The world of finance is risky

Shariaa-compliant tools are here to help

Islamic Treasury & Risk

Management Products
17th 19th November 2014, 9:00am 5:00pm
Jumeirah Emirates Towers, Dubai, UAE

Islamic Finance Training presents a course that aims to analyze treasury and risk
management products offered by Islamic Financial Institutions (IFIs) in various
jurisdictions. Delegates will be lead through the vocabulary and nomenclature of
Islamic finance applicable to Islamic treasury. Various Islamic toolkits will be examined
to learn how they are applied in the money market and risk management activities.

The course will also examine how Sukuk is relevant to Treasury activities be it for
liquidity management, long term funding options or capital adequacy purposes. It will
also look at how the various Islamic tools are applied to manage forex and rate risks
in the Islamic market. The expert course directors will review various Shariaa opinions
in the market; starting with AAOIFI and explain where and why variances from AAOIFI
takes place in different markets. The course will be interactive with discussions,
trading games, team exercises and case studies to ensure delegates learn by doing.

IN ASSOCIATION WITH WHAT YOU WILL LEARN

Identify and manage risk in Islamic Treasury products

Comparative analysis of treasury and risk management products in various
jurisdictions
Application of various Islamic toolkits in the Islamic money markets
Manage foreign exchange instruments and associated rate risks
 COURSE OUTLINE
Day 1 : Islamic Money Market Part I
The Nature of Money & Implication on Treasury
The rules of Sarf and contract
Riba Al-Nasiah
Discussion: identifying assets that may be traded or
pledged from a Shariaa perspective
Overview of traditional Money Market activities:
Deposit & Interbank transactions
Tradable Instruments
Repo
Group Discussion: How Riba affects money market
transactions?
Key Islamic Depository Tools
Summary rules for non-remunerative deposits:
Qard/Wadiah deposits
Summary rules for remunerative deposits:
Mudarabah deposits
Wakalah deposits
Murabaha deposits
Traditional Intrabank Relationship: Fund Transfer Pricing
(FTP), Inter branch Pricing (IBP) etc
Group Discussion: Will FTP or IBP change for Islamic treasury
operation?
Main Islamic Interbank Tool
Murabaha vs. Tawarruq vs. Reverse Murabaha - is there
any difference?
Day 2 : Islamic Money Market Part II
Tradable Instruments
Brief review of traditional tradable tools:
Certificate of Deposits
Government Securities (T-Bills etc)
Bankers Acceptance
Commercial Papers
Quotation basis: yield vs. discount
Does the Islamic market have the alternatives for all the
tools above?
Malaysia vs. Global market
Group Discussion: Examine different tradable tools and identify
potential Shariaa issues (if any)
Introduction to Sukuk - alternative Islamic tradable
instruments
Short term, high grade issuance for Basel III:
Central Bank of Bahrain Salam Sukuk
Short term Sukuk Ijarah
Are these instruments freely tradable in the secondary
market?
Longer Term Sukuk
Common structures: Ijarah, Istithmar
Asset based vs. Asset backed Sukuk
Tradability - Shariaa guideline
Tenure: Malaysia vs. Global
Pricing: Fixed rate vs. Floating Rate Sukuk
Term Sheet Exercise: Analysis of different issuances to identify
risks
Group Exercise: Balance-sheet analysis to structure Sukuk
issuance
Email: dubaicourse@redmoneygroup.com / Tel: +971 4 427 3623
Shariaa concerns on this tool
Brokers, OTC and live warrants
Breakage, Back value and compounding
Suq al Sila - Murabaha and Tawarruq in Malaysia
Standardized documents: IIFM, AIBIM
Leakage of Islamic funds - what is this? How do different
markets deal with this?
Group Exercise: Manage different positions using Murabaha,
Breakeven rate and pool rate exercises
Other Islamic Interbank Tool
Wakalah to do Murabaha vs. Investment Wakalah - whats
the difference?
Case study: Investment Dar vs. Blom Interbank Wakalah
Interbank Mudarabah
Wadiah for hibah & Wadiah for points
Group Exercise: Determine the liquidity gap, core deposits and
how you would manage the funding gap
Depository Tools for Funding or Placement with Central
Banks
Wadiah for Hibah
Commodity Murabaha
Will these be different from the interbank applications?
Summary: of market differences: London, GCC and Malaysia
Repo
Understanding a conventional repo
Why are repos not widely used in the Islamic market?
How could an Islamic repo work?
The IIFM solution
Alternative solutions
Group Discussion: How will repo affect Sukuk secondary
trading?
Alternative Funding and Capital Strategies: Issuing
Subordinated & Tier II Sukuk
Review of different Tier II Sukuk prior to Basel III via Term
Sheet Exercise
Closer to Debt: Maybank Sukuk Istihmar
Closer to Equity: Saudi Hollandi Sukuk Mudarabah
How is subordination achieved?
Group Discussion: Basel III requirement on Tier II Capital & How
will this affect Tier II Sukuk issuances?
Forex Transaction
Riba al fadl & implications for FX
Shariaa analysis of the following basic tools
Spot FX
Split
Forward
Cross rate and calculating forward rate from spot rate
Group Discussion: Leverage in forex transactions - does this
raise any Shariaa concerns
 COURSE OUTLINE CONTD..
Day 3

