Temporary waqf and perpetual benefit: a mathematical proof

Azrai Azaimi Ambrose, Azniza Hartini and Peredaryenko, Margarita Sergeevna (2019) Temporary waqf and perpetual benefit: a mathematical proof. In: 1st International Conference on Financial Markets (ICFM 2019), 11th-12th July 2019, Kuala Lumpur.

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Abstract

Temporary waqf (Islamic pious foundation) possesses great unrealised potential of preserving maslahah (public interest) but to date, has not been given the attention it deserves. Temporary waqf is mostly accepted by the Maliki madhab (Islamic school of law) while in Malaysia, only Terengganu and the Federal Territories recognise it. Using mathematical representations, a first in the waqf literature, this paper seeks to prove that temporary waqf can still provide perpetual benefit similar to that of permanent waqf. It is shown that so long as large enough number of similar mawqufs (corpus of waqf) are endowed at different periods in time for similar purpose, the benefit derived from these mawqufs can reach infinity, ceteris paribus. The existence of this possibility for temporary waqf to provide perpetual benefit, just like permanent waqf, may convince regulators, practitioners, and Islamic scholars to consider its wider implementation. Furthermore, the mathematical representations used in this study may motivate quantitative models to include temporary waqf and study its impact on real financial and economic settings. The overall hope of this paper is to reemphasize the importance of focus on perpetual nature of benefits (substance) rather than on perpetual nature of mawquf (form). This important shift in perspective has huge potential to tap into a vast amount of idle assets that could be used to advance social finance and social economy while ensuring the protection of maslahah as well as make the use of existing waqf assets more effective and productive.

Item Type:	Conference or Workshop Item (Plenary Papers)
Additional Information:	8710/75739
Uncontrolled Keywords:	Temporary waqf, social finance, social economy
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Finance Kulliyyah of Economics and Management Sciences
Depositing User:	Dr. Azniza Hartini Azrai Azaimi Ambrose
Date Deposited:	28 Nov 2019 09:52
Last Modified:	28 Nov 2019 09:52
URI:	http://irep.iium.edu.my/id/eprint/75739

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