Keywords

Motor Tak?ful, Surplus, Socio-Economic Development, Less Privileged Inhabitant.

Introduction

In the Arabian societies, there was the concept of mitigation of risk especial through the concept of “hilf” which aimed at extending a helping to those who experienced natural hazard specifically on journey. Tak?ful surplus as an Islamic insurance is advantageous in solving multifarious social problems in the society. Undoubtedly, Tak?ful is considered as an essential social instrument for addressing the problem of poverty in the Muslim community. Several scholarly research have meticulously examined Tak?ful surplus in general and there is less focus of attention on motor Tak?ful surplus for socio-economic development of less privileged inhabitants in the context of Saudi Arabia. It is in this regard that Sabbir (2011) notes that:

“Insurance in Islam has existed since the early second century of the Islamic era when Muslim Arabs expanding trade into Asia mutually agreed to contribute to a fund to cover mishaps or robberies along the numerous sea voyages. Muslim jurists concluded that insurance in Islam should be based on principles of mutuality and cooperation and encompass the elements of shared responsibility, joint indemnity, common interest and solidarity”.

In the contemporary time, there are several concepts in Islamic banking and finance that aimed at addressing social welfare of the citizens. For instance, Zakat (i.e. alms giving) is instrumental in catering for the needs of the citizens. In addition, Tak?ful is also one of efficient financial instruments that provide essential welfare to the citizens (Dewi et al., 2010). Tak?ful is commonly recognised in Islamic insurance which refers to mutual agreement among the participants. This is done in order to provide protection as well as compensation for whomever experiences risk of hazards that goes beyond his financial capability (Ahmad & Ali, 2010; Hashem, 2015).

In addition, Tak?ful is based on provision of mutual financial assistance to the participants in the Islamic insurance as a result of experiencing social perils (Ayub, 2007). This inferably can be said that, it caters for welfares of the participants in Tak?ful scheme. Literature identifies Tak?ful as a mitigation of risk among the participants. Tak?ful is regarded as Shari’ah compliant insurance used in order to solve most of social problems (General Assembly, 2007; Alahli Tak?ful, 2010). Thus, it can be inferred that Tak?ful serves as social interest that promotes social solidarity which indirectly fosters socio-economic development of the society. Literature identifies that Tak?ful enhances goods and services within the society because it provides for the needs of the participants in the Tak?ful scheme (Al-Jarhi, 2007). This means that, an attempt to diversify motor Tak?ful in Saudi Arabia is to foster goods and services which expectedly are to provide for the less privileged inhabitants in the country. Undoubtedly, motor Tak?ful enables the operators to provide goods and services to the participants.

Onwards, it is not doubtful to say that, Tak?ful has been thriving in Saudi Arabia since many decades ago and its prime motive is to cater for the social welfare of the citizens. More importantly, 2.5% of Zakat as a religious obligation is to be collected from wealthier individuals and cooperate bodies in order to render assistance to the poor and the needy in the context of Saudi Arabia. More so, the government has been making tremendous effort in ensuring that citizens’ welfares are being catered for. In actualizing these dreams of the government, there are several social welfare programmes by the government such as: free health care provision, free education, free food and utility bills to the orphans, poor and disabled among others.

Furthermore, it is important to stress that, the Malaysian Tak?ful Association (2017) classified Tak?ful into family Tak?ful and general Tak?ful. The sub-components of family Tak?ful are: child-education, mental and health Tak?ful while general Tak?ful are: home, accident and motor Tak?ful. Nonetheless, literature contends that, the standard of Tak?ful can be guarantee when the operators are concerned with Shari’ah compliance (General Assembly, 2007). This is the reason why the roles of Shari’ah leaders cannot be underestimated in Islamic banking and finance as literature contends (Dar, 2011). Hence, in the context of Saudi, Al-Rajih Shari’ah Committee has been playing this leadership role in ensuring that Islamic banking and finance are consistent with the principles of Shari’ah in their operations as literature expounds (Hashem, 2015).

Tak?ful is built on the concepts of mutual indemnity, solidarity and mutual help among participants who have agreed to share defined losses to be paid out of a common fund. This is accepted according to Shar??ah as mentioned in S?rah Al-M??idah: 2 that:

“Help (ta??wun) ye one another in righteousness (birr) and piety, but help ye not one another in sin and rancour, fear Allah, for Allah is strict in punishment” (Q5:2).

