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Critical Review on Waqf Experiences: Lessons from Muslim and Non-Muslim

Countries

Article in IQTISHADIA Jurnal Kajian Ekonomi dan Bisnis Islam · December 2018
DOI: 10.21043/iqtishadia.v11i2.3272

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IQTISHADIA
Vol. 11 (2) 2018
P-ISSN: 1979-0724 E-ISSN: 2502-3993
Vol. 11 (2) 2018
Jurnal Kajian Ekonomi dan Binis Islam IQTISHADIA 285
DOI: 10.21043/iqtishadia.v10i2.2863

Critical Review on Waqf Experiences: Lessons from Muslim

and Non-Muslim Countries

Aimi Fadzirul Kamarubahrin

Universitas SAINS Islam Malaysia
[email protected]

Abdullah Mohammed Ahmed Ayedh

Universitas SAINS Islam Malaysia
[email protected]

Abstract
The purpose of this paper is to critically assess
current practices in waqf institution based on Middle
East, Asia and some selected non-Muslim countries
experience. This study applied a comprehensive
library research based for the waqf practices in
selected Muslim and non-Muslim countries.
The critical review manifests that Singapore
waqf experience was extraordinary splendid in
terms of transparency, quality services, gain the
public confidence in waqf management and waqf
investment. On the other hand, Kuwait experience
record outstanding performance due to the less
interruption by the government and establishment
Keywords: of sound of governance, internal control and
Practices, Waqf accountability tools. In addition, the practices of
Institution, Muslim waqf in the Muslim minority communities are
Countries, Non- dynamic and response to the community’s needs
Muslim Countries. compare to the majority Muslim countries.

INTRODUCTION
The word waqf (plural: awqāf) is derived from an Arabic
word literally meaning hold or prohibition. Kahf (2003) defines
waqf as “holding certain property and preserving it for the
confined benefit of philanthropy and prohibiting any use or
 286 IQTISHADIA Vol. 11 (2) 2018

disposition of it outside its specific objective”. The objective of

waqf in Islam is to establish the socio-economic welfare among
the Muslim society by making the “haves” realize that they
have to share their wealth with the needy, poor, and helpless
(Qasmi, 2002; Ihsan, 2007). Allāh says: “And in their wealth there is
a due share for the beggar and the deprived” (Quran, Al-Zariyat: 19).
Waqf is one of the key elements of the Muslim heritage along the
Muslim history (Ihsan, 2007). Muslims countries have their own
ways of managing waqf. Some ways are similar to one another
and some are different. The word waqf derived from Arabic
word “waqafa” means to stop, to prevent and to detain. Islamic
jurists interpret “waqf” as “detaining assets that are beneficial
and physically lasting, to be given to charity” (Ahmad, 2008).
The waqf practice had varied from time to time and from
city to another, due to several elements that shape the waqf
practices in terms of type and the size (Ayedh & Aimi Fadzirul,
2018). For instance, the nature of waqf practice which is based on
benevolence (Ihsan) voluntary, the economic situation, the level
of faith (Iman) in the society especially for the philanthropist
(waqif), the level of awareness of the state waqf (Ayedh & Ihsan,
2013; Ihsan & Ayedh, 2015). Therefore, waqf practices varied
from a country to another in terms of the historical beginning
of waqf, major type of waqf practiced, legal statuses of waqf,
and the magnitude of waqf practices. In this research the waqf
experiences for some Muslim countries in the world. In addition,
this research tried to critically analyse those practices in the
discussion to see the similarities and differences between these
waqf experiences. This research is organised as follows. The next
section discusses historic of waqf. Third section discusses waqf
experiences in Muslim countries. It is followed by the discussion
on waqf experiences in non-Muslim countries, followed with
conclusion remark. Fifth section discusses on findings and
finally end with conclusion of the study.

HISTORIC OF WAQF
Waqf is based on a conviction that waqf as a concept and
an experience has a great development potential which entitles
it to contribute effectively to the Muslim communities and cope
with the challenges which confront the Ummah (Ihsan & Ayedh,
Vol. 11 (2) 2018 IQTISHADIA 287

