El Wakala’s Investment Incentive in Islamic Banks

Abstract

In light of the huge growth witnessed by Islamic banks and their foundations - relying on the Islamic financial industry, these banks are trying to find the most effective Shariah compliant products, one of the most important jurisprudence contracts developed by financial engineering is the agency contract, which in its application has gone beyond being as a service for sale and purchase to be developed as an investment format. Today Investment agencies have a major priority in contemporary banking, In order to make this formula more attractive to customers, it was accompanied by significant incentives and rewards that had a major role in improving the banking and investment performance of Islamic banks.

This study seeks to clarify the theoretical and Sharia background of the investment agency’s incentive, through presenting and discussing the various jurisprudence adaptations that contemporary jurists have given, in addition to the extent of their suitability with the practical application of this incentive in Islamic banks, in order to implement the most important Sharia precepts.