Revitalization of Waqf for Socio-Economic Development, Volume I

Foreword

Acknowledgements

Contents

Notes on Contributors

List of Figures

List of Tables

Part I Role of Waqf Management in Socio-Economic Development

Chapter 1 Introduction

References

Chapter 2 Role of Cash Waqf Deposit (CWD) as an Instrument for Socio-Economic Development: Bangladesh Perspective

1 Introduction

1.1 Objectives of the Paper

1.2 Organization of the Paper

2 Definition of Cash Waqf Deposits (CWD)

2.1 Takaful Waqf Model

3 Role of Islamic Banks in Management of Cash Waqf Deposits in Bangladesh

3.1 Cash Waqf Deposit Management by the Islamic Banks in Bangladesh

3.2 Parties to a Cash Waqf

3.3 The Investment Strategy of Cash Waqf Deposits

3.4 Profit Distribution Framework of CWD

Strategies Followed by the Banks to Popularize the Cash Waqf Deposits

4 Issues and Problems in Management of Cash Waqf Deposits in Bangladesh

5 Future Directions for Better Management of Cash Waqf Deposits

6 Final Remarks and Recommendations

References

Chapter 3 Waqf Philanthropy and Orphans’ Socio-Economic Development in Northern Nigeria Based on Maqasid al Shariah Principles

1 Introduction

2 Islamic Philanthropy Concept

3 Waqf

4 Major Concepts and Categorizations in Maqasid al-Shari’a

5 Methodology

6 Analysis and Findings

7 Conclusions and Recommendation

References

Chapter 4 FinTech-Enabled Cash Waqf: Effective Intermediary of Social Finance

1 Introduction

2 Overview of Waqf and the “FinTech-Enabled Cash Waqf”

2.1 Overview of Waqf and the Scope of This Paper

2.2 Overview of the “FinTech-Enabled Cash Waqf”

3 Practical Forms of the FinTech-Enabled Cash Waqf

3.1 Prerequisites for Practice

3.2 Potential Forms of FinTech-Enabled Cash Waqf

4 Significance of FinTech-Enabled Cash Waqf in Product Development

4.1 Criticism Against the Current Form of Product Development

4.2 FinTech-Enabled Cash Waqf Can Contribute

5 Conclusion

References

Chapter 5 Experiences and Lessons of Cash Waqf in Bangladesh and Other Countries

1 Introduction

2 Definition of Cash Waqf

3 Main Features of Cash Waqf

4 Economic Values of Cash Waqf

5 Current Practices of Cash Waqf in Bangladesh

6 Cash Waqf—An Alternative Islamic Financing Model in Bangladesh

6.1 Operational Guidelines of Cash Waqf-Based Products Adopted by Some Islamic Banks in Bangladesh

Cash Waqf-Based “Mudarabah Deposit Account”

The Objectives of Cash Waqf Mudarabah Deposit Accounts (CWMDA)

Cash Waqf in Perpetuity and Mutawalli’s Discretions

CWMDA Created with Lump Sum Amount or by Installments

Issuance of CWMDA Certificate and Receipt

How CWMDA Operates

Investment in Conformity with Shariah

High Rate of Investment Income

Distribution of Usufruct to the Beneficiaries

Profit–Loss Sharing

Cash Waqf Management Committee

Readily Available List of Purposes

Family Rehabilitation

Education, Sports, Da’wa and Culture

Health and Sanitation

Social Service

Arrangement After Serving the Specific Purpose or Death of W?qif

Liabilities and Rights of the Bank

7 Cross-Country Review of Cash Waqf

7.1 Bahrain

Objectives of the Waqf Fund

Contributors of Waqf Fund

A Waqf Fund Sponsored Programs

Human Capital Development in Islamic Finance

Research and Collaboration with Other Nations

Curriculum Development

7.2 Indonesia

DDR Cash Waqf Fund

Health Care

Education

Economic Empowerment and Social Welfare

7.3 Kuwait

Objectives of Kuwait AWq?f Public Foundation (KAPF)

Waqf Fund Board of Directors

7.4 Malaysia

Public Response to Cash Waqf in Malaysia

Potential for Cash Waqf in Malaysia

Cash Waqf Shares and the State Islamic Religious Council (SIRC)

7.5 Singapore

Cash Waqf by Salary Deduction

7.6 Turkey

Public Facilities Supported by Cash Waqf

Financial Services Provided by Cash Waqf

Revenue Earned by Cash Waqf

Cash Waqf and the Debate on Interest

8 Role of Cash Waqf in Poverty Alleviation

9 Recommended Cash Waqf Model for Bangladesh

10 Conclusion

References

Chapter 6 The Role of Waqf (Endowment) in Economic Development of Bosnia and Herzegovina: A Historical Overview and Future Prospects

