Financing modes for waqf assets: essential aspects in devising Islamic alternatives

In order to realise the full potential of waqf as a sustainable means of supporting different sectors, inactive and unproductive waqf assets are in need of being turned into income generating and self-sustaining entities. Means of investing and utilising waqf properties have to be developed and diversified, within the broad context of the Islamic transactional modes. However, due to the distinct nature of waqf as a charitable institution, special care should be taken of the relevant Islamic guidelines in devising modes of financing and investment for awqaf. The distinct features of waqf that demand special consideration with regard to financing include the particular nature of the ownership of waqf and the resultant restrictions on co-ownership of waqf assets and transfer of their ownership, directives regarding the period they could be leased and the nature of the rental, permanency of waqf, responsibilities of the caretaker or trustee that involve his management of the waqf only in a manner conducive to its best interest etc. The current paper attempts to study some of these vital issues from an Islamic legal perspective, that are crucial for the integrity of waqf assets