Islamic Waqf Research Articles

Waqf-Based Islamic Philanthropic Instruments for Micro-Funding of Micro-Finance

Islamic Finance is based on the philosophy of social justice by sharing risk and rewards. It prohibits interest payments, short-selling and contracts considered excessively risky. Islamic finance is based on Shariah, or Islamic law. It requires that gains be derived from ethical and socially responsible investments and discourages interest-based banking and investments in sectors like pork, gambling and pornography and other immoral activities. Investments in long term projects considered to benefit society are held in high regard. Islamic microfinance which is a part of Islamic Finance blends well with the goal of microfinance as both Islamic finance and traditional micro-finance institutions are aimed at achieving economic justice. Islamic microfinance contributes toward uplifting the poor with funding based on profit and loss sharing instead of the high-interest bearing credits offered by traditional microfinance institutions. It has the potential to address the ultra-poor who lack collateral owing to its profit-loss sharing mechanism. This paper shall explore an area of Islamic Finance that deals with one of the two major sectors of Islamic endowments, zakat and waqf. It will elaborate the concept of implementing specialized financial instruments, Cash Waqf to deal with the long mismanaged charitable fund of waqf. It will discuss opportunities for enhancing participation, provide efficient and improved management of endowments, ensure selective investments to maximize the socio-economic benefit and most importantly invest the scattered funds in a productive usage as opposed to current practice of consumerism through the mechanism of micro funding of Islamic microfinance institutions.

WHAT DO MUSLIMS REALLY THINK ABOUT ISRAEL?

Muslim realism, featuring a pragmatic, pluralistic approach to Israel as a member of the community of nations, has resulted in direct, bilateral treaties with a number of Muslim-majority states. These developments are grounded not only in realpolitik but in Islamic law and statecraft, and many moderate Muslims have voiced their support of Israel's existence. The Palestinian Authority must summon the political will to bring the Islamic Waqf officials under control and to repudiate Salafi claims over Jerusalem. With the vital support of Saudi Arabia and Jordan, the Palestinians and Israelis may be able to establish order and justice in their lands.

Islamic Waqf and Management of Cultural Heritage in Palestine

This paper studies the salient features that characterise the Islamic waqf and the importance of its development through history as a system for management of cultural heritage in Palestine. In an attempt to understand the value of waqf and its developmental role, this paper discusses the significance of waqf development with regard to social and economic growth. The paper concludes that Islamic waqf in Palestine is certainly not an invitation to the authority of the government to dominate the area of benevolent (caring, generous) activities in society but quite the opposite; from its beginning, the establishment of waqf was a clear representation of creating a third sector related to philanthropy (charities) that is kept away from both the profit‐motivated behaviour of individuals and the authority‐dominated action of the government and could be developed and adopted today in our society as a sustainable approach to the management of cultural heritage.

The Provision of Public Goods Under Islamic Law: Origins, Contributions, and Limitations of the Waqf System

The Islamic waqf appears to have emerged as a credible commitment device to give property owners economic security in return for social services. Throughout the Middle East, it long served as a major instrument for delivering public goods in a decentralized manner. In principle, the manager of a waqf had to obey the stipulations of its founder to the letter. In practice, the founder's directives were often circumvented. An unintended consequence was an erosion of the waqf system's legitimacy. In any case, legally questionable adaptations proved no substitute for the legitimate options available to corporations. As it became increasingly clear that the waqf system lacked the flexibility necessary for efficient resource utilization, governments found it ever easier to confiscate their resources. In the nineteenth century, the founding of European-inspired municipalities marked a formal repudiation of the waqf system in favor of government-coordinated systems for delivering public goods.

The Provision of Public Goods under Islamic Law: Origins, Impact, and Limitations of the Waqf System

The Islamic waqf appears to have emerged as a credible commitment device to give property owners economic security in return for social services. Throughout the Middle East, it long served as a major instrument for delivering public goods in a decentralized manner. In principle, the manager of a waqf had to obey the stipulations of its founder to the letter. In practice, the founder's directives were often circumvented. An unintended consequence was an erosion of the waqf system's legitimacy. In any case, legally questionable adaptations proved no substitute for the legitimate options available to corporations. As it became increasingly clear that the waqf system lacked the flexibility necessary for efficient resource utilization, governments found it ever easier to confiscate their resources. In the 19th century, the founding of European-inspired municipalities marked a formal repudiation of the waqf system in favor of government-coordinated systems for delivering public goods.

