Wakalah
Wakalah agency.
Wakalah is the agency contract. The principal authorizes the agent to act on their behalf for a fee (ujrah). Common in takaful (cooperative insurance), asset management, and brokerage.
The base contract
The principal grants the agent authority to perform a defined task: invest funds, manage a takaful pool, execute a transaction. The agent earns a fee for the service, not a share of profit (which would convert it to a Mudarabah).
The agent's fee can be fixed or scaled (per transaction, per assets under management). It cannot vary with profit alone, because that pattern collapses Wakalah into a profit-sharing structure subject to different rules.
Where Wakalah shows up
Takaful: the takaful operator runs the pool as an agent for the participants. The operator earns a fixed Wakalah fee for managing claims and the underlying investments. Surplus goes back to participants, not to the operator.
Asset management: many halal funds use Wakalah at one or more layers of the structure. The investor authorizes the manager to invest within Sharia-screened parameters; the manager earns a management fee.
Brokerage: a brokerage executing trades on behalf of a customer is a Wakalah relationship. Per-trade or per-transaction fees are standard.
In practice
Where this concept lives on the site.
The Mufti's Take
Mufti Saad's signed analysis on this concept lands when corpus content covers it.
Per MUFTI_CONTENT_POLICY.md, this block carries his name only when sourced from his actual rulings, lectures, or writings. Until then, the body above is editorial Tier C content.
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