WIEF-Uitm OCCASIONAL PAPERS
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ON WAQF WIEF-UiTM OCCASIONAL PAPERS 2nd EDITION | 2015 ON WAQF WIEF-UiTM OCCASIONAL PAPERS 2nd EDITION | 2015 ISBN 978-967-11935-0-1 2nd EDITION, 2015 / 3 WIEF-UITM INTERNATIONAL CENTRE WIEF-UiTM International Centre, the product of the collaboration between the WIEF Foundation and the Universiti Teknologi MARA (UiTM), was officially launched on 28 May 2007 by the then Prime Minister of Malaysia, the Hon. Tun Abdullah Ahmad Badawi, during the 3rd World Islamic Economic Forum held in Kuala Lumpur on 27-29 May 2007. The idea of the Centre came as a response to the urgent need of consolidating and strengthening educational collaboration in the Muslim World. Under the auspices of the WIEF, the Centre seeks to bring together distinguished scholars, business leaders, industry practitioners and academics to strategically plan for initiatives that will promote knowledge advancement, competencies, upgrading and capacity-building among Muslim nations and communities. 4 / WIEF-UiTM OCCASIONAL PAPERS WORLD UNIVERSITI ISLAMIC ECONOMIC TEKNOLOGI FORUM (WIEF) MARA (UiTM) FOUNDATION The World Islamic Economic Forum (WIEF) Universiti Teknologi MARA (UiTM) was Foundation, established in 2006, is the organising established in 1956 to initially provide body of the annual World Islamic Economic low level skills training to the indigenous Forum. The Forum serves as a focal point community, who are predominantly rural where country leaders, captains of industry, Muslim, to partake in the commercial emerging entrepreneurs, academics and other activities of post independence Malaya. stakeholders from the Muslim World and UiTM is now Malaysia’s largest university beyond, meet to build bridges through business. that provides a multitude of academic The Foundation also undertakes various and professional programmes in different capacity building programmes under the WIEF disciplines that encompasses the broad initiatives of the Businesswomen Network spectrum of science and technology, the (WBN), Young Leaders Network (WYN), social sciences as well as business and Education Trust (WET) and Roundtable Series. management. www.wief.org www.uitm.edu.my 2nd EDITION, 2015 / 5 REVIEWER BOARD 2nd Edition of the WIEF-UiTM OCCASIONAL PAPERS 2014 Prof. Dr Murat Cizakca Prof. Dr Zuriah Abdul Rahman INCEIF University, Faculty of Business Kuala Lumpur, Malaysia Management, Universiti Teknologi MARA, Shah Alam, Assoc. Prof. Dr Mohamed Selangor, Malaysia Azam Mohamed Adil Deputy CEO, International Prof. Dr Saadiah Mohamad Institute of Advanced Islamic Faculty of Business Studies (IAIS) Malaysia Management, Universiti Teknologi MARA, Shah Alam, Assoc. Prof. Dr Mashitoh Selangor, Malaysia Mahamood Shari’ah and Law Department, Prof. Dr Zaini Abdullah Academy of Islamic Studies, Faculty of Business University of Malaya, Malaysia Management, Universiti Teknologi MARA, Shah Alam, Prof. Dr Muammer Koc Selangor, Malaysia Sehir University, Istanbul, Turkey Norlin Nor Prof. Dr Mesut Idriz Head of WIEF-UiTM International University of International Centre, Universiti Sarajevo, Bosnia Herzegovina Teknologi MARA, Shah Alam, Prof. Dr Abdul-Qayum Selangor, Malaysia Mohmand Faculty of Political and Middle East Studies, University of Utah, USA 6 / WIEF-UiTM OCCASIONAL PAPERS EDITORIAL BOARD 2nd Edition of the WIEF-UiTM OCCASIONAL PAPERS 2014 Tan Sri Dato’ Dr Wan Mazwin Meor Ahmad Mohd Zahid Mohd Noordin Executive Director & Head, Chairman, WIEF Education Trust WIEF Education Trust, WIEF Foundation Tan Sri Dato’ Ahmad Fuzi Haji Abdul Razak Lina Rutchakneewan Lieu Secretary General, Assistant Manager, WIEF Foundation Research & Publications, WIEF Foundation Xavier @ Anthony A/L Simon Gomez Norlin Nor Head, WIEF-UiTM International Centre, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia 2nd EDITION, 2015 / 7 WIEF-UiTM OCCASIONAL PAPERS ON WAQF TABLE OF CONTENTS 10 FOREWORD 39 ENTERPRISE WAQF FUND: By Tun Musa Hitam, WAQF AS A FINANCIER TO THE NON-PROFIT SECTOR Chairman of WIEF Foundation FOR SOCIAL IMPACT Tunku Alina Alias 12 INTRODUCTION Adjunct Research Fellow of INCEIF, By Tan Sri Dato’ Dr Wan Kuala Lumpur, Malaysia; Advocate and Zahid Noordin Solicitor of the High Court of Malaya Chairman of WIEF Education Trust 51 THE INFLUENCE OF WAQF ON HIGHER EDUCATION IN 15 THE WAQF, ITS BASIC AFGHANISTAN OPERATIONAL STRUCTURE, Abdul-Qayum Mohmand DEVELOPMENT AND Independent Researcher and CONTRIBUTION Consultant, Salt Lake City, Utah, Prof. Dr Murat Çizakça USA & Kabul, Afghanistan; Senior INCEIF University, Kuala Lumpur, Researcher, Integrity Watch Malaysia Afghanistan & Transparency International, Kabul, Afghanistan 25 CORPORATE WAQF: A PROPOSAL FOR CORPORATE 63 CASH WAQF: AN REFORM TO BRIDGE DIVIDES ALTERNATIVE SOURCE OF AND UPHOLD