Beyond Debt by Daromir Rudnyckyj

Author:Daromir Rudnyckyj [Rudnyckyj, Daromir]
Language: eng
Format: epub
Tags: Social Science, General, Anthropology, Cultural & Social, Business & Economics, Banks & Banking, Religion, Islam
ISBN: 9780226552118
Google: XsRqDwAAQBAJ
Publisher: University of Chicago Press
Published: 2018-11-22T04:14:43+00:00

FIGURE 11. The headquarters of Bank Islam with a sign in front noting that the building is constructed on waqf property. Photo by author.

Nonetheless, as real estate prices escalated in this part of central Kuala Lumpur, which commercial real estate brokers zealously promoted as the “Golden Triangle,” development of the waqf parcel became an increasingly enticing prospect. Development ultimately entailed collaboration between a state religious body and two Islamic financial institutions. The Federal Territory Islamic Religious Council (Majlis Agama Islam Wilayah Persekutuan, MAIWP)1 was the trustee of the waqf, Tabung Haji provided the capital for the construction of the office tower, and Bank Islam agreed to a twenty-five-year lease of the building to make the project economically viable. According to Othman, the project demonstrated the economic benefits of waqf. He told me that Tabung Haji invested RM151 million in the project, but real estate professionals estimate that the building and land will be valued at RM300 million after Bank Islam’s current lease expires. The MAIWP will receive RM56.6 million over the twenty-five-year period in rental payments and, when the lease expires, ownership of the building will revert to MAIWP.

Othman invoked this project as a prime example of how the financial institutions that originated within Islam could be used to facilitate economic growth. This approach, which seeks to facilitate contemporary economic development by mobilizing institutions that are grounded in the history of Islam and are unassailable in their religious credentials, represents the shariah-based approach to Islamic finance. It entailed a partnership arrangement between Tabung Haji and MAIWP and the mobilization of the factors of production for the real economy.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.