In a Wakala arrangement, the Muwakkil (principal) appoints the Wakeel (agent) to manage and invest the Muwakkil's funds. The investor is entitled to the anticipated profit, while the agent may receive a performance incentive in addition to his agency fee, based on profits exceeding the anticipated amount. The Wakeel is authorized to enter into Shariah-compliant transactions on behalf of the Muwakkil, including purchase and sale agreements, and to negotiate terms related to these transactions.