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Sukuk Simplified: Mastering the Fundamentals

Learn how to analyse and engage in Sukuk-related transactions to prepare for the evolving industry of Islamic finance.

Sukuk investor pointing at the peak point on a stock graph with Islamic architecture background.

Sukuk Simplified: Mastering the Fundamentals

  • 4 weeks

  • 2 hours per week

  • Digital certificate when eligible

  • Introductory level

Find out more about how to join this course

  • Duration

    4 weeks
  • Weekly study

    2 hours
  • 100% online

    How it works
  • Unlimited subscription

    $244.99 for one whole yearLearn more

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

Syllabus

  • Week 1

    Introduction to Fundamentals of Sukuk

    • Welcome to the Course

      Hi everyone! Allow us to introduce the esteemed educator guiding you through this course on the fundamentals of Sukuk: a distinguished expert with profound knowledge of Islamic finance.

    • Fundamentals of Sukuk: Terminology, History and Evolution

      Explore the fundamentals of Sukuk, encompassing terminology, historical roots, and its dynamic evolution within the realm of Islamic finance.

    • Summary

      A recap of what you have learned so far in Week 1 and what will be discussed in Week 2.

  • Week 2

    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

      Explore the definition of sukuk issued by three primary institutions that we regard as fundamental in the permissibility of what a sukuk is and what it is not.

    • The Definition of Sukuk Related to the Underlying Assets in Its Issuance

      The definition of sukuk is closely related to the underlying assets in the issuance.

    • Summary

      Here's a summary and reflection of what you have learned so far in Week 2.

  • Week 3

    Sukuk versus Conventional Bonds

    • The Differences between Sukuk and Conventional Bonds

      Understand the prohibitions that Sukuk would not be able to finance, which include the elements of riba and maysir in a single legal maxim.

    • The Similarities between Sukuk and Conventional Bonds

      Understand the similarities between Sukuk and Conventional Bonds in terms of tenor or time period of issuance until maturity.

    • The Underlying Structures

      In Sukuk, the underlying structure must be a significant and acceptable Shariah contract.

    • Claim and Pricing Instruments

      Sukuk feature profit-sharing claims and pricing based on asset value, diverging from interest-based bonds.

  • Week 4

    The Concept of Securitisation

    • What is Securitisation?

      Understand the securitisation process and the key difference in securitisation between sukuk and bonds.

    • Summary

      Summary and reflection for Week 4.

    • What's Next?

      Congratulations, you have completed the 4-week lessons. Next, in order to obtain the certificate of completion, you are required to take the course assessment. Details of the course assessment are provided on the next page.

When would you like to start?

Start straight away and join a global classroom of learners. If the course hasn’t started yet you’ll see the future date listed below.

  • Available now

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

What will you achieve?

By the end of the course, you‘ll be able to...

  • Explore the historical evolution and key terminologies of sukuk to construct a foundational understanding of sukuk in the context of Islamic finance.
  • Develop a comprehensive definition of sukuk by evaluating its essential components and distinguishing characteristics within the framework of Islamic finance.
  • Compare and contrast sukuk with conventional bonds, synthesizing critical insights into their structural differences and financial implications.
  • Assess the concept of securitisation and its role in sukuk structures, enabling the synthesis of knowledge to analyse its impact on risk management and financial innovation within Islamic finance.

Who is the course for?

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.

Who will you learn with?

I am an Associate Professor of Islamic Finance at INCEIF University, specialising in Islamic Law and its Principles (Usul ul Fiqh and Contract Law), Social Finance, Fintech and Islamic Capital Market.

Who developed the course?

INCEIF

INCEIF is considered to be the knowledge leader in Islamic finance through providing excellent teaching, research and thought leadership.

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Ways to learn

Choose the best way to learn for you!

Subscribe & save

$244.99 for one whole year

Automatically renews

Develop skills to further your career

  • Access to this course
  • Access to 1,000+ courses
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Digital certificate when you're eligible

Cancel for free anytime

Buy this course

$134/one-off payment

Fulfill your current learning need

  • Access to this course
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Printed and digital certificate when you’re eligible

Limited access

Free

Sample the course materials

  • Access expires 22 Mar 2024

Find out more about certificates, Unlimited or buying a course (Upgrades)

Sale price available until 4 March 2024 at 23:59 (UTC). T&Cs apply.

Find out more about certificates, Unlimited or buying a course (Upgrades)

Sale price available until 4 March 2024 at 23:59 (UTC). T&Cs apply.

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