Based on this verse, an inference can be drawn therein that, it is evidence justifying the establishment and affirmation of Tak?ful which is considered as a form of mutual help (ta??wun) in furthering good and virtue by helping people in needs due to the hazard and peril that they experience. Furthermore, many promoters and advocators of Tak?ful as an Islamic insurance have strongly used the prophetic tradition as supporting evidence to Qur’?nic verses earlier mentioned.

In addition, in the hadith, the Prophet (S.A.W.) also urges people to help other people in overcoming the hardships. For example, it was narrated by the Prophet (S.A.W.) that:

“Whosever removes a worldly hardship from a believer, Allah will remove from him one of the hardships of the hereafter and whosever alleviates the needy person, Allah will alleviate from him in this world and the next (Bukh?r? and Muslim).”

Moreover, Tak?ful can be said as a strategy of risk mitigation by way of collective risk taking that distributes risks and harm to large number of participants. This position can be further supported by another had?th which implies a suggestion for people to undertake certain precautions or strategies to reduce and mitigate the risk. For instance,

“Prophet Muhammad (S.A.W.) asked a Bedouin who had left his camel untied, why do you not tie your camel? The Bedouin answered, I put my trust in God. The Prophet then said, tie up the camel first and then put your trust in God. This had?th showed that the societies in Arabia had adopted the concept of risk mitigation such as “hilf” to assist victims of natural disaster or hazards while on trade journey.”

However, less focus is given in investigating of effectiveness of general Tak?ful especially in diversifying motor Tak?ful specifically from the perspective of the less privileged inhabitants in Saudi Arabia. In other words, there has not been much attention in examining the diversification of the motor Tak?ful in order to expand the scope of Tak?ful in the country. This paper primarily attempts to empirically examine the diversification of motor Tak?ful as an integral part of general Tak?ful in the context of Saudi Arabia.

Methodology

Descriptive survey research design was used as a methodology of this research. Literature contends that descriptive survey research is easy to collect data among the large number of participants (Creswell, 2005). It was employed to obtain data among the selected less privileged inhabitants in Saudi Arabia by specifically examining their opinions on the diversification of motor Tak?ful as an integral part of general Tak?ful in order to improve social welfare programme that Saudi Arabian government is concerned of in the recent past. Inferably, the study is based on primary data Thus, other aspects of methodology such as population & sample, instrument (validity & reliability), data collection and analytic approach are explained in the subsequent paragraphs.

First, regarding the population and sample, the population comprised various categories of less privileged inhabitants in Saudi Arabia which were: poor, elderly people, disabled, orphans and low income earning workers. Regarding sample, since there is no specific figure with regard to the population of the respondents, thereby, the researchers utilized convenient sampling technique in determining the participants in this study. Then, simple random administration of questionnaire was done among the target respondents. Hence, cluster sampling technique was used in distributing the copies of self-developed questionnaire to the total number of 169 respondents among the less privileged inhabitants in Saudi Arabia out of which 153 were used for the final analysis. Table 1 shows the sample of the respondents.

Table 1 Sample of the Respondents
S/N	Respondents	No. of Respondents
1.	The poor Inhabitants	37
2.	Elderly people Inhabitants	33
3.	Disabled Inhabitants	29
4.	Orphan Inhabitants	20
5.	Low Income Earning-Workers	34
	Total=	153

Second, the instrument used for this research was survey questionnaire. A 15-item questionnaire was used as instrument of the study. Three factors were explored and few parameters were used to measure each factor contained in the instrument namely:

1. Legal Diversification of Motor Tak?ful (LDMT)

2. Needs of Less Privileged Inhabitants (NLPI)

3. Tak?ful companies’ readiness in diversification of Tak?ful Surplus (TCRDTS).

In addition, A 4-point Likert scale (1=Strongly Disagree (SD); 2=Disagree (D); 3=Agree (A) and 4=Strongly Agree (SA)) were used in measuring the views of the respondents among the less privileged inhabitants in the country. In order to validate the instrument, content validity was used by seeking the opinions of experts in the field of Islamic banking and finance. The response from the experts on content validity was to ensure that the items of the instrument were clear, simple and understandable by the respondents. Similarly, the reliability of the instrument was also considered in determining internal consistency of the instrument by reporting Cronbach’s Alpha which is as follows: LDMT=0.921; NLPI=0.831 and TCRDTS=0.808). This shows that, the instrument was excellent for the measuring different dimensions of the instrument. Table 2 shows variables, items and Cronbach’s Alpha for establishing reliability of the instrument.