2015). Waqf also reflects the history of Islamic world through

its rich experience which embraces the various types of life and
helps finding solution for emerging dilemmas. In the early of the
las century during the decline of the Ummah, Waqf maintained
a major part of the heritage of the Islamic civilization and caused
it to continue and pass from one generation to another.
Throughout Islamic history and wherever Muslims put
their feet will find the presence of the waqf is significantly.
The real innovations in the idea of Waqf came in the early
Islamic period in Madinah (Abu Zuhrah, 1971). After the first
generation of Muslims, Waqf grew by leaps and bounds, and
its endowment became a pillar in the religious, social, cultural,
scientific, economic and political life of Islamic society to the
extent that for every conceivable enterprise of social benefit
there was a Waqf: for mosques, universities, schools, hospitals,
orphanages, houses for the poor, food for the poor, the blind,
battered/abused women, soup kitchens, wells, aqueducts,
fountains, public baths, watchtowers, bridges, cemeteries,
salaries, pensions, guest houses, libraries, books and animal
welfare (Ali, 2009).
In the history of Islam, the first known Waqf is the mosque
of Qubaa in Madinah, which was built upon the arrival of the
Prophet (Peace and blessing of Allah be upon him) followed by
the purchase of the land and construction of the mosque, known
today as the Al Nabawi mosque in Madinah. According to Kahf
(2003), mosque and real estates confined for providing revenues
to spend on mosques" maintenance and running expenses are
in the category of religious waqf, which in any Muslim society
adds to the social welfare of the community because it helps
satisfy the religious needs of people and reduces the direct cost
of providing religious services for any future generation.
The history of Waqf is very rich with impressive
achievements in serving the poor in particular and enhancing
the welfare of the Ummah in general. The institution of Waqf
has also degenerated in many Muslim societies from its past
glory. Attempts have been made by the political authority to
take over management of Waqf, though strongly resisted by the
Fuqaha and other social leaders, due to either loss of or difficulty
 288 IQTISHADIA Vol. 11 (2) 2018

to locate deeds of Awqaf in the old records and archives of

local courts, and the centuries of old problem of corruption and
mismanagement by judges and Waqf managers respectively.
The shift of Waqf management to government started with the
establishment of Waqf Administration by the Ottoman Empire
in 1826, which led to the liquidation of most Islamic Awqaf
of that time. Furthermore, in the last century in the colonial
time, waqf properties and management were undergone to
the colonial regimes in most of Muslim lands (Ihsan & Ayedh,
2015). As consequence of the independence of Muslim countries
which most of the leaders were secular, the waqf properties
were mismanaged or fully nationalization to be part of the
public sector such as what happened in Syria, Egypt and Turkey
(Al-Jaowhary, 2001).

METHODOLOGY
This study applied a comprehensive library research
based for the waqf practices in selected Muslim and non-Muslim
countries. Thorough and critical survey of the literature related
to waqf experiences in Muslim and non-Muslim countries
was conducted up to January 2017. Various online and offline
resources were taken into consideration. The primary source
of data collection for the review included research papers
and review articles published by reputed publishers such as
Springer, Elsevier, Routledge and Taylor & Francis imprints.
Online databases including Scopus and Science Direct were
also referred to collect the data on dates. Literature search was
conducted using Google Scholar using the following keywords:
Waqf experiences in Muslim countries (Turkey, Kuwait, Malaysia,
Brunei, Indonesia and Iran); Waqf experiences in (India, Philippines
and Singapore). The selection of the countries based on several
criteria the good record of the country in waqf practices, waqf
history, and most importantly the availability of the data. The
used critically compared the waqf practices among the selected
Muslim and non-Muslim countries based on four main criteria
the legal factors, historic of establishment, current practices and
management aspects which has been adapted from Ayedh &
Aimi Fadzirul (2018).
Vol. 11 (2) 2018 IQTISHADIA 289

RESULT
WAQF EXPERIENCES IN MUSLIM COUNTRIES
In this section authors will try to gather some of the
mine experience of waqf in these countries were the Muslim are
majority (e.g. Turkey, Kuwait and Malaysia). In the selection of
the countries to be included in this discussion is based on the
availability of the data.

Turkey
The historic of the establishment or introducing waqf in
Turkey was started along with establishment of the Othoman
Empire (1324m), it can be traced back to the Sultan Mehmed
Khan Ghazi second caliph. Non-arguably, waqf’s had their
most significant economic implication in the Ottoman world.
The legal of waqf in Turkey is under protection of religious
law, therefore courts mostly decided in favour of the founders
whose will was respected according to the endowment deeds.
The right of founding a waqf was granted only to Muslims in
an Islamic State (Babacan, 2011). In current practice of waqf in
Turkey, waqf s can participate in businesses within the limits
of the endowment deed and their operations are under legal
monitoring. They are allowed to operate with pooled resources
which assumingly would create economies of scale. Their
founders may include the government, other non-governmental
institutions, or firms. Their assets can be in many forms, including
cash and stocks (Kuran, 2001). Waqf s are still useful instruments
for providing or, in many areas, complementing social services
such as financing mosques, schools, hospitals, libraries, and
monuments, but they are not seen as the primary suppliers of
public goods. The secularization process during late Ottoman
and early Turkish republic periods led the waqf system to lose
its religious motives as well. Managing of waqf, modern waqf in
Turkey is a corporation, an internally autonomous organization
that the courts treat as a legal person. A board of mutawalli
manages the modern waqf s, instead of an individual. The legal
infrastructure is modified to give wider operational powers to
the mutawalli boards (Kuran, 2001).
 290 IQTISHADIA Vol. 11 (2) 2018

