AAOIFI standard 21
A Comprehensive Course on Shariah Compliant Investing for Portfolio Managers
Taught by: Faraz Omar
Founder, Muslim Xchange
AAOIFI Certified Shariah Advisor & Auditor
2h per day
Registration is open
this course will help you
Are you a portfolio manager serving Muslim clients?
Welcome to our comprehensive course on Shariah-compliant investing for portfolio managers! This course is designed to equip you with a deep understanding of the principles and rules of Shariah-compliant investing, as well as the tools and skills to effectively navigate the complex world of Shariah compliance in the public markets.
Through our engaging and interactive course materials, you will gain a thorough appreciation of the background and context of Shariah standards for investing, including an analysis of AAOIFI and its Standard 21. You will also learn how to conduct effective business and financial screening to ensure that your investments are Shariah-compliant, and how to deal with common customer questions and differences of opinion in this area.
Our course will empower you to speak confidently and persuasively about Shariah compliance with your customers, and to analyze and determine whether a company is Shariah-compliant on your own. Additionally, you will develop the skills to collaborate effectively with your Shariah advisor or scholar, presenting well-informed analysis and reasoning on Shariah compliance.
By completing this course, you will be well-positioned to make more informed and effective investment decisions that align with the principles of Shariah-compliant investing. We look forward to guiding you on this exciting journey!
About the instructor
I’m Faraz Omar, the founder of Muslim Xchange and an AAOIFI Certified Shariah Advisor & Auditor. Over the past two years, I have helped more than 180,000 Muslim investors screen stocks for Shariah compliance using our meticulously developed screening process.
Our Shariah compliance screening methodology is the result of extensive research and detailed study, and has been refined through collaboration with distinguished experts in the industry. As your instructor for this course, I am committed to sharing my expertise and insights with you, and to empowering you to make more informed and effective investment decisions in accordance with the principles of Shariah-compliant investing.
This section will introduce participants to the fundamental principles of Islamic investing, including ethical and socially responsible investing practices. Participants will learn about the prohibition of riba, gharar, and maysir, and the role of Islamic finance in promoting economic justice and stability.
This section will provide an in-depth exploration of the historical and conceptual background of Shariah standards for investing in the public markets. Participants will learn about the development of Islamic finance and the role of scholars in establishing standards.
Understanding and Justifying Shariah Standards
In this subsection, participants will gain an understanding and appreciation of the Shariah standards for investing in the public markets, including their rationale and justification. They will learn about the sources of Islamic law and how they inform the standards, as well as the role of ethical considerations in the investment process.
This section will introduce participants to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and its Standard 21 on Shariah-compliant investments in equities. Participants will learn about the scope and purpose of the standard, and how it relates to other international standards for investing.
In this section, participants will learn about the process of screening business activity for compliance with Shariah standards. They will learn about the criteria used to determine compliance, and how to evaluate companies based on their annual statements and business practices.
Navigating Differences of Opinion
This subsection will address the issue of differences of opinion among scholars and experts regarding the application of Shariah standards in investing. Participants will learn about the different approaches to resolving differences of opinion, and how to navigate conflicting opinions in the investment process.
This section will discuss the concept of impure income and the limits on the amount of impure income that are tolerated. Participants will learn about the criteria used to determine the impurity of income, and how to calculate the percentage of impure income in a company.
Estimating Impure Income
In this subsection, participants will learn about the challenges of calculating the percentage of impure income in a portfolio when the information is not readily available. They will learn about the different approaches to estimating impure income, and how to make informed investment decisions based on incomplete information.
This section will discuss the concept of financial screening. Participants will learn about the criteria used to determine whether a company’s financial operations are compatible with the Shariah standard.
This section will address common questions and concerns that customers may have regarding Shariah-compliant investing. Participants will learn how to respond to customer inquiries and provide guidance on Halal investing.
This section will compare AAOIFI with other international Shariah standards for investing, such as those adopted by S&P, Dow Jones, FTSE, MSCI, Malaysia and Indonesia. Participants will learn about the similarities and differences between these approaches.
This section will provide an opportunity for participants to demonstrate their understanding of the course material through an exam and project work. Participants will be required to apply their knowledge of Shariah-compliant investing to real-world scenarios, and to demonstrate their ability to make informed investment decisions based on ethical and socially responsible principles. Successful completion of the exam and project work will earn participants a certificate of completion.
Book your seat
Date: Monday-Wednesday, 6-8 March 2023
Time: 9am-11am EST