Role of Awqaf in enhancing the socio-economic development of Islamic countries

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The Role of Awqaf in Improving the
Socio- Economic Conditions of the Muslim Ummah
Dr Abdelkader Chachi
Senior Training Specialist & Economist Researcher
Islamic Research and Training Institute, Islamic Development Bank, Jeddah, KSA
Presented in Asia Pacific Awqaf Symposium
held at the University of Sydney Law School, Sydney, Australia
During the period 15th-16th April 2015

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 Introduction (Importance and Status Quo of Awqaf, Objective of the Presentation)
 Waqf/Awqaf (Definition, Motivation, Legality, Categorization, Prospect)
 First Islamic Awqaf (Prophet Mohammed and His Companions)
 Historical Role of Awqaf (Schools, Universities, Hospitals, Orphanages, etc..)
 Some Success Stories of Awqaf (Health, Education, Welfare, etc..)
 Some Famous Awqaf (Hijaz Railway, Ain Zubaidah, etc.)
 Some of the Latest Awqaf (King Abdulaziz Waqf in Makkah, Scandinavian Waqf in Sweeden)
 Recommendations (Revive the Establishment of Awqaf with Modern Management)
 Conclusion
Outline of the Presentation

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◊ Importance: Islamic institutions like Zakat and Awqaf are very important
economic tools that, if implemented well, will definitely not only eradicate
poverty from Islamic societies but reduce government spending, reduce the
need for taxes and contribute towards better socio-economic justice and
development for Muslim communities.
◊ Status-Quo: It is very unfortunate that these institutions are not implemented
in most Islamic countries and where they are, they are not implemented fully
and/or correctly.
◊ In fact, Muslims have left these institutions behind their back and looked for
solutions elsewhere with catastrophic consequences.
Introduction

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 Objective of the Presentation: Highlight some historical success stories of
Awqaf and argue that this institution, if revived and reactivated again, can
contribute significantly in solving many of the socio-economic problems of
Muslim Societies and reduce the burden of governments expenditures, and
lead to a better life, not overnight of course but over time.
 Alhamdulillah, recently there are signs of revival of these institutions in a
number of Muslim and even non-Muslim Countries.
 I am glad that the Muslims of Australia are very active in this field and have
established some Awqaf to help the Muslim Community.
Introduction

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 Literally, Waqf (singular), Awqaf (plural) from Arabic Awqafa which means to hold still, to
detain, to confine, not to let go. It is also called Habs (sing), Habous (pl.) by Maliki scholars,
which means to imprison.
 Technically, it is a trust or an endowment that is removed from the private property and
dedicated permanently to Awqaf properties.
 It is to be kept in perpetuity and for a specific purpose such as health or education or
anything needed and useful for the community.
 It can neither be sold off, nor can it be gifted away or inherited. However, its usufruct is
used for the purpose of the Waqf.
 It is a property that is kept in perpetuity to provide income earnings (from its investments)
for the benefit of a cause (health or education, for example).
Waqf/Awqaf

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 Historically, Awqaf played a significant role in taking care of the health and
education of the Muslim Ummah and in bringing about economic growth,
development and social justice in Muslim societies.
 Motivation: It is motivated by the pleasure of Allah and the sense of responsibility
towards not only Muslims but towards humanity at large and even animals.
 Prospect: Awqaf, together with Zakat, and other Islamic financial institutions - if
revived and implemented correctly - can play a major role in enhancing the welfare
of the members of the society and in reducing the burden on Islamic governments in
providing for health, education and other socio-economic benefits.
Waqf/Awqaf

