Billah Modern Islamic Investment Management

Principles and Practices
1. Auflage 2019
ISBN: 978-3-030-17628-0
Verlag: Springer Nature Switzerland
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 248 Seiten

Reihe: Progress in Mathematics

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.

Autoren/Hrsg.

Billah, Mohd Ma'Sum

Inhaltsverzeichnis

1;Dedication;5
2;Foreword;6
3;Preface;8
4;Acknowledgements;11
5;Contents;13
6;About the Author;15
7;List of Figures;16
8;List of Tables;17
9;Introduction;18
10;Part I: An Overview of Islamic Investment;20
10.1;Chapter 1: An Islamic Investment Paradigm;21
10.1.1;1.1 Introduction;21
10.1.2;1.2 Elements of Islamic Investment;22
10.1.3;1.3 Shari’ah Guidelines for Investment;23
10.1.4;1.4 Stocks in Shari’ah Rulings;23
10.1.5;1.5 Islamic Investment Funds;24
10.1.5.1;1.5.1 Equity Funds;24
10.1.5.2;1.5.2 Ijarah Funds;25
10.1.5.3;1.5.3 Commodity Funds;26
10.1.5.4;1.5.4 Al-Murabahah Funds;27
10.1.5.5;1.5.5 Mixed Funds;27
10.1.6;1.6 Shari’ah Rulings on Investment;27
10.1.7;1.7 Treasury Products and Services on the Islamic Money Market;29
10.1.7.1;1.7.1 Al-Mudharabah General Investment Account (GIA);29
10.1.7.2;1.7.2 Al-Mudharabah Special Investment Account (SIA);30
10.1.7.3;1.7.3 Negotiable Islamic Debt Certificate (NIDC);30
10.1.7.4;1.7.4 Islamic Negotiable Instrument of Deposit (INID);30
10.1.8;1.8 Treasury Products and Services: Islamic Fixed-Income Securities;31
10.1.8.1;1.8.1 Government Investment Issue (GII);31
10.1.8.2;1.8.2 Bank Negara Negotiable Notes (BNNN);31
10.1.8.3;1.8.3 Islamic Private Debt Securities (IPDS);31
10.1.8.4;1.8.4 Sell and Buy-Back Agreements (SBBA);31
10.1.8.5;1.8.5 Islamic Acceptance Bills (IAB) or Islamic Banker’s Acceptance (IBA);32
10.1.9;1.9 Takaful Funds;32
10.1.9.1;1.9.1 Types of Takaful Investment;33
10.1.9.2;1.9.2 Takaful Investment Policies;33
10.1.10;1.10 Conclusion;34
10.2;Chapter 2: Islamic Fund Management;35
10.2.1;2.1 Introduction;35
10.2.2;2.2 How to Manage an Islamic Fund?;36
10.2.2.1;2.2.1 Investor’s Funds;36
10.2.2.2;2.2.2 Types of Investor;39
10.2.2.3;2.2.3 The Divine Ethical View on Investment;39
10.2.2.4;2.2.4 Islamic Funds versus Mutual Funds;41
10.2.2.5;2.2.5 Risk versus Rate of Return;41
10.2.2.6;2.2.6 Why Should Investors Outsource Investment?;42
10.2.2.6.1;2.2.6.1 Fiduciary Responsibilities;43
10.2.2.6.2;2.2.6.2 Lack of Time;43
10.2.2.6.3;2.2.6.3 Lack of Interest;43
10.2.2.6.4;2.2.6.4 Inability to Control Emotions;43
10.2.2.6.5;2.2.6.5 Insufficient Knowledge;43
10.2.3;2.3 Conclusion;44
11;Part II: Principles of Islamic Investment;45
11.1;Chapter 3: Shari’ah Frameworks of Investment;46
11.1.1;3.1 Introduction;46
11.1.2;3.2 Rational Outlook;47
11.1.3;3.3 Divine Guidance;47
11.1.3.1;3.3.1 Wealth Management;47
11.1.3.2;3.3.2 Abstain from Being a Spendthrift;48
11.1.3.3;3.3.3 Invest for the Benefit of Others;48
11.1.4;3.4 The Essence of Shari’ah Compliance;49
11.1.5;3.5 Shari’ah Rulings;49
