FSDF e-Campus | Certified Expert in Islamic Microfinance

In the growing area of Islamic microfinance, a diverse skillset is required. Professionals have to be knowledgeable in traditional retail banking, in the ethics of Islamic finance and in the relevant compliance and regulation issues. In order to provide you with the necessary skills and know-how to become a well-rounded Islamic microfinance professional, we have designed the certification course ‘Certified Expert in Islamic Microfinance’.

This e-learning course was jointly developed by a team of experts from the Frankfurt School of Finance and Management, Islamic Relief Worldwide, and the Humanitarian Academy for Development.This combination of expertise provides you with the opportunity to have a rich learning experience based on the broad knowledge of diverse, highly qualified professionals. The development of the "Certified Expert in Islamic Microfinance" was co-funded with UK aid from the UK government.

About Islamic Relief

Islamic Relief is a faith-based international humanitarian organization founded on Islamic values and teachings. Since its establishment in 1984, the organization has grown to operate in over 45 countries, serving over 10 million vulnerable people annually through emergency aid and long-term development projects. Committed to core Islamic principles such as sincerity, excellence, compassion, social justice, and custodianship, Islamic Relief integrates these values from the Qur'an and Prophetic tradition into its humanitarian work. The organization empowers poor communities, respects human life, and safeguards the environment. A key economic development intervention provided by Islamic Relief is Islamic microfinance, which offers a Sharia-compliant financial solution, aligning with the principles of fairness, integrity, and mutual responsibility inherent in the Islamic faith.

What Do We Offer?

An interactive e-learning course including video lectures, PDF scripts, examples, practical exercises, online tests and case studies.
A discussion forum for course related issues as well as for exchange of opinions and experiences with, tutors, peers and the FSDF e-Campus team.
Personalised support from your e-Campus team.
The possibility to attain a Frankfurt School Certificate after passing the final exam or a confirmation of course completion after completing the course. After passing the final exam, you will earn 3 ECTS (academic credit points of the European Credit Transfer and Accumulation System). The points can be credited to other academic learning programs.

Tuition Fees*

Regular Tuition Fee: EUR 900

Early Bird Fee: EUR 700 (by July 15)

Discounts:

10% group discount (for 2 or more participants working for the same instutiton, informed to us before by an email)
10% for FS Alumni
For company packages, please contact us

Payment Options

Bank Transfer (bank fees to be covered by the participants)
Credit Card
PayPal

Payment in instalments is not possible.

*Subject to change

Target Audience

This course is targeted towards microfinance and development professionals who are working in areas such as microfinance, Islamic microfinance, and end-user finance, or towards participants who want to explore Islamic microfinance. This includes staff from the following organisations, at either the operational level or the management level:

Faith-based NGOs and non faith-based NGOs
Islamic microfinance institutions
Microfinance institutions
Retail banks interested in downscaling
Social/impact investors
Banking training institutes

Other interested parties are of course also welcome to register for the course, such as:

Auditors
Consultants
Central bankers
Staff members of apex institutions
Students (preferably with a banking/finance background)

Operational experience from the conventional microfinance sector or the Islamic finance sector is not necessary but is considered as an asset.

Workload

The course takes approx. 6 months assuming 3-4 hours of self-study per week. It consists of 7 units which build upon each other. You will take the units in sequence and will need to pass an online multiple choice test before accessing the next unit.

Unit 4 and Unit 6 include an assignment which you will need to submit at a fixed deadline.

You are not sure if you manage to complete the course within 6 months? No worries! You can apply for a course extension (6 more months) against an administrative fee.

Course Objectives

In this course you will learn the principles of Islamic finance and the major financing mechanisms and products within Islamic microfinance. The course will enable you to develop a thorough understanding of the risk landscape and risk mitigation strategies. Furthermore, regulatory, governance and Sharia compliance frameworks for Islamic microfinance will be discussed and analysed.