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◊Legally, Waqf draw its legality from the Holy Qur’an, the Sunnah of the Prophet (r) and
the Consensus of the Companions and Scholars.
◊ Qur’an: Allah (I) says:
◊”‫تحبون‬ ‫مما‬ ‫تنفقوا‬ ‫حتى‬ ‫البر‬ ‫تنالوا‬ ‫لن‬“(‫عمران‬ ‫آل‬:92)
◊ “You will not attain righteousness until you spend from what you love" (Al-Imran: 92)
◊“‫األرض‬ ‫من‬ ‫لكم‬ ‫أخرجنا‬ ‫ومما‬ ‫رزقناكم‬ ‫مما‬ ‫أنفقوا‬ ‫آمنوا‬ ‫الذين‬ ‫أيها‬ ‫يا‬”(‫البقرة‬:267)
◊ "O ye who believe! Spend of the good things which We have provided you with and from
what we brought out of the earth for you" (Baqarah: 267)
Waqf/Awqaf

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• Sunnah: Waqf draw its legality also from the practice of the Messenger of Allah (r) and
from his hadith which states:
•“‫ثالث‬ ‫من‬ ‫إال‬ ‫عمله‬ ‫انقطع‬ ‫آدم‬ ‫ابن‬ ‫مات‬ ‫إذا‬:،‫جارية‬ ‫صدقة‬
‫له‬ ‫يدعو‬ ‫صالح‬ ‫ولد‬ ‫أو‬ ،‫به‬ ‫ينتفع‬ ‫علم‬ ‫أو‬“
• "When the son of Adam dies, his deeds cease except for three: an on-going charity, a
beneficial knowledge or a righteous son who prays for him" (Muslim).
• Consensus: Ibn Hajar reported that Imam Tirmidhi said We do not know any differences of
opinions among the companions and the early scholars concerning the legitimacy of land
Waqf. However, Qadi Shurayh is reported to have rejected the idea, mainly if it is done with
the intention of preventing heirs from their rights or disabling the laws of inheritance.
Waqf/Awqaf

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Awqaf can be divided in terms of beneficiaries into four categories:
1. Charitable waqf: Its returns to be used for the benefits of the poor or for continuous or
general charitable purposes
2. Family Waqf: for children and grand children then for continuous or general charitable
purposes
3. Mixte Waqf: Whose returns are shared between family and charitable purposes (Sudanese
(art.907) and Jordanian (art.223) laws)
4. Specific Waqf for a specific purpose such as taking care of students or taking care of sick
and strayed animals.
Waqf/Awqaf

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 Awqaf can also be categorized in terms of the type of assets it takes to:
 Immovable Waqf (real estate such as land, buildings, etc.)
 Movable Waqf: such as machinery, equipment, animals, etc.
 Shared Waqf: the share of real estate or stocks or shares in investment funds
 Cash Waqf: The scholars differed concerning the permissibility of Cash Waqf because
the original does not stay the same, but the Malikis allow it in formats suitable for the
use of permanent value.
 Temporary Waqf (for a limited period): Different Opinions
 Non permitted: (Shafi’i, Hanafi & Hanbali)
 Permitted (Maliki).
 The Fiqh Academies support the Maliki opinion.
Waqf/Awqaf

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◊It is not possible to count all the benefits of establishing Awqaf, but few could be
enumerated such as the following ones that are mentioned in Awqaf South Africa Website*:
◊Creating a long term, massive, powerful community capital fund
◊Establishing and supporting projects from awqaf revenues on a sustainable basis.
◊Promoting a working unity of stakeholders
◊Promoting independence and self-reliance
◊Raising the self-esteem of the Ummah
◊Making da‘wah more meaningful
◊Contributing towards poverty alleviation
◊Developing leadership through projects at grassroots level
◊Empowering Muslim, poor, and disadvantaged communities
◊Contributing towards becoming an empowered, influential, and benevolent community
◊Contributing towards growth and development
Benefits of Waqf/Awqaf
* http://awqafsa.org.za/waqf/benefits-of-making-a-waqf/