Table 2 Variables, Items and Cronbach’s Alpha (Reliability of the Instrument)
S/N	Variables	No. Items Measuring each Variable	Report of Cronbach’s Alpha for Reliability
1.	Legal Diversification of MotorTak?ful	5	0.921
2.	Needs of Less Privilege Inhabitants	5	0.831
3.	Tak?fulCompanies’ readiness in Diversification of Tak?fulSurplus	5	0.808
	Total=	15

Third, pertaining to data collection and data analysis, on one hand, in order to collect data, survey questionnaire was employed. The researchers used two research-assistants in collecting data from the respondents because they have access to them easily which was instrumental in efficient data collection. Two weeks were stipulated for the collection of data among the participants. In fact, 169 copies of the questionnaires were administered out which 153 were returned and usable for the final data analysis. On the other hand, regarding the analytic approach, the researchers used Statistical Package for Social Science (SPSS) version 16 in presenting demographic information of the respondents and analyzing the findings from the three factors namely:

1. Legal diversification of motor Tak?ful.

2. Needs of less privilege inhabitants.

3. Tak?ful companies’ readiness in diversification of Tak?ful Surplus.

A result of each of these variables based on data analysis is presented in the subsequent sub-heading.

Data Analysis and Results

This sub-section presents data analysis and results based on demographic information of the respondents and three variables investigated in this research. Each of these is subsequently presented.

Demographic Information of the Respondents

This part presents the data on demographic information of the respondents. The demographics covered: gender, age, Tak?ful awareness and categories of the respondents. Each of these is presented as follows. The majority of the respondents (135 or 88%) were males while just only 18 (12%) were females. Pertaining to the age of the respondents, the majority (62 or 41%) were between 36 and 40 years, 53 (35%) were between 41 years and above while only 38 or 29% were between 30 and 35 years. Regarding the awareness of Tak?ful, the majority of the respondents (135 or 88%) said that, they were aware of Tak?ful while just only 18 (12%) were not fully aware of the operation or practice of Tak?ful. More so, concerning the different categories of the respondents, the majority of the respondents (37 or 24%) were poor inhabitants. This is followed by low income earning workers (34 or 22%). Others were elderly people inhabitants (33 or 22%), disabled inhabitants (29 or 19%) and orphan inhabitants (20 or 13%). Table 3 shows demographic information of the respondents.

Table 3 Demographic Information of the Respondents
S/N	Demographic Information		Frequency	Percentage (%)
1.	Gender	Male Female	135 18	88.2% 11.8%
			153	100%
2.	Age	30-35 36-40 41 and above	38 62 53	24.8% 40.5%
			153	100%
3.	Tak?fulAwareness	Aware of Tak?ful Unaware of Tak?ful	135 18	88.2% 11.8%
			153	100%
4.	Categories of Less-Privileged Inhabitants	The poor Inhabitants Elderly people Inhabitants Disabled Inhabitants Orphan Inhabitants Low Income Earning-Workers	37 33 29 20 34	24.2% 21.6% 19.0% 13.1% 22.2%
			153	100%

Based on the aforementioned demographic variables of the respondents, it could be said that the respondents were qualified to respond to the instrument (questionnaire) of this research. Thus, the data analysis of the three variables would be presented as follows.

Result on Legal Diversification of Motor Tak?ful

Tak?ful in the predominant Muslim countries has been grounded well in order to fulfil financial needs of the Muslims. Nonetheless, in the Islamic legal system, there are certain principles that make it different from conventional Islamic insurance. Of such principles are: uncertainty (Gharar), gambling (Maisir) and Interests (Riba). For instance, any contractual dealing that is done mainly to favour one part at the expense of others is considered as uncertainty. Also, when participants in Tak?ful contribute small premium with the expectation of collecting back a large amount of money is considered as gambling. Similarly, interest exists in the Tak?ful when a participant is given more than what he has paid after his demise. It is as a result of this that Muslims have asserted that, insurance system should operate within the scope of Tak?ful as being practised in Saudi Arabia. This is why literature contends that, transaction in Islamic insurance (Tak?ful) deals with brotherhood, solidarity, mutual cooperation in order to assist each other.