Having been co-developed by Frankfurt School and the Islamic Relief Academy, this course provides a rich learning experience based on the expertise from a top-ranked business school, combined with the expertise from a renowned provider of Islamic microfinance.

By the end of this course students will be able to:

Understand the principles of Islamic finance and recognise the distinctness of some of the major financing mechanisms and products used in the Islamic microfinance sector
Apply/Demonstrate the ability to carry out client appraisals
Apply/Demonstrate the ability to analyse microfinancial performance information and employ the necessary tools
Recognise the areas and issues critical for risk management
Explain the key parameters for Regulatory, Governance and Sharia Compliance Frameworks for Islamic Microfinance

Dates

Course Start	Course End	Registration	Early Bird
Sept. 1	Feb. 28	Jun. 1 - Sept. 1	by Jul. 15
Mar. 1	Aug. 31	Dec. 1 - Mar. 1	by Jan. 15

Study Journey

Registration

Registration for the September intake is now open. Register by July 15 to take advantage of our early bird discount.

Register here

Course Details'

According to CGAP an overwhelming proportion of people without access to finance are from Muslim-majority countries, as formal financial markets often fail to provide access to credit or savings that are compliant with the Muslim faith. Islamic microfinance has the potential to fill that gap through the provision of Sharia-compliant microfinance products, already reaching millions with an estimated USD 1 billion global industry loan portfolio. Professionals in this field are motivated and at times challenged by the dual nature of the required skillset, combining proven microfinance practice with the principles of Islamic finance.

These wide-ranging technical competencies are addressed in this unique course which combines our renowned "Certified Expert in Microfinance" with key knowledge in Islamic finance to the standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

*Subject to change

Unit 1

Overview of Islamic Economics & Microfinance System

Islamic finance is a term that reflects the financial transaction that is not contradictory to the principles of Sharia. The underlying principles are different from conventional finance. It is against this backdrop that all Islamic financial transactions involve a form of trading, leasing and investment activities. These Islamic financial transactions are primarily based on instruments that are agreed upon by the majority of scholars.

The opening unit for the course is critical in establishing the overall parameters of the CEIM qualification. It seeks to provide a high-level overview of the philosophy/ontology underpinning Islamic economics & finance and the key constituent elements such as legal principles, institutions and products. Course participants will learn to:

1. Examine the principles and history of Islamic economics and finance, evaluate the concepts of Sharia-based and Sharia-compliant finance and reflect about its critiques

2. Distinguish between conventional debt-financing and the key Islamic financing mechanisms

3. Recognise the fundamentals of Islamic Commercial/Contract Law

4. Identify the key Islamic Financial Products

5. Explain the strengths and weaknesses of the Islamic finance industry, its key actors, stakeholders, and the role of the Islamic microfinance sector

Unit 2

The Microfinance Contracts & Transaction Agreements (Part 1)

Building on the opening unit, the units 2 and 3 will introduce the main financing contracts used in the industry. In unit 2, the concepts and Islamic financial instruments of Qard (loan), trade based debt instruments such as Murabaha, Salam, Istisna’a, and lease based instruments such as Ijarah are covered. These instruments are defined and further elaborated with their concrete application as modern microfinance tools. Course participants will learn to:

1. Assess the difference between Islamic loan, trade, lease based transactions and interest-bearing instruments

2. Examine the Sharia rules for Qard Hassan, Murabaha, Salam, Istisna’a and Ijarah based on the standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)

3. Evaluate and apply the key contractual elements for a valid transaction as microfinancing tools

4. Recognise the practicalities and limitations of application within the sector

Unit 3

The Microfinance Contracts & Transaction Agreements (Part 2)

The Islamic transaction law provides “Equity-based Financing” as a mode of financing in Islamic finance and banking.

For the majority of the scholars, equity-based financing or Partnership-based financing is the preferred Islamic finance instrument. This is based on the fundamental principle of interest-free banking.

