BY HARUNA BABATUNDE JAIYEOBA

AND

BY NOR ASILA BINTI NAZMI

International Institute for Halal

Research and Training( INHART)

International Islamic University

Malaysia( IIUM)

Given its importance in fulfilling long-term obligations, wealth preservation is now seen as a fundamental concern for professionals across all sectors, particularly for those committed to operating within the framework of Islamic values.

For these individuals, preserving wealth goes hand in hand with ensuring that financial practices align with both ethical principles and spiritual commitments.

HALAL PROFESSIONALS

The pursuit of financial protection and ethical investment by halal professionals( individuals engaged in industries and careers that comply with Islamic law) transcends mere prudence and becomes a religious obligation.

As ethical stewards, halal professionals require wealth preservation solutions that not only protect their assets but also align with the values of fairness, mutual aid, and compliance with divine guidance.

Interestingly, takaful, an Islamic insurance model built on mutual cooperation( ta’ awun) and shared responsibility( takaful), presents a compelling avenue to safeguard wealth without compromising religious principles( Naz et al., 2025).

In Islam, wealth preservation is a deeply rooted concept, grounded in the principles of responsible stewardship( amanah), financial prudence, and intergenerational sustainability.

Since the ultimate ownership of wealth belongs to Allah SWT, individuals entrusted with wealth are requested to observe careful management, prudent investment, and ethical handling( Zailani et al., 2023). The importance of safeguarding one’ s wealth is clearly highlighted in the Quran when Allah SWT says,

“ And do not give the weak-minded

your property, which Allah has made a means of sustenance for you, but provide for them with it and clothe them and speak to them words of appropriate kindness”( Quran, An-Nisa, 4:5)

This verse explicitly emphasises the responsibility of believers to manage their wealth prudently for themselves and others. Similarly, Prophet Muhammad( pbuh) also underscored the importance of risk management based on the following hadith:

It was narrated from Nu‘ man ibn Bashir that the Prophet Muhammad( pbuh) said:

“ The believers, in their mutual kindness, compassion, and sympathy, are like one body. When one part of it is afflicted, the whole body responds to it with wakefulness and fever.”

Sahih Muslim 2586( Book 45, Hadith 84) – The Mutual Mercy, Compassion, and Support of the Believers

Therefore, as halal professionals strive to safeguard their wealth and mitigate risks in a manner consistent with their faith and values, takaful offers an ethical, Shariah-compliant alternative to conventional insurance.

It helps to protect against unforeseen events, such as illness, loss of income, accidents, or even accidental death, thereby ensuring that the financial security and stability of halal professionals and their families remain intact.

This proactive approach by halal professionals aligns with another hadith of Prophet Muhammad( pbuh) as follows:

It was narrated from Anas ibn Malik that a man asked the Prophet Muhammad( pbuh),

“ O Messenger of Allah, should I tie my camel and rely( upon Allah), or leave it loose and rely( upon Allah)?” The Prophet replied,“ Tie it first, and then put your trust in Allah.”

Jami‘ at-Tirmidhi 2517( Book 37, Hadith 103) – Chapters on the description of the Day of Judgement

Hence, adopting takaful as a strategic tool for wealth preservation by halal professionals will help them manage their wealth prudently, maintain business continuity, uphold their financial commitments, and leave behind a lasting, ethically driven legacy.

DEFINITION, MODELS, PRINCIPLES

Briefly, takaful was derived from the Arabic word“ kafala”, translated as“ guaranteeing each other.” Takaful is a kind of cooperative system where participants pool resources to protect against potential risks.

Unlike conventional insurance, which involves elements of uncertainty( gharar) and interest( riba), takaful operates on key underpinning principles, including cooperation( ta’ awun) and donation( tabarru’)( Naz et al., 2025).

This model eliminates exploitative practices and ensures compliance with Islamic principles. The three main operational models of takaful are:

1. Mudharabah Model, where participants contribute to a risk pool, which the operator invests; the surpluses or profits are shared between participants and the operator based on an agreed profit-sharing ratio.

2. Wakalah Model, where the operator acts as an agent( wakil), managing contributions for a fee, with any surplus returned to participants.

3. Hybrid Model, which combines elements of mudharabah and wakalah, thereby presents a balanced approach to investment and management.

ROLE OF TAKAFUL

Takaful plays a multifaceted and strategic role in wealth preservation, particularly for halal professionals who seek to align financial security with ethical and religious principles.

Takaful embodies a cooperative and Shariah-compliant framework that integrates risk mitigation, wealth accumulation, and ethical financial management, making it a comprehensive tool for long-term wealth preservation. Particularly, takaful:

Offers a protective shield against unforeseen risks, Serves as a mechanism for longterm wealth accumulation,