A New Framework of Corporate Governance for Waqf: A Preliminary Proposal

Islam and Civilisational Renewal (Vol 6) No. 3.

Posted: 9 Nov 2015

See all articles by Mohammad Abdullah

Mohammad Abdullah

University of Gloucestershire, Markfield Institute of Higher Education (MIHE), Students

Date Written: July 10, 2015

Abstract

Waqf (plural; Awqaf) denotes an Islamic charitable institution. The global cumulative Waqf assets have been estimated to be worth $1 trillion. Though, this estimation is not based on precisely exact data, it reflects only a glimpse of what the institution of Waqf may entail in the process of and struggle for socio-economic upliftment of the Ummah. However, despite possessing the potential of improving society, a substantial proportion of total Awqaf is still lying dormant across the world.

In modern day economy, Waqf has taken a new trajectory, both as a product and also as an institution. The relevance of modern Awqaf has also been streamlined due to its close affinity with the Islamic finance industry. Remarkably, the modern Awqaf differs from the traditional Awqaf in many aspects. Whereas, Awqaf in the past were managed by individuals, the modern trend in Awqaf sector emphasises on the need of institutional management. This scenario has accelerated the demand for the development of corporate governance framework for the institutional Mutawallis (Awqaf managing institutions). However, not much has been written in the corporate governance area of Waqf.

This paper aims at exploring the prospects of developing a new framework for the corporate governance of modern Awqaf. To this end, the paper examines the Waqf-related Islamic jurisprudential intricacies vis-à-vis the existing conventional guidelines on corporate governance. Finally, the paper proposes a new model of corporate governance for Awqaf.

Keywords: Waqf, Awqaf, Corporate governance, Islamic charitable institution, Islamic social finance.

JEL Classification: A10, A11, A12, A13

Suggested Citation

Abdullah, Mohammad, A New Framework of Corporate Governance for Waqf: A Preliminary Proposal (July 10, 2015). Islam and Civilisational Renewal (Vol 6) No. 3., Available at SSRN: https://ssrn.com/abstract=2686816

Mohammad Abdullah (Contact Author)

University of Gloucestershire, Markfield Institute of Higher Education (MIHE), Students ( email )

Gloucestershire
United Kingdom

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