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| Al-Azhar Mosque and University fully supported by the Waqaf system |
The institution of waqaf (Islamic endowment) is one of the institutions of Islam that has contributed greatly to Islam’s past success and empowered the Muslim community since the early days of Islamic history. Apart from waqaf for such religious purposes as the endowing of mosques, cemeteries, religious schools and institutions of Islamic education, waqafs, in essence, are also generally philanthropic. They are characterized by charity and welfare including those dedicated to assisting the poor, the destitute, the oppressed and the marginalized.
Waqaf, or pious foundation, as part of the voluntary third sector, aims to provide the goods and services which either could not be provided for at all or sufficiently due to the failure of the market mechanism or the government. In addition to waqaf aiming at providing health services, education, and food distribution etc., the use of funds accumulated in waqaf in an efficient manner is being developed through cash-waqaf system and human development projects to enhance their contribution to the economic development of the societies[1].
There are few types of waqaf: i)The religious waqf - waqf that devoted for religious purposes, i.e. land and building for worship. ii) The philanthropic waqf - is aimed to support the poor and people in need or people at large such as education, health services, scientific research, libraries, care of environment, public facilities, business financing, etc. iii) Family waqf - is the kind of waqf that the benefit of waqf given to the own children and descendants of the waqif, and only the surplus, if any, might be given to public. However, some Muslim jurist argue that family waqf is not allowed.
From economic perspective, waqf can be seen as saving and investment altogether which will lead to return that gained in the next life, hereafter. Waqf from economic point of view could be said as diverting funds and other resources from consumption and investing them in productive assets that provide either usufruct or revenues for future consumption by individuals or groups of individuals As a saving instrument, waqf fund or property is hold or preserved that its value is not decreased. However, a person who devoted waqf (waqif) can not withdraw his/her saving deposit because the assets no longer belong to him/her but Allah. So, the waqf will become public asset. Although the ownership turns from private into public, the benefit in term of akhirat reward will flow sustainably for the waqif as long as the waqf asset exist and generate public benefit.
This reward then encourage the believers to contribute to the sake of ummah rather than receive personal interest. Today, a sustained, total effort is urgently needed to re-empower the ummah. The power of the waqaf institution, since diminished, must be redeployed, mobilized anew and creatively adapted to the needs of the ummah in meeting today’s extreme challenges. Obviously, today’s effort to re-empower the ummah must be preceded by efforts to strengthen the economic foundations of the Muslim community, and this must be undertaken in a form and manner relevant to today’s business driven, free market economy.
One powerful option to develop waqaf properties is to adopt and adapt the waqaf to suit the corporate competitive advantage needs for size and critical mass, and yet retain its institutional potential to serve a higher Islamic cause. Muslims do therefore have a choice to attain access to corporate and business-driven economic empowerment; yet through waqaf, they can achieve all these without having to compromise on their higher Islamic aspirations and ideals. They can indeed succeed in managing this paradox through making a success of “Corporate Waqaf”.
This Business Jihad effort obviously requires the total mobilisation of every member of the ummah, and in particular, all categories of businesses, be they small, medium or large scale, as well as all social organizations representing the non-business community at large. Thus, any winning strategic approach dictates that priority must be given to efforts in building and growing sizeable Islamic wealth-creating corporate organisations that are self-reliant, competitive and having the capability to grow into global Islamic Multinational Corporations (Islamic MNCs).
Herein lies the critical role of the institution of Corporate Waqaf – as a prospective Islamic MNC. The best example of successful waqaf institution of contributing waqaf to the Muslims world development is the Johor Corporation (A Malaysian State-based Government-linked Corporation – GLC) through the establishment of Waqaf An-Nur Corporation Berhad (previously known as Kumpulan Waqaf An-Nur Berhad). The first step was taken when Johor Corporation transferred to waqaf RM 200 million of shares (on net asset value basis) of listed companies owned by it to Waqaf An-Nur Corporation Berhad on 3rd August, 2006.
The amassing of assets, properties and businesses whose ownership are institutionalized into Waqaf and are managed by the best and most qualified, can spearhead this re-empowerment process and assure sustainability through generations. At the very least, waqafs can especially overcome the loss of control, dilution and erosion of ownership by the Malays and the Muslims that has been haunting them all these years. It is obvious that one of the most significant contributors to the dilution and erosion of Malay and Muslim ownership of wealth and strategic assets has been the vestment of ownership into fragile individual and family hands.
[1] Mehmet Asutay, A Political Economy Approach to Islamic Economics: Systemic Understanding for an Alternative Economic System, Kyoto Bulletin of Islamic Area Studies, 1-2(2007),
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