Pertaining to the legal diversification of motor Tak?ful in the context of Saudi Arabia, the majority of the respondents (129 or 84%) strongly agreed that Tak?ful as an Islamic insurance have legal basis from the prophetic tradition as supporting evidence to Qur’?nic verses while only 24 (16%) disagreed with this statement (M=3.28; SD=1.04). In addition, the majority of the respondents (127 or 83%) agreed that, they were aware that motor Tak?ful surplus has legal basis from Shar’iah point of view while just only 26 (17%) disagreed with this (M=3.33; SD=0.95). Moreover, the majority of the respondents (127 or 83%) strongly agreed that, motor Tak?ful surplus is a form of mutual solidarity in helping people in needs due to the hazard and peril that they experience while just only 24 (17%) disagreed with the statement (M=3.26; SD=1.00).

Also, the majority of the respondents (132 or 86%) agreed that, the Prophet (S.A.W.) urges people to help others in overcoming the hardships while just only 21 (14%) maintained contrary view with the statement (M=3.33; SD=0.82). Similarly, the majority of the respondents (132 or 86%) strongly agreed that Tak?ful is a strategy of risk mitigation by way of collective risk taking by large number of participants. Based on the overall finding, the average mean score (3.30) is greater than criterion mean score of 2.50 which implies that the majority of the respondents strongly believed that, motor Tak?ful has legal basis for its diversification in the country. Table 4 -shows the result of legal diversification of motor Tak?ful in the context of Saudi Arabia.

Table 4 Result of Legal Diversification of MotorTak?ful in Saudi Arabia
S/N	Items on Legal Diversification of MotorTak?ful	SA &A	SD& D	M	SD
1.	Tak?fulas an Islamic insurance have strongly used the prophetic tradition as supporting evidence to Qur’?nic verses.	129 (84.3%)	24 (15.7%)	3.28	1.04
2.	I am aware that MotorTak?ful Surplus has legal basis from Shar’iah point of view.	127 (83.0%)	26 (17.0%)	3.33	0.95
3.	MotorTak?ful surplus is a form of mutual solidarity in helping people in needs due to the hazard and peril that they experience.	127 (83.1%)	24 (17.0%)	3.26	1.00
4.	The Prophet (S.A.W.) urges people to help others in overcoming the hardships.	132 (86.3%)	21 (13.8%)	3.33	0.82
5.	Tak?fulcan be said as a strategy of risk mitigation by way of collective risk taking by large number of participants.	132 (86.2%)	21 (13.8%)	3.33	0.93
	Aggregate Mean Score= Number of Items=	422.9 5	77.3 5	16.53 5	4.74 5
	Average Mean Score=	84.58	15.46	3.30	0.95

Result on the Needs of Less Privilege Inhabitants

Concerning the needs of less privilege inhabitants in Saudi Arabia, the majority of the respondents (124 or 81%) strongly agreed that, they were aware that food needs of less privileged inhabitants in the country are being provided by the government; however, a few number of the respondents (29 or 19%) disagreed with the statement (M=3.18; SD=0.97). Also, the whole respondents (119 or 78%) agreed that the government provides clothes to the less privileged inhabitants in the country; nonetheless, 34 (22%) disagreed on this statement (M=3.18; SD=0.92). It is noteworthy to say that, it was strongly believed by the respondents (100 or 65%) that, there is arrangement for shelter to the less privileged inhabitants in the country; however, 53 (35%) disagreed with this (M=2.90; SD=1.06).

In addition, it is reiterated that, the respondents (88 or 58%) strongly agreed that, the government provides free education to less privileged inhabitants in the country while 65 (43%) disagreement with this view (M=2.81; SD=1.12). The majority of the respondents (86 or 56%) strongly agreed that the government provides free health care to the less privileged inhabitants. Based on this result, it can be said that, the average mean score (2.95) is greater than criterion mean score of 2.50 which implies that the majority of the respondents strongly believed that the government is trying in catering for the welfare of the less-privilege inhabitants in the country. Table 5 shows the needs of less privileged inhabitants in Saudi Arabia.