Unit 3 will demonstrate how profit & loss sharing, equity investments and venture capital instruments are used in the Islamic microfinance sector. Course participants will learn to:

1. Explain the concept of Musharaka in Islamic transactions and understand the different types of Partnership

2. Examine the Sharia rules for Musharaka & Mudaraba based on the standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)

3. Explain the use of Musharaka contracts in modern corporations

4. Explain how Musharaka & Mudaraba are used in modern Islamic banking

5. Evaluate and apply the key contractual elements for a valid transaction as microfinancing tools

6. Recognise the practicalities and limitations of application within the sector

Unit 4

Managing Islamic Microfinancing

Whilst many aspects of managing Islamic microfinance operations are likely to be comparable or very similar to conventional counterparts, this unit introduces the whole financing cycle from appraisal, disbursement to recovery within an Islamic financing framework. Course participants will learn to:

1. Analyse the difference between individual and group financing models and identify the operational and Sharia challenges

2. Explain the financing cycle from appraisal, disbursement to recovery

3. Apply key client appraisal techniques, carry out critical client financial analysis and calculate repayment/profit sharing ratios and schedules

4. Identify key characteristics of and employ best practice processes for financing decision-making

5. Identify the efficacy of financing management techniques within an Islamic economic framework, including different approaches to collateralisation, monitoring and the handling of delinquency

Unit 5

Risk Management in Islamic Microfinance Institutions

Risk management is at the heart of any financial intermediation process and of enormous importance for the financier/ Islamic MFI within an Islamic financial framework where returns are not guaranteed. This unit will introduce the idea of risk management and mitigation and discuss in particular key operational, financial and Sharia risks. It will further discuss the concept of portfolio management and introduce a number of key metrics to assess the riskiness of various Islamic financing tools and how they are mitigated operationally. Course participants will learn to:

1. Distinguish between operational and financial risks and to explain the concept of risk governance

2. Examine different operational risks and identify appropriate mitigation strategies including internal controls

3. Examine different financial risks and identify appropriate mitigation strategies

4. Appraise portfolio risks and calculate metrics for risk measurement

5. Identify appropriate portfolio risk mitigation strategies including loan loss provisioning

Unit 6

Regulatory, Governance and Sharia Compliance Framework for Islamic Microfinance

This unit will focus on the definitions, components, and the criteria for regulatory, governance and Sharia compliance frameworks as applicable to different legal structures that Islamic MFIs usually take. A general overview of regulatory dimensions for microfinance, although these vary from jurisdiction to jurisdiction, will be provided, with specific attention to I-MFIs operating outside regulatory frameworks that recognise Islamic financing.

The concept of Sharia compliance will be discussed and the implications for management and governance in line with the industry best practices and according to the Standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) will be outlined. Course participants will learn to:

1. Differentiate between different corporate governance requirements for the different types of Islamic MFIs

2. Identify the particular regulatory dimensions of relevance to Islamic MFIs (subject to in-country jurisdiction) and recognise their implications for corporate governance

3. Outline the role and importance of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB)

4. Identify Shariah non-compliance risks, the pillars of Shariah Governance and technicalities of Shariah audit in the Islamic microfinance arena.

5. Differentiate between various types of Shariah audits, reviews, and compliance tests with the aim of enabling participants to gain a better understanding of the nature and the operations of how Shariah non-compliance risks can be managed.

Unit 7

Financial and Social Performance Management

The objective of microfinancing is to overcome financial exclusion through the building of sustainable financial institutions. For Islamic MFIs whilst cost-coverage or even profitability cannot be achieved through sustainable interest-rates, it is nevertheless important to measure and manage their financial performance. Moreover, since Islamic MFIs work with financially excluded and economically vulnerable groups and often have avowed poverty-reduction objectives, socially responsible lending is imperative for their long-term economic viability and impact. Therefore, the concept of social performance and measurements for social performance management are introduced. Course participants will learn to:

1. Examine institutional financial reports such as balance sheets & income statements and apply financial ratios to measure various financial performance indicators

2. Examine portfolio reports and evaluate the efficacy of certain indicators to measure financial performance

3. Identify key social performance indicators and appraise some of the key social performance standards

4. Describe the salient features of ethical, social responsibility and impact investment and its potential for the Islamic microfinance sector

5. Apply tools to manage financial and social performance

Training Approach

The flexibility of our courses offers you the opportunity to follow you own schedule and to combine daily work with professional development.

