The Garden of Knowledge

بسم الله الرحمن الرحيم

01 Muharram 1447/27 June 2025

All praise is due to Allah ﷻ , the Cherisher, Sustainer, Nourisher and Provider of the entire creation. May peace, blessings and salutations be upon our Beloved Prophet Muhammed ﷺ.

Wealth management is a combination of financial planning and investment strategy in order to sustain and grow wealth. (Canaccord Genuity Wealth Management, n.d.) Wealth management is an investment advisory service and strategy which covers all aspects of finance/wealth such as estate planning, investment advisory, taxation and accounting services etc.  (Investopedia, 2021)

Islamic Wealth Management is explained by a system of interrelationships between the tenets of justice, equitable distribution and fairness, and limits of ownership. (Nafis Alam et al., 2017) According to the principles and fundamentals of Islam, there is absolutely nothing wrong with a person accumulating wealth, however what is important is to ensure that wealth is attained and managed in a pure manner that does not violate the principles of Shariah. A very important point to note is that without wealth accumulation, the discharge of Zakah, which is one of the five pillars of Islam would not be possible to complete.

Maybank Islamic developed a new comprehensive Islamic Wealth Management solution which currently stands out in the industry. This is based on the premise of five stages/pillars, namely: Wealth creation, wealth accumulation, wealth preservation, wealth purification and lastly wealth distribution. (The Edge Markets, 2021)

1. Wealth creation: Wealth creation is more than possessing a wealth and is a form of increasing wealth. Apart from verifying that the income is permitted, some strategy in terms of increasing income through other permissible activities is required. Earning additional revenue should not, however, cause a person to neglect his or her responsibilities as a spouse or father, as well as other societal responsibilities. We are encourage by Allah ﷻ in the Quran to find and create wealth from a permissible means:

يَـٰٓأَيُّهَا ٱلرُّسُلُ كُلُوا۟ مِنَ ٱلطَّيِّبَـٰتِ وَٱعْمَلُوا۟ صَـٰلِحًا ۖ إِنِّى بِمَا تَعْمَلُونَ عَلِيمٌ

“O messengers! Eat (enjoy) from what is good and lawful, and act righteously. Indeed, I fully know what you do.” (Surah Mu’min, Verse 51)

There is a narration found in Sunnah Tirmidhi (2989) which encourages one to ensure every aspect of one’s life is within accordance with the Shariah as that has an impact on acceptance of one’s actions.

عَنْ أَبِي هُرَيْرَةَ، قَالَ قَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم ‏”‏ يَا أَيُّهَا النَّاسُ إِنَّ اللَّهَ طَيِّبٌ وَلاَ يَقْبَلُ إِلاَّ طَيِّبًا وَإِنَّ اللَّهَ أَمَرَ الْمُؤْمِنِينَ بِمَا أَمَرَ بِهِ الْمُرْسَلِينَ فَقَالَ ‏: ‏ ‏(‏يَا أَيُّهَا الرُّسُلُ كُلُوا مِنَ الطَّيِّبَاتِ وَاعْمَلُوا صَالِحًا إِنِّي بِمَا تَعْمَلُونَ عَلِيمٌ ‏)‏ وَقَالَ أَيُّهَا الَّذِينَ آمَنُوا كُلُوا مِنْ طَيِّبَاتِ مَا رَزَقْنَاكُمْ ‏)‏ ‏”‏ ‏.‏ قَالَ “وَذَكَرَ الرَّجُلَ يُطِيلُ السَّفَرَ أَشْعَثَ أَغْبَرَ يَمُدُّ يَدَهُ إِلَى السَّمَاءِ يَا رَبِّ يَا رَبِّ وَمَطْعَمُهُ حَرَامٌ وَمَشْرَبُهُ حَرَامٌ وَمَلْبَسُهُ حَرَامٌ وَغُذِيَ بِالْحَرَامِ فَأَنَّى يُسْتَجَابُ لِذَلِكَ “‏.‏ ‏

Narrated Abu Hurairah: that the Messenger of Allah ﷺ said: “O you people! Indeed Allah is Tayyib (good) and He ﷻ does not accept but what is good. And indeed Allah ﷻ ordered the believers with what He ordered the Messengers. Allah ﷻ said: ‘O you Messengers! Eat of the good things and do righteous deeds. Verily I am well acquainted with what you do (23: 51).’ And Allah ﷻ said: ‘O you who believe! Eat from the good things We have provided you (2: 172).’ He said: “And He ﷺ mentioned a man: ‘Who is undertaking a long journey, whose hair is dishevelled and he is covered with dust. He raises his hands to the heavens and says: “O Lord! O Lord!” Yet his food is from the unlawful, his drink is from the unlawful, his clothing is from the unlawful, and he was nourished by the unlawful. So how can that be accepted?’”