The Ownership of the U.S. Embassy Site in Jerusalem

One of the most difficult issues of the final status negotiations between Israel and the Palestinians is Jerusalem. The complexity of this issue has been compounded by U.S. actions move its embassy from Tel Aviv Jerusalem and by allegations that the prospective site of the embassy is Palestinian refugee property confiscated by Israel since 1948. Evidence of Palestinian ownership of the 7.7-acre site-the subject of this report-was gathered by a group of Palestinians from the records of the United Nations Conciliation Committee on Palestine (UNCCP) in New York, the Public Records Office (PRO) in London, the U.S. State Department (DOS), the Jerusalem Municipality, the Israeli Land Registry Records (Tapu), the Israeli Ministry of justice, and heirs of the original owners. The research extended over a six-year period and involved some forty individuals. Although hampered by the inaccessibility of the site surveyors and by Israel9s rezoning and reparcellation of the land in question, the evidence yielded by this research shows that at least 70 percent of the site is refugee private property, of which more than a third is Islamic waqf (trust). On 15 May 1948, the last day of the Mandate, the site was owned by seventy-six Palestinians. On 28 October 1999, the American Committee on Jerusalem (ACJ) addressed a letter Secretary of State Madeleine Albright outlining the results of this research and requesting a meeting share the findings with the DOS. It was only on 28 December that the DOS replied the effect that any data that the group had should be communicated the DOS to be kept on file. Given the grave implications of the embassy issue for the peace process and the credibility of the United States, the ACJ felt as a result of the correspondence that it had no alternative but go public.

The Owner ship of the U.S. Embassy Site in Jerusalem

One of the most difficult issues of the final status negotiations between Israel and the Palestinians is Jerusalem. The complexity of this issue has been compounded by US. actions to move its embassy from Tel Aviv to Jerusalem and by allegations that the prospective site of the embassy is Palestinian refugee property confiscated by Israel since 1948.Evidence of Palestinian ownership of the 7.7-acre site-the subject of this report-was gathered by a group of Palestinians from the records of the United Nations Conciliation Committee on Palestine (UNCCP) in New York, the Public Records Office (PRO) in London, the US. State Department (DOS), the Jerusalem Municipality, the Israeli Land Registry Records (Tapu), the Israeli Ministry ofJustice, and heirs of the original owners. The research extended over a six-year period and involved some forty individuals. Although hampered by the inaccessibility of the site to surveyors and by Israel's rezoning and reparcellation of the land in question, the evidence yielded by this research shows that at least 70 percent of the site is refugee private property, of which more than a third is Islamic waqf (trust). On 15 May 1948, the last day of the Mandate, the site was owned by seventy-six Palestinians.On 28 October 1999, the American Committee on Jerusalem (ACJ) addressed a letter to Secretary of State Madeleine Albright outlining the results of this research and requesting a meeting to share the findings with the DOS. It was only on 28 December that the DOS replied to the effect that any data that the group had should be communicated to the DOS "to be kept on file."Given the grave implications of the embassy issue for the peace process and the credibility of the United States, the ACJ felt as a result of the correspondence that it had no alternative but to go public.

Studi Eksploratif Tentang Potensi Pengembangan Perguruan Tinggi Berbasis Wakaf

This study aims to look at the potential for the development of waqf-based universities in West Sumatra. This study begins with the problem of the magnitude of potential waqf in Indonesia, especially West Sumatra, which has not been managed optimally. This condition is a great opportunity for the education sector to be able to transform and develop waqf as a financing alternative to higher education. Waqf can be managed by producing and investing in real sector and investment in Islamic financial institutions. Many financing models can be done with waqf assets, but must pay attention to sharia-compliant principles. The research data was collected through in-depth interviews with several Islamic university leaders and various waqf stakeholders. The results of this study indicate that so far, no information has been obtained regarding the true potential of waqf in West Sumatra because the data collected from each waqf manager is still not optimal and requires a long time. But what needs to be done now is to optimize waqf management and increase socialization especially for money waqf.

DEVELOPING ISLAMIC WAQF BANK AS A MECHANISM FOR FINANCIAL SYSTEM STABILITY

The establishment of Islamic banking institution all over the world is often related to the proclivity of muslims to live all aspects of their lives in accordance with the teachings of Islam. Islamic bank is one of the components in Islamic financial sector that plays very vital role to generate the growth of economics among muslim society. Indeed, Islamic bank was more robust to the financial crisis compared to the conventional banking institution. Cash waqf is a trust fund established with money to provide services to mankind in the name of Allah. The gifted capital then will be spent for all sorts of pious and social purposes inclusive for the financing and investment objectives. It is recognized that there is limited study in the area of cash waqf especially in the development of Islamic waqf bank (IWB). The main objective of this article is to analyze the possibility and obstacles in developing IWB in the mainstream Islamic financial institutions. The methodo-logy of research in this article is through a qualitative research based on interview with relevant officers in the Islamic banking, waqf, and academic sectors. The general finding in this article shows that IWB can apply cash waqf structure, whereby the cash waqf fund must be converted into fixed assets such as land and buildings. The rental income from the fixed assets and investments then can be channelled to waqf beneficiaries such as funding students’ education, health assistance, giving financing to the entrepreneur, and enhancing muslim economy in various fields. Nevertheless, a proper mechanism of IWB must be developed in order to avoid any obstacles in terms of capital requirement, risky investment, limited number of experts in the field of Islamic bank and waqf as well as legal and regulation requirement.Keywords: Islamic Waqf Bank, Cash waqf, Islamic finance, Financial system stabilityJEL Classification: G21, I31, L31