11.1.5.1;3.5.1 Investment Shall be Limited to Halal Activities;49
11.1.5.2;3.5.2 Prohibitions;50
11.1.5.2.1;3.5.2.1 Fixed Interest/Usury (Riba);50
11.1.5.2.2;3.5.2.2 Gharar (Uncertainty or Speculation);51
11.1.5.2.3;3.5.2.3 Maisir (Gambling);51
11.1.5.2.4;3.5.2.4 Rishwah (Corruption);51
11.1.5.2.5;3.5.2.5 Jahl (Ignorance);51
11.1.6;3.6 Every Contractual Party Must Honour the Contractual Terms;52
11.1.7;3.7 Every Transaction Shall Be Performed with Utmost Good Faith;52
11.1.8;3.8 Preserve the Unity of Mind and Sincerity in Investment;53
11.1.9;3.9 Ethical Principles of Islamic Investment;53
11.1.9.1;3.9.1 Making Money from Money Is Not Permissible;53
11.1.9.2;3.9.2 Profit and Loss Sharing;53
11.1.9.3;3.9.3 Segregation of Funds;54
11.1.9.4;3.9.4 The Existence of a Shari’ah Supervisory Board;54
11.1.10;3.10 Management Committed to Islamic Financial Concepts;54
11.1.11;3.11 Compliance with the Standards of the AAOIFI;54
11.1.12;3.12 Shari’ah-Recognised Investment Instruments and Structures;55
11.1.13;3.13 Shari’ah Rulings on Unit Trusts (Micro-investment Plans);58
11.1.14;3.14 An Industrial Experience: RHB Mudharabah Fund;60
11.1.15;3.15 Islamic Bond (Sukuk) Fund;60
11.1.16;3.16 Mechanisms of Investing in the Islamic Unit Trust;60
11.1.16.1;3.16.1 Lump Sum Purchases;60
11.1.16.2;3.16.2 Regular Savings;61
11.1.17;3.17 Concept of an Islamic Unit Trust Fund;61
11.1.18;3.18 Screening Process Adopted in Evaluating Investments (Fig. 3.11);62
11.1.19;3.19 Debate on Islamic Bonds;63
11.1.20;3.20 Securitisation: The Creation of a Bay’ al-’Inah Underlying Asset;63
11.1.21;3.21 Issuance of Islamic Debt Certificate (Shahdah al-Dayn);64
11.1.21.1;3.21.1 Islamic Coupon Bond;64
11.1.21.2;3.21.2 Islamic Zero-Coupon Bond;64
11.1.22;3.22 Trading of Debt Certificate;64
11.1.23;3.23 Application of Bay’ Al-Muzayadah Principle;65
11.1.24;3.24 What Do the Opponents of Malaysian Islamic Unit Trusts Say?;65
11.1.25;3.25 Bay’ Al-‘Inah: Why It Is Not Allowed;65
11.1.26;3.26 Bay’ al-Dayn for Immediate Payment and Deferred Payment: Are They Allowed?;66
11.1.27;3.27 Conclusion;66
11.1.28;References;68
11.2;Chapter 4: Islamic Investment Policies;70
11.2.1;4.1 Introduction;70
11.2.2;4.2 Islamic Investment Paradigm;71
11.2.3;4.3 Types of Islamic Investment;74
11.2.3.1;4.3.1 Equity;74
11.2.3.2;4.3.2 Commodity Funds;75
11.2.3.3;4.3.3 Ijarah (Leasing);76
11.2.3.4;4.3.4 Musharakah (Partnership);77
11.2.3.5;4.3.5 Mudharabah (Profit and Loss Sharing);78
11.2.3.6;4.3.6 Other Types of Islamic Investment;78
11.2.4;4.4 Islamic Investment Criteria;79
11.2.4.1;4.4.1 Qualitative Screening;79
11.2.4.2;4.4.2 Quantitative Screening;80
11.2.5;4.5 Trading and Investment Practices;82
11.2.6;4.6 Misconceptions and the Truth about Islamic Investment;83
11.2.7;4.7 The Future of Islamic Investment;85
11.2.8;4.8 Conclusion;85
11.2.9;References;86
12;Part III: Islamic Investment Products and Practices;88
12.1;Chapter 5: Islamic Personal Investment;89
