Course Overview
The Introduction to Sukuk: Understanding Shariah-Compliant Bonds course provides an in-depth exploration of Sukuk, a Shariah-compliant alternative to conventional bonds. Sukuk, now holding the second-largest market share in Islamic finance after Islamic banking, has experienced a significant rise in global issuances as both established and new players seek to tap into the abundant Islamic liquidity, especially in GCC jurisdictions. Despite this growth, there remains a limited supply of sukuk to meet the overwhelming demand, underscoring the critical need to understand the structures and types of sukuk most sought after in the market to effectively address this gap. This course is designed to demystify Sukuk structures, issuance processes, and their economic significance.
Participants will gain a comprehensive understanding of how Sukuk differs from conventional bonds, the various types of Sukuk structures, and their alignment with Shariah principles. The course covers essential topics such as asset-backed vs. asset-based Sukuk, debt-based vs equity-based sukuk, the most adopted sukuk structures and features in the market, the role of Shariah advisory boards, investment bankers, and lawyers, and regulatory frameworks/Shariah standards governing Sukuk issuance. Additionally, participants will explore the global Sukuk market, its growth, and its role in funding infrastructure projects and driving economic development.
Instructors
Dr. Muhammad Issyam Ismail
Chartered Banker, CB MBA, CSAA
Certified Shariah Advisor and Auditor by AAOIFI
Certified Banking Auditor
An Islamic Finance enthusiast with a background in Civil Law and Shariah Law (double degrees), and a Master’s degree in Islamic Finance. Among the professional qualifications I currently hold are:
1. Chartered Banker and Professional Banker by Asian Institute of Chartered Banker: both took in one
seating and finished both within one year only.
2. Certified Shariah Advisor and Auditor by AAOIFI: took the exam in the Arabic language.
3. Certified Banking Auditor
4. Module 6 (Malaysia Stock Market & Securities Law) and Module 7 (Financial Statement Analysis and
Asset Valuation) by Securities Industry Development Corporation (SIDC).
I am currently serving under Solutioning, Islamic Wholesale Banking (CIMB Islamic), where I mainly provide structuring and solutioning services for the Islamic capital market and investment banking products. I am also serving as the secretary for the Investment Account Oversight Committee (secondary position).
Previously, I provided Shariah Advisory services for the Islamic Capital Market/Wholesale Banking segment (Sukuk, Treasury, Structured Products, etc.) and Commercial Banking at my current bank. I have provided Shariah advisory services for over 30 Sukuk programmes and 10 Islamic Treasury products. Among my notable projects were the Farm Fresh IPO (2022), Malaysia’s world-first Sovereign Dollar Sustainability Sukuk (April 2021), the United Kingdom 500 million Pound Sovereign Sukuk (April 2021), Khazanah Global USD Sukuk (May 2021), Hibiscus Petroleum Islamic Preference Share (2020). I also have experience providing Shariah advisory services for Commercial Banking, Transaction Banking, and Consumer Banking at my current and previous banks.
Besides Shariah Advisory, I had experience in business strategy and planning during my time as a special officer to the CEO (a double duty on top of the main Shariah Advisory duty) at my previous bank.
I was involved in many academic publications and research projects with prominent Islamic finance figures. Among them are Dr Aznan Hasan (who was also the supervisor for my master’s degree), Dr Rusni Hassan, and Dr Azman Mohd Nor on various topics relating to Islamic finance and Islamic Capital Market.
Course Outcomes
By the end of the Introduction to Sukuk: Understanding Shariah-Compliant Bonds course, participants will achieve the following outcomes:
- Comprehensive Understanding of Sukuk: Gain an in-depth knowledge of Sukuk, their structures, and how they differ from conventional bonds.
- Familiarity with Shariah Principles: Understand the fundamental Islamic principles governing Sukuk and their significance in financial markets.
- Proficiency in Sukuk Structuring: Learn the process of issuing Sukuk, including key steps and regulatory requirements.
- Risk Management Skills: Develop strategies for identifying and mitigating risks in Sukuk investments.
- Practical Application Knowledge: Explore real-world case studies to understand the role of Sukuk in funding projects and supporting economic growth.
