Glossary to the Quotations
Introduction
What is proven at one time shall perpetuate, unless there is a contrary clue.
(Islamic legal maxim)
Chapter 1: The Growth of Shariah Investments
Permissibility is the original state.
(Islamic legal maxim)
This legal maxim indicates that everything is permissible unless it is proven otherwise by Shariah; hence, it is permissible to grow business and expand Islamic asset management provided that the motivating factors for the growth are Shariah compliant and driven by values and principles of Shariah.
Chapter 2: Fund Management within Shariah-Compliant Investment Guidelines
In contracts, intentions and meanings, not words and structures, shall be taken into consideration.
(Islamic legal maxim)
This legal maxim states the importance of substance in business and finance; hence, it encourages the Islamic fund manager to manage funds as long as they are aligned with Shariah principles. When the fund is Shariah compliant, there is not much consideration given to the form and structure. The said Shariah-compliant contract will have embedded benefits in its features and will also realize Maqasid al Shariah (Objective of Shariah) by securing returns with less risk through transparency and stability in business.
Chapter 3: Uncovering the Driving Principles of Islamic Finance
O ye who believe! Squander not your wealth among yourselves in vanity, except it be a trade by mutual consent.
(An Nisa: 29)
And O my people, give full measure and weight in justice and do not deprive the people of their due and do not commit abuse on the earth, spreading corruption.
(Hud: 85)
The verses appreciate that people regardless of their beliefs can carry out business and trade through reasonable, acceptable means. They reflect ways that realize equity and justice combined with the wellbeing of everyone on earth, meanwhile removing the elements that are not allowed by Shariah, such as interest, gambling, high speculations, excessive risk taking, deception, misrepresentation, and uncertainty. These prohibited elements cause financial damage, injustice, and unfairness in the marketplace and society at large.
Chapter 4: Investing Responsibly
Work not confusion in the earth after the fair ordering (thereof).
(Al Araf: 7)
When the preclusive and the necessitated conflict, preference shall be given to the preclusive.
(Islamic legal maxim)
These verses, along with the legal maxim, explain that the investment should be streamlined in a way that realizes the wellbeing of the human being through an ethical process of wealth accumulation and responsible investment. This is done by agreed-upon screening criteria, which realize the interest of the general public.
Chapter 5: Broad Choices of Islamic Investment Funds
O mankind! Eat of that which is lawful and wholesome in the earth.
(Al Baqara: 168)
Permissibility is the original state
(Islamic legal maxim)
The verses and the legal maxim indicate that everything in business is allowed and permissible, provided that wealth is acquired in an ethical way and responsible manner that have a positive impact on the wellbeing of people. This can represent a broad range of Islamic investment products available to investors such as equity, Sukuk, private equity/venture capital, real estate and ETF, etc.
Chapter 6: Mitigating the Myths
And We have not sent thee save as a bringer of good tidings and a warner unto all mankind.
(Saba: 28)
The verse calls everyone to be a part of a Shariah investment portfolio, because Shariah is meant for everyone on this earth—it is not restricted to Muslims. This shows the globalization of the Islamic investment portfolio.
Chapter 7: Comparative Analysis with Conventional Investing
Disposition of people is contingent upon interest
(Islamic Legal Maxim)
This legal maxim shows that Shariah compliance is always associated with benefit and good. And where there is Shariah-compliant business, wellbeing, good returns, and prosperity prevail. Hence, the benefit generated from Shariah-compliant business is greater than from conventional business.
Chapter 8: Using Performance Characteristics to Build Wealth
Learn a lesson, O ye who have eyes!
(Al Hashr: 2)
The verse is a command to use the eyes (the intellect) to consider things and compare them. In the present context it means moving one’s thoughts between things in an effort to compare them. Therefore it is wise to look at the financial crisis and benefit from it by taking lessons for future business direction and decision.
Chapter 9: The Sukuk Portfolio
O ye who believe! Fulfill your undertakings
(Al Maeda: 1)
The verse calls to use various contracts in the financial transaction; every contract in Shariah is permissible unless it is proven otherwise, through explicit or implicit provision. The wider structure of the provision captures the full range of permissible instruments and products used in the investment.
Chapter 10: Shariah-Compliant UCITS Funds
He it is Who hath made the earth subservient unto you, so Walk in the paths thereof and eat of His providence.
(Al Mulk: 15)
The verse calls for open-ended business structures in business and trade across jurisdictions, where there is no limitation to boundaries. Carrying our business and acquiring property can be done by everyone, from everywhere, with anyone. There is no restriction on race, religion, location, and time as long as the financial transactions are Shariah compliant.
Chapter 11: Legal, Regulatory, Risk, and Operational Framework
Conformity to a condition shall be binding as far as possible.
(Islamic Legal Maxim)
People’s usage shall be an operative proof
(Islamic Legal Maxim)
The above legal maxims state the importance of legislation and the legal aspects of doing anything, including business and trade along with their financial transactions. They show the appreciation of the various regulatory and governing bodies for the Islamic financial system, as long as there is realization of the objectives of Shariah.