Wakalah is a form of agency agreement where an agent acts on behalf of a principal in a specific task or transaction and receives compensation for their services. This type of contract allows the agent to act as a trusted representative. In a Wakalah agreement, the agent receives fixed compensation and does not participate in profits and losses, unlike a Mudarabah contract where profits are shared between the parties.

This type of contract can be used in various financial and economic fields, such as asset management, real estate, investment intermediation, and other types of financial transactions. Islamic banks use the Wakalah contract, for example, to provide deposit services to depositors, where the client authorizes the Islamic bank to invest their funds.