Managing FX Risk I iii. Participating Forward

Shariaa compliant forward alternatives: iv. Cylinder Option
Promise based solutions - unilateral promise, two
unilateral promises vs. bilateral promises Summary: All Shariaa compliant tools to manage FX risks
Promise to deposit i.e. Cross Currency Deposit
Are these solutions on balance sheet or off balance Managing Rate Risk I
sheet? Shariaa analysis of the following traditional tools for interest
Exiting these forward? rate risk management
How do Islamic banks hedge themselves? Forward Rate Agreement (FRA)
Long Murabaha Interest Rate Futures
Back to back promise Swaps - Interest Rate Swap (IRS) and Cross Currency
Group Exercise: Examine a traditional FX Swap & construct a Swap (CCS)
Shariaa compliant FX Swap Interest Rate Options
Group Discussion: Are the following Interest Rate Option
Managing FX Risk II Strategies replicable in the Islamic market?
Shariaa tools that provide options: i. Interest Rate Cap
Arbun ii. Interest Rate Floor
Promises iii. Interest Rate Collar
Juala
How do we use the above to structure Shariaa compliant Managing Rate Risk II
currency options? Common tools in the Islamic market: Profit Rate Swap (PRS)
Arbun - is the arbun for currency? and CCS
Promises - how do we structure the option premium? Profit Rate Swap Structures:
Which solution is widely used? Two Tawarruq on each trade date
Calculating effective and break even strike rate One long term fixed rate Tawarruq and multiple floating
Are the options tradable? rate Tawarruq
Group Exercises: Promise based PRS
1. How to use Tawarruq for Currency Option? Is PRS different from IRS?
2. Are the following FX Risk Management Strategies Cross Currency Swap vs. Cross Currency Deposit
replicable in the Islamic market? Are PRS and CCS on or off balance sheet?
i. Put Option Group Exercise: PRS vs. CCS - will there be any differences in
ii. Put Spread underlying structure? Balance-sheet hedging

ABOUT THE SPEAKER

Abdulkader Thomas
President and CEO, SHAPE Financial Corp

Abdulkader consults for financial institutions, regulators, and businesses about Islamic finance. Along with his team at
SHAPE, Abdulkader works on projects that include launching de novo Islamic banks and Islamic banking windows,
policies and procedures including Shariaa policies, Shariaa compliance, product development and structuring. Clients
include a diversified universe of financial institutions from North, the MENA region, Southeast Asia, Africa, America, and
Europe. Abdulkader is a member of the International Advisory Committee for Islamic Capital Markets of the Securities
Commission of Malaysia. He acts as moderator for the Islamic Finance News (MIF) Issuers and Investors Forum, an
annual event produced by REDmoney Group highlighting capital markets activities for Islamic securities issuers and
underwriters.

