An investment contract that is based on investment agency (wakalatul istithmar/ wakalah bil istithmar) where the investment account holder appoint the Islamic financial institution (e.g., Islamic banks) as agent (wakil) for investing their funds for a specified fee in addition to a share of profit if returns exceed a minimum level, the latter being an incentive for the agent to achieve a return higher than expected or normal market benchmarks.
December 14, 2024
