Islamic Wealth Management: Theory and Practice (Foundations of Islamic Finance series)

From an Islamic perspective, although the ownership of wealth is with God, humans are gifted with wealth to manage it with the objective of benefiting the human society. Such guidance means that wealth management is a process involving the accumulation, generation, purification, preservation and distribution of wealth, all to be conducted carefully in permissible ways. This book is the first to lay out a coherent framework on how wealth management should be conducted in compliance with guiding principles from edicts of a major world religion. From an Islamic perspective, although the ownership of wealth is with God, humans are gifted with wealth to manage it with the objective of benefiting the human society. Such guidance means that wealth management is a process involving the accumulation, generation, purification, preservation and distribution of wealth, to be conducted carefully in permissible ways. This book is the first to lay out a coherent framework on how wealth management should be conducted in compliance with guiding principles from edicts of a major world religion. The book begins by defining wealth from both a secular perspective, and an Islamic perspective, before describing how wealth needs to be earned in lawful ways, preserved and used to benefit the needs of community, with a small part of the wealth given away to charity, and the remainder managed in accordance with laws and common practices, as established by a majority consensus of scholars of the religion in historical times. Each section of the book has relevant chapters that discuss the theory, as well as the application and the challenges in Islamic wealth management in real and financial markets. This book will appeal to students and researchers of Islamic wealth management, certainly Islamic economics and finance in general; policy makers; and a range of industry practitioners, such as investment managers, financial planners, accountants and lawyers.Contributors include: S.O. Alhabshi, M. Ariff, G.Ç. Dolgun, M.H. Dolgun, M. El Khatib, J. Farrar, F. Habib, A. Lahsasna, Z. Mahomed, A. Mirakhor, S. Mohamad, M.I.A. Mohsin, E.S. Rasid, S.H.A. Razak, S.A. Rosly, Z.M. Sori, J.A. Thahir, A. Zuleika From an Islamic perspective, although the ownership of wealth is with God, humans are gifted with wealth to manage it with the objective of benefiting the human society. Such guidance means that wealth management is a process involving the accumulation, generation, purification, preservation and distribution of wealth, to be conducted carefully in permissible ways. This book is the first to lay out a coherent framework on how wealth management should be conducted in compliance with guiding principles from edicts of a major world religion. The book begins by defining wealth from both a secular perspective, and an Islamic perspective, before describing how wealth needs to be earned in lawful ways, preserved and used to benefit the needs of community, with a small part of the wealth given away to charity, and the remainder managed in accordance with laws and common practices, as established by a majority consensus of scholars of the religion in historical times. Each section of the book has relevant chapters that discuss the theory, as well as the application and the challenges in Islamic wealth management in real and financial markets. This book will appeal to students and researchers of Islamic wealth management, certainly Islamic economics and finance in general; policy makers; and a range of industry practitioners, such as investment managers, financial planners, accountants and lawyers. Contributors S.O. Alhabshi, M. Ariff, G.. Dolgun, M.H. Dolgun, M. El Khatib, J. Farrar, F. Habib, A. Lahsasna, Z. Mahomed, A. Mirakhor, S. Mohamad, M.I.A. Mohsin, E.S. Rasid, S.H.A. Razak, S.A. Rosly, Z.M. Sori, J.A. Thahir, A. Zuleika Front Matter Copyright Contents List of contributors Preface PART I DEFINITION AND CONCEPTS 1 Wealth as understood in economics and finance 2 Wealth from the shariah perspective 3 Wealth management, its definition, purpose, structure and practices PART II GOVERNANCE OF INSTITUTIONS AND MARKETS 4 Governance framework in Islamic financial institutions 5 Shariah boards: practical challenges for Islamic financial institutions 6 Property rights and shariah non-compliance risk PART III WEALTH CREATING INSTITUTIONS AND MARKETS 7 Sovereign wealth funds and foreign exchange reserves as state wealth 8 Sovereign wealth funds in OIC group 9 Application of conventional benchmark in Islamic wealth management 10 Benchmarks for Islamic asset pricing 11 Sukuk as the Islamic debt market securities within Islamic finance 12 The Sukūk market in Malaysia: issues and challenges 13 Wealth effect of sukuk issuance announcement in two markets PART IV PRESERVING AND PROTECTING WEALTH 14 Challenges for the Takaful industry 15 Wealth purification PART V WEALTH DISTRIBUTION 16 Faraid as Islamic inheritance laws: socio-economic impact on investments 17 Waqf in Shariah: basic rules and applications 18 Framework for international waqf foundation 19 Potential for wealth creation from waqf assets 20 Zakat in Islamic wealth management 21 Issues in waqf and zakat management Index of Arabic terms Index