12.1.1;5.1 Introduction;89
12.1.2;5.2 Types of Personal Investment;90
12.1.2.1;5.2.1 Mudarabah (Profit and Loss Sharing);90
12.1.2.2;5.2.2 Mudarabah (Cost Plus Mark-Up);91
12.1.2.3;5.2.3 Ijarah (Leasing);91
12.1.2.4;5.2.4 Musharakah (Partnership/Venture Capital);92
12.1.2.5;5.2.5 Investment in Stocks or Shares;93
12.1.2.6;5.2.6 Wadiah (Deposit);94
12.1.2.7;5.2.7 Bay Al-Dayn (Sale of Debt);95
12.1.3;5.3 Terms and Conditions;95
12.1.4;5.4 Conclusion;96
12.1.5;References;97
12.2;Chapter 6: Musharakah Venture Capital;98
12.2.1;6.1 Introduction;98
12.2.1.1;6.1.1 Musharakah (Venture Capital or Partnership);99
12.2.2;6.2 Rules of Musharakah;99
12.2.2.1;6.2.1 Distribution of Profit;99
12.2.2.2;6.2.2 Sharing of Risk (Loss or Liability);100
12.2.2.3;6.2.3 Nature of Capital;100
12.2.2.4;6.2.4 Management of Musharakah;101
12.2.2.5;6.2.5 Termination;101
12.2.3;6.3 Modern Operation of the Musharakah Model;102
12.2.4;6.4 The Practical Scenario;103
12.2.5;6.5 Conclusion;104
12.3;Chapter 7: Islamic Micro-Investment: The Experience of Tabung Haji Malaysia;105
12.3.1;7.1 Background of the Company;105
12.3.1.1;7.1.1 Objective;105
12.3.1.2;7.1.2 Goals;106
12.3.1.3;7.1.3 Core Activities of Tabung Haji;106
12.3.2;7.2 Services Provided by Tabung Haji;106
12.3.2.1;7.2.1 Savings;106
12.3.2.2;7.2.2 Withdrawal;107
12.3.2.3;7.2.3 Products Offered;107
12.3.2.3.1;7.2.3.1 EPF Member Investment Scheme;107
12.3.2.3.2;7.2.3.2 Savings Scheme for Monthly Allowance;108
12.3.2.3.3;7.2.3.3 Salary Deduction Scheme for the Individual and His or Her Family;108
12.3.2.3.4;7.2.3.4 Incentive Scheme for Malaysian Schools;108
12.3.2.4;7.2.4 Annual Bonus;108
12.3.2.5;7.2.5 Other Services;108
12.3.2.5.1;7.2.5.1 Fund for Senior Citizens;108
12.3.2.5.2;7.2.5.2 Friendly Counter;109
12.3.2.5.3;7.2.5.3 Investment;109
12.3.2.5.4;7.2.5.4 Hajj (Pilgrimage);110
12.3.3;7.3 The Development of Tabung Haji;111
12.3.4;7.4 Impact of Company Operation to Society and Nation;112
12.3.5;7.5 Function of Divisions;113
12.3.5.1;7.5.1 Internal Audit Management Division;113
12.3.5.2;7.5.2 Corporate Planning Division;113
12.3.5.3;7.5.3 Human Resources Division;113
12.3.5.4;7.5.4 Corporate Communication Division;114
12.3.5.5;7.5.5 Administration Division;114
12.3.5.6;7.5.6 Property Development Division;114
12.3.5.7;7.5.7 Investment Development Division;114
12.3.5.8;7.5.8 Investment Management Division;114
12.3.5.9;7.5.9 Share Trading Division;115
12.3.5.10;7.5.10 Legal and Secretariat Division;115
12.3.5.11;7.5.11 Finance Division;115
12.3.5.12;7.5.12 Fund Management Division;115
12.3.5.13;7.5.13 Information Technology Division;115
12.3.5.14;7.5.14 Property Management Division;115
12.3.5.15;7.5.15 Welfare Division;116
12.3.5.16;7.5.16 Hajj Consul Office;116
12.3.5.17;7.5.17 Guidance Division;116
12.3.5.18;7.5.18 Private Package Division;116
12.3.5.19;7.5.19 Health Division;116
12.3.5.20;7.5.20 Operational Division;117
12.3.5.21;7.5.21 Savings and Withdrawals Division;117
