Contemporary applications of cash Waqf in Islamic financial institutions

Mahadi, Nur Farhah (2025) Contemporary applications of cash Waqf in Islamic financial institutions. Journal of Islamic Philanthropy and Disaster, 5 (1). pp. 1-17. ISSN 2807-8071 E-ISSN 2807-7113

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Abstract

This study explores contemporary applications of cash waqf in Islamic financial institutions, comparing classical and modern juristic views. It examines innovative models and product structures, analyzes their Sharīʽah principles and jurisprudential implications, and highlights their socio-economic impact and financial sustainability. Qualitative approach is used in this paper to conduct a comprehensive review of the diverse perspectives. This study synthesizes secondary data from a comprehensive review of academic and professional sources. The findings reveal that Islamic Financial Institutions (IFIs) are revitalizing cash waqf through innovative financial products. This study contributes to the understanding that, by seamlessly integrating the profit motive of finance with the social objectives of waqf, IFIs have pioneered innovative financial instruments, such as cash waqf-linked investment products, waqf-based unit trusts, and waqf-shares, that facilitate the channelling of pecuniary returns (manfa‛ah) toward philanthropic endeavours, thereby bolstering the fund’s sustainability and growth which aligns directly with Bank Negara Malaysia’s (BNM) Value-Based Intermediation (VBI) vision and strategically embeds corporate social responsibility (CSR), environmental, social, and governance (ESG) investing, and sustainable and responsible investment (SRI). The findings provide crucial guidance for cultivating a supportive legal and regulatory framework to harness the long-term socioeconomic potential of cash waqf.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Cash Waqf, cash Waqf-linked investment products, Waqf Mu’aqqat, Waqf-Featured Fund (WQ-FF) Framework, Islamic financial institutions, Malaysia
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH104 Islam and poverty BPH Islamic Economics > BPH72 Economic development. Growth. Sustainable development. Sustainability BPH Islamic Economics > BPH741 Waqf
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Nur Farhah Mahadi
Date Deposited:	30 Sep 2025 09:25
Last Modified:	30 Sep 2025 09:25
URI:	http://irep.iium.edu.my/id/eprint/123414

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