ECONOMIC FUNDING FOR SHARIAH JUSTICE COMPLIANT MICROFINANCE Tan Sri Muhammad Ali Hashim BUSINESS IN MALAYSIA President, Malaysian Islamic Nurhafizah Abd. Rahim Chamber of Commerce (DPIM), Islamic Banking and Takaful and Founder, Waqaf an Nur Department, Corporation Berhad, Malaysia Central Bank of Malaysia, Malaysia 8 / WIEF-UiTM OCCASIONAL PAPERS 79 AN INNOVATIVE WAQF MODEL IN ISLAMIC INSURANCE FOR THE HAJJ Faezah AbdMajed S. Shafei Department of Islamic Education and Islamic Comparative Studies, Umm Al-Qura’ University, Saudi Arabia Zuriah Abdul Rahman Arshad Ayub Graduate Business School, Universiti Teknologi MARA, Malaysia 135 REVIVING WAQF IN YEMEN 89 WAQF AND ZAKAH AS SOCIAL SAFETY-NETS FOR Ali Mutahar Al-Shami POVERTY REDUCTION IN Faculty of Business Management, NIGERIA Universiti Teknologi MARA, Malaysia Lukman Raimi Saadiah Mohamad Leicester Business School, Faculty Arshad Ayub Graduate Business of Business & Law, De Montfort School, Universiti Teknologi MARA, University, Leicester, United Kingdom Malaysia 105 EXPLORING POTENTIAL Salwana Hassan CASH WAQF Faculty of Business Management/ CONTRIBUTION AMONG Accounting Research Institute, LOW INCOME GROUP IN Universiti Teknologi MARA, Malaysia MALAYSIA 145 THE IMPLEMENTATION Muhammad Ridhwan Ab. Aziz & OF LAND ACQUISITION Fuadah Johari ACT 1960 AND ITS Faculty of Economics and Muamalat, NEGATIVE IMPACT ON THE Universiti Sains Islam Malaysia, Negeri DEVELOPMENT OF WAQF Sembilan, Malaysia (ENDOWMENT) LAND IN MALAYSIA 117 HIBAH, TABARRU’ AND WAQF APPLICATION IN Mohamed Azam Mohamed Adil TAKAFUL Academy of Contemporary Islamic Studies (ACIS), Universiti Teknologi Mohammed Farouq Abdul Jalil MARA, Malaysia and Deputy CEO, Islamic Finance Services Board, International Institute of Advanced Central Bank of Malaysia, Malaysia Islamic Studies (IAIS) Malaysia Zuriah Abdul Rahman Mohd Afandi Mat Rani Arshad Ayub Graduate Business Academy of Centemporary Islamic School, Universiti Teknologi MARA, Studies (ACIS), Universiti Teknologi Malaysia MARA, Malaysia 2nd EDITION, 2015 / 9 FOREWORD A global movement on waqf development was brought to the fore as governments, policymakers, economists, and many relevant stakeholders work relentlessly to steer the world towards sustainable and equitable growth. Eight years into the global financial crisis, recovery remains fragile and the world still faces all manner of uncertainty. This has prompted the global community to look beyond the existing economic platforms to secure stability and promote development through alternative means, including waqf. Waqf is an Islamic instrument of wealth distribution with an economic significance. Contrary to the common understanding, waqf is more than just an avenue for Muslims to fulfil their religious obligations; it is in fact a comprehensive mechanism of public finance that is capable of bringing upon economic progress as well as social development – within and beyond the Muslim society. When I look back into history, I am often overwhelmed by how much waqf had contributed to the success of the Ottoman Empire, one of the greatest civilisations of the past. Almost all social establishments such as schools, hospitals, shelters, as well as some infrastructure projects were fully 10 / WIEF-UiTM OCCASIONAL PAPERS financed and managed by waqf institutions. As a consequent, not only did it help reduce the state’s burden and expenditure, it also allowed the government to fully concentrate on other aspects essential for national development. With a thriving waqf system, the state administration became more efficient and people from all levels of the society were able to enjoy the benefits of the flourishing Empire. In the 21st century, where the world is afflicted by all sorts of economic and social insecurity, there is certainly an urgent need to harness the benefits of waqf, which has unfortunately been overlooked over the past few centuries. The World Islamic Economic Forum Foundation has mobilised experts from around the world to help accelerate waqf development, looking into improving the waqf system so that it meets contemporary needs. Several initiatives are underway to provide waqf awareness, education, training and research and more importantly, practical projects. The WIEF-UiTM Occasional Papers on Waqf is one such initiative to help raise the awareness and understanding of waqf. It is my sincere hope that this publication would help increase the global recognition of waqf as an important element in advancing socio-economic development and inspire more efforts to explore the vast untapped potential of waqf for the benefit of the global community. Tun Musa Hitam Chairman, WIEF Foundation 2nd EDITION, 2015 / 11 INTRODUCTION Assalamualaikum wrt It gives me great pleasure to write an introduction in the WIEF- UiTM’s Occasional Papers