Kuwait
Historically, waqf in Kuwait dated back to 1695, but notable
development started in the 1930 followed by the establishment of
Waqf Affairs Boards in 1940. After the independence of Kuwait in
1962, the Ministry of Awqaf and Islamic Affairs was established
to perform several tasks including the responsibility of managing
waqf properties and reached a significant stage in 1993 with the
enactment of Awqaf institution laws for efficient governance
of the sector. These laws provided the necessary platform for
all matters relating to the waqf affairs including transparent
management of funds and investment of funds as per terms and
conditions specified by the founders. In essence, the strategic
direction of Waqf institutions in Kuwait has been set since 1993
with the establishment of Kuwait Awqaf Public Foundation
(KAPF). KAPF has played an essential role in consolidating
values and purposes of waqf in Kuwait (Al- Osman, 1997), which
contributed in Kuwait being chosen by the OIC as coordinator
of waqf institutions in the Muslim world (Abdul Mohsin, 2011).
The legal of waqf in Kuwait was under law on rules which
relating to waqfs 1951 (Rabitah Harun et al., 2012). Currently
practice of waqf in Kuwait is administrated by Kuwait Awqaf
Public Foundation (KAPF) established by the Emirie Decree
issued on November 13, 1993. The Decree provided KAPF
the status of a governmental body with relative autonomy in
decision-making to regulate and manage the system to take care
of waqf affairs internally and externally. In managing Waqf, The
KAPF is to consolidate the concept of waqf as a developmental
mechanism in the community and activate its role in achieving
the objectives of the founders in addition to reinforce the tendency
of contemporary Islamic civilization (Dahi, 1998). While major
responsibility of KAPF is to encourage people to establish new
Awqaf, managing them to allocate funds for activities and
investment of the assets are its major tasks. In addition, KAPF
coordinates with the governmental and non-governmental
bodies for the establishment of Shariah compliant waqf projects
to achieve waqf objectives. This coordination includes specifically
managing specialised funds in waqf sector, regional institutions
for the waqf development and the management of family waqf.
Vol. 11 (2) 2018 IQTISHADIA 291

Malaysia
The historic establishment institution of waqf in Malaysia
is believed to have been in existence for more than eight hundred
years (Syed Othman, 1986). It is believed to have started when
the Arab Muslim traders brought Islam to the land in the tenth
century. Religious education is the main factor of waqf being
developed in Tanah Melayu, especially in Terengganu. This is
evidenced by one of the early nineteenth century waqf deeds by
Sultan Umar; the ruler of the state, stating the object of his waqf
is to promote education and the dissemination of knowledge to
the public (Yaacob & Hisham Yaacob, 2013). During the earlier
period, Muslims who wished to waqf their property would
go to see the village head and they would be the trustee of the
waqf. However, there are no written documents regarding the
first establishment of the waqf institution in Malaysia before the
nineteenth century as stated above, except for the establishment
of the waqf of Masjid Capitan Kling in Penang in 1801, followed
by the waqf by a member of the Aceh royalty, also in Penang
(Yaacob & Hisham Yaacob, 2013).
The legal of waqf in Malaysia were state under Section
25 of the Civil Law Act 1956 stated that the administration of
Muslim’s property shall in accordance with the Islamic law.
There are 14 State Islamic Religious Councils, one for each of
the 13 states and one for the Federal Territory. The state Islamic
department will enforce all the legislation accordingly. Basically,
different states will have a different set of legislations (Rabitah
Harun et al., 2012). Besides that, administration of the Religion
of Islam (Federal Territories) Act 1993 and similar Acts is for
individual provinces. Current practice of waqf in Malaysia, Waqf
properties are developed for common purposes for instance
mosques, educational development and social welfare. The
government has allocated RM250 million to develop waqf land
all over Malaysia for purpose of building mosques and surau,
utilizing waqf land, or land donated for religious or charitable
purposes and using for commercial (Rabitah Harun et al., 2012).
In term managing waqf, waqf affairs are the responsibility
of the Islamic Religious Council of each state. The courts
recognized shariah as the governing law of property for
Muslims including waqf. The government of Malaysia has
 292 IQTISHADIA Vol. 11 (2) 2018

formed a department for zakat, waqf and hajj on the 27th March
2004 with the aim of making the administration systematic and
effective. This department however does not have an authority to
administer and manage waqf properties but rather plays a role as
a planning coordinator and observes the waqf matter. JAWHAR
formed Yayasan Waqf Malaysia (Malaysian Waqf Foundation)
for the sole purpose of identifying the underutilized assets of
awqaf and planning for their development in coordination with
the SIRC of each state. One of the important characteristics of
waqf in Malaysia is that every waqf shall be registered in the
name of the Islamic Religious Council as proprietor in accordance
with the National Land Code 1965 (Yaacob & Hisham Yaacob,
2013).

