriculture finance training
Agriculture  finance training Agriculture  finance training
Agriculture finance training
 
Alhuda CIBE - Presentation on Islamic Finance by Zubair Mughal
Alhuda CIBE - Presentation on Islamic Finance by Zubair MughalAlhuda CIBE - Presentation on Islamic Finance by Zubair Mughal
Alhuda CIBE - Presentation on Islamic Finance by Zubair Mughal
 
Islamic Finance by Zubair Mughal.ppt
Islamic Finance by Zubair Mughal.pptIslamic Finance by Zubair Mughal.ppt
Islamic Finance by Zubair Mughal.ppt
 
ICMAP
ICMAPICMAP
ICMAP
 
Alhuda Presentation
Alhuda PresentationAlhuda Presentation
Alhuda Presentation
 
Sukuk-Structures.pdf
Sukuk-Structures.pdfSukuk-Structures.pdf
Sukuk-Structures.pdf
 
Alhuda CIBE - Corporate Sukuk Issuance and Prospects by Muhammad Arif
Alhuda CIBE - Corporate Sukuk Issuance and Prospects by Muhammad Arif Alhuda CIBE - Corporate Sukuk Issuance and Prospects by Muhammad Arif
Alhuda CIBE - Corporate Sukuk Issuance and Prospects by Muhammad Arif
 

More from ISEConsult

Islamic Banking Int Fin Mkts
Islamic Banking Int Fin MktsIslamic Banking Int Fin Mkts
Islamic Banking Int Fin MktsISEConsult
 
Iqbal Khan Presentation20070201
Iqbal Khan Presentation20070201Iqbal Khan Presentation20070201
Iqbal Khan Presentation20070201ISEConsult
 
Intro To Shariah Compliant Structures Mohammed Haris
Intro To Shariah Compliant Structures  Mohammed HarisIntro To Shariah Compliant Structures  Mohammed Haris
Intro To Shariah Compliant Structures Mohammed HarisISEConsult
 
Fiqhof Islamic Finance
Fiqhof Islamic FinanceFiqhof Islamic Finance
Fiqhof Islamic FinanceISEConsult
 
Financial Crisis And Islamic Finance
Financial Crisis And Islamic FinanceFinancial Crisis And Islamic Finance
Financial Crisis And Islamic FinanceISEConsult
 
Finance Islamique Hassoune
Finance Islamique HassouneFinance Islamique Hassoune
Finance Islamique HassouneISEConsult
 
Finance Islamique
Finance IslamiqueFinance Islamique
Finance IslamiqueISEConsult
 
Eoif Mudarabah Musharakah
Eoif Mudarabah MusharakahEoif Mudarabah Musharakah
Eoif Mudarabah MusharakahISEConsult
 
Distribution Of Wealth
Distribution Of WealthDistribution Of Wealth
Distribution Of WealthISEConsult
 
Diminishing Musharakah By Yahya Asim
Diminishing Musharakah By Yahya AsimDiminishing Musharakah By Yahya Asim
Diminishing Musharakah By Yahya AsimISEConsult
 
Islamic Life Insurance
Islamic Life InsuranceIslamic Life Insurance
Islamic Life InsuranceISEConsult
 
The Growth Potential Of Islamic Insurance Takaful in Arab Market
The Growth Potential Of Islamic Insurance Takaful in Arab MarketThe Growth Potential Of Islamic Insurance Takaful in Arab Market
The Growth Potential Of Islamic Insurance Takaful in Arab MarketISEConsult
 
Succesful Islamic Insurance 21st Century
Succesful Islamic Insurance 21st CenturySuccesful Islamic Insurance 21st Century
Succesful Islamic Insurance 21st CenturyISEConsult
 

More from ISEConsult (14)

Islamic Banking Int Fin Mkts
Islamic Banking Int Fin MktsIslamic Banking Int Fin Mkts
Islamic Banking Int Fin Mkts
 
Iqbal Khan Presentation20070201
Iqbal Khan Presentation20070201Iqbal Khan Presentation20070201
Iqbal Khan Presentation20070201
 
Intro To Shariah Compliant Structures Mohammed Haris
Intro To Shariah Compliant Structures  Mohammed HarisIntro To Shariah Compliant Structures  Mohammed Haris
Intro To Shariah Compliant Structures Mohammed Haris
 
Fiqhof Islamic Finance
Fiqhof Islamic FinanceFiqhof Islamic Finance
Fiqhof Islamic Finance
 
Financial Crisis And Islamic Finance
Financial Crisis And Islamic FinanceFinancial Crisis And Islamic Finance
Financial Crisis And Islamic Finance
 