- Market Insights: Analyze trends in the global Sukuk market, including emerging opportunities and challenges.
- Ethical Investment Strategies: Leverage Sukuk as a tool for diversifying investment portfolios while adhering to ethical and Shariah-compliant principles.
Target Customers
This course is ideal for:
- Financial Professionals – Bankers, asset managers, and investment advisors working in Islamic finance or ethical investment sectors.
- Investors – Institutional and retail investors interested in exploring Shariah-compliant investment opportunities.
- Legal and Regulatory Experts – Lawyers and compliance officers involved in drafting and reviewing Sukuk contracts.
- Islamic Finance Practitioners – Professionals seeking to deepen their understanding of Sukuk and its role in Islamic capital markets.
- Students and Academics – Individuals pursuing studies in Islamic finance, banking, or investment management.
- Corporate Executives – Decision-makers in organizations looking to raise funds through Sukuk issuance.
Course Structure
Day 1: Fundamentals of Sukuk
The first day introduces participants to the core concepts of Sukuk, setting the foundation for the entire course. The session begins with an overview of Islamic finance principles, focusing on the key prohibitions such as riba (interest), gharar (uncertainty), and maysir (gambling) that shape the financial transactions in Islamic markets. Participants will gain a deeper understanding of how these principles lead to the development of Sukuk as a Shariah-compliant alternative to conventional bonds. The session will then focus on the definition, history, and evolution of Sukuk. Participants will learn how Sukuk structures have evolved to cater to diverse financing needs while ensuring compliance with Islamic law. The day will conclude with an exploration of different types of Sukuk—particularly the distinction between asset-backed and asset-based Sukuk. Various Sukuk structures such as Ijarah, Murabaha, Mudarabah, and Istisna will be examined in-depth, providing participants with a clear understanding of their unique features and applications.
Day 2: Sukuk Issuance and Compliance
Day two will focus on the Sukuk issuance process and the role of Shariah compliance in structuring these financial instruments. The course will outline the steps involved in issuing Sukuk, including the critical processes of structuring, underwriting, and conducting a Shariah compliance review. Participants will learn about the importance of Shariah supervisory boards, which ensure that Sukuk issuance remains in compliance with Islamic law and resolve any potential disputes. The session will also provide an overview of the legal and regulatory frameworks governing Sukuk issuance globally and regionally, with a focus on examples from countries like Malaysia and the Gulf Cooperation Council (GCC) nations. This part of the course will highlight some of the common challenges in Sukuk structuring that issuers and investors may face, offering practical strategies to overcome these hurdles.
Day 3: Sukuk in Practice
The final day will focus on the practical applications of Sukuk in the global financial landscape. The session will begin with an analysis of the global Sukuk market, focusing on growth trends, key players, and the increasing popularity of Sukuk as a viable financing option. Participants will also engage in detailed case studies of real-world Sukuk issuances, exploring how Sukuk has been used to finance large-scale infrastructure projects, government initiatives, and corporate ventures. This session will help participants connect theory to practice and understand how Sukuk is utilized in different sectors. The course will conclude with a discussion on risks and opportunities in Sukuk investments, offering participants a comprehensive understanding of the potential rewards and risk management strategies. The final module will look into the future of Sukuk, exploring how emerging trends such as digital Sukuk, ESG-compliant Sukuk, and growth in untapped markets are shaping the evolution of this financial instrument.
By the end of Day 3, participants will have a strong grasp of Sukuk as an ethical investment tool, equipped with practical knowledge on structuring, issuance, and risk management.
Learning Assessment
To ensure a comprehensive evaluation of participants’ progress and understanding of each module, the program adopts the following assessment method:
Quizzes and Tests: Short quizzes to assess participants’ understanding of key concepts introduced in each session.
The passing mark for this program is 50%, and participants are required to maintain an overall minimum 75% attendance for each module to successfully complete the course.
Recommended Resources
Participants will have access to a range of recommended resources through the LMS platform. These resources will provide deeper insights into the topics covered in each module and further enhance their understanding of Islamic finance and capital markets.
Certificates
Upon successful completion of the course requirements, participants will receive a certificate of completion from ExpertGate.