1 Introduction

2 Defining Waqf (Endowment)

3 The Institution of Waqf in Islam

4 The Role of Waqf in Economic Development of Bosnia and Herzegovina

4.1 Phase I—The Ottoman Period

4.2 Phase II—The Habsburg Monarchy

4.3 Phase III—The Kingdom of Serbs, Croats, and Slovenes (SHS)

4.4 Phase IV—The Socialist Federal Republic of Yugoslavia (SFRY)

4.5 Phase V—Pre- and Post-Dayton Peace Accord

5 Conclusions

References

Chapter 7 Using Waqf for Socio-Economic Development in Bangladesh: Potentials, Challenges, and Policy Directions

1 Introduction

2 Research Methodology

3 Literature Review

3.1 Concepts of Waqf, Its Features, and Uses

3.2 Review of Articles/Papers

4 Current Status, Potentials, and Significance of Waqf in Bangladesh

4.1 Current Status of Waqf in Bangladesh

4.2 Regulation and Supervision of Waqf Estates

4.3 Potentials of Waqf Development in Bangladesh

Development of Existing Waqf Estates

Growing Income of Middle Class

Expanding Corporate Sector

Great Potentials of Cash Waqf

Bright Prospect of Remittance Waqf

Potentials of Micro-Waqf

4.4 Significance of Waqf Development in Bangladesh

Reducing Poverty and Achieving Sustainable Development Goals

Promoting Financial Inclusion

Reducing Public Expenditure

Distribution of Income and Wealth

Permanent Social Security

Transforming Social Capital

Developing an Inclusive Economy

5 Methods of Financing Waqf Properties

5.1 Al-Hukr (Indefinite Lease)

5.2 Al-Ijarahtain (Dual Lease)

5.3 Mursad Loan

5.4 Istisna

5.5 Diminishing Musharakah

5.6 Build-Operate-Transfer (BOT)

5.7 Cash Waqf

5.8 Corporate Waqf

5.9 Issuance of Sukuk

6 Challenges for Developing Waqf in Bangladesh

7 Recommendations

8 Concluding Remarks

References

Chapter 8 Cash Waqf Deposit Product: An Innovative Instrument of Islamic Banks for Socio-Economic Development in Bangladesh

1 Introduction

1.1 Cash Waqf

1.2 Waqf Literature Review

2 Research Methodology

3 Theoretical Underpinning of Cash Waqf

3.1 Cash Waqf

3.2 The Application of Cash Waqf as Modern Instruments

Waqf Shares Model

Corporate Cash Waqf Model

The Waqf Mutual Fund Model

Wakala with Waqf Funds Model

The Cash Waqf Deposit Product Model

4 Cash Waqf Deposit Product Development in Bangladesh

4.1 Objectives of Cash Waqf Deposit Product

4.2 Guidelines of Governing the Operations of Cash Waqf Deposit Product

4.3 The Modus Operandi of the Cash Waqf Deposit Product

4.4 Cash Waqf Certificate Scheme

5 Cash Waqf Deposit Product for Socio-Economic Development in Bangladesh

5.1 Growth of Cash Waqf Accounts, Deposit, and Profit Distribution of IBBL

5.2 Opportunities of Cash Waqf Development Through Islamic Banks in Bangladesh

5.3 Top Clients of Cash Waqf and Two Cases of IBBL

6 Proposed Integrated Approach of Cash Waqf and Islamic Microfinance

7 Implication of Cash Waqf Toward Country’s Economic Development

8 Conclusion

References

Chapter 9 Can We Combine Sukuk and Waqf? A Case Study of Indonesia

1 Introduction

2 ANP, BOCR, and Waqf Research

2.1 Sources and Methods of Data Collection

2.2 General Description of the Method of Analytic Network Process (ANP)

2.3 The Analysis of Benefits, Opportunities, Costs, Risks (BOCR)

2.4 Research Stages

2.5 Data Processing

3 Problem Complexity

3.1 Decomposition

Benefit

Benefit for Issuer

Benefit for Investors

Opportunity

Opportunity for Issuer

Opportunity for Investors

Cost

Cost for the Issuer

Cost for Investors

Risk

Risk for Issuer

Risk for Investors

Alternative

Regulation

Partnership

Education

3.2 Results of the Geometric Mean and Rater Agreement

4 Ready to Launch Sukuk Waqf?

Appendix 1

Appendix 2

References

Chapter 10 Opportunities and Challenges of Waqf in Bangladesh: The Way Forward for Socio-Economic Development

