Bajaib

Bajaib refers to a traditional form of Islamic investment in Southeast Asia, particularly in Malaysia and Indonesia. It is an effort by Muslims to manage their finances in a manner compliant with Shariah principles. Bajaib works on the concept of "tabarru'" or donation, where individuals contribute their wealth to a commingled fund with the intention of receiving rewards from Allah through the investment of the collective funds.

The primary difference between Bajaib and traditional Islamic finance instruments is the omission of a clear division between the principal investor and the profit recipient. Instead, all participants contribute equally, and the profit is distributed among them, rather than vested in the investment manager. Bajaib investment products, often known as Bajaib products, claim to fulfill the Islamic objective of fairness and moral accountability by ensuring transparency in both the investment process and profit distribution.

Several types of Bajaib products are available, differing in their investment strategies and risk levels. Some Bajaib investments focus on generating a stable return, such as through fixed-rate deposits, while others have varying degrees of investment in different asset classes. The design is intentionally all-encompassing, allowing for investment options often overlooked by conventional financial providers.

Critics of Bajaib systems often point out potential issues with their institutional structure, arguing that these investments often exhibit the characteristics of typical investment pools, even though framed by Islamic terminology. As such, they assert, the distinction between non-Shariah-compliant investments and Shariah-compliant investments becomes diminished. This debate continues among practitioners, scholars, and policymakers, with implications for regulations and the consequent promotion of Islamic finance.