Abdulkader is director of Alkhabeer Capital (Jeddah) and Vice Chairman of Alkhabeer International (Bahrain). Abdulkader
has over 30 years of diversified financial services experience. A graduate of The Fletcher School of Law & Diplomacy in
international trade, Abdulkader earned a BA with honors in Arabic and Islamic studies from the University of Chicago.
Based in Kuwait, Abdulkader has worked in Bahrain (Citibank & Credit Lyonnais); New York (United Bank of Kuwait);
London (Islamic Investment Banking Unit of the United Bank of Kuwait); Washington, DC (Guidance Financial) and
Los Angeles (Sumitomo Bank Limited). Prior to consulting, Abdulkader served as a senior line manager in various
international banks and dealt with the regulatory approval of various Islamic products in different countries.

Abdulkader has also enjoyed a significant capital markets experience following stints in real estate finance and trade
finance. Abdulkader is a frequent speaker and writer on Islamic financial and banking matters. He has co-authored or
edited several works in the field including Structuring Islamic Financial Transactions with Stella Cox and Bryan Kraty
(London: Euromoney, 2005); Islamic Bonds: Your Guide to Issuing, Structuring and Investing in Sukuk with Nathif Adam
(London: Euromoney, 2004), Interest in Islamic Economics: Understanding Riba (Oxford: Taylor & Francis, 2005), Sukuk
(London: Sweet & Maxwell, 2009), and Islamic Treasury & Derivative Operations.

Email: dubaicourse@redmoneygroup.com / Tel: +971 4 427 3623

Islamic Treasury and Risk Management Products
17th 19th November 2014, Dubai

BOOKING DETAILS
I am booking: Pricing
1 delegate USD$ 2,650
2 delegates USD$ 4,505
3 delegates USD$ 6,360

Early bird offer: registrations received before 17th October 2014 (or earlier) will receive a 2.5% discount.
No discounts shall be given to registrations received after this cut-off.

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SEND US YOUR REGISTRATION!

By email: dubaicourse@REDmoneygroup.com By fax: +971 4 431 4614 or +603 2162 7810
You may also book online at http://www.islamicfinancetraining.com
Please call us on: +971 4 427 3628 or +603 2162 7800 if you require assistance.
Our address is: (Dubai Office) - Level 3 X2 Tower, Jumeirah Lake Towers, Jumeirah Bay, Dubai, United Arab Emirates
(Kuala Lumpur Office) - Suite 22-06, 22nd Floor, Menara Tan & Tan, 207, Jalan Tun Razak, 50400 Kuala Lumpur

Booking, Payment and Cancellation Policy important, please read carefully

By completing, signing and sending us this registration form you are confirming delegate places on the course. You are also confirming your
understanding of our Booking, Payment and Cancellation Policy.
Cancellation: If delegates cannot attend the course replacement participants are always welcome. Where cancellations are received fifteen
(15) or more days before the course start date refunds may be offered. No refunds shall be offered for cancellations received within fifteen
days of the course start date. All cancellations must be made in writing.
Payment Terms: All course fees are to be received by NASDAQ Dubai before the course start date. NASDAQ Dubai shall receive the full
course fee with no deductions of any kind. All telegraphic transfer fees, taxes and levies (domestic or otherwise) shall be borne by the
sponsoring organization.

The organizer reserves the right to amend the published program or speaker. In the event of course cancellation due to unforeseen
circumstances, the organizer is liable only to refund the cost of the course.

Course Venue: Full details of the venue will be sent to you upon registration.

Email: dubaicourse@redmoneygroup.com / Tel: +971 4 427 3623 <<Islamic>>