Faraid as Islamic inheritance laws: socio-economic impact on investments

Fara’iḠcovers the principles under the Islamic contracting that covers the way the estate of a faithful is to be dealt with and distributed upon his/her death. It is a fundamental part of how the laws guide how wealth re-distribution is to be done in the case of intestate situation. The laws derive from revelations in the Quran to ensure that the wealth is not hoarded in the hands of a few but re-distributed equitably among the rightful dependents in the society with a larger view to mitigate the income inequality gap. In Islamic inheritance law, there are eight classes of heirs in accordance to their priority to inheritance. The rules and procedures for implementing the laws, the impediments, social-economic impact and practical issues are discussed. The major issues are: lack of awareness of the laws; the need to develop further the legal and operational infrastructure required for effective implementation.