• Wealth accumulation: The method of accumulating wealth is done through investment. Muslims are required to make investments in Shariah-compliant products. The goal is to sustain acquired wealth while generating a reasonable rate of capital growth. Asset allocation, investment policy, and other issues are all factored. As mentioned earlier there absolutely nothing wrong with accumulating wealth as long as the whole process is in accordance with Shariah.

• Wealth preservation:  The goal is to invest in a decent financial solution that will assist people in attaining their financial goals. Through adequate asset management techniques, wealth must be protected against all foreseeable financial risks and perils. As a result, good liability management, business shareholding, succession planning, and debt management are all necessary. This can be accomplished by using Takaful and Sukuk to mitigate risk which involve mutual cooperation and assistance.

The Quran emphasizes on the cooperation of doing good in Surah Maidah, verse 2:

وَتَعَاوَنُوا۟ عَلَى ٱلْبِرِّ وَٱلتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا۟ عَلَى ٱلْإِثْمِ وَٱلْعُدْوَٰنِ ۚ وَٱتَّقُوا۟ ٱللَّهَ ۖ إِنَّ ٱللَّهَ شَدِيدُ ٱلْعِقَابِ

 “And Cooperate with one another in goodness and righteousness, and do not cooperate in sin and transgression. And be mindful of Allah. Surely Allah is severe in punishment.”

We are encouraged by Nabi Muhammed ﷺ in a hadith to assist in the alleviating the difficulty of ones fellow brothers or sisters.

قَالَ قَالَ رَسُولُ اللَّهِ صلى الله عليه وسلم ‏ “‏ مَنْ نَفَّسَ عَنْ مُؤْمِنٍ كُرْبَةً مِنْ كُرَبِ الدُّنْيَا نَفَّسَ اللَّهُ عَنْهُ كُرْبَةً مِنْ كُرَبِ يَوْمِ الْقِيَامَةِ وَمَنْ يَسَّرَ عَلَى مُعْسِرٍ يَسَّرَ اللَّهُ عَلَيْهِ فِي الدُّنْيَا وَالآخِرَةِ

Abu Hurairah reported Allah’s Messenger ﷺ as saying: “He who alleviates the suffering of a brother out of the sufferings of the world, Allah would alleviate his suffering from the sufferings of the Day of Resurrection, and he who finds relief for one who is hard-pressed, Allah would make things easy for him in the Hereafter.” (Muslim, 2699)

• Wealth purification: Wealth purification can take place in my different ways. The first is the zakah tax system which was established by the Shariah as a means of wealth purification. Every Muslim whose wealth exceeds a particular threshold must pay zakah at a fixed rate of 2.5 %. Zakah is also a way of bridging the gap between rich and poor people in society and ensuring that everyone’s needs are addressed. Other means of wealth purification involve investing in waqf funds, payment of sadqah (charity) which are all voluntary and encouraged. The command of wealth purification comes from the Quran, where Allah ﷻ mentions in Surah Tawba, verse 103:

خُذْ مِنْ أَمْوَٰلِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِم بِهَا وَصَلِّ عَلَيْهِمْ ۖ إِنَّ صَلَوٰتَكَ سَكَنٌ لَّهُمْ ۗ وَٱللَّهُ سَمِيعٌ عَلِيمٌ

Take from their wealth ˹O Prophet˺ charity to purify and bless them, and pray for them—surely your prayer is a source of comfort for them. And Allah is All-Hearing, All-Knowing.

• Wealth distribution: Wealth distribution can be thought of as a financial activity that determines how wealth is distributed among the economy’s members. When wealth is not allocated fairly, the community might become unstable. For example, in the case of inheritance, if it is not distributed properly, it would result in unfairness and cause family conflict. It is important to ensure that the distribution of wealth always takes place in a manner which is in accordance with Shariah and that we should always ensure selflessness and distribute our wealth in ways which would be beneficial to all of mankind.

To conclude, the principles of Islamic Wealth Management offer an integrated and values-based alternative to conventional financial planning. The provided analysis highlights several key takeaways:

• A Mandate, Not Just a Choice: The acquisition and management of wealth are encouraged in Islam, provided they adhere strictly to what is good and lawful (tayyib), as this forms the basis for the acceptance of one’s deeds.
• A Comprehensive Lifecycle: The five-pillar model (creation, accumulation, preservation, purification, distribution) provides a structured, end-to-end process that ensures every aspect of wealth is handled in accordance with Islamic law.
• A Dual Objective: The system is designed to achieve a balance between individual financial prosperity and a broader societal responsibility, evident in the emphasis on cooperation, charity (Zakah, Sadaqah), and fair distribution.
• The Ultimate Purpose: The overarching goal is to treat wealth not as an end in itself, but as a means to fulfill one’s duties to Allah ﷻ and His creation.
  Therefore, Islamic Wealth Management is not simply a set of financial rules but a complete system that integrates faith with finance, transforming the management of worldly assets into a path toward spiritual righteousness and communal prosperity.

 May Allah ‎ﷻ accept our efforts from us and grant us understanding In Sha Allah!