The Islamic Wealth Management: An Analysis from Ib-e-Sina's Perspective

Abstract

This study aims to present the economic ideas of Ibn-e-Sīnā, dealing with the concept of wealth management. In order to achieve its objectives, this study employs qualitative research that refers to the meanings, concepts, definitions, characteristics, metaphors, symbols and descriptions of the matter under study. The study uses the literatures of Ibn Sīnā related to tadbir al-manzil (economics) to develop a theoretical model of managing wealth that integrates the material, spiritual, moral, social and legal dimensions. There are two methodologies of this study, namely interpretative and historical analytic methods. In his wealth management, there are two main variables; kasb (earning) and infāq (spending). The kasb (earning) is from al-tijārah (trade) and al-ṣinā"at (manufacturing skills), while infāq is the function of infāq ijtimā'i (common expenditure), infāq dīni (religious expenditure) and aliddikhār (savings). Finding of this study is that the concept of managing the wealth derived from Ibn Sīnā is still relevant to the modern concept of Islamic wealth management.

The Philosophy and Authentication of Welfare Equalization in the Islamic Economy

“…Based on these facts, it is impossible to distribute welfare in the capitalist system. Ibn Sina argues that a prosperous state will be created if two things are fulfilled: the existence of adequate income and the ability to spend it in a lawful manner, both to fulfill needs and be invested or donated (Ismail, 2012).…”

Research Map on Islamic Wealth Management Studies

“…Furthermore, according to Amanda et al, (2018) Islamic wealth management (IWM) consists of Islamic financial planning and investment portfolio management. And today, there are at least five processes in wealth management, namely wealth creation, wealth accumulation, wealth protection, wealth distribution (Ismail & Antonio, 2012) and wealth purification (Mahmud et al, 2019). In this process, Islamic wealth management differs from conventional wealth management in terms of the prohibition of usury, gharar (uncertainty), maysir (gambling) and the purchase of prohibited items (Mahadi et al, 2019).…”

“…According to Manurung in Amanda et al (2018) defines wealth management as the process of managing individual or family assets that have been used, and their value can increase or decrease over time. Ismail & Antonio (2012) state that wealth management can be referred to as the application of a comprehensive financial concept because wealth management is not just about investment. And Ismail & Cahyo (2017) defines Islamic wealth management as a financial service to help clients understand the meaning of wealth (mâl) comprehensively and to manage wealth (mâl) by combining al-kasb (income) and al-infâq (shopping) activities based on the principle Islamic principles derived from Islamic sources.…”