Wealth Management and Investment in Islamic Settings: Opportunities and Challenges

Foreword
Preface
Contents
Editors and Contributors
List of Figures
List of Tables
1 Wealth Management and Investment: An Islamic Epistemology
	1.1 Epistemology of Wealth and Wealth Management in the Islamic Framework
	1.2 Islamic Concept of Wealth
		1.2.1 The Concept of Profit in Islam
	1.3 Types of Wealth
		1.3.1 Corrupt Wealth (Impure Wealth)
		1.3.2 Clean Wealth (Purified Wealth)
		1.3.3 General Purpose Wealth
		1.3.4 Special Purpose Wealth
		1.3.5 Mental Account and Wealth
	1.4 Islamic Wealth Management
		1.4.1 Islamic Wealth Management Industry
		1.4.2 Role of Wealth Manager
		1.4.3 Wealth and Philanthropy, Free or Regulated Market
		1.4.4 Financial Therapy
	1.5 Role of State
	1.6 Gift Economy and Gift Exchange in the Islamic Framework
	1.7 Conclusion
	References
Part I Principles of Islamic Wealth Management
2 Decoding Islamic Wealth Management from Qur’anic Texts
	2.1 The Qur’an as the Primer Source of Islamic Economic Thought
		2.1.1 Previous Works of Literature
	2.2 Methodology of the Study
	2.3 Result and Discussion
		2.3.1 Wealth Management in the Qur’an
	2.4 Proposed Concept of Islamic Wealth Management
	2.5 Conclusion
	References
3 Islam, Spirituality and Wealth: Islamic Framework of Wealth Management
	3.1 Wealth Within Islamic Purview
	3.2 Wealth and Spirituality: A Shari’ah Perspective
	3.3 An Islamic Framework of Wealth Management
	3.4 Conclusion and Recommendations
	References
4 Islamic Investment-Cum-Wealth Management: Politics, Warfare and Welfare
	4.1 Islamic Institutional Framework and Islamic Principles of Wealth Management-Cum-Investment
	4.2 Islamic Investment and Wealth Management Amidst the Islamic Sustainable Development
		4.2.1 The Islamic Transmission Mechanism for Realizing Sustainable Development
	4.3 Universal Islamic Divine Civilized Politics of Wealth-Welfare Nexus Versus the Secular Mundane Amoral Barbaric Nationalistic Politics of Wealth-Warfare Nexus
