Under wakalah bil-istithmar (investment agency), it is an investment in transferable investments or single-asset or pooled-assets investments where such investments, and their underlying assets, undergo frequent changes over the span of wakalah. Such changes involves price/ market value fluctuations or replacements at the discretion of the agent (wakeel/ wakil). The agent’s acts are not limited or restricted by the principal (muwakkel), i.e., the agent is duly authorized to embark on asset management functions, and hence can undertake replacement of assets and similar disposals.

Recognition of wakalah venture assets is effected at cost. Subsequently, carrying amounts are adjusted to reflect gains/ losses over the course of the contract, net of any remuneration or incentives paid to the agent, as well as any impairments or value losses.