Wakala Deposits

Wakala is an agency contract, where the account holder (principal) appoints Al Wifaq (agent) to carry out investment activities. In wakala, the actual profit is distributed according to the profit ratio agreed upfront. Al Wifaq (Wakil) is able to specify expected return from customers’ deposit by investing into selected instrument for an agreed wakil fee. The Muwakkil specifies the returns expected from the investment, and Wakil is required to source an investment to achieve the expected returns, after deducting the wakil fees.Wakala deposit can be booked in monthly, quarterly, b-annually and annually basis.