Skip to main content
main-content

Über dieses Buch

Islamic finance has grown exponentially since 1963 and has reached more than 70 countries around the world with the asset size of about $2.5 trillion. The Islamic investment system today comprises of both asset-backed and asset-based offerings. There is an evidence of sustained demand for Islamic investment in the global market among both Muslim and non-Muslim investors with demand outstripping supply and management. This book is a timely guide to understanding the paradigm of Islamic investment and its application in the contemporary investment reality, and will be of particular interest to academia, industrialists, professionals, investors, investment managers, product designers, students, decision makers and policymakers globally in the field of investment.

Inhaltsverzeichnis

Frontmatter

An Overview of Islamic Investment

Frontmatter

Chapter 1. An Islamic Investment Paradigm

Abstract
When investing funds, we must take care to follow certain Islamic regulations that are based on the principles of Shari’ah. This is done to avoid any elements that are prohibited by Islam. Any investment fund has to face strict checking processes to ensure its success and that it is legally approved. To ensure that procedures are genuine and to avoid misdirecting the funds, a few key principles must be given serious attention in order to guide investments.
Mohd Ma’Sum Billah

Chapter 2. Islamic Fund Management

Abstract
Islamic fund management is a solution for Muslim investors. This solution gives more chances for Muslims to invest in accordance with the Shari’ah. This sort of fund is similar to a conventional fund except in that it complies with Shari’ah rules and regulations. An Islamic fund cannot invest in companies involved in Haram activities, such as gambling, alcohol, pornography, Ribawi institutions and the companies that are financed by such institutions.
Mohd Ma’Sum Billah

Principles of Islamic Investment

Frontmatter

Chapter 3. Shari’ah Frameworks of Investment

Abstract
To come up with a viable Shari’ah model of investment has been an area of significant concern. This chapter is a modest contribution that sets out the most important Shari’ah rulings to be fulfilled for those who wish to make Islamic investments. To be compliant, investment and production in Islam must take place within Shari’ah framework and principles.
Mohd Ma’Sum Billah

Chapter 4. Islamic Investment Policies

Abstract
This chapter focuses on Islamic investment opportunities and some of the issues around investing in Shari’ah-approved counters, as practised in Malaysia. Among other types of investments that we will be looking at are equity and commodity investments, Ijarah, Musharakah and Mudharabah investments. Furthermore, we will also discuss Islamic investment criteria and its future.
Mohd Ma’Sum Billah

Islamic Investment Products and Practices

Frontmatter

Chapter 5. Islamic Personal Investment

Abstract
This chapter covers personal investment under Shari’ah principles. The main discussion focuses on guidelines or basic principles for Muslims who want to make any type of investment. This is very important because in daily life we encounter all sorts of financial transactions, including those pertaining to the Islamic banking system.
Mohd Ma’Sum Billah

Chapter 6. Musharakah Venture Capital

Abstract
Islamic venture capital is a type of equity financing through the use of Musharakah. In fact, venture capital as a concept is not new—it has a long history. Although the concept of venture capital is not new, a formal market for it emerged only after World War II. Today it deals in billions of dollars, across the world. People use venture capital to finance projects which may require a large amount of capital and which may not be available from the project’s owner.
Mohd Ma’Sum Billah

Chapter 7. Islamic Micro-Investment: The Experience of Tabung Haji Malaysia

Abstract
Tabung Haji is an Islamic corporate company and is known as a government agency. The equity participation of Tabung Haji is 100% and the government only interfere with Hajj matters, which relates to enhancement of and having a close relationship with the Saudi Arabia government. It was set to ensure that all Malaysians pilgrims will have good accommodation and quality facilities while performing the Hajj in the Holy Land.
Mohd Ma’Sum Billah

Chapter 8. Islamic Investment in Stocks

Abstract
There are many responsibilities specific to Muslims, one of which is the management of wealth. Through instruments or products in the financial markets, Muslims may manage their wealth in a Shari’ah-compliant way. Such business transactions are allowed in Islam as long as the foundations of these dealings do not contradict the Shari’ah and if those transactions are free from prohibited elements such as Riba (interest), Maisir (gambling) or Gharar (uncertainty).
Mohd Ma’Sum Billah

Chapter 9. Investment in Sukuk

Abstract
Sukuk is the Shari’ah alternative to the bond as practised in the modern capital market. It has been significantly expanded for more than a decade by attracting both Muslim and non-Muslim participants with promising results, so that it currently occupies more than 70% of the total Islamic financial market across the world. Policies, strategies, instruments, mechanisms, structures, marketing, management and operations are strictly ruled to be in total compliance with the divine ethics and the principles of Shari’ah, which are closely monitored by qualified Shari’ah scholars as to compliance with Shari’ah standards.
Mohd Ma’Sum Billah

