Islamic Economics Institute

Wednesday Academic Dialogue (08)

Cash Waqf and Financing of Waqf Investment

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Dr. Hisham Salim Hamza

Islamic Economics Institute
 
King Abdulaziz University, Jeddah

Wednesday 28-09-2016 (27-12-1437H)

Abstract

The awaqf have known an evolution in concepts and types where the latest one is the cash waqf which is as important as the property waqf. The cash waqf has been permitted by Islamic Fiqh Academy in 2004. The most important caracteristics of cash waqf are the liquidity and the diversity of its fund collect instruments. This fund collect should be allocated to investment and direct awqaf. In this context, the aim of this paper is firstly to identify the financial framework of cash waqf and secondly to know the role of cash waqf in the waqf investment in order to achieve the development and the sustainability of awqaf and to realise their charitable, social, and economic roles. This research discusses the contribution of cash waqf in the development of waqf system through the interrogations related to the instruments of fund collect, the relationship between cash waqf and Islamic financing and its impact on the waqf investment. This paper explain the structure of cash ressources of waqf institutions, the importance of choice of the instruments and the areas of investment, and also the preservation of cash waqf value. We have reached some interesting results related to the importance of cash waqf through its central role in promoting the donator participation, the diversification of cash collect instruments and its investment in order to maximise return and the social and economic impact of awqaf. Consequently, some recommendations are necessary including the promotion and the development of cash waqf, take benefit of Islamic banking experience in financing and investment and its application in waqf field and the preparation of investment strategy based on return maximisation and risk minimisation.

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