Tabung Haji Case Study

3.2 Tabung Haji

Tabung Haji or Lembaga Tabung Haji is the Malaysian hajj pilgrims fund board. It was formerly known as Lembaga Urusan dan Tabung Haji (LUTH). The main headquarters is located at Jalan Tun Razak, Kuala Lumpur. Tabung Haji facilitates savings for the pilgrimage to Mecca through investment in Shariah-compliant vehicles.

Benefit of The Tabung Haji
Islamic shariah law.
Shariah prohibits acceptance of specific interest or fees for loans of money that is known as riba, or usury, whether the payment is fixed or floating. Investment in businesses that provide goods or services considered contrary to Islamic principles that is pork or alcohol is also haraam.

Shariah Principle in Tabung Haji Investment
Al-Masyarakah
Shareholder will finance a project and the dividends and profits are devided accordingly as agreed by the parties.
Al Bai Bithaman Ajil
Financing with defered repayment over a specific period of time.
Al-Mudharaba
An agreement to provide the capital by one party and

The potential profit Islamic Unit Trust Fund was between 10% - 20% per annum. The profit potential of Islamic Unit Trust Fund is extremely high. For this reason, we find that non-Muslim investors also focused on Islam's Fund. And certainly it is managed by a professional fund manager and investment is also controlled by the Trustee of Amanah Raya Berhad.
The existence and growth of Islam in Malaysia Unit Trust have indirectly contributed to the development of the equity market in the country. This enables the Muslim community in particular, invest in stocks that halal. The Islamic Unit Trust is actually significantly different if compared with conventional UT distributions in terms of portfolio selection. The Conventional Unit Trust will invest in any securities deemed viable forward without any sanctions against the Islamic Unit Trust that invests only in securities and companies that are certified