Takaful investment portfolios : a study of the composition of takaful funds in the GCC and Malaysia

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.

Author Notes

Dr. AbdulRahman Khalil Tolefat began his career at the Central Bank of Bahrain. He later served as both chief executive officer and chairman of Allianz Takaful in Bahrain, the global hub for Islamic insurance (takaful) of Allianz Group. After leaving Allianz, he founded ITQAN Financial Services for which he now serves as Chairman and Managing Director. In addition, Dr. Abdul Rahman was a member of the CBB Committee that developed the insurance rulebooks in coordination with PricewaterhouseCoopers and a member of the working group between the International Association for Insurance Supervisors (IAIS) and the Islamic Financial Services Board (IFSB).

Dr. Mehmet Asutay is a Reader in Middle Eastern and Islamic Political Economy and Finance at the School of Government and International Affairs, Durham University; Director of the Durham Centre for Islamic Economics and Finance; Course Director of the MA/MSc in Islamic Finance; and the Director of the Durham Islamic Finance Summer School. Also, he serves as Managing Editor of Review of Islamic Economics and Associate Editor of the American Journal of Islamic Social Sciences, and is on the Editorial Advisory Board of International Journal of Islamic and Middle Eastern Finance and Management.

Preface	p. ix
Acknowledgments	p. xiii
List of Abbreviations	p. xv
Chapter 1 Introduction	p. 1
Rationale for Researching Investment Portfolio Composition of Takaful Companies	p. 1
Aims and Objectives	p. 4
Scope and Delimitation	p. 5
Research Methodology	p. 6
Overview of the Book	p. 6
Chapter 2 Insurance and Islamic Law: An Introduction to Takaful	p. 9
The Concept of Insurance in Islamic Sources	p. 9
Views of Contemporary Jurists on the Insurance Contract	p. 13
Arguments Regarding the Validity or Invalidity of Commercial Insurance	p. 15
Conclusion	p. 27
Notes	p. 28
Chapter 3 Takaful Models and Implementations, Trends, and Developments	p. 31
Takaful Undertaking Principles	p. 31
Islamic Insurance Operational Models	p. 32
Differences Between Takaful and Other Forms of Insurance	p. 44
Trends and Developments in the Takaful Industry	p. 45
Conclusion	p. 52
Notes	p. 53
Chapter 4 Research Methodology	p. 55
Methodological Shortcomings of the Literature	p. 56
Research Strategy	p. 56
Research Questions, Objectives, and Hypotheses	p. 57
Research Design	p. 58
Sampling Strategy	p. 59
Research Methods	p. 61
Quantitative Data Analysis	p. 68
Qualitative Data Analysis	p. 70
Conclusion	p. 70
Notes	p. 71
Chapter 5 Exploring Investment Behaviours and Investment Portfolios of Takalul Operating Companies in the GCC and Malaysia	p. 73
Total Investment Portfolio of Takaful Operating Companies for All Funds	p. 74
Investments in Shareholders' Fund	p. 75
General Fund	p. 86
Family Funds	p. 94
Conclusion	p. 97
Chapter 6 Locating the Differences Between Actual and Desired Investment Portfolios	p. 99
Shareholders' Fund	p. 101
General Fund	p. 106
Family Funds	p. 111
Conclusion	p. 114
Chapter 7 Contextualising the Findings	p. 117
Overall Portfolio Compositions	p. 117
Investment Accounts	p. 125
Investment in Sukuks	p. 129
Investment in Equities	p. 134
Return on Investment (ROI)	p. 138
Mutual Funds/Unit Trusts	p. 140
Real Estate Investments	p. 141
Conclusion	p. 142
Notes	p. 143
Chapter 8 Conclusion and Recommendations	p. 145
Main Findings of the Study	p. 145
Recommendations of the Study	p. 149
Research Limitations	p. 153
Recommendations for Future Research	p. 153
Conclusion	p. 154
Note	p. 155
Appendix A p. 157
Appendix B p. 163
Appendix C p. 215
Bibliography	p. 217
About the Authors	p. 223
Index	p. 225

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