Helping Muslims save for the haj: National schemes in Indonesia, India, Nigeria
FILE PHOTO: A Muslim pilgrim prays as she gathers with others on Mount Mercy on the plains of Arafat during the annual haj pilgrimage, outside the holy city of Mecca, Saudi Arabia, August 20, 2018. REUTERS/Zohra Bensemra
Increasing costs make the haj expensive for many people who often save for years to be able to fulfil this religious obligation.
In countries where there are no, or inaccessible, haj savings schemes or Shariah-compliant financial institutions, a lot of Muslims often save money in an unsystematic and unproductive manner, such as stashing cash under the bed, in a pot or in a bank locker, which means a huge amount of money remains stagnant without generating economic activity.
Addressing this, Malaysia pioneered the national haj savings scheme when it introduced its pilgrims fund board in 1963. Lembaga Tabung Haji is seen by many as a model national haj savings scheme and investment fund but other countries are not able to replicate it completely due to their different political and economic contexts.
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