OVER the past decades, waqf
(Islamic endowment) has developed from a traditional instrument to a more sophisticated one.
First, the history. Waqf has long played a role in the socio-economic development and welfare of the ummah. University Al-Azhar in Egypt, Hospital Al-Noori in Damascus, Syria, and Dhaka University in Bangladesh are some of the projects built by waqf of old.
In the 15th century, the Ottoman Empire came up with cash waqf.
Today, waqf development can be even more innovative and outstanding.
A large number of products and waqf schemes are appearing across the world.
In Indonesia, cash waqf and shares waqf are pivotal products of waqf development.
These products have contributed to social services, capital injection, schools for the poor, health centres, and natural disaster aid.
Apart from contributing to philanthropy projects, waqf in Uzbekistan is more focused on basic needs of residents in each district.
Through a cooperative waqf scheme, every district can tackle issues in their areas without relying on others.
Bangladesh, through Social
Islami Bank Limited, has pioneered a deposit waqf scheme, a banking platform that enables customers to deposit their money into cash waqf.
Majlis Ugama Islam Singapura’s (Muis) salary deduction waqf scheme had collected S$130 million (RM400 million), which were used to build 22 mosques.
MUIS raised S$60 million through a sukuk waqf called Musharakah Bond, the first syariah sukuk in Singapore.
Now, there is a new idea of corporate waqf.
Malaysia’s pioneering efforts can be seen in the creation of Waqf An-Nur Corporation Bhd (WANCorp).
Since its establishment, the corporate waqf’s asset value has increased from RM90.05 million to RM575.9 million in just in six years.
Corporate waqf is a formidable institution that can contribute to sustainable wealth creation while caring for the marginalised among us.
ESA DWIYAN
International Islamic University Malaysia