Chapter 10. Wealth Investment Under Shari’ah

Abstract
An Islamic wealth investment plan is a new concept being developed and it has a relationship with the definition of Islamic Financial Marketing defined by Ibnu Abu Yusuf and Ibnu Taimiyyah and Ibnu Khaldun. They defined the as the creation, development and delivery of unique customer-satisfying competitive products and services to engender profit for organisations and customers in line with Islamic values and principles. In contrast, conventionally it is defined as the process whereby an individual’s personal and financial goals are achieved through the development and implementation of a comprehensive financial plan.
Mohd Ma’Sum Billah

Chapter 11. Investment in Islamic Unit Trusts

Abstract
A unit trust can be defined as a collective investment scheme that obtains money from pooling the savings from various investors who share the same financial objectives, investment strategy and risk. Next, these funds will be allocated in a diversified portfolio of authorised investments and managed by the professional managers. The Security Commission’s guidelines on unit trusts set out the overall regulatory framework of the unit trust such as a ‘deed’ or an agreement that should be followed by the managers, unitholders and managers. In addition, examples the authorised investments allowed by the Security Commission includes approved stocks, bonds, commercial chapters, government securities, treasury bills, foreign securities, direct business ventures, unquoted securities and so forth.
Mohd Ma’Sum Billah

Chapter 12. Halal Investment in Sustainable Development Goals

Abstract
This chapter focuses on financing aimed at growing low-income groups. According to World Bank classification, a number of Muslim countries are categorised as low-income economies. As for Malaysia, due to its stimulated economic development in recent years, it is now categorised as an upper-middle group economy. The discussion here will be based on Malaysian data and statistics. Moreover, it will be noted that no matter how strong an economy is, there are always lower income groups that need to be catered for.
Mohd Ma’Sum Billah

Chapter 13. Investing Takaful Funds

Abstract
Investment policies for Takaful funds strictly adhere to Shari’ah principles. They will, however, be conducted using profitable avenues. As long as Shari’ah principles are practised, Muslims do not mind if returns are marginally lower. Investment is carried out in order to accumulate assets and so that we may have these at a constant rate of increment over time. This is the same for a Takaful fund, where the objective is to raise the value consistently over time.
Mohd Ma’Sum Billah

Chapter 14. Experiencing in Investing of Takaful Funds

Abstract
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.
Mohd Ma’Sum Billah

Chapter 15. Investment in Halal Cryptocurrency

Abstract
A cryptocurrency management platform is a digital financial platform operated in the borderless realm of cyberspace, but it still requires to be established as a registered company with a separate legal entity. Among the prerequisites of a Shari’ah alternative cryptocurrency model is to be formalised under the company’s rules, either onshore or offshore, as a separate legal entity. It should be managed based on an acceptable system, operational mechanism, standard planning and strategies, legitimate objectives and manifesto, documentations and manuals, policies and guidelines, which must all comply with Shari’ah law and policies within the Maqasid al-Shari’ah (divine objectives). In this chapter, however, an attempt is made to analyse the operational mechanisms of cryptocurrency amidst Maqasid al-Shari’ah.
Mohd Ma’Sum Billah

Chapter 16. Foreign Investment Under Shari’ah

Abstract
The Islamic economy has been noted by some economists for its system, which emphasises the needs of human beings and not just the calculation of profit. The relationship between the Islamic economy and foreign investment aims to strengthen these links, with the intention of supporting each other to bring benefits to the investor and Muslim countries. Islamic return on foreign investment is important because it individuals and organisations to help people and gain profit in accordance with Shari’ah guidelines.
Mohd Ma’Sum Billah

Chapter 17. Rate of Return in Islamic Investment

Abstract
Islamic principles have shown how rate of return can be used to reduce confusion. The challenges that face Islamic banks today require major changes in their perception and attitude. This chapter explores the distinction between rate of return in Islamic investment and conventional investment. Although there are some similarities between Islamic and conventional approaches, the distinctiveness of Islamic finance remains. Moreover, the benefit which we can get by applied rate of return in Islamic investment is promoting Islamic finance as a new phenomenon in international investment. In a world currently dominated by Western capitalism, Islamic finance appears as a beginner, although in reality it has a rich history as a facilitator of trade and economic transactions in the past. Without doubt, Islam has contributed to and benefited from financing based on Islamic investment and the Islamic money market.
Mohd Ma’Sum Billah

Backmatter

Weitere Informationen

Premium Partner

    Bildnachweise