IslamicFinance.de

THE annual pilgrimage to Makkah in Saudi Arabia takes place this week when up to three million Muslims from all over the world converge on the holy places in Makkah and Madinah and its satellite towns to perform Haj, which is one of the five pillars of Islam.
Tabung Haji is not merely a pilgrims’ travel and Haj service. It is in fact a non-banking Islamic savings institution set up under a Special Act of Parliament and comes under the direct control of the Prime Minister’s Office in Malaysia. Its board and senior management are all appointed by the Prime Minister’s Office and they are accountable to the Malaysian government.
Today Tabung Haji’s total funds under management are a staggering 23 billion Malaysian ringgit making it the largest non-banking Islamic savings institution in the world. Its members comprise over five million, thus its added value is that of a savings mobilization entity. The fund has experienced the occasional management upheaval and even the odd fraud.