IDEAS home Printed from https://ideas.repec.org/a/idn/jimfjn/v4y2018i1ip161-182.html
   My bibliography  Save this article

Evolution In Waqf Jurisprudence And Islamic Financial Innovation

Author

Listed:
  • Mohammad Abdullah

    (FAB, Siraj (Islamic Window of First Abu Dhabi Bank))

Abstract

This paper aims to analyse the evolutionary process in the jurisprudential structure of modern waqf (Islamic endowment) and underlines the scope of Islamic financial innovation through the mechanism of waqf. The paper proposes the innovative models of parallel waqf, waqf-based social and financial instruments, waqf-based ?uk?k, micro-tak?ful, and waqf-based commodity bank. The research adopts the qualitative approach and employs socio-legal research methodology for the analysis. The paper relies on desk-based research. Compared to the classical structure of waqf which was confined within the domain of a perpetual charitable institution, this paper finds that modern waqf has ushered in several new dimensions into its fold. Modern waqf is in the process of re-evolution. Waqf, in the current scenario, has evolved into a financial product, a property-conveyance tool, an instrument of contract, an investment tool, a risk mitigation mechanism and an incorporated entity. The scope of this paper is limited to analysing the jurisprudential evolution of waqf and its impact on the Islamic finance industry. It does not seek to discuss the overall role or impact of waqf on the society as a whole. This paper also does not endeavor to compare and contrast the mechanism and modalities of other philanthropic institutions vis-?-vis waqf. This paper examines the jurisprudential underpinnings of waqf and their implications and applicability to the Islamic finance industry. The paper draws on the process of how the mechanism of waqf has already been employed to develop various innovative Islamic financial products and how this process can be a catalyst for further innovation in the Islamic finance industry. The main contribution of the paper is encapsulated in the analysis of how the jurisprudential structure of the modern waqf has been evolving in the last few decades to accommodate the modern needs of Islamic finance. It further enumerates a few innovative Islamic financial products which can be developed by exploiting the available flexibility in the evolved version of modern waqf.

Suggested Citation

  • Mohammad Abdullah, 2018. "Evolution In Waqf Jurisprudence And Islamic Financial Innovation," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 4(1), pages 161-182, August.
    • Handle: RePEc:idn:jimfjn:v:4:y:2018:i:1i:p:161-182
    DOI: https://doi.org/10.21098/jimf.v4i1.920
    as

    Download full text from publisher

    File URL: http://jimf-bi.org/index.php/JIMF/article/download/920/727
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.21098/jimf.v4i1.920?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mohammad Abdullah, 2015. "Analysing the moral aspect of qard: a shariah perspective," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 8(2), pages 171-184, June.
    2. Shah Shirazi, Nasim, 2014. "Integrating Zakāt and Waqf into the Poverty Reduction Strategy of the IDB Member Countries," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 22, pages 79-108.
    3. Mohammad Abdullah, 2015. "Analysing the moral aspect of qard: a shariah perspective," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 8(2), pages 171-184, June.
    4. Mohamed Aslam Haneef & Ataul Huq Pramanik & Mustafa Omar Mohammed & Md. Fouad Bin Amin & Aliyu Dahiru Muhammad, 2015. "Integration of waqf-Islamic microfinance model for poverty reduction," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 8(2), pages 246-270, June.
    5. Mohamed Aslam Haneef & Ataul Huq Pramanik & Mustafa Omar Mohammed & Md. Fouad Bin Amin & Aliyu Dahiru Muhammad, 2015. "Integration of waqf-Islamic microfinance model for poverty reduction," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 8(2), pages 246-270, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Umar, Umar Habibu, 2020. "The business financial inclusion benefits from an Islamic point of view: a qualitative inquiry," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 28, pages 83-100.
    2. Mejda Bouanani & Besma Belhadj, 2019. "Zakat and Poverty Alleviation in Tunisia Using the Fuzzy Approach," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(2), pages 421-432, June.
    3. Salman Ahmed Shaikh, 2015. "Welfare Potential of Zakat: An Attempt to Estimate Economy wide Zakat Collection in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 1011-1027.
    4. Khasandy, Elleriz Aisha & Badrudin, Rudy, 2019. "The Influence of Zakat on Economic Growth and Welfare Society in Indonesia," MPRA Paper 91574, University Library of Munich, Germany.
    5. Azganin, Hassan & Kassim, Salina & Sa’ad , Auwal Adam, 2021. "Proposed waqf crowdfunding models for small farmers and the required parameters for their application," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 29, pages 2-17.
    6. Shaikh, Salman Ahmed, 2015. "Using Waqf as Social Safety Net & Funding Public Infrastructure," MPRA Paper 68751, University Library of Munich, Germany.
    7. Minda Indrani & Sagi Sagara, 2015. "How e-Zakat Has Changed the Way Muslims Pay their Zakat in Indonesia," International Journal of Humanities, Arts and Social Sciences, Dr. Mohammad Hamad Al-khresheh, vol. 1(3), pages 124-126.
    8. repec:dau:papers:123456789/15015 is not listed on IDEAS
    9. Rini Rini, 2020. "A Review of the Literature on Zakah between 2003 and 2019," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 156-164.
    10. Lamido , Abdullahi Abubakar & Haneef, Mohamed Aslam, 2021. "Shifting the paradigms in waqf economics: towards renewed focus on socioeconomic development," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 29, pages 18-32.
    11. Siti Nadiah Mohd Ali & Salbiah Mokhtar & Abdul Halim Mohd Noor & Noraini Johari & Nor Aini Salleh & Nurul Sahida Fauzi, 2018. "A Conceptual Framework in Synergizing Waqf Real Estate and Zakat through Strategic Integration for Malaysian Asnaf," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 815-828, January.
    12. Hydzulkifli Hashim Omar* & Abubakar Yusuf Sanyinna, 2018. "Administrative Challenges of WAQF Institution in the Contemporary World: Future Prospects," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 294-299:6.
    13. Mejda Bouanani & Besma Belhadj, 2020. "Does Zakat reduce poverty? Evidence from Tunisia using the Fuzzy Approach," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 835-850, November.
    14. repec:idn:jimfjn:v:4:y:2018:i:1i:p:1-22 is not listed on IDEAS
    15. Shaikh, salman Ahmed, 2014. "Welfare Potential of Zakat: An Attempt to Estimate Economy wide Zakat Collection in Pakistan," MPRA Paper 68752, University Library of Munich, Germany.

    More about this item

    Keywords

    Waqf; Charity; Charitable Trust; Endowment; Innovation; Islamic Finance; Social Finance;
    All these keywords.

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:jimfjn:v:4:y:2018:i:1i:p:161-182. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.