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 ZCME6251: ISLAMIC
WEALTH MANAGEMENT

HIBAH
https://drive.google.com/file/d/
184_er5pTcRRQhpYI6Th23MkfL52IdOS1/view
Muhammad Asyriel Bin Ismail (ZP04943)
Nor Ariena Imani Binti Mohd Asri (ZP04815)
Mah Kar Wei (ZP04979)
Chavareen Bun Sut (ZP04837)
Muhammad Danial Bin Mohd Yousuf (ZP04876)
Muhammad Firdaus Bin Rosman (ZP04881)
Muhammad Khairul Miraj Bin Khairul Anwar (ZP04959)
 Background
o Wealth distribution is one of the pillars in the Islamic wealth management
o Islamic wealth distribution mechanisms - Hibah, waqf, bequeath, inheritance
and etc
o Hibah:
- Means ‘gift’
- Transfer of wealth that occurs while the person is alive
Concept of Hibah

In Malaysia, Muslim use hibah

Regarded as a tabarru’ contract instrument to plan asset distribution

Encourage in Islam as it promotes the Hibah as a type of financial instrument

Shariah concept of maqasid (in terms of (commercial Hibah) – attached to
wealth protection and relationship Shariah-based contracts for products or
strengthening services
 Concept of Hibah

Definition of Hibah:

Hibah is the granting ownership of property from one party

to another without any consideration (iwad) that occurs
during the life of a Hibah provider, made voluntarily, not
meant to glorify anybody and given by reciting an ijab and
qabul or any such expressions.
Concept of Hibah
1 2
The Settlor The Beneficiary of
Hibah
Al-Wahib
Requirements and Al-Mawhub lahu
conditions of
3 Hibah
4
Sighah
The Asset Bequeathed
as Hibah Ijab/Offer and
Qabul/Acceptance

Al-Mawhub
 General Application in Malaysia
o Use of Hibah instruments in takaful industry in 2 ways:-
1. Hibah – takaful company structures and sells a takaful product to its takaful
participants, with the takaful benefits surrendered to the Hibah recipient upon
the takaful certificate’s maturity
2. Conditional Hibah – takaful participant’s nomination of the takaful recipient
during his or her lifetime as an executor of his or her estate or as the actual
beneficiary of the takaful benefits
o Bank Negara Malaysia issued a specific reference on the application of Hibah
effective July 31, 2018
Issue in Implementation of
Hibah
Dispute over Hibah authority
Lack of Hibah between Shariah court and the
awareness civil court

Insufficient knowledge of Risk of injustice and Absence of specific Hibah

handling assets disagreement among governance laws and
legal heirs procedures
 Issue in Implementation of
Hibah
Causing controversy in the Trust contracts governed by civil
provision of conditional Hibah law, superseding Shariah law
No restriction imposed under Section Lack of clarity on which law to
142 Schedule 10 of IFSA follow for Hibah trust

Conflict of law and Conflict under Section 26 of the

jurisdiction Contract Act 1950

Description of gift in Section 148 Poor definition of “close

(a) of the Islamic Financial Services relation”
Authority (IFSA)
Recommendations to enhance the
Application of Hibah

The use of Hibah in various sectors under Need for more research in the legal
each Islamic product and service must implications of using Hibah as Islamic
always be subjected to statutory clearance financial instrument
from SAC BNM

Re-evaluation of existing
Establish legal clarification on
legislation
the conditions of Hibah and gift
 Conclusion

Hibah will be an effective alternative Effort from various partners to re-evaluate

mechanism for wealth management the current usage of commercialized
provided that the issues highlighted are Hibah in ensuring the relevancy and
resolved compatibility with the Islamic principle

Separate body from SAC-BNM would be

useful in governing the application of
Hibah
THANK YOU