	4.4 Epilogue and Policy Implications-Cum-Recommendations
	References
5 Wealth Creation and Management in Islam
	5.1 Concept of Wealth in Islam
	5.2 Islamic Wealth Management (IWM)
	5.3 The Wealth Cycle
		5.3.1 Wealth Creation
		5.3.2 Islamic Rules with Regards to Wealth Creation
		5.3.3 Wealth Enhancement
		5.3.4 Wealth Protection
		5.3.5 Wealth Distribution
		5.3.6 Wealth Distribution - Charity
		5.3.7 A Comparative View of Poverty Alleviation Instruments in Islam
		5.3.8 Wealth Distribution—Estate Management
	5.4 The Future of Wealth Creation and Management in Islam
	5.5 Conclusion
	References
6 Investment and Wealth Management in Contemporary Times: Zakat as a Viable Approach
	6.1 An Overview of Investment and Wealth Management
	6.2 Islam, Investment, and Wealth Management
		6.2.1 What is Zakat?
	6.3 Zakat as Investment and Wealth Management Tool
	6.4 Conclusion
	References
7 The Urgency of Debt Management in the Perspective of Islamic Wealth Management
	7.1 Debt, Need or Lifestyle
	7.2 Debt in Wealth Management
	7.3 Debt on Islamic Perspective
	7.4 Conditions Permitted to Have Debts
	7.5 Islam Solution Toward Debt Trap
	7.6 Conclusions
	References
Part II Applications of Islamic Wealth Management
8 Project Financing Models for Small Medium Property Enterprises in the Framework of Maqasid Al-Shari’ah
	8.1 Project Financing
		8.1.1 Fundamental Elements in Project Financing
		8.1.2 Project Finance within the Maqasid Al-Shari’ah Framework
	8.2 Method
	8.3 Result and Discussion
	8.4 Conclusion
	References
9 The Effects of Fixed Return Instruments on Investment Decisions in Islamic Economics: Using Stochastic Mathematical Model
	9.1 Stochastic Modeling of Investment Decisions
	9.2 Investment Decisions in Islamic Economics
		9.2.1 Modeling Sukuk as a Fixed Return Bond
		9.2.2 Portfolio Choice with no Fixed Return Instrument
		9.2.3 Investment Decisions Considering Sukuk Characteristics
	9.3 Comparing Optimal Path of Different Models
		9.3.1 Optimal Path of Wealth
		9.3.2 Optimal Path of Consumption
		9.3.3 Optimal Path of Utility
		9.3.4 Optimal Path of Welfare
	9.4 Conclusion
	Appendix 9.1 Finding the Form of Value Function
	References
10 Family Financial Management in Realizing Sakinah Family
	10.1 Background of the Problem
	10.2 Literatures on Eight Principles
	10.3 Discussion on Model of Family Finance
	10.4 Managing Income
	10.5 Managing Needs
	10.6 Managing Dreams
	10.7 Monitoring
	10.8 Conclusion and Recommendation for Future Research
	References
Part III Country Experiences
11 Measuring the Impact of Open Innovation on Firm Performance in Indonesia Halal Industry
	11.1 Innovation and Performance
		11.1.1 Open Innovation
		11.1.2 Firm Performance
	11.2 Method
		11.2.1 Data and Sample
		11.2.2 Data Measurement
	11.3 Result and Discussion
	11.4 Conclusion
	References
12 How Does Accounting Play a Role in Islamic Microfinance and Islamic Wealth Management Practices? Case Studies in Indonesia, Pakistan and Egypt
	12.1 Islamic Accounting, Microfinance and Islamic Wealth Management
	12.2 Participatory Action Research (PAR) Approach
		12.2.1 Research Instruments
	12.3 PAR Findings
		12.3.1 Program Realization
		12.3.2 Akhuwat, Pakistan (25–30 November 2018 and 11–15 March 2019)
		12.3.3 Rizqi Chapter Jameel, Egypt (3–8 February 2019 and 11–15 March 2019)
	12.4 Comparison_Analysis
		12.4.1 Indonesian and Pakistani Respondents
		12.4.2 Age Range
		12.4.3 Level of Education
		12.4.4 Profession
		12.4.5 Conclusions and Recommendations for Further Research
	References
13 Social Impact Sukūk: Implications from the Notion of Maslaha
	13.1 The Principle of Maslaha in Islamic Finance
	13.2 The Current Status of Sukūk Instruments and the Market
	13.3 Sukūk Structure—From Generic to SRI
	13.4 Discussion and Conclusions
	References
14 Religion, Islamic Values and Debt Management, the Malaysian Experience
	14.1 Islam and Debt Management Behaviour
	14.2 Religiosity Measurement
	14.3 Measurements for Debt Management Awareness and Behaviour
	14.4 Findings
	14.5 Conclusion
	References
15 Prospects and Challenges for Islamic Investment and Wealth Management in Mauritius
	15.1 Mauritius as an International Financial Centre
	15.2 Historical Development of Islamic Finance in Mauritius
