Revitalization of Waqf for Socio-Economic Development, Volume 1

331 Pages·2019·4.175 MB·English

by  Khalifa Mohamed Ali, M. Kabir Hassan, Abd elrahman Elzahi Saaid Ali

Edited by
Khalifa Mohamed Ali · M. Kabir Hassan ·
Abd elrahman Elzahi Saaid Ali
Revitalization of Waqf
for Socio-Economic
Development, Volume I
Revitalization of Waqf for Socio-Economic
Development, Volume I
“Waqf has historically played significant role in the Islamic social sector. After
long periods of colonization and intellectual drought, its revival is essential.
Waqf’s impact on achieving SDGs can enhance by integration with finance e.g.
through Qard to have-nots to reduce vulnerability and increase resilience, thus
adding productive economic activities, yet with sustenance to the institution.
AAOIFI, accordingly, initiated a comprehensive Waqf project Shari’ah, gov-
ernance and accounting standards, believing that Islamic finance shall integrate
the SDGs, through utilizing the institution of Waqf. I believe the anthology of
scholarly papers offers comprehensive knowledge about this important aspect of
Islamic social finance.”
—Omar Mustafa Ansari, Secretary General, AAOIFI
“While focusing on the revitalization of waqf and its implication in the socio-eco-
nomic development of modern societies, this book does not only address aspects
of waqf management and poverty alleviation, it also critically analyzes the value
of waqf in structuring sukuk and Islamic bank products. This unique dimension
to the overarching discourse on revitalization of waqf provides the reader with an
invaluable reference on the role of waqf in deepening socio-economic develop-
ment in selected jurisdictions.”
—Umar Oseni, Islamic Finance Scholar, Malaysia
“Islamic social finance-waqf, zakat, sadaqah, microfinance- is a link for socio-eco-
nomic development of the masses. An efficient Waqf management helps to
preserve assets either in the form of cash or non-cash earned from voluntary
but permanent distribution of wealth in an Islamic society. A Waqf institution
transforms this value to enhance socio-economic contributions of Muslims and
Islamic entities in a Shari’ah compliant way. Waqf stands as one of the most sig-
nificant contributions of Islam to the world. This book is a must read for those
who are interested in knowing the Islamic social justice framework to develop a
society.”
—Professor Azmi Omar, President, INCEIF, Malaysia
Khalifa Mohamed Ali · M. Kabir Hassan ·
Abd elrahman Elzahi Saaid Ali
Editors
Revitalization of Waqf
for Socio-Economic
Development,
Volume I
Editors
Khalifa Mohamed Ali M. Kabir Hassan
Islamic Research and Training Department of Economics
Institute and Finance
Islamic Development Bank University of New Orleans
Jeddah, Saudi Arabia New Orleans, LA, United States
Abd elrahman Elzahi Saaid Ali
Islamic Research and Training
Institute
Islamic Development Bank
Jeddah, Saudi Arabia
ISBN 978-3-030-18444-5 ISBN 978-3-030-18445-2 (eBook)
https://doi.org/10.1007/978-3-030-18445-2
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F
oreword
Waqf has been historically a major source of support for socio-economic
development in the Islamic world. The Islamic Development Bank is lead-
ing the revival of waqf to contribute toward the Sustainable Development
Goals in our member countries.
This book comprises of research papers analyzing and proposing inno-
vative applications of waqf. The book highlights the role of waqf man-
agement in socio-economic development, poverty alleviation, and the
role that waqf institutions might potentially play in expediting inclusive
and sustainable growth.
On behalf of the Islamic Research and Training Institute, I thank the
authors and editors who made this book a reality. We hope such efforts
contribute to better understanding and creative formulations of waqf to
meet the challenges of the twenty-first century.
Jeddah, Saudi Arabia Sami Al-Suwailem
Acting Director General
Islamic Research and Training
Institute (IRTI)
v
A
cknowledgements
The two volumes of Revitalization of Waqf for Socio-Economic Development
book result from an International Workshop on Revival of Waqf for Socio-
Economic Development held at Pan Pacific Sonargaon in Dhaka, Bangladesh
on 4–5 November 2017, under the auspices of Islamic Research and
Training Institute (IRTI), Jeddah, Islami Bank Bangladesh Limited
(IBBL) and Center for Zakat Management (CZM). We want to thank all
workshop paper presenters, participants, session chairs, and paper reviewers
for their timely and valuable contribution for the realization of this inter-
national workshop. The thought-provoking engagement of Islamic schol-
ars in the two-day international workshop generated innovative ideas, new
dimension and dynamics enabling waqf to mobilize resources for facilita-
tion of health, education, poverty reduction, and other social services. This
may open up a new source to shoring the resource gap for SDG goals and
targets within the stipulated time frame.
The workshop was planned when Professor Dr. Azmi Omar was
the DG of IRTI, and Arastoo Khan was the Chairman of the Board of
Directors of Islami Bank Bangladesh Limited (IBBL). Niaz Rahim,
Chairman of Center for Zakat Management (CZM), joined this effort
