...Leveraging Philanthropy Monetary Waqf for Micro Finance[1] By Dr. Muhammad Anas Zarka [2] Paper Presented to a Symposium Towards an Islamic Micro-Finance April 14, 2007 ISLAMIC FINANCE PROJECT Islamic Legal Studies Program HARVARD LAW SCHOOL ABSTRACT The paper proposes a Monetary Waqf ( MW ) of a variable size, whose major assets are monetary, to provide micro finance to the productive poor. MW depends, as usual in any waqf, on initial permanent donations whose expected income covers the administrative and maintenance needs of MW. A novel feature in the proposed waqf is the mobilization of temporary funds extended to MW as interest-free loans, on call or for a fixed term. MW guarantees repayment to providers of funds, and uses the funds to provide micro-finance to the productive poor in various Shariah Compliant modes, at terms that sustain the waqf but are most favorable to recipients. To strengthen its guarantee, MW must have two tiers of philanthropic guarantors: Guarantors of liquidity, and Guarantors of Losses . Guarantors of Losses help insulate fund providers from risk of default by microfinance recipients. This helps to attract to MW temporary funds many times larger than the guarantee commitments. Payments to make up the losses can be counted by these Guarantors towards their annual zakat obligations. Monetary Waqf in the context of Islam’s economic goals Islamic Shari'ah...
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...TRUST DEED This Deed of Public Charitable Trust executed on this ____ day of ___________ by Mr. XXXXXXXXXXXXXXXXXXXXXXXXXXXX, S/o. Sri. Venkateswarlu, aged 63 years, Occupation : Business, resident of Inlukudurupet, Machilipatnam, Kirshna District, Andhra Pradesh, hear in after called “Author of the Trust”, (which expression shall, unless excluded by repugnant to the context, be deemed to include his executors, administrators and representatives) of one part and 1. Mr. XXXXXXXXXXXXXXXXXXXXXXXXXXXX, S/o. Sri. XXXXXXXXX, aged 63 years, Occupation : Business, resident of Door No: XXXXXXXXXXXXXXXX District, Andhra Pradesh Hereafter referred to as “Trustee” ( which expression shall, unless excluded by or repugnant to the context, be deemed to include the trustee or trustees duly appointed for the time being of these presents and their successors in office ) of the other part. Whereas the Author of the Trust is desirous of establishing a trust for public charitable objects. And whereas the trustee has, at the request of the Author of the Trust, agreed to act as the first trustee of these presents as testified by his being parties to and executing these presents. And whereas it is necessary to declare the object and terms of the public charitable trust being constituted under these presents. NOW THIS INDENTURE WITNESSETH AS FOLLOWS: 1. That, in order to effectuate his aforesaid desire, the Author of the Trust has set apart and handed over to the...
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...Corporate Awqaf: CERAMAH MULTAQA ULAMA’ A Malaysian Experience in Building Sustainable & ILMUAN 1431 / 2010 Business Capability (Dubai International Conference of Endowments) —- –- By; By; MUHAMMAD ALI HASHIM PRESIDENT AND CEO JOHOR CORPORATION, MALAYSIA mahh@jcorp.com.my www.businessjihad.com 16 FEBRUARY 2010 Corporate Awqaf: Corporate A Malaysian Experience in Building Sustainable Sustainable Business Capability * * Started with RM10 million loan used to purchase a 3,900 acre Johor Corporation plantation asset in Johor Bahru, Johor Malaysia. (August 1970) Market capitalisation of JCorp’s PLC shares (end December 2009): PLC RM10.4 billion RM10.4 CORPORATE AWQAF JCorp transferred to waqf PLC shares valued at RM 200 million (NAV) 3rd August, 2006 JOHOR CORPORATION’S CORPORATE CONCEPT: AN ENTREPRENEURIAL CORPORATE ORGANISATION WITH SUSTAINABLE VALUECREATING BUSINESSES driven by teams of (JCorp’s ‘Amanah’ entrepreneurs) JOHOR CORPORATION • More than 280 member cos. & more than 65,000 employees • 8 PLCs, inc Kulim Malaysia Bhd, KPJ Healthcare, KFC Holdings, NBPOL also listed on London SX & New Britain Palm Oils, PNG. • Market cap 31 Dec ‘09: RM10.4 Bil • Built &/or manage >45 NGOs. Malaysian Bourse Market Capitalisation Ranking 2009: CEO: Ahamad Mohamad KULIM MALAYSIA BHD BHD CEO: Jamaludin Mohd Ali KFC H MALAYSIA BHD 65 65 87 87 BIZ JIHAD EMPOWERS COMMUNITY ...