The highest quality offered will immediately improve your daily job performance as well as the performance of your institution.

This program is flexible and self-paced. It offers some online live sessions, such as introduction and final exam preparation sessions. These sessions will be recorded for those who cannot attend live.

Training Material

Video Lectures

Introvideos: After viewing the lectures, participants will have a basic understanding of each topic and will be able to classify importance and relevance of different techniques and aspects in a broader context.
Web-based Presentations: Web based presentation complement the scripts and give additional input on important topics.

Online Tests

Each unit ends with an online test comprising a set of 10 - 15 multiple choice questions. Only after having successfully completed an online test you will gain access to the next unit.

Reading Material

A PDF script is for most of our courses the main studying material. This reading material provides basic concepts and principles applicable to the subject of each unit.

Assignments

The key to successful learning is the immediate use of newly acquired knowledge and the transfer of theory into practice. Our online courses are therefore supplemented by mandatory assignments.

Discussion Forum

A course discussion forum enables the interaction between participants and trainers and facilitates the exchange of experiences as well as possibilities to ask questions or get clarifications.

Suggestions & Recommendations

This course gives you the flexibility to decide when and where to study. However, we would like to give you some recommendations on how to get the most out of this course:

Your schedule: We will provide you a course schedule including voluntary and mandatory deadlines. The course schedule serves as guideline for your personal learning schedule and will help you completing the programme within the given time frame.

Exercises: Even though the exercises in the script are not mandatory we strongly advise you to use them as an opportunity to check your knowledge and to prepare for the final exam.

Assignments: With the assignments you will learn how to apply the knowledge learned during the course. It is important that you take time to read the necessary material and to solve the assignment.

Networking Opportunities: Use the forum to introduce yourself your peers and start interesting discussions.

Final Exam

To obtain your certificate, you must pass a final examination.

Location: The final exam is conducted online (TestWe App).
Duration: The exam takes 2 hours.
Schedule: The exam is held twice a year, on the second Wednesday of March and September.*
Costs: The first attempt is included in the tuition fees. For the second and third attempts, an additional fee of 50 EUR* will be charged.

If you choose not to take the final exam, you will receive a confirmation of course participation upon completing the course.

*Subject to change

Sample Material

CEIM Script Unit 1 - Extract

Course Lecturers

Dr Mohammed R. Kroessin

Dr Mohammed R. Kroessin is a development economist with 20 years of experience working with Islamic development and financial institutions on strategies for financial inclusion, sustainable development and climate finance. He formerly worked for the Chambers of Commerce and the Centre for Enterprise in the UK and was Asst. CEO of Muslim Aid. Mohammed is now the head of Islamic Relief’s Global Islamic Microfinance Unit where he leads a portfolio of 10 country financial inclusion programmes.

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Mohammed holds the Islamic Finance Qualification from the Chartered Institute for Securities and Investment (developed in conjunction with the Advisory Council for Islamic Finance (ACIF), a master’s in international political economy (Kent, UK), a master’s in development management (Westminster Business School, UK) and has studied Fiqh ul Buyu’u with traditional scholars of the Hanbali Madhab. He has completed his PhD in Islamic microfinance at the University of Birmingham (UK). He was a Research Associate at the University of Birmingham and a Visiting Research Fellow at Aston Business School.