12.3.5.22;7.5.22 Marketing Division;117
12.3.5.23;7.5.23 Branch Office Operational Division;117
12.3.6;7.6 Sources of Fund;117
12.3.6.1;7.6.1 Deposit from Depositors;117
12.3.7;7.7 Terms and Conditions;118
12.3.8;7.8 Insurance (Takaful) Group Division;119
12.3.8.1;7.8.1 Objective of Insurance (Takaful) Group Division;119
12.3.8.1.1;7.8.1.1 Coverage;120
12.3.8.1.1.1;Takaful for Pilgrims;120
12.3.8.1.1.2;Takaful for Staff;120
12.3.8.1.1.3;Takaful for Construction Contractors and Private Companies;120
12.3.9;7.9 Conclusion;120
12.3.10;Reference;120
12.4;Chapter 8: Islamic Investment in Stocks;121
12.4.1;8.1 Introduction;121
12.4.2;8.2 Islamic Investment;122
12.4.2.1;8.2.1 Central Idea;122
12.4.2.2;8.2.2 Overview;122
12.4.2.3;8.2.3 Parties;123
12.4.3;8.3 Stock Market;124
12.4.3.1;8.3.1 General Overview;124
12.4.3.2;8.3.2 Investment in the Stock Market;124
12.4.3.3;8.3.3 Shari’ah Compliance;125
12.4.3.3.1;8.3.3.1 Filtering;125
12.4.3.3.2;8.3.3.2 Shari’ah Board or Shari’ah Advisor;125
12.4.3.3.3;8.3.3.3 Shari’ah Principles;126
12.4.3.3.4;8.3.3.4 Islamic Index;128
12.4.3.3.5;8.3.3.5 Fatwa on Investment in the Stock Market;128
12.4.3.3.6;8.3.3.6 Qualitative Screens;128
12.4.3.3.7;8.3.3.7 Quantitative Screens;129
12.4.4;8.4 Conclusion;130
12.4.5;References;131
12.5;Chapter 9: Investment in Sukuk;132
12.5.1;9.1 Introduction;132
12.5.2;9.2 Phenomena;132
12.5.3;9.3 The Modern Bond Market;134
12.5.4;9.4 Market Participants;135
12.5.4.1;9.4.1 Dealers;135
12.5.4.2;9.4.2 Brokers;135
12.5.4.3;9.4.3 Investors;136
12.5.5;9.5 Types of Bond;136
12.5.5.1;9.5.1 Convertible Bonds;136
12.5.5.2;9.5.2 Extendible or Retractable Bonds;136
12.5.5.3;9.5.3 Foreign Currency Bonds;136
12.5.5.4;9.5.4 Government Bonds;137
12.5.5.5;9.5.5 Corporate Bonds;137
12.5.5.6;9.5.6 High-Yield or Junk Bonds;137
12.5.5.7;9.5.7 Inflation-Linked Bonds;138
12.5.5.8;9.5.8 Zero-Coupon Bonds;138
12.5.6;9.6 Valuation of Bonds;138
12.5.6.1;9.6.1 Present Value;138
12.5.6.2;9.6.2 Yield to Maturity (YTM);139
12.5.6.3;9.6.3 Duration;139
12.5.6.4;9.6.4 Coupon Interest Rate;139
12.5.6.5;9.6.5 Market Interest Rate;139
12.5.7;9.7 The Sukuk (Islamic Bond) Market;140
12.5.8;9.8 Three Main Steps Involved in the Bond Issuance (Supra);140
12.5.8.1;9.8.1 The Creation of a Tawarruq (Special Purpose Vehicle) Underlying Asset;141
12.5.8.2;9.8.2 Issuance of Islamic Debt Certificate (Shahdah al-Dayn);141
12.5.8.3;9.8.3 Trading of Debt Certificate: Discounted Bay’ al-Dayn;141
12.5.9;9.9 The Nature of Bay’ al-Dayn;142
12.5.10;9.10 Sale of Al-Deen (Debt) to a Third Party;143
12.5.11;9.11 Types of Islamic Bond (Sukuk);144
12.5.11.1;9.11.1 Sukuk al-Ijarah (Lease Bonds);144
12.5.11.2;9.11.2 Sukuk al-Istisna’ (Manufacturing Bonds);144
12.5.11.3;9.11.3 Sukuk al-Musharakah (Partnership Bonds);144
12.5.11.4;9.11.4 Difference Between Musharakah Certificate and a Conventional Bond;145
12.5.11.5;9.11.5 Sukuk al-Muqarada is an Alternative to Sukuk al-Dayn (Debt Bonds/Debenture Certificates);145