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...Introduction Waqf is the one of the Islamic product that government used to make the management of many things that related to muslim people, either giving them or build something that every muslim people can used. For example, someone give their land to build mosque. To understand more about waqf, we need to know its definition. For literally knowledge, waqf can be known as to stop, contain or to preserve. In shariah perspective, waqf means is to voluntary, permanent, irrevocable dedication of a portion of one’s wealth –in cash or kind- to Allah. The origin of waqf understanding is form Ibn Umar, which is the reporter said that, “Umar acquired land in Khaibar”. He came to Allah’s Apostle (SAW) and sought his advice in regard to it. He...
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...Waqf comes from the Arabic word waqf, the name of the derivative (Masdar) of the waqafa verb, it has a variety of meanings according to the purpose and use of the verse itself. In terms of language, waqf gives meaning to terminating, prevents and holds. The fiqh scholar agrees to define waqf by language terminology with al-habs means restraint; because the word al-habs is closer to the Islamic sense. From the perspective of the term syarak based to the opinion of the scholar such as Imam al-Syafie, Abu Yusuf, Muhammad bin al-Hassan al-Shaybani and scholar of Hanbali Mazhab think that waqf means to hold certain property that can be utilized and the condition of the property must be permanent and transferable property and its management is decided by the beneficiary and the purpose of waqf is for the good or for the things that are required to draw closer to Allah SWT (Mohd Zamro Muda et.al, 2008, Waqf is one of the oldest institutions in the history of Islamic development. The term wakaf is not mentioned directly in the Quran or Hadith. It started to be based on the interpretation of the...
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...The influence of product price and brand on Economics students’ of IIUM spending behavior Nurul Faezah binti Md.Azizan International Islamic University Malaysia Abstract Consumers’ decision making on purchase is a type of analytical process and frequently they undergo a similar psychological process in deciding what products and brand to buy. Product price and brand are several factors that affect customer’s spending behavior in satisfying their needs and hence, it is important for manufacturer and retailers to know what factors that encourage customers to buy a product. The purpose of the present paper therefore, is to investigate the influence of product price and brand among students who represent adolescents, on their spending behavior. Questionnaires were distributed among students from Kuliyyah Economics and Management Sciences of International Islamic University Malaysia (IIUM) to view their judgment about this issue. The results then propose that most of the students valued product price more than brand name of products in selecting things to purchase. Table of content Page Introduction 4 Literature Review 7 Methodology 10 Findings/Discussion 12 Conclusion 17 References 19 Appendix A 21 Introduction Background...
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...Revitalization of Islamic Trust Institutions through Corporate Waqf Dahlia Binti Ibrahim Email: dhuz510123@gmail.com 1. Introduction The western countries have prided themselves on their ability to create wealth and modernization through the capitalist system. But since the break out of the economic crises in 2008, most of the western leaders started to turn to Islamic way in developing the economy. To avoid more unexpected problems arising from the capitalist system, it is imperative for everyone to come up with new ideas to recapture the once glorious world economy. Man (2011) stated that one of the methods now being aggressively debated is benevolence system through charity. Charity is not new to many people. It is the act of virtue in Islam as mentioned in Quran. Charity plays a major role in improving spiritual, social economy and justice (Man, 2011; Mawdudi, 1948). The core importance of charity is to portray kindness and good act. In fact, all Muslims are expected to help each other in whatever circumstances. The act of charity includes not only giving away energy and knowledge but also in sharing their wealth with the unfortunate ones. This giving culture is not to gain recognition from the society, it is more to get blessing from Allah s.w.t. Allah mentioned that He is the creator of all things and as such all things belong to him; as He is the most knowledgeable (Sura: Al-Baqarah, Verse: 29). There are many instruments in assisting the Muslims to perform...
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...2289-2117 (O) / 2289-2109 (P) Priority of Waqf Development among Malaysian Cash Waqf Donors: An AHP Approach Anwar Allah Pitchaya, Ahamed Kameel Mydin Meerab, Muhammad Yusuf Saleemc b a Universiti Sains Malaysia (USM), Malaysia IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia c International Centre for Education in Islamic Finance (INCEIF), Malaysia Abstract The practise of cash Waqf is increasingly gaining popularity among the Malaysian Muslim. Waqf institutions (SIRCs) are responsible to utilise the collection of cash Waqf to develop relevant projects in order to benefit the society in general. The purpose of this study is to explore the cash Waqf donors’ priority toward what types of development that fulfilled the current need of the society. Hence, to accomplish this purpose; thirty (30) Muslim employees who have contributed cash Waqf were interviewed. This study employs analytical hierarchy process (AHP) analysis to identify the rank of the developments that priorities by donors. The result shows that the cash Waqf contributors prefer to channel their money for Waqf development in the following rank order: (1) education, (2) health, (3) masjid and madrasah, (4) social-care and welfare (5) trade and commerce (6) environment (7) infrastructure and (8) art, culture and heritage. © 2014 IIUM Institute of Islamic Banking and Finance. Keywords: AHP, Waqf, Donor. 1. Introduction Waqf is most comparable to the English word ‘endowment’...
