Abdulrahman Khalil Tolefat & Mehmet Asutay 
Takaful Investment Portfolios [EPUB ebook] 
A Study of the Composition of Takaful Funds in the GCC and Malaysia

A groundbreaking study of the investment portfolios of takaful
companies, their general investment patterns, and their future
investments

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.

Tabla de materias

Preface ix

Acknowledgments xiii

List of Abbreviations xv

Chapter 1 Introduction 1

Rationale for Researching Investment Portfolio Composition of Takaful Companies 1

Aims and Objectives 4

Scope and Delimitation 5

Research Methodology 6

Overview of the Book 6

Chapter 2 Insurance and Islamic Law: An Introduction to Takaful 9

The Concept of Insurance in Islamic Sources 9

Views of Contemporary Jurists on the Insurance Contract 13

Arguments Regarding the Validity or Invalidity of Commercial Insurance 15

Conclusion 27

Notes 28

Chapter 3 Takaful Models and Implementations, Trends, and Developments 31

Takaful Undertaking Principles 31

Islamic Insurance Operational Models 32

Differences Between Takaful and Other Forms of Insurance 44

Trends and Developments in the Takaful Industry 45

Conclusion 52

Notes 53

Chapter 4 Research Methodology 55

Methodological Shortcomings of the Literature 56

Research Strategy 56

Research Questions, Objectives, and Hypotheses 57

Research Design 58

Sampling Strategy 59

Research Methods 61

Quantitative Data Analysis 68

Qualitative Data Analysis 70

Conclusion 70

Notes 71

Chapter 5 Exploring Investment Behaviours and Investment Portfolios of Takaful

Operating Companies in the GCC and Malaysia 73

Total Investment Portfolio of Takaful Operating Companies for All Funds 74

Investments in Shareholders’ Fund 75

General Fund 86

Family Funds 94

Conclusion 97

Chapter 6 Locating the Differences Between Actual and Desired Investment Portfolios 99

Shareholders’ Fund 101

General Fund 106

Family Funds 111

Conclusion 114

Chapter 7 Contextualising the Findings 117

Overall Portfolio Compositions 117

Investment Accounts 125

Investment in Sukuks 129

Investment in Equities 134

Return on Investment (ROI) 138

Mutual Funds/Unit Trusts 140

Real Estate Investments 141

Conclusion 142

Notes 143

Chapter 8 Conclusion and Recommendations 145

Main Findings of the Study 145

Recommendations of the Study 149

Research Limitations 153

Recommendations for Future Research 153

Conclusion 154

Note 155

Appendix A 157

Appendix B 163

Appendix C 215

Bibliography 217

About the Authors 223

Index 225

Sobre el autor

Dr. Abdul Rahman 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 Pricewaterhouse Coopers 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.