A Sharia-compliant contract, under which a depositor (or muwakkil) appoints another to act as its agent or to manage an investment on its behalf. The investment manager or agent (known as a wakeel) is entitled to a pre-agreed fixed fee or a fee calculated as a percentage of the net asset value of the investment. The fee may be paid on account with a reconciliation made on a winding up of the investment. The investment manager may also be paid an incentive fee.

For more information on wakala and Islamic finance in the US, see:

For more information on Islamic finance in the UK, see Practice notes: