Islamic finance offers a variety of financial instruments that comply with Sharia law principles. In the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking online course, students will learn about the following types of Islamic financial instruments:
| 1. Sukuk | Sukuk are Islamic bonds that represent ownership in a tangible asset. They are structured to generate returns based on the profits of the underlying asset. |
|---|---|
| 2. Murabaha | Murabaha is a cost-plus financing arrangement where the seller discloses the cost and markup of the product to the buyer. |
| 3. Musharakah | Musharakah is a partnership contract where two or more parties contribute capital to a business venture and share profits and losses. |
| 4. Ijarah | Ijarah is a leasing contract where the lessor transfers the right to use an asset to the lessee in exchange for periodic payments. |
These are just a few examples of the Islamic financial instruments covered in the Ofqual Level 5 Certificate Concepts of Islamic Finance and Banking online course. By understanding these instruments, students will gain a comprehensive knowledge of Islamic finance principles and practices.