	15.3 Prospects for Developing Mauritius as an IIWM Destination
		15.3.1 Islamic Product Development
	15.4 Challenges and Opportunities in Positioning Mauritius as an IIWM Destination
		15.4.1 Demand Side
		15.4.2 Supply Side
	15.5 Conclusion and Way Forward in Brightening the Future of Mauritius as an IIWM Centre
	References
16 Sustainability, Sharī‘ah Governance and Financial Performance: Evidence from Companies Listed on the Jakarta Islamic Index
	16.1 Sustainability and Corporate Financial Performance
	16.2 Sharī‘ah Compliance and Corporate Financial Performance
	16.3 Conceptual Framework
		16.3.1 Methodology
	16.4 Results and Discussions
	16.5 Conclusion
	Appendix
	References
17 When It Comes to Risk, is Sukuk Better Than Conventional Bonds? A Comparative Study of NASDAQ Securities
	17.1 Data and Method
		17.1.1 Data Analysis
		17.1.2 Value at Risk Method
	17.2 Analysis
		17.2.1 Descriptive Statistics of Sukuk and Conventional Bonds
		17.2.2 Historical Simulation Results
		17.2.3 Monte Carlo Simulation Method
		17.2.4 Comparing VaR Results of Historical and Monte Carlo Simulation
	17.3 Conclusion
	Appendices
	Appendix 1
	Appendix 2
	Appendix 3
	Appendix 4
	References
18 COVID-19 Pandemic and ‘KITA JAGA KITA’: Appraisal of Social Responsible Practices of Islamic Banking Institutions in Malaysia
	18.1 Malaysian Government and Bank Negara COVID-19 Economic Stimulus, Relief and Financing Packages
	18.2 Social Responsible Practices of Malaysian Islamic Banking Institutions
	18.3 Conclusion
	References
Part IV Waqf: An Ethical Investment
19 Waqf as a Financing Tool and Its Role in Achieving SDGs and Foreseeing the Future
	19.1 Concept of Sustainability in Islamic Economic Thoughts
		19.1.1 Sustainability Development Goals
	19.2 The Capacity of Waqf to Accommodate Advance Levels of SDGs
		19.2.1 Waqf Aims at Ending Poverty in All Its Forms Everywhere
		19.2.2 Waqf Aims at Ending Hunger, Achieving Good Security and Improved Nutrition and Promote Sustainable Agriculture
		19.2.3 Waqf Ensures Healthy Lives and Promotes Well-Being for All Parts of Society
		19.2.4 Waqf in the Islamic Civilization Have Provided Free and Quality Education for All Parts of Society
		19.2.5 The Role of Waqf in Caring for Woman and Its Role in Woman Empowerment
		19.2.6 The Role of Waqf in Ensuring Availability and Sustainable Management of Water for Irrigation and Sanitation for All
		19.2.7 Ensuring Access to Affordable, Reliable, Sustainable, and Modern Energy for All
		19.2.8 Developing Social Capital and Building Resilient Infrastructure
		19.2.9 Contribution of Waqf to Achieving Sustainable Industrialization
		19.2.10 Waqf Promotes Peace and Security Mentally, Socially, and Economically
		19.2.11 Waqf Helps in Protecting Freedom, Justice, and Human Dignity
		19.2.12 The Environmental Role of Waqf
		19.2.13 Conserving and Protecting the Environment, Oceans, Biodiversity, and the Ecosystem
		19.2.14 Sustainable Consumption, Production Patters, and Sustainability Cities and Human Settlements
	19.3 Recommendations for Operationalizing Waqf to Achieve SDGs
	19.4 Conclusion
	Bibliography
20 Blended Finance and the Role of Waqf Bank: Shaping the SDGs in Indonesia
	20.1 Blended Finance and Its Principles
	20.2 Waqf Bank: How It Works?
	20.3 Modelling Waqf Bank Based Blended Finance for SDGs in Indonesia
	20.4 Conclusion
	References
21 Waqf Contributions for Sustainable Development Goals: A Critical Appraisal
	21.1 Islamic Social Finance
		21.1.1 Overview of Waqf and Cash Waqf
		21.1.2 Waqf Sukuk: The Practical Implementation of Cash Waqf
		21.1.3 Waqf Contributions to Achieving SDGs: Selected Cases
			21.1.3.1 Case One: Waqf Contributions to SDGs in the Republic of Turkey
			21.1.3.2 Case Two: Islamic Development Bank (IsDB)
	21.2 Challenges Encountering Full Employment of Waqf in SDGs
	21.3 Conclusion and Recommendations
	Appendix A
	Appendix B
	References
Part V Special Issue
22 A Path Towards Success for Muslim Households: Wealth Management and Shari'ah Rulings
	22.1 Shari'ah Maxims and Their Application in Finance
	22.2 Debt and Muslim Households
	22.3 Path of Success and Household’s Behavior
	22.4 Household Assets and Islamic Financial Institutions (IFI)
	22.5 Conclusion
	References