Under wakalah bil-istithmar (investment agency), it is an investment subject to restriction as to its transferability and the involvement of an agent (wakeel/ wakil) in managing it (asset management function). The principal (muwakkel/ investor) has a direct exposure to the underlying assets (financed on the basis of this wakalah). Initially, the investor recognizes the assets in its financial statements (i.e., on balance sheet).

The pass-through nature of this type of wakalah (wakalah muqayyadah/ restricted agency) comes from the direct involvement of the principal in the activity. As a result, control remains in the hands of the principal, who only passes the investment through to the agent subject to a defined set of restrictions. The agent only has a profits interest as a compensation incentive.