12.5.12;9.12 Prospects of Sukuk in the Non-Muslim World;146
12.5.13;9.13 Process and Issuance of Sukuk (Tawarruq);147
12.5.14;9.14 Investors Shall;147
12.5.15;9.15 Risk Factors in Sukuk;148
12.5.15.1;9.15.1 Market Risk;148
12.5.15.2;9.15.2 Credit Risk;148
12.5.15.3;9.15.3 Risks to Shari’ah Compliance;149
12.5.15.4;9.15.4 Management and Operational Risk;149
12.5.15.5;9.15.5 Organisational Rigidity Risk;150
12.5.16;9.16 Managing the Sukuk Risks;150
12.5.16.1;9.16.1 Organisational Challenges;150
12.5.17;9.17 Sukuk and Its Rating Formula;153
12.5.17.1;9.17.1 Credit Rating;153
12.5.18;9.18 Appointment of Credit Rating Agency;153
12.5.19;9.19 Issuer’s Obligations;154
12.5.20;9.20 Non-application of Requirements;154
12.5.21;9.21 Conclusion;155
12.5.22;References;155
12.6;Chapter 10: Wealth Investment Under Shari’ah;157
12.6.1;10.1 Introduction;157
12.6.2;10.2 Protection in Islam;159
12.6.2.1;10.2.1 Basis of Co-operation;160
12.6.2.2;10.2.2 Basis of Responsibility;160
12.6.2.3;10.2.3 Basis of Mutual Protection;160
12.6.3;10.3 Accumulation of Wealth in Islam;160
12.6.4;10.4 Wealth Preservation;162
12.6.5;10.5 Wealth Distribution;162
12.6.6;10.6 The Financial Planning Process;162
12.6.6.1;10.6.1 Establish Financial Goal;163
12.6.6.2;10.6.2 Gather Relevant Data;163
12.6.6.3;10.6.3 Analysing the Data;163
12.6.6.4;10.6.4 Develop a Plan for Achieving the Goals;163
12.6.6.5;10.6.5 Implement the Plan;163
12.6.6.6;10.6.6 Monitor the Plan;164
12.6.7;10.7 Recommendations;164
12.6.7.1;10.7.1 Wasiyah;164
12.6.7.2;10.7.2 Waqf;165
12.6.7.2.1;10.7.2.1 Advantages of Waqf;166
12.6.7.3;10.7.3 Hibah;167
12.6.7.3.1;10.7.3.1 Advantages of Hibah;169
12.6.8;10.8 Conclusion;170
12.6.9;References;170
12.7;Chapter 11: Investment in Islamic Unit Trusts;171
12.7.1;11.1 Introduction;171
12.7.2;11.2 Overview of the Unit Trust Industry;171
12.7.3;11.3 The Concept of a Unit Trust;173
12.7.3.1;11.3.1 Central Idea;173
12.7.3.2;11.3.2 Mechanism of the Unit Trust;173
12.7.3.3;11.3.3 Differences Between Unit Trust and Mutual Fund;174
12.7.3.4;11.3.4 Types of Funds;175
12.7.3.5;11.3.5 Shari’ah Rulings;175
12.7.3.6;11.3.6 Example of Islamic Unit Trusts;176
12.7.3.7;11.3.7 Future of the Islamic Unit Trust Industry;177
12.7.4;References;178
12.8;Chapter 12: Halal Investment in Sustainable Development Goals;179
12.8.1;12.1 Introduction;179
12.8.2;12.2 Low-Income Group;181
12.8.3;12.3 Determinants of the Low-Income Group;181
12.8.4;12.4 Poverty: An Islamic Perspective;182
12.8.5;12.5 Islamic Financial System;184
12.8.6;12.6 How Does Islamic Finance Help to Grow the Low-Income Group Towards Sustainable Development?;185
12.8.6.1;12.6.1 Musharakah (Venture Capital);185
12.8.6.2;12.6.2 Mudharabah (Profit and Loss Sharing);186
12.8.6.3;12.6.3 Murabahah (Cost-Plus Financing);187
12.8.6.4;12.6.4 Ijarah (Lease);188
12.8.6.5;12.6.5 Al-Qard (Loan);189
12.8.6.6;12.6.6 Mode of Financing Through Bailtulmal;190
12.8.6.7;12.6.7 Distribution of Income;191
