A New Framework of Corporate Governance for Waqf: A Preliminary Proposal

Abstract

The global cumulative waqf assets have been estimated to be worth $105 billion. Though, this estimation is not based on exact data, it reflects only a glimpse of what the institution of waqf may entail in the process of and struggle for socio-economic upliftment of the ummah. However, despite possessing the potential of improving society, a substantial proportion of total awqaf is still lying dormant across the world. In modern day economy, waqf has taken a new trajectory, both as a product and as an institution/legal entity, especially in the Islamic finance industry. Consequently, this scenario automatically demands that the institution be fairly regulated and closely monitored. However, not much has been written in the corporate governance area of waqf. This article has three aims: firstly, to briefly examine the salient features of waqf from the perspective of fiqh al-awqaf, secondly, to explore the evolution of the fiqh al-awqaf in the light of waqf being metamorphosed into a corporation-like entity, and finally, to propose the possibilities of how a corporate governance model can be developed for the institution based on the existing waqf rulings and modern regulatory guidelines.