Finance Islamique Hassoune
Finance Islamique HassouneFinance Islamique Hassoune
Finance Islamique Hassoune
 
Finance Islamique
Finance IslamiqueFinance Islamique
Finance Islamique
 
Fa
FaFa
Fa
 
Eoif Mudarabah Musharakah
Eoif Mudarabah MusharakahEoif Mudarabah Musharakah
Eoif Mudarabah Musharakah
 
Distribution Of Wealth
Distribution Of WealthDistribution Of Wealth
Distribution Of Wealth
 
Diminishing Musharakah By Yahya Asim
Diminishing Musharakah By Yahya AsimDiminishing Musharakah By Yahya Asim
Diminishing Musharakah By Yahya Asim
 
Islamic Life Insurance
Islamic Life InsuranceIslamic Life Insurance
Islamic Life Insurance
 
The Growth Potential Of Islamic Insurance Takaful in Arab Market
The Growth Potential Of Islamic Insurance Takaful in Arab MarketThe Growth Potential Of Islamic Insurance Takaful in Arab Market
The Growth Potential Of Islamic Insurance Takaful in Arab Market
 
Succesful Islamic Insurance 21st Century
Succesful Islamic Insurance 21st CenturySuccesful Islamic Insurance 21st Century
Succesful Islamic Insurance 21st Century
 

Recently uploaded

1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to miningNeal Brewster
 
L1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfL1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfmiladsojoudi211
 
International economics – 2 classical theories of IT
International economics – 2 classical theories of ITInternational economics – 2 classical theories of IT
International economics – 2 classical theories of ITArifa Saeed
 
Chapter Three Interest rates in the Financial System.ppt
Chapter Three Interest rates in the Financial System.pptChapter Three Interest rates in the Financial System.ppt
Chapter Three Interest rates in the Financial System.pptKalkaye
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?DOT TECH
 
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书atedyxc
 
Zepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxZepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxaryan963438
 
NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...
NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...
NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...Amil baba
 
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...Amil baba
 
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书atedyxc
 
The Pfandbrief Roundtable 2024 - Covered Bonds
The Pfandbrief Roundtable 2024 - Covered BondsThe Pfandbrief Roundtable 2024 - Covered Bonds
The Pfandbrief Roundtable 2024 - Covered BondsNeil Day
 
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdfAdnet Communications
 
How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.DOT TECH
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书atedyxc
 
wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfallysaamping
 
Goldamn report on India's economy in 2024
Goldamn report on India's economy in 2024Goldamn report on India's economy in 2024
Goldamn report on India's economy in 2024ssuser7d2330
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjjoshuaclack73
 
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书atedyxc
 
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书atedyxc
 
international economics - introduction - 1.ppt
international economics - introduction - 1.pptinternational economics - introduction - 1.ppt
international economics - introduction - 1.pptArifa Saeed
 

Recently uploaded (20)

1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining1. Elemental Economics - Introduction to mining
1. Elemental Economics - Introduction to mining
 
L1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfL1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdf
 
International economics – 2 classical theories of IT
International economics – 2 classical theories of ITInternational economics – 2 classical theories of IT
International economics – 2 classical theories of IT
 
Chapter Three Interest rates in the Financial System.ppt
Chapter Three Interest rates in the Financial System.pptChapter Three Interest rates in the Financial System.ppt
Chapter Three Interest rates in the Financial System.ppt
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?
 
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
 
Zepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptxZepto Case study(On Track to Profitability).pptx
Zepto Case study(On Track to Profitability).pptx
 
NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...
NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...
NO1 Best kala jadu karne wale ka contact number kala jadu karne wale baba kal...
 
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
NO1 Best Black Magic Removal in Uk kala jadu Specialist kala jadu for Love Ba...
 
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
一比一原版(SFU毕业证书)西蒙菲莎大学毕业证成绩单学位证书
 
The Pfandbrief Roundtable 2024 - Covered Bonds
The Pfandbrief Roundtable 2024 - Covered BondsThe Pfandbrief Roundtable 2024 - Covered Bonds
The Pfandbrief Roundtable 2024 - Covered Bonds
 
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
20240514-Calibre-Q1-2024-Conference-Call-Presentation.pdf
 
How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.How can I withdraw my pi coins to real money in India.
How can I withdraw my pi coins to real money in India.
 