1 Introduction

1.1 Meaning and Origins of Waqf

1.2 Waqf Institutions in Bangladesh: The Regulatory Framework

2 Genesis of Waqf Laws and Regulations in Bangladesh

3 The Present Legal and Administrative Structure of Waqf Administration in Bangladesh

4 The Key Barriers to the Development of Awaqf in Bangladesh

4.1 Inadequate Manpower

4.2 Unregistered Waqf Properties

4.3 Illegal Occupation and Misappropriation of Waqf Properties

4.4 Uncollected Arrears

4.5 Operational Inefficiency and Problem of Waqf Disputes

4.6 Absence of Provisions in the Waqfs Ordinance 1962 Relating to the Development of Waqf

4.7 Integrity of the Mutawallis and Their Qualifications

4.8 Unauthorized Alienation

4.9 Personal Use of Waqf’s Compensation Money

4.10 Lack of Progressive and Innovative Ideas

5 The Prospects of Utilizing the Potential of Waqf in Bangladesh

5.1 Waqf Income and the Program for Community Development and Eradication of Poverty

6 Suggestions, Recommendations, and Plans for Action

6.1 Need for a New Waqf Act

6.2 Development of Urban Waqf and Issuance of Waqf Bond

6.3 Collaboration with Other Countries

6.4 Establishment of National Waqf Advisory Board (NAWAB)

6.5 Education and Training for Mutawallis

6.6 Increasing Staff Benefit

6.7 Waqf Tribunal

7 Summary and Conclusion

References

Part II Waqf Management and Poverty Alleviation

Chapter 11 Integration of Zakat and Awaqf for Poverty Alleviation and Development

1 Introduction

1.1 Definition of Basic Human Needs: Conventional Concept

1.2 Definition of Human Needs: Islamic Perspective

1.3 Definition and Significance of Zakat

1.4 Significance of Awaqf

1.5 Significance of Conventional Microfinance

1.6 Poverty Alleviation and Islamic Microfinance

Unique Position of Bangladesh in Microfinance

Islamic Modes of Microfinance

1.7 Poverty Situation in the World and in Bangladesh

2 Role of Zakat for Poverty Alleviation

3 Role of Awaqf for Poverty Alleviation

3.1 Introduction

3.2 Waqf Is Charitable by Nature

3.3 Waqf Fulfills Needs of the Backward Sections

3.4 Waqf for Common Good and Development Needs

4 Zakat and Awaqf as Complementary Tools for Poverty Alleviation

4.1 Comparative Features of Zakat and Waqf

4.2 Comparative Advantages/Limitations of Zakat and Awaqf

5 Integrated Approach of Zakat and Awaqf as Poverty Alleviation Tools

5.1 Develop Ideal Islamic Microfinance

5.2 Develop Strong and Sustainable IsMFIs

5.3 Use of Appropriate Technology

5.4 Investment for Earning Profit

5.5 Addressing Development Needs

5.6 Contribution of Awaqf and Zakat

6 CZM Model Operating in Bangladesh

6.1 Achievements (Cumulative)

6.2 Operational Strategies of Major Interventions

6.3 Planning

6.4 Zakat Fair, Seminar, Round Table

6.5 Integrity with the SDGs

6.6 Rationale of Integrating Awaqf and Zakat

Lack of Infrastructure

Profit Earning Ventures/Businesses/Investments

Supplementary Income Earning Structure

Ambulance/Vehicles for Efficient Service

Appropriate ICT

7 Conclusion

References

Chapter 12 Waqf Resource Mobilization for Poverty Alleviation Based on Maqasid Framework

1 Introduction

2 Significance of Poverty Alleviation in IsDB Member Countries

3 Interdependence of Maqasid al Shariah with IDA Funds in Poverty Alleviation

4 International Development Association Versus Global Waqf Funds

5 Ranking of IsDB Member Countries—Maqasid al Shariah Composite Index

6 Ranking of IsDB Member Countries—Human Development Composite Index

7 Computation for CIPA with MSCI at Differing Weights

8 Resource Allocation Formulas

9 Computation for IDA with MSCI and HDI

10 Conclusion

References

Chapter 13 Islamic Microfinance and Rehabilitation Program for the Slum and Floating Population by the Waqf Funds: A Proposal Based on Empirical Evidences for the Muslim Countries

1 Background of the Study

1.1 A Discussion on the Concept of Waqf and Waqf Institution in Muslim Countries

Definition, Classifications of Waqf and Its Application

Waqf Authority and Number of Waqf Institutions in the Muslim Countries

1.2 A Discussion on the Concept of Slum, Slum Population, and Urban Population in the Muslim Countries

1.3 Nature, Services, and Status of Islamic Microfinance in the World

Nature of Islamic Microfinance

Product and Services of Islamic Microfinance

Sources of Fund in Islamic Microfinance

Islamic Modes of Investment Employed in Islamic Microfinance Industry

Islamic Microfinance and Its Coverage in the Muslim Countries

2 Objective

3 Methodology

4 Literature Review

5 Rationale of the Study

5.1 Why Is the Islamic Microfinance?

5.2 Why Is the Slum Population?

6 Islamic Microfinance and Rehabilitation Program for the Slum and Floating Population By the Waqf Funds: A Proposal Based on Empirical Evidences for the Muslim Countries

6.1 The Model

6.2 Implementation

7 Conclusion

8 Scope for Further Research

Appendix: Islamic Microfinance Institutions in Bangladesh

References

Chapter 14 The Investment of Waqf Properties and Infrastructure Development

1 Introduction

2 Definition/Initial Considerations

3 Infrastructure Development and SDGs

4 Status of Infrastructure in Developing Countries/MCs

5 Global Investment Gap

6 IDB Financing Modes for Infrastructure Development

7 Financing Infrastructure Development in IDB MCs: Challenges and Priorities

8 Waqf and Social Investment Gap

9 Summary and Conclusion

References

Index