Table 5 Needs of Less Privilege Inhabitants in Saudi Arabia
S/N	Items on the Needs of Less Privilege Inhabitants	SA &A	SD& D	M	SD
1.	I am aware that food needs of less privileged inhabitants in Saudi Arabia are being provided by the government.	124 (81.1%)	29 (19.0%)	3.18	0.97
2.	I am aware that the government provides clothes to the less privileged inhabitants in Saudi Arabia.	119 (77.8%)	34 (22.2%)	3.18	0.92
3.	There is arrangement for shelter to the less privileged inhabitants in Saudi Arabia.	100 (65.4%)	53 (34.6%)	2.90	1.06
4.	The government provides free education to less privileged inhabitants in Saudi Arabia.	88 (57.5%)	65 (42.5%)	2.81	1.06
5.	The government provides free health care to the less privileged inhabitants in Saudi Arabia.	86 (56.2%)	67 (43.8%)	2.70	1.12
	Aggregate Mean Score= Number of Items=	338.0 5	162.1 5	14.77 5	5.13 5
	Average Mean Score=	67.60	32.42	2.95	1.02

Result on the Tak?ful Companies’ Readiness in Diversification of Tak?ful Surplus

Pertaining Tak?ful companies readiness in diversification of Tak?ful surplus in the country, the majority of the respondents (114 or 75%) agreed that Shar??ah principles is basis for the readiness of Tak?ful companies in diversifying Tak?ful surplus while only 39 (26%) disagreed with this (M=3.16; SD=1.09). It is further reiterated by 120 (79%) of the respondents that child education and health Tak?ful are considered as part of family Tak?ful in Saudi Arabia while only 33 (26%) disagreed with the statement (M=3.18; SD=0.95). Onwards, the total number of 108 (77%) respondent strongly agreed that, home, motor and personal accident Tak?ful are considered as general Tak?ful in the country while 35 (30%) disagreed with this assertion (M=3.15; SD=1.00). Moreover, the sampled respondents (117 or 77%) agreed that Tak?ful companies are ready to diversify Tak?ful surplus in order to attain Saudi Arabia vision 2030 while 36 (24%) disagreed with the statement (M=3.13; SD=0.93). It was further said by the majority of the respondents (109 or 71%) that, Tak?ful companies’ are ready to provide protection and compensation to the participants who suffered from perils and hazards while 44 (29%) disagree with this (M=2.68; SD=1.04). The average mean score (3.09) is greater than criterion mean score of 2.50 which implies that the majority of the respondents strongly believed that Tak?ful companies are trying to diversify Tak?ful surplus for socio-economic improvement of the less privileged inhabitants. Table 6 shows Tak?ful companies’ readiness in diversification of Tak?ful surplus.

Table 6 Tak?fulCompanies’Readiness in Diversification of Tak?ful Surplus
S/N	Items on Tak?fulCompanies’ Readiness  in Diversification of Tak?fulSurplus	SA &A	SD& D	M	SD
1.	Shar??ah principles is basis for the readiness of Tak?ful companies in diversifying Tak?ful surplus	114 (74.6%)	39 (25.5%)	3.16	1.09
2.	Child education and health Tak?ful are considered as part of family Tak?ful in Saudi Arabia.	120 (78.5%)	33 (25.5%)	3.18	0.95
3.	Home, motor and personal accident Tak?ful are considered as general Tak?ful in Saudi Arabia.	108 (77.1%)	35 (29.9%)	3.15	1.00
4.	Tak?ful companies are ready to diversify Tak?ful Surplus in order to attain Saudi Arabia vision 2030.	117 (76.5%)	36 (23.5%)	3.13	0.93
5.	Tak?ful companies are ready to provide protection and compensation to the participants who suffered from perils and hazards.	109 (71.2%)	44 (28.7%)	2.86	1.04
	Aggregate Mean Score= Number of Items=	377.9 5	133.1 5	15.48 5	5.01 5
	Average Mean Score=	75.58	26.62	3.09	1.00

Discussion of Findings

This research empirically investigated diversification of motor Tak?ful surplus for socio-economic development of the less privileged inhabitants in Saudi Arabia. Indeed, Tak?ful plans provide products such as motor to the participants or members. This study is in support of previous studies that, in case of eventuality of risks, the Tak?ful Company provides efficient support to the victims as the literature expounds (Mahmoud, 2006; Mondher, 2013). It is not deniable to say that, literature emphatically stressed that resilience and stability are important in Islamic banking and finance (Venardos, 2010).

Hence, findings have revealed that Tak?ful is grounded in Shar’iah; however, there has been emphasis on the standard expected by the Shari’ah leaders in providing the required efficiency in Islamic finance (General Assembly, 2007; Ahmad & Ali, 2010; Dar, 2011). The finding of this study is further in agreement with previous studies that the role of Shar’iah leaders in the overall governance of Islamic banks is an integral yardstick in determining the success of Islamic banking system (Eagle, 2009; Zulkifli, 2012; Hashem, 2015).

