Institutilization of Islamic Waqf: An Insight for an Islamic Waqf Bank

Abstract

The recent studies on Islamic Waqf have started to lean towards its institutilization, in order to facilitate its management and to increase its efficiency. Various proposals in this increasingly urgent requirement have been introduced in the literature.
This study is developed in this context, as it proposes developing a full fledged Islamic Waqf bank. However, the establishment of such a bank is conditional on the permissibility of the temporary waqf and the cash waqf. This is necessary though,
because the financing of the capital of the waqf bank is to be through an issue of tradable waqf stock which depends on the permissibility of cash waqf and temporary waqf. It shall also be noticed that the success of the proposed bank in financing
charitable activities relies on its success in attracting waqf cash deposits. Hence, in this study the sharia based evidence which supports the cash waqf and the temporary waqf have been traced and documented and accordingly the Islamic waqf bank is
proposed and described. The bank capital is raised through the issuance of waqf stock and waqf units and its charitable activities are managed through the management of temporary and permanent waqf deposits. The study suggests also an administrative
structure of the bank as well its operating agenda.