Wakalah bi al-Istithmar: A Case Study of Wafiyah Investment Account Bank Islam Malaysia Berhad (BIMB)

Abstract

The aim of this paper is to analyse the contract of wakalah bi al-Istithmar, its contemporary applications and Shariah issues involved by taking Wafiyah Investment Account Bank Islam Malaysia Berhad as a case study. The researchers conducted the methodology section using a qualitative method of research. The data was gathered from books, journals, and other secondary-related sources. The data then was analysed using content analysis method. It was discovered that there were two Shariah issues related to wakalah bi al-Istithmar, namely; guaranteed capital and wakalah fee. Consequently, the researchers found that Shariah advisors must closely monitor and review the investment account structure to ensure that no Shariah prohibitions make the contract entailed null and void. For practical purposes, this article stimulated discussion regarding the potential of investment using wakalah bi al- Istithmar contract for Sharia advisors, Sharia committees, investors and regulating parties. This article contributes to the body of knowledge regarding wakalah bi al-Istithmar in the Malaysian context.