Islamic Finance Practices by Velid Efendic

Author:Velid Efendic
Language: eng
Format: epub
ISBN: 9783030344207
Publisher: Springer International Publishing

2 Literature on Waqfs

Most of the scholars define and understand waqf similarly while their interpretation of the waqf’s essentials defers slightly. Al Sarkhasi (1978) states that waqf means to hold specific property and preserve it for the confined benefit of a certain benevolence, prohibiting any use or disposition of it outside of that particular objective. According to (Al Abadi 2001), Hanafi scholars defined waqf as an exclusion of an asset from a waqif’s property and dedication of its revenue or benefits to charitable, pious cause. However, the most concise definition, based on the Prophet’s (p.b.u.h.2) sayings, states that waqf is the preservation of an asset and its utilization for the charitable objectives.

When it comes to the economic perspective of the waqf, it can be defined as switching funds and other assets from spending, and investing them in creative properties that supply either usufruct or revenues for future consumption by individuals or group of individuals (Pirates and Abdolmaleki 2007). As a part of the voluntary sector, waqf provides certain welfare-enhancing services to the society by financing them through the investment of the allocated resources. Waqf is an action that involves investment for the future and accumulation of productive wealth that benefits future generations (Kahf 1998). It is a philanthropic organization that aims to supply future generations with income and social services through sacrificing contemporary consumption opportunities (Kahf 1998). Besides, it is an endowment with high power that moves the society towards growth and prosperity (Yalawae and Tahir 2003).

Although it was not mentioned directly in the Quran, its basic concept was: “By no means shall ye attain righteousness unless ye give (freely) of that which ye love; and whatever ye give, of a truth Allah knoweth it well” (Quran, Chapter Ali Imran, 92). According to Bukhari and Muslim, the Prophet (p.b.u.h.), referred to this verse saying: “When the son of Adam dies, all his deeds come to an end, except for three: ongoing charity, beneficial knowledge or a righteous son who will pray for him”. Referring to this, Cizakca (1998) stated that Muslim society needed such a mechanism that would enable them to perform all three good deeds together.

However, the first ever waqf in the history of Islam was founded by the very Prophet (p.b.u.h.), upon his arrival from Makkah to Madinah. Prophet (p.b.u.h.) built the first ever mosque in the history of Islam, founding, in this way, also the first ever waqf in the history of Islam. Modified Quba mosque stands even now, at the same place (Kahf 2003). Since that time, this system has been embraced so enthusiastically by the Islamic civilization and developed to such a unique dimension.

When it comes to the classification of waqfs, according to Kahf (2003), there are two basic types of waqfs—public and private waqf. Waqfs established to serve the social needs and well-being of the society in all, like public utilities, education, healthcare, libraries, the poor and the needy, are called public philanthropic waqfs (Kahf 2003, p. 2). Mosques and facilities confined to secure

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