Brunei
The history of waqf in Brunei might be no different from
the history of Malaysia and Indonesia. The legal of waqf in
Brunei was under Laws of Brunei, 1/1984, Religious Council
and Kadi Courts. Everything about waqf was under Akta
Majlis Ugama Islam dan Mahkamah-Mahkamah Kadi Penggal
77 dalam bab 98 dan 100 (Rabitah Harun et al., 2012). Current
practices, Majlis Ugama Islam Brunei (MUIB) has successfully
generated a high income and give full benefits to all the Muslims
from waqf property’s income in Brunei. MUIB administer and
manage the waqf property using e-government technology and
became the sole trustee for all waqf in the country. In manage
of waqf, MUIB property using e-government technology. MUIB
also gives information and understanding to the public about
the waqf procedure. The Council shall be the sole trustee of all
endowments, whether general or special endowment (Rabitah
Harun et al., 2012).

Indonesia
The historic establishment of awqaf in Indonesia, the
activities had been known among Muslim in Indonesia in the
middle of the 13th century. Even though Indonesia had been
occupied by Dutch and Japanese for more than three hundred
years, waqf activities still went on during the colonial period.
Traditional phase, most waqf is used for physical development
Vol. 11 (2) 2018 IQTISHADIA 293

such as mosque and cemetery. Semi-professional stage of

waqf management, the usage of mosques is being widened for
place of discussion, wedding and seminar (Rabitah Harun et
al., 2012). The legal of waqf in Indonesia, a serious attempt in
revitalization waqf institutions has been made in the late 2004
when the government enacted of new waqf act namely The
Act No 41/2004 on waqf. The current act is more sophisticated
whereby it recommends the establishment of an independent
body to regulate waqf institutions in Indonesia, namely “Badan
Wakaf Indonesia” (Indonesian Waqf Board) (Ihsan, 2007).
Current practice, waqf lands also being utilized for other
benefits such as farming activities, shop lots and rice factories.
Waqf assets in Indonesia were created either by individual or
communal. Individual waqf’s were established by the rich, while
communal waqf’s were created by sharing the contribution
amongst several people. Mostly, waqf assets are addressed for
religious purposes such as mosques and religious schools. As
well as introducing a new model of waqf in Indonesia i.e. cash
waqf which has been growing rapidly recently (Ihsan, 2007). In
managing of waqf in Indonesia, it cannot be separated from the
role of BWI (Indonesian Waqf Board). The birth of Indonesian
Waqf Board (BWI) is the embodiment of the mandate outlined
in Law No. 41 Year 2004 on waqf. The presence of BWI, as
described in section 47, is to promote and develop the waqf in
Indonesia. For the first time, BWI membership appointed by
the President of the Republic of Indonesia, in accordance with
Presidential Decree (Presidential Decree) No. 75 / M in 2007,
which is set in Jakarta, July 13, 2007. So, BWI is an independent
agency to develop waqf in Indonesia in carrying out their duties
free from the influence of any authority, and is accountable to
the public. Productive waqf models in Indonesia is very diverse,
ranging from hospitals, schools, shop, warehouse or shop for
rent, farms, universities, etc.

Iran
The history of waqf in Iran is of interest because it is a
Shia rather than a Sunni country. The Shah controlled awqaf
and they had great political significance and were the source
of much power. They were also a source of much corruption.
 294 IQTISHADIA Vol. 11 (2) 2018

The Civil Code of 1928 set out legal framework for awqaf that
allowed both family and charitable awqaf. Consistent with
Islamic law, it is permitting a property to be endowed only
where it can produce economic benefit without consuming
the capital. Education awqaf in Iran came under the control of
the Ministry of Education. Department of Endowments was
created under the Ministry of Education and 1934 the power
was given to DOE to supervise awqaf. Iran was unique in that in
1951 the Shah ordered that all the crown land he had inherited
from his father was to be distributed among peasants. In 1984
a new Iranian law was passed that said all Iranian awqaf were
to be administered by the Pilgrimage, Endowment and Charity
Affairs Organization (Stibbard, QC, & Bromley, 2012).
In term of legal, waqf matter was under the civil code
of 1928. The 1934 Law introduced certain changes into the
administration of awqaf (Stibbard et al., 2012). There is lack of
information in aspect current practice of waqf in Iran. In term
managing of waqf, it was under Ministry of Education and
Awqaf. Ministry was at liberty to leave the waqf in the hands
of whoever was its overseer at the time. In the case of charitable
waqf with administrators, the Ministry of Education and Awqaf
exercised to supervision (Stibbard et al., 2012).

