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.