Islamic Finance

Financial Freedom – What Does It Mean?

Financial freedom is a concept not only centred on technical aspects or calculation part of money and financial management, but it goes beyond, as it encompasses our personalities, behaviour and ethical values. A truly financial freedom is achieved when one has the ability to resist and control certain things in dealing with the sources and uses of one’s money, hence partaking the righteous decisions in whatever situation, either in prosperity… Read More »Financial Freedom – What Does It Mean?

Simpanan Shariah by EPF

[The original posting can be found at: http://alnaqiy.com/article/simpanan-shariah-by-epf/]

The Employees Provident Fund’s (EPF) new Shariah-compliant savings scheme will be open for registration on August 8, 2016.

The EPF’s chief executive officer Datuk Shahril Ridza said the retirement fund has allocated an initial RM100bil, which is about 15% of it’s total investment assets of RM681.7bil as at March 2016.

This announcement would be interesting to keep an eye on as it is probable will give impact to the movement of Islamic finance industry, particularly in Malaysia. From consumer’s point of view, should they switch to the Shariah savings scheme or not, since the savings are for their retirement in their senior years. How about the financial planners and industry experts? What do they say on this matter?

Simpanan Shariah – To Switch or Not To Switch, What the Financial Planners and Industry Experts Say? [1]

Read More »Simpanan Shariah by EPF

Zakah: Islam’s Response to Poverty

[The original posting can be found at: http://alnaqiy.com/article/zakah-islams-response-to-poverty/]

In Islam, zakah is third to the declaration of faith in Allah and His Messenger and the five daily prayers. Islam introduces zakah as a response to social concerns towards the poor and the determination to address poverty.

One of the objectives of zakah distribution is to provide an adequate and suitable standard of living and to help Muslims remain above the level of poverty. It is meant to assist asnaf (recipients) to achieve a better quality of life and in turn become a contributor for the well being of others.

When someone gives zakah, he or she has to ensure that the recipients are one of those who are eligible to receive zakah. There are eight recipients of zakah. Allah defines in Surah al- Tawbah:Read More »Zakah: Islam’s Response to Poverty

Investment in Shari’ah-Compliant Securities

[The original posting can be found at: http://alnaqiy.com/home/article/investment-shariah-compliant/]

Question:

I think it is unfair if the stock of a company is classified as non-Shari’ah compliant just because the company takes loan from conventional bank. For me, as long as the activities of the company is halal, it’s should be Shari’ah compliant too. And why the salary of people who works at bank are classified as halal while he works at bank? For me, both cases are same.

Answer:

Muslims are strongly encouraged to only invest in Shari’ah-compliant securities which adhere to the fundamentals of Islamic law. If money is invested and spent in the right way, it can bring benefits not only to individual but also to the society as a whole.Read More »Investment in Shari’ah-Compliant Securities

Does Islam allow passive savings like what it is practiced in the financial world?

[The original posting can be found at http://alnaqiy.com/home/article/islam-allows-passive-savings/]

By nature, people work to earn money and accumulate wealth. Some people earn the money and invest it to generate more income; and some earn the money and keep it for the future. Allah has mentioned in the Qur’an that wealth is an embellishment of the worldly life. Allah says:

“Wealth and children are [but] adornment of the worldly life. But the enduring good deeds are better to your Lord for reward and better for [one’s] hope.” [Al-Kahf 18:46]

Nowadays, what is being practiced in Islamic banking is that depositors will put their money in banks either for safekeeping purpose or for investment.Read More »Does Islam allow passive savings like what it is practiced in the financial world?