Critical remark
From the above discussion, it could be concluded that
there are several reason factors which influence the development
of waqf, such as colonization, type of government (democracy
and dictatorship), the awqaf practices in the neighbour countries,
and the economy level of the country. In addition, by scanning
and analysing the current practices of the selected Muslim
countries, it could conclude and draw some of the challenges
that facing the waqf development and revival process: legal
practices, management, trust, government support, corruption,
etc. Waqf experience in Kuwait could be a considered as best
practice among the Muslim countries included in this research
due to outstanding performance of waqf practices and flexibility
of legal form (transparent and accountability of the waqf
management) and the lass interfere by the government which
enhance the trust of waqf and community in general. It is worth
 Vol. 11 (2) 2018 IQTISHADIA 295

to mention that in Malaysia, the waqf management practices

are different from one state to the others. For certain states, they
practice share scheme and some states do not practices such.
However there are also some similarities for example, most of
the waqf properties are developed for common purposes for
instance mosques, educational development and social welfare
(Rabitah Harun et al., 2012). Table 1 below offers a comparison of
waqf institution in Muslim countries based on the four aspects.
Table 1: Comparison of waqf institution in Muslim countries.
Coun-
History Legal Practices Management
tries
• The legal of
waqf in Tur-
• Participate in businesses
key is under
within the limits of the
protection of
endowment deed.
religious law.
• Operations are under
• Courts
legal monitoring. • Corporation.
mostly
Ottoman • Founders may include • A board of mutawalli
decided in
Turkey Empire the government, other manages the modern waqfs,
favour of
(1324m) non-governmental instead of an individual.
the founders
institutions, or firms.
whose will
• Their assets can be in
was respect-
many forms, including
ed accord-
cash and stocks
ing to the
endowment
deeds.
• Developmental mechanism
in the community and acti-
vate its role in achieving the
objectives of the founders
in addition to reinforce the
• Administrated by
tendency of contemporary
Kuwait Awqaf Public
Islamic civilization.
Foundation (KAPF).
Waqf in Kuwait • Encourage people to estab-
Waqf • Governmental body
was under law lish new Awqaf, managing
Affairs with relative autonomy
Kuwait on rules which them to allocate funds for
Boards in in decision-making to
relating to activities and investment
1940 regulate and manage the
waqfs 1951 of the assets are its major
system to take care of
tasks.
waqf affairs internally
• KAP coordinates with the
and externally.
govermental and non-gov-
ermental bodies for the
establishment of Shariah
compliant waqf projects to
achieve waqf objectives
 296 IQTISHADIA Vol. 11 (2) 2018

• Waqf properties are • Waqf affairs are the re-

developed for common sponsibility of the Islamic
purposes for instance Religious Council of each
mosques, educational state.
development and social • JAWHAR formed Yayasan
welfare. Waqf Malaysia (Malaysian
Waqf of
• Government has allo- Waqf Foundation) for the
Masjid
Section 25 of cated RM250 million sole purpose of identifying
Malay- Capitan
the Civil Law to develop waqf land the underutilized assets
sia Kling in
Act 1956 all over Malaysia for of awqaf and planning
Penang in
purpose of building for their development in
1801
mosques and surau, uti- coordination with the SIRC
lizing waqf land, or land of each state.
donated for religious or
charitable purposes and
using for. commercial.

• Majlis Ugama Islam • MUIB property using

Brunei (MUIB) has e-government technology.
successfully generated • MUIB also gives informa-
a high income and give tion and understanding to
full benefits to all the the public about the waqf
Muslims from waqf procedure.
Laws of Brunei,
property’s income in
1/1984, Reli-
*Same like Brunei.
Brunei gious Council
Malaysia • MUIB administer and
and Kadi
manage the waqf prop-
Courts.
erty using e-govern-
ment technology and
became the sole trustee
for all waqf in the coun-
try.

• Waqf lands also being • Indonesian Waqf Board is

utilized for other an independent agency to
benefits such as farming develop waqf in Indonesia
activities, shop lots and in carrying out their duties
rice factories. free from the influence
• Waqf assets in Indo- of any authority, and is
nesia were created accountable to the public.
Middle of The Act No
Indone- either by individual or • Productive waqf models in
the 13th 41/2004 on
sia communal. Indonesia is very diverse,
century waqf.
• Individual waqf ’s were ranging from hospitals,
established by the schools, shop, warehouse or
rich, while communal shop for rent, farms, univer-
waqf ’s were created by sities, etc.
sharing the contribution
amongst several people.
 Vol. 11 (2) 2018 IQTISHADIA 297

• Mostly, waqf assets are

addressed for religious
purposes such as
mosques and religious
schools.
• As well as introducing
a new model of waqf in
Indonesia i.e. cash waqf
which has been growing
rapidly recently.

