14. Experiencing in Investing of Takaful Funds

All categories of Takaful operations must comply with Shari’ah principles, including investment. Shari’ah compliance here covers not only how but where a fund is invested, and whether the return and the purpose of the investment are permitted by Shari’ah. Over and above this, the investment must also comply with the regulations and guidelines of the relevant authorities. It has been acknowledged that the rejection by Shari’ah of conventional insurance is due partly to the non-Shari’ah manner of the investment of premiums. On this matter, it is worth mentioning that Muslims generally tend to be sensitive to and profoundly concerned about matters related to investment. As long as they can be assured and certain of Shari’ah compliance, they would not mind even if returns might be marginally lower.