Mohammed has worked with Islamic development finance institutions in Africa, Asia, and the Middle East, sits on the board of two microfinance institutions in the Balkans and is a director of the UK Financial Inclusion Forum. He is also the founder of GEMicro, an Islamic social finance advisory firm and has consulted for a number of clients, including the Islamic Development Bank (IsDB). He has run training programmes for senior managers of Islamic banks and MFIs, including in Afghanistan, Bosnia, and Kenya.

Dr. Muniruddeen Lallmahamood

Dr. Muniruddeen Lallmahamood, an adjunct professor with several institutions, Berlin School of Business and Innovation (BSBI)/Regent Business School and Mancosa, possesses a wealth of experience in the fields of strategic management and leadership, digital finance, microfinance, and Islamic finance.

Prior to his current role, he held several prominent positions, including UNDP IC (Team Leader, Afghanistan Microfinance Project), Chief Executive Officer of an Islamic Bank, Head/Consultant in Islamic Finance at the Central Bank of Mauritius, and Regional Representative of Bait Al-Mashura Finance Consultations, a Sharia Consultancy and Advisory Firm specializing in Islamic Finance in the State of Qatar.

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With a background in management consulting and training from a former McKinsey & Company Director, Dr Muniruddeen has a strong entrepreneurial acumen and a successful track record in the international business landscape. His career has spanned various sectors and management levels in countries such as Mauritius, Kuwait, Malaysia, Qatar, the United Kingdom, France, Germany, and Djibouti. Muniruddeen´s core expertise includes Islamic banking & finance, business strategies, microfinance, governance structures, and digital finance.

He has effectively shared his knowledge and insights by teaching multiple modules at prestigious institutions like Paris-Dauphine University and the University of Strasbourg (2013–2018), Open University Mauritius (2019–2022), the University of Mauritius (2013–2015), University Technology Mauritius (2010–2015), and Honoris United Universities (2019–2022) on a part-time basis. Moreover, he has been actively engaged as an independent Islamic microfinance consultant with Frankfurt School of Finance and Management. In this capacity, he has been a trainer in the Islamic microfinance sector and a product developer.

Dr. Muniruddeen's contributions to the academic and professional spheres have been significant. He has authored several peer-reviewed articles and actively participated in numerous international conferences. His educational background includes a doctorate in business administration from the University of South Australia and a master's degree in e-commerce from Central Queensland University. Dr. Muniruddeen's academic journey started with completing his secondary education in the Science Scheme in Kuwait. Following the invasion of Kuwait, he pursued the accounting programme at the International Islamic University, Malaysia. Additionally, he holds the Professional Certificate of Certified Sharia Advisor and Auditor from the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), and his language skills encompass Arabic, French, and English.

Course contributes to UN SDGs

All our courses contribute to the following SDGs:

This course will enhance your knowledge in the following SDGs. The SWA offers professional and executive courses dedicated to the advancement of the UN Sustainable Development Goals (SDGs).

Beyond your Certificate

Master of Leadership in Sustainable Finance

The Certified Expert in Islamic Microfinance is an Elective Module of the Master of Leadership in Sustainable Finance. Join our Master programme after completing the CEIM course and waive one elective module. Also, the amount you paid for the course will be deducted from the final tuition fee of the Master programme.

Frankfurt School Summer Academy

Our Summer Academy is designed to provide tangible take-home value: what you learn with us in Frankfurt, you can apply straight away in your own organisation. More than 1,000 participants over 20 years can’t be wrong – our trainings are cutting edge, delivered by leading experts in their field. Yet, most important for the great success of our Summer Academies is the profile of the participants. You bring the regional expertise, diversity of backgrounds and the unique practitioner’s perspective. Learning from each other is an integral part of our training philosophy. This is your opportunity to stretch your network all around the globe.

Diploma in Financial Inclusion

The Certified Expert in Islamic Microfinance is part of the curriculum of our Diploma in Financial Inclusion. Enroll in our Diploma after completing the CEIM course and waive one module. Also, the amount you paid for the course will be deducted from the final tuition fee of the Diploma.