12.8.7;12.7 Conclusion;192
12.8.8;References;192
12.9;Chapter 13: Investing Takaful Funds;194
12.9.1;13.1 Introduction;194
12.9.2;13.2 Shari’ah Guidelines;195
12.9.3;13.3 Classifications of Investment Policies of a Takaful Fund;196
12.9.3.1;13.3.1 Financing;196
12.9.3.2;13.3.2 Financial Instruments;196
12.9.3.3;13.3.3 Government Investment Certificates (GIC);197
12.9.3.4;13.3.4 Investment Accounts;197
12.9.3.5;13.3.5 Unit Trust;197
12.9.3.6;13.3.6 Foreign Investment;197
12.9.4;13.4 Investment Process (Fig. 13.1);198
12.9.4.1;13.4.1 How Does It Function?;198
12.9.5;13.5 Products for Investment;199
12.9.5.1;13.5.1 Types of ILP;199
12.9.5.1.1;13.5.1.1 Growth Fund;199
12.9.5.1.2;13.5.1.2 Stability Fund;200
12.9.5.1.3;13.5.1.3 Balanced Fund;200
12.9.6;13.6 Takaful Dana Saham: Investment-Based Product of Takaful Malaysia;200
12.9.7;13.7 Avenues for Investment of Takaful Funds;200
12.9.8;13.8 Examples of Islamic Investment Instruments;201
12.9.8.1;13.8.1 Short-Term;201
12.9.8.2;13.8.2 Medium- to Long-Term;201
12.9.9;13.9 Functions of the Investment Department;201
12.9.10;13.10 Future Role and Prospect of Takaful Investment;202
12.9.11;13.11 Conclusion;202
12.9.12;References;204
12.10;Chapter 14: Experiencing in Investing of Takaful Funds;205
12.10.1;14.1 An Overview;205
12.10.2;14.2 Investment in Property;206
12.10.3;14.3 Investment in the Equity Market;206
12.10.4;14.4 Investment in Credit Facility;207
12.10.5;14.5 Online Investment;207
12.10.6;14.6 Investment in IT;208
12.10.7;14.7 Investment in Professional Development;208
12.10.8;14.8 Market Participants’ View;209
12.10.8.1;14.8.1 Issue 1 Takaful Nasional;209
12.10.8.2;14.8.2 Issue 2 Shari’ah View;210
12.10.8.3;14.8.3 Issue 3 Elements of Takaful Nasional;210
12.10.8.4;14.8.4 Issue 4 Takaful Differs in Terms of Insurance;210
12.10.8.5;14.8.5 Issue 5 Central Bank Participation in Takaful Investment;211
12.10.8.6;14.8.6 Issue 6 Ownership of Takaful Fund;211
12.10.8.7;14.8.7 Issue 7 Payment in Takaful Plan;211
12.10.8.8;14.8.8 Issue 8 Takaful Model Function;211
12.10.8.9;14.8.9 Issue 9 Takaful Plan’s Contribution in Needs;212
12.10.8.10;14.8.10 Issue 10 Takaful Plan’s Contribution in Family Needs;212
12.10.8.11;14.8.11 Issue 11 Takaful is Complemented by the General Organisation for Social Insurance (GOSI);212
12.10.8.12;14.8.12 Issue 12 Additional Benefits of Takaful Funds;213
12.10.8.13;14.8.13 Issue 13 Participation in Takaful Schemes;213
12.10.9;14.9 Effort in Marketing Family Takaful Products;214
12.10.10;14.10 Conclusion;215
12.10.11;References;215
12.11;Chapter 15: Investment in Halal Cryptocurrency;216
12.11.1;15.1 Introduction;216
12.11.2;15.2 Objectives;219
12.11.3;15.3 Governing Principles;219
12.11.4;15.4 Ethical Principles;220
12.11.5;15.5 Model and Structure;220
12.11.6;15.6 Operational Mechanism;221
12.11.7;15.7 Technological Model;221
12.11.8;15.8 Scope and Limitations;222
12.11.9;15.9 Products and Services;222