• Ministry (Ministry of Ed-

ucation and Awqaf) was at
The Civil Code
liberty to leave the waqf in
of 1928 set out
the hands of whoever was
legal framework
*Not its overseer at the time.
Iran for awqaf that
stated • In the case of charitable
allowed both
waqf with administrators,
family and
the Ministry of Education
charitable.
and Awqaf exercised to
supervision.

WAQF EXPERIENCES IN NON-MUSLIM COUNTRIES

India
The earliest known waqf in India can be traced back to the
last years of the twelfth century when Muhammad IbnSam, one
of the Gaurid Sulatans, established a waqf in his name. Sultan
Muizuddin Sam Ghaor (f. 1195–95 A.D.) dedicated two villages
in favour of Jama Masjid, Multan, and, handed its administration
to the Shaikhul Islam (highest ecclesiastical officer of the Empire).
In the coming years, several more waqf was created, as the Delhi
Sultanate flourished. Waqf in India enormously developed with
the advent and dominance of Muslim rulers in the country and
got great momentum in Mughal era starting from 1526. Central
Waqf Council, India is an Indian statutory body established in
1964 by the Government of India (Stibbard et al., 2012).
In term of legal matters, waqf was regulating under waqf
Act, 1954 (now a sub section the Waqf Act, 1995). Waqf Act in
1995 has been amended by the waqf (Amendment) Act, 2013 to
widen the fundamental function of council viz. it will be advising
to state government and state waqf boards also besides central
government. It has been given power to issue direction to the
 298 IQTISHADIA Vol. 11 (2) 2018

State Waqf Boards (Stibbard et al., 2012). Meanwhile, in current

practice consequent to the amendments of the waqf act, 1995
by the waqf (Amendment) Act, 2013, the central waqf council
has been empowered to advise the central government or state
governments and the State Waqf Boards for due administration
of the awqaf. The central waqf council has now vested with the
powers to issue directives to the State Waqf Boards on various
aspects of its functioning and in the process the council is devising
appropriate format for reporting its performance particularly on
the financial performance, survey, maintenance of waqf deeds,
revenue records, encroachments of waqf properties, annual
reports and audit reports including leasing of waqf properties
to the central waqf council as may be specified.
Subject to managing of waqf, waqf is a permanent
dedication of movable or immovable properties for religious,
pious or charitable purposes as recognized by Muslim Law,
given by philanthropists. In the light of the above empowerment,
the role of the Central Government, Central Waqf Council and
State Waqf Boards have been enlarged to protect the waqf
properties from encroachment and alienation and to develop
them on commercial lines, so as to derive higher income to fulfil
the intent of the Waqf.

Philippines
It is well known that Islam was introduced into the
Philippines as early as the thirteenth century by Muslim traders
and was embraced particularly in the southern islands of Sulu
and Mindanao. The Islam that emerged in these far away
territories was a mixture of pre-Islamic usage and local custom
with the basic teachings of Islam. A strict application of the
Islamic law did not take place. The Spanish conquest appears
to have had little impact on the Muslim sultanates of Sulu and
Mindanao.
In term of legal, waqf in Philippines was regulating
under Philippine Corporation Law and Philippine Civil Code.
Besides that, waqf thing is in Code of Muslim Personal Law.
These pertain to the establishment of testamentary waqf, waqf
bil wasiyya. After the independence, the Marcos administration
attempted to have the Islamic personal laws codified. Although
Vol. 11 (2) 2018 IQTISHADIA 299

the committee did some work on the law of the waqf, their
recommendations were not included in the final draft. This was
because the waqf was considered to violate the basic secularist
principle: the separation of the church and the state. The Code
was signed into law on February 4, 1977 with the chapter on
waqf laws missing. The Muslims of the Philippines were left free
to establish their own waqf s according to their own customs
and beliefs (Murat Cizakca, 2000).
Presently, current practice of waqf establishment is
subject to the Philippine Corporation Law, a secular body of
law adopted during the American occupation. Property rights,
on the other hand, are governed by the Philippine Civil Code,
a reproduction of the Spanish Code. The Islamic Trust and
Development Foundation aims to promote waqf establishment
among the Muslims (Murat Cizakca, 2000). Meanwhile in aspect
of managing, there is lack of information on this matter of awqaf
in Philippines.