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
一比一原版(UCSD毕业证书)加利福尼亚大学圣迭戈分校毕业证成绩单学位证书
 
wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
 
Goldamn report on India's economy in 2024
Goldamn report on India's economy in 2024Goldamn report on India's economy in 2024
Goldamn report on India's economy in 2024
 
State Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjjState Space Tutorial.pptxjjjjjjjjjjjjjjj
State Space Tutorial.pptxjjjjjjjjjjjjjjj
 
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
一比一原版(UPenn毕业证书)宾夕法尼亚大学毕业证成绩单学位证书
 
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
一比一原版(WashU毕业证书)圣路易斯华盛顿大学毕业证成绩单学位证书
 
international economics - introduction - 1.ppt
international economics - introduction - 1.pptinternational economics - introduction - 1.ppt
international economics - introduction - 1.ppt
 

Duncan Smiths Presentation

  • 1. Islamic Banking – Products & Operations A practical introduction Duncan R. Smith Arab Banking Corporation March 2008
  • 2.
  • 3.
  • 4.
  • 5.
  • 6. ORIGINS OF ISLAMIC BANKING Quran Hadith & Sunna Interpretation by Shariaa Scholars Sayings of the Prophet Teachings & Life style of the Prophet i) Sahih Al-Bokhari ii) Sahih Muslim 1) Hanbaly 2) Shafei 3) Hanafi 4) Maliki Two Sects of Islam Sunnah Shia’h 5) Ithna-Ashriah Qiyas - Ijtehad – Ijma’a Surah Verse(s) Al-BAQARRAH (#2) 275-279 AN-NESSA (#4) AL-EMRAN (#3) AR-RUM (#30) 130 161 39
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. (2) LIBYAN CONSTRUCTION EQUIPMENT FINANCE TRANSACTION ABCIB Suppliers Client Contractor Equipment Contract payments Opens Letters of Credit $ payments Makes payments against documents Supply goods / equipment
  • 14.
  • 15.  
  • 16.  
  • 17.
  • 18. (4) SUKUK SUMMARY ABC Islamic Bank (E.C.); Arab National Bank; Deutsche Bank AG; Dubai Islamic Bank PJSC; Gulf International Bank B.S.C.; Kuwait Finance House (Malaysia) Berhad; Unicorn Investment Bank, B.S.C. (c) Joint Lead Managers and Joint Bookruners Saudi law for property-related documents English law for Trust Deed and Certificates Governing Law Sukuk Al-Ijara Issue Type Application made to Dubai International Financial Exchange (DIFX) and Labuan International Financial Exchange (LFX) Public Listing US$ LIBOR plus 225bps Coupon 3-month US$ LIBOR Floating Rate 5 years, bullet Maturity Dar Al-Arkan International Sukuk Company (a limited liability company incorporated in the Cayman Islands) Issuer 5 Year US$[*] Trust Certificates due 2012 Issue Dar Al-Arkan Real Estate Development Company (Dar Al-Arkan) Guarantor
  • 19. Sale Proceeds (US$) Sale of Real Estate Assets (Transfer of Title Deeds) Issue Proceeds (US$) Guarantee 5 Year Lease (Use of Real Estate Assets) Lease Payments On-shore Offshore Certificates Payment for Real Estate R ights (US$) Transfer of Real Estate Rights SAUDI SPV Dar Al-Arkan ISSUER (Dar Al-Arkan International Sukuk Co.) SUKUK HOLDERS (4) TRANSACTION STRUCTURE (SUKUK AL IJARA)
  • 20.
  • 21.  
  • 22.
  • 23. Property / Asset Customer (20% share) (“Customer Share”) Bank (80% share) (“Bank’s Share”) (6) DIMINISHING MUSHARAKAH / IJARAH STRUCTURE Customer Bank Customer (as tenant) Bank’s Share Increasing ownership Acquisition cost instalments to purchase 80% share Joint Purchase Based on Shirkat-al-milk. Bank takes title Customer agrees to repay principal by the buying over time, the Bank’s share. Consequently the customer’s ownership interest in the property increases and the Bank’s decreases The Customer leases the Bank’s share, with periodic adjustments made to rental to reflect the fact that a reducing bank share is being leased Rental Lease of reducing Bank’s share
  • 24. ISLAMIC INVESTMENT PRODUCTS – 320 Worldwide; top 93 1 Non Investment Islamic Fund 1 Islamic Mutual Funds 1 Islamic Infrastructure Funds 1 Islamic Hybrid Funds 2 Islamic Hedge Funds 3 Islamic Growth Funds 3 Islamic Murabaha Funds 3 Islamic Index Funds 3 Islamic Funds of Funds 4 Islamic Commodity Funds 5 Islamic Leasing Funds 7 Islamic Balanced Funds 10 Islamic Real Estate Funds 18 Islamic Income Funds 31 Islamic Equity Funds
  • 25.