lesson 5 - waqf studies

Module 5 - Waqf: Its Development, Dimensions and Future Prospects

WAQF STUDIES INTRODUCTORY COURSE

Course Content

© – AWQAF SA WAQF STUDIES INTRODUCTORY COURSE Slide 2

•Waqf and human development;•Waqf and economic growth;•Reviving the role of Waqf;•The Duties of Islamic scholars and Advocates;•Recommendations for governments and communities in terms of reviving Waqf.

Learning Outcomes


1. Understand how Waqf can help with the human development;

2. Understand the economic development in terms of Waqf;3. Understand the duties of Islamic scholars and advocates

towards reviving the role of Waqf;4. Understand the Recommendations for governments and

communities in terms of reviving Waqf.

Waqf and human development


• Islam teaches that the development of the human being is multi dimensional namely: spiritual, psychological, intellectual and physical.

• Waqf orients development of all the above dimensions, simultaneously.

• A large part of Waqf is devoted to moral and educational benefits, for the growth of mankind, purification of soul, and improvement intellectual and behavioural standards.

Waqf and human development – Continued …


In a study about Waqf in some Islamic countries, the waqf funds are allocated to charitable activities as follows:

Waqf and economic growth


• The profit or surplus from waqf investments can all be geared to socio-economic development, while the waqf assets remain intact.

• Waqf investment strategy need to take into account that the investment itself need to make social impact on the ummah (communities) and not just hoard money in investments that make the rich people richer.

• Waqf surpluses need to be spent on socio-economic areas that create a social impact on the ummah (community) and empower communities by being self reliant and break out of the mentality of dependency.

Waqf and economic growth – Continued …


• Historically, waqf played a leading roles in economic growth.

• For instance, the bequests of agricultural lands devoted to orphans provided a platform for them to plough and benefit from the crops, in such a way that each orphan is given a specific share from the land.

• The above scheme was used in Fes in Morocco for the poor and the homeless. There were those who would provide amounts of cereal or seeds to give to farmers who could not find any seeds in the period of sowing. Then they would return the grains after the harvest for other people to benefit from, and so forth. This provided a mechanism of re-cycling the benefit of the seeds among larger groups of people.

Waqf and economic growth – Continued …


• Cash waqf is another form of bequeathing. This form of waqf was introduced during the Ottoman Era. However, it must be noted that cash cannot be increased in value unless it is invested. Shari’ah does not allow increase through riba (interest).

• Another innovative method of utilising cash is through Islamic social entrepreneurship which creates both social impact and profit.

• Waqf provides a platform to engage the ummah (communities) and provides employment.

• Waqf has the potential to lessen the burden of Governmental social welfare as the private institution of waqf can target their profits towards creating social impact.

Reviving the role of Waqf


• Waqf can be considered an important religious and civilizational asset due to its principles, regulations, historical role as well as its participation in the building of Islamic society, its growth, strength and civilization.

• Waqf can play an important role in the improvement of Muslim communities as well as the poor and needy. It can effectively contribute towards the socio-economic development and economies as a whole.

• However, waqf needs to improve its management, governance and investment strategies in order for Waqf to regain its position and resume its mission in a better and more efficient way than the present.

Reviving the role of Waqf – Continued …


The Duties of Islamic scholars and Advocates•Islamic scholars and advocates need to propagate knowledge and mobilise waqf in order to revive waqf. They need to teach and propagate the role of waqf in socio-economic development and the role waqf has already played historically.

•Islamic scholars need to teach about waqf as a tool for Islamic economic system and undertake more scientific studies and research on the topic of waqf.

•Currently, Kuwait Awqaf Public Foundation, Islamic Development Bank, the National Awqaf Foundation of South Africa have started providing knowledge through seminars, research and publications, both locally and internationally.

Recommendations for governments and communities in terms of reviving Waqf


• Governments in the Islamic world and Communities outside the Islamic World should take the issue of Waqf endowment seriously and take Waqf as a trust obligatorily requiring care, extension and development. It should be considered one of the authentic pillars of the development of society.

Some of the measures that governments should take in this regard are as follows:

• Contributing and leading the aforementioned duty of Islamic scholars, ulama, and advocates, by organizing awareness and mobilization campaigns and serving the scientific dimension of Waqf.

Recommendations for governments and communities in terms of reviving Waqf – Continued …


• Adopting complete transparency and the necessary rigor in managing Waqf funds and property, and involving honest scholars and train people to participate in the management and control of such property. It should be noted that mismanagement, waste, misappropriation, or illegal transfer of bequest property, and any related dubious behaviour can lead people to stop endowing and refuse to bequeath their property for fear that their donations may be subject to such practice.

• Using control, accounting and inspection means in order to list all bequest property and all activities related to them, through expert accountants specialized in this field, with the publication of the relevant detailed reports.

Recommendations for governments and communities in terms of reviving Waqf – Continued …


• Simplify the laws, regulations and administrative procedures of Waqf. While this is normally a request by investors - seeking profits for themselves in the first place, those who donate and give up their own properties for the sake of humanity should receive all kinds of help and alleviation, and even all kinds of welcome, encouragement and honouring, without any delay or complications.

• A major deterrent in most Muslim countries is state control of Awqaf. This should go back to the traditional way in which Muslims organised the Waqf system: as a decentralised, civil society institution with the state providing the regulatory framework and supervision over trustees or mutawalllees. These are elements that encourage Waqf donors bequest and increase their number; for it allows them to choose the way and the management for their Waqf, which satisfies them and gives them tranquillity.

End of Module 5


If you have any questions on this module, please contact your lecturer.

lesson 5 - waqf studies

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