Singapore
Waqf that was created in Singapore is the Waqf of the
Omar Mosque of Kampung Melaka which was endowed by the
late Syed Omar Aljunied a trader from Indonesia who would
probably originates from Yemen in 1820 (Ibrahim, 1965). The
first waqf legislation was passed by the British legislation in
1905, which was provided under the Muhammed and Hindu
Endowments Ordinance (chapter 27) enacted on 8th September
1905. Most of the waqf was created during the early migration
of the Muslims, namely in the late 19th and early 20th centuries.
Most of the waqf that was created by the early settlor was
affected during the early 18th century this is due to the spice
route prevalent at the point in time where merchants from Yemen
and from the middle-east region sets roots here in Singapore
and created waqf. There are also waqf founders from Indonesia
Archipelago of the Bugis descendant example of which is the
waqf of Hajjah Daeng Tahira Hj Daeng Tadaleh and some from
India such as the waqf of Ahna Ally Mohammad Kassim (Abdul
Karim, 2010)economic and religious benefit to mankind. It is a
vehicle for financing society as a whole (Hodgson, 1974.
In term of legal, Religious activities are further supported
 300 IQTISHADIA Vol. 11 (2) 2018

through an Act to govern the religious affairs of Muslims in

Singapore the act is called the Administration of Muslims law
Act (AMLA). Sec. 56, of the AMLA regulates the administration
of awqaf in Singapore. Provision under Islamic Religious
Council (Majlis Ugama Islam Singapura or MUIS) to oversee
all the religious affairs of the Muslims community such as the
administration of Zakat in respect of collection and disbursement,
Halal certification, management and administration of Waqf,
Hajj, mosques and Madrasah. Administration of Muslim Law
Act, 1999 (Abdul Karim, 2010)economic and religious benefit
to mankind. It is a vehicle for financing society as a whole
(Hodgson, 1974. Current practice, there are 99 Awqaf registered
in Singapore with over 200 properties and with an asset worth
about S$300 million. MUIS (Majlis Ugama Islam Singapura) has
started a subsidiary company known as Waqf Real Estate of
Singapore (WAREES Investment Pte. Ltd) to make sure waqf
properties are developed to the maximum level.
Subject to managing of waqf, waqf forms the largest assets
value of the total assets managed by the Islamic Religious council
of Singapore. All Awqaf is vested under the Majlis Ugama Islam
Singapore (MUIS). MUIS is a statutory board which is under the
Ministry of Community Development Youth and Sports (MCYS).
It has a minister which is the Minister in charge of Muslims
Affairs. All matters regarding the selling, development of Waqf
assets are first tabled at the waqf investments committee, which
will then be escalated for the decision making at the management
and MUIS council level. Where there are shariah issues the
matter shall be heard in the Fatwa committee. Any investments,
purchases or financial obligations or implications which exceed
the amount of $5,000,000 will need the Minister’s approval. In
terms of administrative strive for excellence; MUIS has achieved
an ISO 9001 for its management and administration of waqf.
MUIS is constantly striving towards excellent management
system. It has achieved the mark of the Singapore Quality class
which marks a commitment of the organisation in meeting
excellent standards in its processes, leadership, customers
and result oriented achievement. Singapore developed waqf
properties into real estate which generate millions of Singapore
dollar a year (Abdul Karim, 2010)economic and religious benefit
 Vol. 11 (2) 2018 IQTISHADIA 301

to mankind. It is a vehicle for financing society as a whole

(Hodgson, 1974.
Table 2 below offers a comparison of waqf institution in non-
Muslim countries based on the four aspects.
Countries History Legal Practices Management
India 12th century • Regulating The central waqf council The central waqf council
Muhammad under waqf has been empowered has now vested with the
IbnSam, one Act, 1954. to advise the central powers to issue directives
of the Gaurid • Amended government or state to the State Waqf Boards
Sulatans, by the waqf governments and the on various aspects of its
established (Amendment) State Waqf Boards for functioning and in the
a waqf in his Act, 2013. due administration of process the council is de-
name. the awqaf. vising appropriate format
for reporting its perfor-
mance particularly on the
financial performance,
survey, maintenance
of waqf deeds, revenue
records, encroachments
of waqf properties, annual
reports and audit reports
including leasing of waqf
properties to the central
waqf council as may be
specified.
Philippines 13th century • Philippine • Subject to the Lack of information on
by Muslim Corporation Philippine Corpora- this matter of awqaf in
traders Law and Phil- tion Law, a secular Philippines.
and was ippine Civil body of law adopted
embraced Code. during the American
particularly • Code of Mus- occupation.
in the south- lim Personal • Property rights, on
ern islands Law. the other hand, are
of Sulu and governed by the Phil-
Mindanao. ippine Civil Code, a
reproduction of the
Spanish Code.
• The Islamic Trust
and Development
Foundation aims to
promote waqf estab-
lishment among the
Muslims.
 302 IQTISHADIA Vol. 11 (2) 2018

