Factors Influencing Islamic Wealth Management Adoption in Malaysia from Al-Syaibani, Ibn Sina, and Al-Dimasqi’s Component of Wealth Management

Islamic wealth management represents a relatively recent expansion within the Islamic
banking and finance industry, with only a minority of Muslim majority countries
offering such service, including pioneering efforts by institutions like UBS, BNP
Paribas in Europe. A scholarly investigation is crucial to complement its industrial
growth, especially considering the foundational concepts of wealth management
derived from Islamic classical texts by early Muslim scholars. Despite Malaysia’s
proactive stance in developing Islamic wealth management infrastructure, further
scientific inquiry is needed to fortify its foundation. This study employed both
qualitative and quantitative method (mix method) to explore and describe wealth
management ideas from three Muslim scholars, namely: al-Syaibāni, Ibn Sina, and
Dimasqi who live in the Abbasid time. Then, the variables derived from the ideas of
Muslim scholars will be validated by the quantitatively by using Structural Equation
Model (SEM). Hence, this study will utilize probability sampling, specifically simple
random sampling, where each member of the population in Malaysia has an equal
probability of being selected for the sample. The sample of 220 was collected consist
of Malaysian individuals associated with the adoption of Islamic wealth management
in Malaysia. The findings showed that knowledge about the components of Islamic
wealth management has a positive influence at the 5% level, and religion has a
positive influence at the 10% level toward adoption of Islamic wealth management in
Malaysia. However, when religiosity becomes a mediating variable of knowledge on
the adoption of Islamic wealth management, it does not have a significant effect. It
can be argued that there is a gap between knowledge of Islamic wealth management
and religious belief and practice, emphasizing the need to bridge theoretical and
practical dimension. Islam as Dīn only leads to aspects of the hereafter, which should
also be practiced for worldly activities. The three Muslim scholars' ideas of Islamic
wealth management put the philosophical foundation of Islamic wealth management.
Understanding the components of Islamic wealth management should encompass a
holistic approach, addressing not just worldly concerns but also considerations for the
afterlife, as elucidated by three Muslim scholars. The study contributes to the
enhancement of Islamic wealth management adoption in Malaysia by providing
valuable recommendations for academicians, practitioners, and regulators,
emphasizing the need for further research, interdisciplinary education, development
among stakeholders, ultimately, aiming to promote awareness, understanding, and
compliance with Islamic principles within the Islamic financial sector. This research
contributes to the growth and development of Islamic wealth management
theoretically and practically in global scope.