Skip to main content

Takaful Investment Portfolios: A Study of the Composition of Takaful Funds in the GCC and Malaysia

Takaful Investment Portfolios: A Study of the Composition of Takaful Funds in the GCC and Malaysia

Abdulrahman Khalil Tolefat, Mehmet Asutay

ISBN: 978-1-118-38547-0

Jun 2013

256 pages

Out of stock



A groundbreaking study of the investment portfolios of takaful companies, their general investment patterns, and their future investments

The Islamic finance industry has witnessed remarkable growth over the last decade, and one of the most successful segments—poised for even greater expansion—is the Islamic insurance (takaful) industry. In Takaful Investment Portfolios, distinguished takaful scholar Abdulrahman Khalil Tolefat explores the investment portfolios of takaful companies in both the GCC countries and Malaysia, the tip of Islamic finance industry. Investigating the trends and patterns of investment of takaful companies, the book looks at shareholders as well as general and family funds to determine where these companies are investing today, and where they are likely to invest in the future.

Presenting new and novel research on the investment patterns of takaful companies, Takaful Investment Portfolios covers the history of the industry and takaful models and how they work, and presents in-depth studies of both their real-world and desired portfolio investments.

  • Presents unique new research into the investment portfolios of takaful companies in the GCC and Malaysia
  • Examines the gap between desired and actual investment portfolios of takaful companies
  • Explores expected areas for future investment

Groundbreaking in its depth, Takaful Investment Portfolios is an unprecedented study of the investments of takaful companies.

Preface ix

Acknowledgments xiii

List of Abbreviations xv

CHAPTER 1 Introduction 1

Rationale for Researching Investment Portfolio Composition of Takaful Companies 1

Aims and Objectives 4

Scope and Delimitation 5

Research Methodology 6

Overview of the Book 6

CHAPTER 2 Insurance and Islamic Law: An Introduction to Takaful 9

The Concept of Insurance in Islamic Sources 9

Views of Contemporary Jurists on the Insurance Contract 13

Arguments Regarding the Validity or Invalidity of

Commercial Insurance 15

Conclusion 27

Notes 28

CHAPTER 3 Takaful Models and Implementations, Trends, and Developments 31

Takaful Undertaking Principles 31

Islamic Insurance Operational Models 32

Differences Between Takaful and Other Forms of Insurance 44

Trends and Developments in the Takaful Industry 45

Conclusion 52

Notes 53

CHAPTER 4 Research Methodology 55

Methodological Shortcomings of the Literature 56

Research Strategy 56

Research Questions, Objectives, and Hypotheses 57

Research Design 58

Sampling Strategy 59

Research Methods 61

Quantitative Data Analysis 68

Qualitative Data Analysis 70

Conclusion 70

Notes 71

CHAPTER 5 Exploring Investment Behaviours and Investment Portfolios of Takaful Operating Companies in the GCC and Malaysia 73

Total Investment Portfolio of Takaful Operating Companies for All Funds 74

Investments in Shareholders’ Fund 75

General Fund 86

Family Funds 94

Conclusion 97

CHAPTER 6 Locating the Differences Between Actual and Desired Investment Portfolios 99

Shareholders’ Fund 101

General Fund 106

Family Funds 111

Conclusion 114

CHAPTER 7 Contextualising the Findings 117

Overall Portfolio Compositions 117

Investment Accounts 125

Investment in Sukuks 129

Investment in Equities 134

Return on Investment (ROI) 138

Mutual Funds/Unit Trusts 140

Real Estate Investments 141

Conclusion 142

Notes 143

CHAPTER 8 Conclusion and Recommendations 145

Main Findings of the Study 145

Recommendations of the Study 149

Research Limitations 153

Recommendations for Future Research 153

Conclusion 154

Note 155

Appendix A 157

Appendix B 163

Appendix C 215

Bibliography 217

About the Authors 223

Index 225