In addition, different financial institutions such as: Institute of Islamic Banking and Insurance (2011), Accounting and Auditing Organization for Islamic Financial Institution (General Assembly, 2007), Malaysian Tak?ful Association (2017) have been playing vital role towards application and standardization of Shari’ah principles in the Islamic banking and finance industry. Literature advocates for diversity in the regulation of Islamic Finance Institutions in order to achieve the efficiency of Islamic financial instrument such as Tak?ful (El-Hawary et al., 2007). It was further found out that, Tak?ful can be regarded as a strategy of risk mitigation by way of collective risk taking by large number of participants whereby motor Tak?ful surplus is considered as part of mutual solidarity in extending a helping hand to people in needs as a result of being victim of the hazard and peril as literature explains (Fakhri, 2016).

Onwards, it is not doubtful that the sense of extending assistance to the needy, poor or less privileged people is grounded in Islam. This position has been practically reflected in the governance of Saudi Arabia. For instance, it has been demonstrated that, the government tries to provide essential needs such as food, clothes, shelter, education and health to the less privileged inhabitants in the country. The finding of this study has buttressed this further where the less privileged inhabitants have strongly responded positively which is in agreement with earlier studies (General Assembly, 2007; Fakhri, 2016). An inference can be drawn that an adequate utilization of Tak?ful surplus can be instrumental in reducing poverty among the citizens in general and less privileged inhabitants in particular as the literature expound (Hashem, 2015).

The finding further reiterated that, the proper utilization of surplus from Tak?ful can further be useful in helping different categories of less privileged identified in this study. This assertion is also in agreement with the finding of Hashem (2015) that if Tak?ful companies properly adhere to the standard put in place by Accounting Auditing Organization for Islamic Financial Institution-AAOIFI's-(General Assembly, 2007), it will help in poverty reduction in the context of Saudi Arabia specifically by creating various opportunities for various categories of the less privileged inhabitants.

It is paramount to say the finding of this study is in consonance with the roles of different Tak?ful companies such as ALAH, Solidarity, and Al-Rajih etc. in diversification of Tak?ful in the country. For instance, Alahli Tak?ful Company has an increase in Tak?ful contribution whereby it can be deduced that, the effective and efficient running of its activities contributes to the growth rate in its revenue through Tak?ful products. This finding is in agreement with the position of Oxford Business Group (2011) that contends that insurance has been growing in Saudi Arabia since few years back. Also, Solidarity Saudi Tak?ful was established in 2009 by the Resolution of Council of Ministers. The Headquarter of the Tak?ful is in Riyadh with different branches in Riyadh, Jeddah and AlKhobar. It is not arguable to say that, this insurance company offers motor Tak?ful to its customers as long as the less privileged inhabitants in Saudi Arabia are also part of its participants. It is ensured that the practice of Tak?ful is compliant with the principles of Shari’ah approved by Shari’ah Committee of Al-Rajih. This is the reason why literature such as Younes (2008) asserts that, there is need for the application of Shar’iah in the distribution of surplus while implementing Shar’iah principles by the Tak?ful companies.

Conclusion

This paper has lucidly explored diversification of Tak?ful surplus in fostering socio-economic condition of the less privileged inhabitants in Saudi Arabia. The respondents have demonstrated that they were acquainted with the existence of motor Tak?ful in the context of Saudi Arabia. The findings have shown that, legal diversification of motor Tak?ful is based on the principles of Shari’ah especially in catering for the needs of the less privileged inhabitants in the country. Various aspects of the needs of the less privileged inhabitants such as food, shelter, clothes, education and healthcare are identified. It is reiterated that, this study has further established and in support of previous views by many Islamic financial institutions that the diversification of Tak?ful surplus can reduce poverty and strengthen socio-economic enhancement of the participants. It was found out that, Tak?ful companies have been expanding the scope of the insurance in catering for the inhabitants’ visa in Saudi Arabia in order to reduce the challenges faced by the inhabitants in the country. It is therefore recommended that, the useful ideas from conventional insurance should be harmonised with Shari’ah principles in order to enhance strategies for risk mitigation by the participants in Tak?ful. It is further emphasized that the government should collaborate with Tak?ful companies in order to cater for the needs of the less privileged inhabitants in the country in order to enable the country achieve sustainable development goals (SDGs) vision 2030 as advocated by the United Nations.

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