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...Efficiency and Effectiveness of Waqf Institutions in Malaysia: Toward Financial Sustainability Maliah Sulaiman Email: maliah@iium.edu.my Department of Accounting, Kulliyyah of Economics and Management Sciences International Islamic University Malaysia Jalan Gombak, 53100 Kuala Lumpur, Malaysia and Muntaka Alhaji Zakari* Email: alhajizak@gmail.com Department of Accounting, Kulliyyah of Economics and Management Sciences International Islamic University Malaysia Jalan Gombak, 53100 Kuala Lumpur, Malaysia *Corresponding author Abstract Efficiency and Effectiveness of Waqf Institutions in Malaysia: Toward Financial Sustainability Financial health is crucial to the continuous existence and operation of any organisation. It is even more essential in the case of waqf. Accordingly, determining the financial strength and vulnerability of waqf institutions is particularly very significant and congruent to waqf’s perpetual existence. Using content and ratio analysis, the 2008 annual reports of state waqf institutions were examined to determine their transparency and performance accountability. Four essential financial health ratios were computed: the equity balance...
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...1.0 Introduction All human activities are subject to risk of loss from unforeseen events. To alleviate this burden to individuals, what we now call insurance has existed since at least 215 BC. This concept has been practiced in various forms for over 1400 years. In Islam, the concept of insurance is takaful. Q finance dictionary defines that takaful is a Islamic insurance in which all participants are members and contribute to a pool of funds that provide assistance in the event of loss on the part of any of the participants. It is an Islamic insurance arrangement avoids the prohibitions against gambling and interest in Islamic Law. Takaful, it originates from the Arabic word Kafalah, which means "guaranteeing each other" or "joint guarantee". It is based on the principles of ta’awan (mutual cooperation) and Tabarru’ (donation), where a group of takaful participants (policy-holders) agree between themselves to share the risk of a potential loss to any of them, by making a donation of all or a part of their takaful contribution (premium) to compensate for a loss. Takaful-branded insurance is based on Shariah, Islamic religious law and refer the principle of cooperation, not sale or exchange, and mitigates the objectionable aspects of gharar (uncertainty), maisir (gambling) and riba (interest). In conventional insurance the risk is transferred from the policyholder to the insurance company which brings the elements of uncertainty and chance in contract as one of the two a party...
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...ISLAMIC FINANCIAL PLANNING Introduction Islamic Financial Planning is a new concept being developed nowadays and it has a relationship with the definition of Islamic Financial Marketing which defined by Ibnu Abu Yusuf & Ibnu Taimiyyah and Ibnu Khaldun. They defined it as the creation, developing and delivery of unique customer satisfying competitive products and services at a profit to organization and customer in the lights of Islamic values and principles. In contrast, conventionally it is defined as the process whereby an individual's personal and financial goals are achieved through the development and implementation of a comprehensive financial plan. Islam is a comprehensive, integrative and holistic religion that governs all aspects of life, major and minor, personal and social, spiritual and materialistic and relates this worldly life to the Hereafter. This means that we need to practice Islam while we perform our business and economic activities. Muslims are encourage planning for their life and put efforts to achieve the goal setting then ask help from Allah. The final stage is tawakal for what the result and takes it as the destiny bestows by Allah. The prophet Muhammad used to supplicate Allah: ‘My Lord, help me and do not give help against me, grant me a victory, and do not grant victory over me, plan on my behalf and do not plan against me, guide me and made my right guidance easy for me, grant me victory over those who act wrongfully towards me….’[1] ...
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...GIST OF THE FINDINGS by S.U.Khan J. 1. The disputed structure was constructed as mosque by or under orders of Babar. 2. It is not proved by direct evidence that premises in dispute including constructed portion belonged to Babar or the person who constructed the mosque or under whose orders it was constructed. 3. No temple was demolished for constructing the mosque. 4. Mosque was constructed over the ruins of temples which were lying in utter ruins since a very long time before the construction of mosque and some material thereof was used in construction of the mosque. 5. That for a very long time till the construction of the mosque it was treated/believed by Hindus that some where in a very large area of which premises in dispute is a very small part birth place of Lord Ram was situated, however, the belief did not relate to any specified small area within that bigger area specifically the premises in dispute. 6. That after some time of construction of the mosque Hindus started identifying the premises in dispute as exact birth place of Lord Ram or a place wherein exact birth place was situated. 7. That much before 1855 Ram Chabutra and Seeta Rasoi had come into existence and Hindus were worshipping in the same. It was very very unique and absolutely unprecedented situation that in side the boundary wall and compound of the mosque Hindu religious places were there which were actually being worshipped along with offerings of Namaz by Muslims in the...