12.11.10;15.10 Backing Assets;223
12.11.11;15.11 Decision-makers;223
12.11.12;15.12 Shari’ah Advisory Board;224
12.11.13;15.13 Board of Advisors;224
12.11.14;15.14 Management;224
12.11.15;15.15 The Public Statement;225
12.11.16;15.16 The White Paper;225
12.11.16.1;15.16.1 Introduction to Shari’ah Coin;226
12.11.16.1.1;15.16.1.1 Shari’ah Coin;226
12.11.16.1.2;15.16.1.2 Emergence of Blockchain;226
12.11.16.1.3;15.16.1.3 Background of Shari’ah Coin;226
12.11.16.1.4;15.16.1.4 How Shari’ah Coin Could Help to Solve Certain Problems;227
12.11.16.1.5;15.16.1.5 The Meaning of Shari’ah Coin;227
12.11.16.2;15.16.2 Shari’ah Coin Branding and Definition;227
12.11.16.2.1;15.16.2.1 Shari’ah Coin Structural Analysis;228
12.11.16.3;15.16.3 Application of a Shari’ah Cryptocurrency;228
12.11.16.3.1;15.16.3.1 Financial Assets Exchange (Backing Asset);228
12.11.16.4;15.16.4 Pass-up Plan;229
12.11.16.4.1;15.16.4.1 Total Volume;229
12.11.16.4.2;15.16.4.2 Digital Asset Ratio;229
12.11.16.4.3;15.16.4.3 Shari’ah Cryptocurrency Appreciation Logic;229
12.11.16.5;15.16.5 Project Progress and Team;229
12.11.16.6;15.16.6 Operation;229
12.11.16.7;15.16.7 Market;229
12.11.16.8;15.16.8 Accounts;230
12.11.16.9;15.16.9 Significant Results;230
12.11.16.10;15.16.10 Humanitarian Concern Through Tabarru’at;230
12.11.17;15.17 Conclusion;231
12.11.18;References;231
12.12;Chapter 16: Foreign Investment Under Shari’ah;233
12.12.1;16.1 Introduction;233
12.12.2;16.2 Foreign Investment Policy Under Shari’ah;234
12.12.3;16.3 Experience of Foreign Investment in Malaysia;236
12.12.4;16.4 Foreign Direct Investment;239
12.12.5;16.5 The Experience of the Islamic Republic of Iran;239
12.12.5.1;16.5.1 General Overview;239
12.12.5.2;16.5.2 Procedure;240
12.12.5.2.1;16.5.2.1 Finding a Suitable Iranian Partner;240
12.12.5.2.2;16.5.2.2 Obtaining an Agreement in Principle;240
12.12.5.2.3;16.5.2.3 Application for Participation;240
12.12.5.2.4;16.5.2.4 Review of Application by Supervisory Board for Attraction and Protection of Foreign Investments (The Board);241
12.12.5.2.5;16.5.2.5 Issuance of Decree of Council of Ministers;241
12.12.5.2.6;16.5.2.6 Formation of the Joint Company;241
12.12.6;16.6 Financial Mechanisms and Instruments Facilitate Foreign Investment;241
12.12.6.1;16.6.1 Instruments;242
12.12.6.1.1;16.6.1.1 Mudarabah;242
12.12.6.1.2;16.6.1.2 Musharakah;242
12.12.6.1.3;16.6.1.3 Murabahah;243
12.12.6.1.4;16.6.1.4 Ijarah;243
12.12.6.1.5;16.6.1.5 Istisna’a;243
12.12.6.1.6;16.6.1.6 Al-Bay’mu’ajjal;243
12.12.6.1.7;16.6.1.7 Bay’ al-Salam;243
12.12.6.1.8;16.6.1.8 Qardh al-Hasan and Zakat;243
12.12.7;16.7 Conclusion;244
12.12.8;References;244
12.13;Chapter 17: Rate of Return in Islamic Investment;245
12.13.1;17.1 Introduction;245
12.13.2;17.2 Shari’ah Principles Governing Rate of Return;246
12.13.3;17.3 Socio-economic Benefits;250
12.13.4;17.4 Rate of Return: Profit Sharing Versus Interest;251
12.13.5;17.5 Conclusion;252
12.13.6;References;253
13;Index;254