Wakalah

Wakalah is an Islamic financial principle where one party (the wakil) is authorized to act on behalf of another (the client) in specific matters, often related to financial transactions. Essentially, the client delegates responsibilities, such as managing investments or facilitating contracts, to the wakil, who is expected to act in the client’s best interest. This arrangement is based on trust and mutual agreement, typically defined by a contract outlining the tasks and remuneration for the wakil's services. It's commonly used in Islamic banking and finance to align with ethical and Sharia-compliant practices.