Share (corporate) waqf from an Islamic law perspective: a conceptual study

Abstract

Waqf (Endowment) is a key financial instrument in poverty alleviation and the enhancement of economic welfare in a society. Its way of application has been changed to accommodate the needs of the modern financial industry in this modern world. Contemporary Waqf Tools (CWT) were adopted and implemented by many countries across the world as means of modern financial change. In this backdrop, this study aims to assess the Islamic legal status of the corporate waqf which is one of the modern contemporary waqf instruments. Therefore, the study employed the interpretive qualitative analysis using past literature as well as primary sources of Islamic Law from an Islamic perspective. The study concluded with the argument that waqf (endowment) is one of the ways in terms of fulfilling the economic needs of human beings. Meanwhile, modern share waqf is a type of cash waqf which was accepted by Abu Hanifah and Imam Zufar and it is a way for capital accumulation. In this method, any individual can purchase shares using a little amount of money and convert them into share waqf permitted by the shari’ah. The findings also suggest that there is a need for consideration and the development of share Waqf in order to find a sustainable solution for the economic development in Sri Lanka. This work is significant in terms of examining the scopes and conditions of share waqf through the perspective of Islamic jurisprudence. Furthermore, the researchers hope that this work will serve as a starting point for future studies