Wakalah bil-Istithmar
وكالة بالاستثمار
Pronunciation: wah-KAH-lah bil-is-tith-MAHR
Investment agency: the customer appoints the institution to invest funds for a fee, keeping the profit and the risk.
Definition
An agency contract for investment. The principal (depositor or investor) appoints the institution as agent to invest funds in Shariah-compliant assets for a fixed or percentage fee; profit above the fee belongs to the principal, who also bears any loss not caused by the agent's negligence.
The agent may receive a performance incentive if returns exceed an agreed expected rate. Wakalah bil-Istithmar is widely used for Islamic deposits, Sukuk, and takaful fund management as an alternative to Mudarabah, because it lets the institution earn a fee rather than a profit share and gives the customer a clearer claim on the underlying assets.
Related Terms
Wakalahوكالة
An agency contract where one party appoints another to act on their behalf for a fee.
Mudarabahمضاربة
A profit-sharing partnership where one party provides capital and the other provides expertise.
Profit-Sharing Investment Accountحساب استثمار بالمشاركة في الأرباح
A deposit account that earns a share of the bank's profits instead of interest, with the depositor bearing investment risk.
Takafulتكافل
Islamic cooperative insurance based on mutual assistance and shared risk among participants.
Sukukصكوك
Islamic investment certificates - structured as ownership shares in assets rather than debt obligations.
ESG Sukuk
Sukuk whose proceeds are earmarked for environmental, social, or sustainability-linked projects.
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Wakalah bil-Istithmar (وكالة بالاستثمار) - Investment agency: the customer appoints the institution to invest funds for a fee, keeping the profit and the risk. An agency contract for investment. The principal (depositor or investor) appoints the institution as agent to invest funds in Shariah-compliant assets for a fixed or percentage fee; profit above the fee belongs to the principal, who also bears any loss not caused by the agent's negligence.
- Investment agency: the customer appoints the institution to invest funds for a fee, keeping the profit and the risk.
- Category: Investment
- Related: Wakalah, Mudarabah, Profit-Sharing Investment Account, Takaful, Sukuk, ESG Sukuk
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
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This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
Editorial Team, HalalWallet
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