Mastering Islamic Finance

7

Sharia-compliant investments and wealth management

Introduction

Sharia-compliant investments

Zakat by Iqbal Nasim

Sharia-compliant estate distribution and Islamic wills by Haroon Rashid

Conclusion

INTRODUCTION

Islam has a profound effect on how Muslims invest and manage their wealth. The following are key influencing factors:

• Investments must be sharia-compliant – the subject/activity underpinning the financial transaction has to be a permitted activity (e.g. cannot relate to alcohol, gambling, etc.), it has to be free of interest, it has to be free from contractual ambiguity/uncertainty and an investor can seek a return only if they take some commercial risk in the investments they are making.
• Contractual principles (as per Chapter ...