with open arms. The book publishing was approved with Palgrave
Macmillan when Dr. Humayon Dar was the DG of IRTI.
We want to thank the Honorable President of Bangladesh, His
Excellency Md. Abdul Hamid for officiating this conference at
Hotel Pan Pacific Sonargaon. We also want to thank the Governor of
Bangladesh His Excellency Fazle Kabir, the Honorable Chairman of
vii
viii ACKNOWLEDGEMENTS
IBBL Board His Excellency Arastoo Khan and Chairman, Center of
Zakat Management, His Excellency Niaz Rahim for contributing to the
success of this international conference.
Our special thanks go to Dr. Miah Muhammad Ayub and Mr. Arastoo
Khan who played critical role at each stage of the workshop from orig-
inal idea to completion of this conference. Without their much needed
timely intervention and active engagement, this conference would not
have been possible. Our sincere thanks are to Mr. Mohammad Habibur
Rahman of IBBL International Wing for connecting us all across conti-
nents and different time zones in the world. We also thank Md. Abdul
Hamid Miah, Ex-MD of IBBL and Md. Mahbubul Alam, ex-AMD and
current MD of IBBL for their financial and logistical support for this
international workshop.
We want to thank Eman Ahmed Adam of IRTI and Sydul Karim of
University of New Orleans for editorial and formatting assistance. We
want thank Dr. Mamun Rashid, now at University of Brunei Darussalam,
Dr. Mizanur Rahman of Islamic Bank Training and Research Academy
(IBTRA), Dr. Mahmood Ahmed, DG of IBTRA, Abdul Awwal Sarker,
GM of Bangladesh Bank, Professor Muhammad Muzahidul Islam
of Dhaka University, Professor M. Kabir Hassan of University of New
Orleans, Dr. Khalifa Mohamed Ali and Dr. Abd elrahman Elzahi Saaid
Ali of IRTI for reviewing papers for this conference.
We want to thank Professor Dr. Md. Nazmul Hassan, current
IBBL Chairman, Professor Dr. M. Shamsher Ali, Professor Emeritus,
Southeast University, Mr. Salahuddin Kasem Khan, Executive Chairman,
SEACO Foundation, Dr. Mohammad Ayub Miah, CEO, Center
for Zakat Management, Mr. Abdul Muyeed Chowdhury, Former
Secretary of Government of Bangladesh, Mohammed Humayun Kabir,
Director, IBBL, and Dr. Muhammad Abdul Mazid, Former Secretary
of the Government of Bangladesh for chairing different sessions of the
workshop.
We also want to thank Dr. Hafizur Rahman, former Waqf Administrator
of Government of Bangladesh, Dr. Monzur-e-Elahi, Professor Mokhtar
Ahmed, Asian University of Bangladesh, Professor Muzahidul Islam of
Dhaka University, Dr. Sheikh Abdur Rashid, former Additional Secretary of
Government of Bangladesh, Dr. Zubair Mohammad Ehsanul Hoque, Dhaka
University, Professor Dr. Mohammad Main Uddin of Rajshahi University,
Professor Dr. Mahbubur Rahman of North South University, Professor
ACKNOWLEDGEMENTS ix
Dr. Farid A. Sobhani of Daffodil University, AMM Nasiruddin, Former
Secretary, Government of Bangladesh, Professor Dr. Syeda Sultana Razia of
BUET and Dr. Shariful Alam, Chairman of ASEAB and Md. Shahidul Islam
of the Office of Bangladesh Waqf Administrator for discussing papers in the
different workshop sessions. We also want to thank the diplomats, high offi-
cials, bankers, industry leaders, and civil society for their participations and
deliberations at the conference.
Finally, we want to thank Tula Weis, Senior Editor of Palgrave
Macmillan for her support gracious support for publishing this book and
Jacqueline Young for helping us through the production process for this
book.
Khalifa Mohamed Ali
M. Kabir Hassan
Abd elrahman Elzahi Saaid Ali
c
ontents
Part I Role of Waqf Management in Socio-Economic
Development
1 Introduction 3
Khalifa Mohamed Ali, M. Kabir Hassan
and Abd elrahman Elzahi Saaid Ali
2 Role of Cash Waqf Deposit (CWD) as an Instrument
for Socio-Economic Development: Bangladesh
Perspective 15
Abdul Awwal Sarker
3 Waqf Philanthropy and Orphans’ Socio-Economic
Development in Northern Nigeria Based on Maqasid
al Shariah Principles 31
Mustapha Abubakar
4 FinTech-Enabled Cash Waqf: Effective Intermediary
of Social Finance 43
Etsuaki Yoshida
xi
xii CONTENTS
5 Experiences and Lessons of Cash Waqf in Bangladesh
and Other Countries 59
M. Kabir Hassan, Mohd Fazlul Karim and M. Sydul Karim
6 The Role of Waqf (Endowment) in Economic
Development of Bosnia and Herzegovina:
A Historical Overview and Future Prospects 85
Edib Smolo
7 Using Waqf for Socio-Economic Development
in Bangladesh: Potentials, Challenges, and Policy
Directions 107
Md. Golzare Nabi, Md. Aminul Islam, Rosni Bakar
and Mohammad Masuduzzaman
8 Cash Waqf Deposit Product: An Innovative
Instrument of Islamic Banks for Socio-Economic
Development in Bangladesh 135
M. Mizanur Rahman and M. Nurul Islam Sohel
9 Can We Combine Sukuk and Waqf? A Case Study
of Indonesia 169
Murniati Mukhlisin and Rifka Mustafida
10 Opportunities and Challenges of Waqf in Bangladesh:
The Way Forward for Socio-Economic Development 193
Abu Umar Faruq Ahmad and Mohd Fazlul Karim
Part II Waqf Management and Poverty Alleviation
11 Integration of Zakat and Awaqf for Poverty
Alleviation and Development 215
Abdul Awal Miah
12 Waqf Resource Mobilization for Poverty Alleviation
Based on Maqasid Framework 243
Khalifa M. Ali Hassanain