Muslim Investor


The Essentials of Financial Planning & Wealth Management for the Muslim Investor

Published by Business Islamica May 2016

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Muslim Investor


In Islam, balance, moderation and performing actions with excellence and the right intentions are important principles. To be truly successful, it is vital to have the right attitude towards money, wealth and financial planning. The first realisation is that Allah is the owner of wealth “To Him belongs what is in the heavens and on earth, and all between them, and all beneath the soil.” (S 20 v 5) We were created to worship Allah and this life is a just a test. We are only trustees of whatever wealth Allah has given us and will be accountable for it in the next life. Secondly, our striving for wealth should not come at the expense of our religious duties and obligations. The pursuit of profit should not come at the expense of society, nor the detriment of the environment, or impose on the rights of others.

Over 90% of a
portfolio’s return comes
from asset allocation

The enjoyable and easy part of financial planning is thinking about your future goals. However to be effective you need to give them definition by quantifying the cost and timeframe for your financial goals to be achieved. It’s also important to achieve a balance between your short and long term goals. Many people tend to neglect long term goals e.g. saving for retirement and focus on their more immediate needs and wants e.g. going on that nice holiday, saving for that car you always dreamed of etc.