Singapore 19th and • Adminis- • There are 99 Awqaf • MUIS is a statutory

early 20th tration of registered in Singa- board which is under
centuries. Muslims law pore with over 200 the Ministry of Com-
Waqf of Act (AMLA). properties and with munity Development
the Omar Sec. 56, of an asset worth about Youth and Sports
Mosque of the AMLA S$300 million. (MCYS).
Kampung regulates the • MUIS (Majlis Ugama • All matters regarding
Melaka administration Islam Singapura) has the selling, develop-
of awqaf in started a subsidiary ment of Waqf assets
Singapore. company known as are first tabled at the
• Provision Waqf Real Estate of waqf investments
under Islamic Singapore (WAREES committee, which will
Religious Investment Pte. then be escalated for
Council Ltd) to make sure the decision making at
(Majlis Ugama waqf properties are the management and
Islam Singapu- developed to the MUIS council level.
ra or MUIS). maximum level. • Where there are sha-
riah issues the matter
shall be heard in the
Fatwa committee.
• Any investments,
purchases or financial
obligations or implica-
tions which exceed the
amount of $5,000,000
will need the Minis-
ter’s approval.
• In terms of admin-
istrative strive for
excellence; MUIS has
achieved an ISO 9001
for its management
and administration of
waqf.
• It has achieved the
mark of the Singapore
Quality class which
marks a commitment
of the organisation
in meeting excel-
lent standards in its
processes, leadership,
customers and result
oriented achievement.
Singapore developed
waqf properties into
real estate which
generate millions of
Singapore dollar a year
Vol. 11 (2) 2018 IQTISHADIA 303

DISCUSSION AND CONCLUSION

From the above discussion it can be seen that the waqf
legal situation of non-Muslim countries either has left for the
Muslim community (e.g. Philippines) or has included in the civil
law with especial consideration of waqf and Islamic nature (e.g.
Singapore). In addition, it is likely in most of minority Muslim
countries waqf institutions considered as a non-government
organisation (NGO) which required being transparent and
accountable to the government and public, which lead to high
trust and confidence by the funders of waqf. Waqf experience
in Singapore could be considered as best practice among the
selected non-Muslim countries in this paper due to outstanding
performance of waqf practices and creating a dynamic waqf
institution by generating revenue from investing waqf property
which enhance the trust of waqif and community in general.
This paper attempted to critically review some of the
waqf experiences in Muslim and Non-Muslim countries. The
critical analysis of waqf experiences in selected environment
provides a better picture of waqf practices in systematic and
comparable manner. The analysis review is based on four main
elements, namely: history of waqf, legal, current practices, and
management practices of waqf in those countries involved.
From the analysis review, it could be stated that there are
three essential and common obstacles facing the development
and sustainability of awqaf organizations, namely: the legal form
of waqf which restricted the waqf funders’ conditions, way of
management, and investment. Second is obstacle the corruption
in waqf management and third obstacle is government interfering
in managing waqf.
Besides that, it could be concluded, Singapore waqf
experience was extraordinary splendid as with rigorous
legal (i.e. government) requirements the waqf institutions in
Singapore able to meet all legal requirements (transparency,
quality services, etc.) and also able to gain the public confidence
in waqf management and transform to income generator instead
of being receiver of donations only. In the other hand, Kuwait
experience record outstanding performance due to the less
interruption by the government and establishment of sound of
 304 IQTISHADIA Vol. 11 (2) 2018

governance, internal control and accountability tools.

It is worthily to note that the practices of waqf in the
Muslim minority communities are very dynamic and response
to the community’s needs compare to the majority Muslim
countries. In addition, the countries waqf establishment history,
the size of Muslim population in the county do not play a
significant role, compared to the role of legal regulations, the
government involvement and the governance and control
process in enhancing the waqf practices in terms of management,
services quality, gaining public confidence and waqf investment.
Though the current work laid the ground for further
empirical studies and contributed significantly to the area of
waqf, it is still subject to a number of limitations. Firstly, as
stated above this paper is based on critical analysis review of the
waqf experiences literature review in selected countries. Future
research might integrate this review with empirical methodology.
Secondly, there is a limit number of countries waqf experiences
have been included in this study; future research might include
more experiences.
In terms of the implications of findings, it hopes that the
findings give more comprehensive and cross countries picture
of waqf experience and practice, which will assist the related
waqf regulators in the evaluation process of waqf management
practices and determine best practice as well set up a benchmark
waqf management practices. This work is enhancing the process
of standardizing waqf industry by shading the light into the best
practice in terms of legal, current practices, and management
practices.
Vol. 11 (2) 2018 IQTISHADIA 305

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