This is a short structured training program for graduate Shariah scholars, designed to introduce them to key principles and selected standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the practical application of Shariah principles within the Islamic finance industry.

While graduates of traditional Shariah programmes generally possess a strong grounding in classical Islamic jurisprudence, there is often a gap between:

Classical Shariah texts → AAOIFI Shariah Standards → Practical application within Islamic Financial Institutions

The programme therefore seeks to bridge this gap by introducing participants to selected AAOIFI standards while highlighting the practical challenges involved in applying these principles within contemporary Islamic banking and financial transactions.

Course Objective

- Introduce participants to the role and significance of AAOIFI standards in Islamic finance.
- Highlight the practical challenges and complexities of ensuring Shariah compliance in real-world financial transactions.
- Explore key Shariah standards related to Murabaha, Ijarah, and other types of transactions
- Equip participants with a foundational understanding of Shariah governance structures in Islamic financial institutions.
- Provide a pathway for further professional development (e.g., AAOIFI Certified Shariah Advisor and Auditor - CSAA).

By the end of the training, participants will:

• Gain a foundational understanding of selected AAOIFI Shariah standards.
• Appreciate the application of Shariah principles in Islamic financial operations.
• Be equipped to pursue further certifications (e.g., CSAA).
• Be better prepared for roles within Shariah departments and Shariah boards.

Training Content

Introduction to AAOIFI and Shariah Governance

• Overview of AAOIFI: history, purpose and global impact
• Structure and categories of AAOIFI standards
• AAOIFI Shariah Standards drafting cycle
• Shariah governance frameworks and their application in Islamic financial institutions

AAOIFI Shariah Standard No. 8 – Murabaha

• Definition and core conditions of Murabaha
• Sequence of contractual steps and compliance requirements
• Timing, asset ownership, risk transfer and pricing
• Practical compliance challenges in banking environments

AAOIFI Shariah Standard No. 18 – Possession

• Legal implications of possession (qabd)
• Physical and constructive possession
• Practical application in Islamic financial transactions

AAOIFI Shariah Standard No. 49 – Unilateral and Bilateral Promises

• Nature of unilateral and bilateral promises
• Legal implications and enforceability
• Application in sales, Murabaha and forward contracts

AAOIFI Shariah Standard No. 28 – Banking Services

• Revenue-generating banking services beyond financing activities

AAOIFI Shariah Standard No. 61 – Payment Cards

• Classification and key features of payment cards
• Shariah rulings applicable to different categories of payment cards
• Key contractual relationships between parties
• Permissible fees and charges
• Shariah considerations relating to the issuance and use of payment cards