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Islamic Wealth Management

Theory and Practice Edited by Mohamed Ariff, Chair of Economics and Finance, Sunway University and Shamsher Mohamad, Professor of Finance, International Centre for Education in Islamic Finance, Malaysia
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.
Extent: c 424 pp
Hardback Price: $175.00 Web: $157.50
Publication Date: December 2017
ISBN: 978 1 78643 938 3
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  • Asian Studies
  • Asian Economics
  • Economics and Finance
  • Asian Economics
  • Financial Economics and Regulation
  • Islamic Economics and Finance
  • Money and Banking
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.
‘This book is a welcome contribution to Islamic finance literature. As the global Islamic market continues to grow, strengthening capacity-building has become crucial to consolidate a comprehensive ecosystem for shari‘ah-compliant operations. The volume successfully addresses this need by shedding light on the rationales and tools of Islamic wealth management, where not only are the creation, enhancement, protection and distribution of wealth functional to market efficiency, but primarily conceived in the light of ultimate objectives of fairness, equality and economic justice.’
– Valentino Cattelan, IE Business School, Madrid, Spain

‘It is a timely book on a much neglected area of the Islamic finance discipline. It contains 21 chapters ranging from wealth management, to governance, to Islamic social finance, strewn together under 5 sub-themes. The book chapters combine both concepts and operational aspects of Islamic wealth management. The authors have done an excellent job in exploring each idea and concept thoroughly, and I highly recommend this book for academicians, scholars, practitioners and policymakers.’
– M. Kabir Hassan, University of New Orleans, US
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



Contents:

Preface

Part I: Definition and Concepts
1. Wealth as Understood in Economics and Finance
Mohamed Ariff and Shamsher Mohamed

2. Wealth from the Shariah Perspective
Mohamed A. Gadhoum

3. Wealth Management, its Definition, Purpose, Structure and Practices
Mohamed Ariff

Part II: Governance of Institutions and Markets
4. Governance Framework in Islamic Financial Institutions
Zulkarnain M. Sori, Shamsher M. and M. Eskandar Shah

5. Shariah Boards: Practical Challenges for Islamic Financial Institutions
Shamsher M., Zulkarnain M. Sori and M. Eskandar Shah

6. Property Rights and Shariah Non-Compliance Risk
Saiful A. Rosly

Part III: Wealth Creating Institutions and Markets
7. Sovereign Wealth Funds and Reserves as Wealth Owned by the State
John Farrar and Mohamed Ariff

8. Sovereign Wealth Funds in OIC Group
Habib Farukh and Abbas Mirakhor

9. Application of Conventional Benchmark in Islamic Wealth Management
Mohamed A. Gadhoum and Shamsher M.

10. Benchmarks for Islamic Asset Pricing
Abbas Mirakhor

11. Sukuk as the Islamic Debt Market Securities within Islamic Finance
Mohamed Ariff

12. Sukuk Market in Malaysia: Issues and Challenges
Gulsum C. Dolgun and Muhammed H. Dolgun

13. Wealth Effect of Sukuk Issuance Announcement in Two Markets
Ziyaad Mohomed, Mohamed Ariff and Shamsher Mohamad

Part IV: Preserving and Protecting Wealth
14. Takaful Industry Risk Transfer: Opportunities and Challenges
Syed O. Alhabshi

15. Purification in Islamic Wealth Management
Ahcene Lahsasna

Part V: Wealth Distribution
16. Faraid as Islamic Inheritance Laws for Investment: Socio-Economic Impact on Investments
Adelina Zulaikha and Shamsher M.

17. Waqf in Shariah: Basic Rules and Applications
Mazen El Khatib

18. Framework for International Waqf Foundation
Jamaliah M. Thahir

19. Potential of Wealth Creation from Waqf Assets
Magda I.A. Mohsin and Shaikh H.A. Razak

20. Zakat in Islamic Wealth Management
Ziyaad Mahomed

21. Issues in Managing Waqf and Zakat Assets
Mohamed Ariff and Shamsher Mohamad

Index