An Exploratory Study on Instruments of Waqf Financing

Abstract

Muslims all over the world are exposed to the practice of waqf, but their depth of knowledge on waqf is quite difficult to determine. In general, the Muslim society is aware of the requirement of practicing waqf since it is beneficial to the Muslims and at the same time can help those in need such as the poor, orphans and others. In Malaysia, there is an increase amount of waqf land given by the Muslims from time to time. The objective of this study is to review the financial mechanisms for the development of waqf properties. This study is to discover on theories, structure and review concepts and current instruments that are applicable to waqf. These instruments are able to increase the funds in order to give benefits to the Muslim society. The methodology of this article is through qualitative research on document analysisand observation of all instruments existing in waqf financing. The finding shows that the suitable financial methods that have been devised especially for the development of waqf properties include both classical and contemporary modes.