New frontiers for cash-waqf models for socio economic development
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Waqf is a charitable financial instrument established by withholding immovable and movable properties to perpetually spend its revenue on fulfilling various socio-economic needs, depending on the founder's terms and conditions. Once the property is created as waqf, it can never be given as a gift, inherited or sold. It belongs to Allah (SWT), and the waqf property always remains intact. Only its generated revenue is channeled to the specified need. There are two motives behind the creation of waqf for the founder. The first is to attain righteousness as clearly stated in the following verse from the Qur'an: "By no means shall ye attain righteousness unless ye give (freely) of that which ye love; and whatever ye give, of a truth God knoweth it well" (Surah Al- i'- 'Imran 3: 92). The second is to get eternal rewards even after the founder's death, as stated in the hadith. Abu Hurairah (RA) reported Allah's Messenger (PBUH) as saying: "When a man dies his acts come to an end, except three things, recurring charity, or knowledge (by which people benefit), or pious offspring, who pray for him" (Sahih Muslim, Hadith 1383). These two inspiring motives in creating waqf imply a unique and everlasting financial instrument that not only fulfils the various socio-economic needs for different levels of Muslim societies, but also provides sustainable goods and services for future generations as well as generating continuous rewards for founders in the hereafter.
Waqf , Cash waqf , Cash waqf model , Fintech , Crowdfunding
A. Mohsin, M. I. (2022). New frontiers for cash-waqf models for socio economic development. In Syed Nazim Ali & Umar A. Oseni, (Eds.), Waqf development and innovation: socio-economic and legal perspectives (pp. 63-73). Abingdon, Oxon: Routledge.