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...Islamic Impact on City/Town Planning Course : Muslim Heritage and its Global Impact (Spring 2013) sec. 02 Date : 3/19/2013 Table of contents 1. INTRODUCTION 2. THE CITY 2.1. PRE-ISLAMIC PRECEDENTS 2.2. FORMATION OF URBAN MODELS 3. DESIGN PRINCIPLES OF THE ISLAMIC CITY 3.1. NATURAL LAWS 3.2. RELIGIOUS AND CULTURAL BELIEFS 3.3. DESIGN PRINCIPLES STEMMED FROM SHARIAH LAW 3.4. SOCIAL PRINCIPLES 4. MORPHOLOGICAL COMPONENTS OF THE ISLAMIC CITY 4.1. THE MAIN MOSQUE 4.2. SUQS 4.3. RESIDENTIAL QUARTERS -COURTYARDS 4.4. STREET NETWORK 4.5. WALL 4.6. EXTERIOR 4.7. ELEMENTS ABOVE THE STREET. 4.8. ISLAMIC EXTERIOR AND INTERIOR DECORATION 4.9. THE WAQF 4.10. WATER SYSTEMS 4.11. SERIAL AND CONTINUOUS SHAPES OF WATER 4.12. POLAR AND CLOSED WATER SHAPES 5. CONCLUSION 6. REFERENCES 3 4 4 4 6 7 7 7 7 8 9 9 11 12 12 12 12 12 13 14 15 18 19 20 |Page2 1. Introduction Man is a natural planner and all through history has planned for his own changing needs and for the needs of those around him. His towns and cities have been subject to continual 'progress' and 'modernization', evolving, adapting and assimilating new ideas and technologies. The changes came about through additions, alterations and adjustments to what was there before and in a way that continued to allow each place its own expression of culture and society. The infinite variety and diversity of mankind is identified by cultural preferences, modes of social behavior and interaction, rationale, intellect, beliefs, history...
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...depositors do not bear any loss Mudaraba Accounts In the perspective of these Accounts the Bank is 'Mudarib' and customers are 'Shahib Al-Mal'. On behalf of depositors, the Bank invests their deposited money and distributes minimum 65% of investment-income earned through deployment of Mudaraba funds among Mudaraba depositors after the closing of the year. * Al-Wadeah Current Account (AWCA) * Mudaraba Savings Account (MSA) * Mudaraba Term Deposit Account (MTDR) * Mudaraba Special Notice Account (MSNA) * Mudaraba Hajj Savings Account (MHSA) * Mudaraba Special Savings (Pension) Account (MSSA) * Mudaraba Savings Bond (MSB) * Mudaraba Monthly Profit Deposit Account (MMPDA) * Mudaraba Muhor Savings Account (MMSA) * Mudaraba Waqf Cash Deposit Account (MWCDA) * Mudaraba NRB Savings Bond (MNSB) Account * Mudaraba Foreign Currency Deposit Account (MFCD) * Students Mudaraba Savings Account (SMSA) * Mudaraba Farmers Savings Account (MFSA) | Deposit Products Islami Bank Bangladesh Limited mobilizes deposits through different types of accounts. Al-Wadeah Accounts Mudaraba AccountsAl-Wadeah Accounts Islami Bank Bangladesh Limited operates Al-wadeah Current Account on the principles of Al-wadeah. The Bank commits to refund money deposited in these Accounts on the demand of customers. On the other hand the Bank...
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...This page intentionally left blank An Introduction to Islamic Law The study of Islamic law can be a forbidding prospect for those entering the field for the first time. Wael Hallaq, a leading scholar and practitioner of Islamic law, guides students through the intricacies of the subject in this absorbing introduction. The first half of the book is devoted to a discussion of Islamic law in its pre-modern natural habitat. The author expounds on the roles of jurists, who reasoned about the law, and of judges and others who administered justice; on how different legal schools came to be established, and on how a moral law functioned in early Muslim society generally. The second part explains how the law was transformed and ultimately dismantled during the colonial period. As the author demonstrates, this rupture necessitated its reinvention in the twentiethcentury world of nation-states. In the final chapters, the author charts recent developments and the struggles of the Islamists to negotiate changes which have seen the law emerge as a primarily textual entity focused on fixed punishments and ritual requirements. The book, which includes a chronology, a glossary of key terms and lists for further reading, will be the first stop for those who wish to understand the fundamentals of Islamic law, its practices and its history. w a e l b . h a l l a q is James McGill Professor in Islamic Law in the Institute of Islamic Studies at McGill University. He is a worldrenowned...
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