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 Find permanent financial resources:
 To meet the religious, educational, economic, health and security needs of the
community
 To strengthen the network of social relations
 To consolidate the values ​​of social solidarity, the sense of brotherhood, and the love
between all segments of the society.
 This is in addition to the economic growth, the sustainable economic development and
the social justice it helps to achieve.
 All these, in order to earn the pleasure of Allah Almighty (I) and to serve the
community in which one lives and contribute to its development and prosperity.
Benefits of Waqf/Awqaf

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The First Islamic Awqaf
 The idea of Waqf is as old as humanity, but
Muslim jurists argue that the first Waqf ever was
the Kaabah, the first ever place dedicated for the
worship of Allah (I) as confirmed by the Holy
Quran, 3:96.
 The first Awqaf established by the Prophet (r)
were “Masjid Quba” and “Al-Masjid Al-Nabawi” in
Medinah.
 This was followed by the Waqf of seven orchards
given to him by Mukhairiq to be an on-going
charity for Muslims.
Kahf, Monzer (2003) The Role of Waqf in Improving the Ummah Welfare
Habib Ahmad, Integrating Waqf and Islamic Finance, Durham University
13

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The First Islamic Awqaf
 Other early Awqaf included:
 The Waqf of Umar bin Khattab of a land in Khaybar.
 The Waqf of Uthman bin Affan of Roma well in Madinah.
 The Waqf of Ali ibn Abi Taleb of a land in Yanbu
 It is reported that there was not a single companion who could afford to do Waqf and he did
not do so.
 Thereafter many different kinds of Awqaf were Created for social purposes such as public
utilities, education and research, health care, etc., in different parts of the Muslim world at
different times.
Kahf, Monzer (2003) The Role of Waqf in Improving the Ummah Welfare
Habib Ahmad, Integrating Waqf and Islamic Finance, Durham University
14

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Historical Role of Awqaf
◊ Historically, Awqaf played an important role in achieving the goals of
the community.
◊ It participated in the prosperity of the Islamic nations in the areas of
education, health, libraries, infrastructure.
◊ It ensured many of the basic needs and services in the community.
◊ Awqaf were the sources of financing the building and maintenance of
mosques and universities such as the great mosques, which played an
important role in spreading the civilization of Islam (Al-Qarawiyyin
Mosque in Morocco, Al-Azhar Mosque in Cairo, Egypt, Zaytuna Mosque
in Tunis, Tunisia, the Mosque of Cordoba in Andalusia, the Umayyad
Mosque in Damascus, Syria, etc..

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Historical Role of Awqaf
◊ The establishment of schools, colleges, institutes and universities in the way of
Allah for all Muslims.
◊ Endowments are not limited to the construction of buildings, but included all
the needed students and teachers’ food, housing, a library, and health care.
◊ The Awqaf benefits were not exclusive to Muslims, but extended to
include the people of the Book (Jews and Christians) and other Dhimmis (Non-
Muslims living in Muslim Societies) as well.

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Historical Role of Awqaf
 Historians confirm that more than a third of agricultural lands and almost half of the
buildings in Algeria, Egypt, Morocco, Iraq, Palestine, Syria and Turkey were Awqaf
properties.
 Three-quarters (3/4) of the whole arable land in the former Ottoman Empire belonged to
waqf.
 In Algeria, under French occupation, waqf comprised half (½) of the lands of the country in
the middle of the nineteenth century.
 For the same period, waqf comprised one third (1/3) of the land in Tunisia.
 In Egypt in 1949, about one-eighth (1/8) of the agricultural land belonged to this category.
Anwar Iqbal Qureshi, Fiscal System of Islam, Institute of Islamic Culture, printed by Zahid Iqbal Printing Press, Lahore,
Pakistan, 1967, pp. 186-187.

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Historical Development of Awqaf
 over the years this led to the accumulation of a considerable societal wealth so much so
that Awqaf became an important sector dedicated to the social and economic improvement
of the Muslim society.
 Awqaf gradually became the main provider of many services that the modern welfare state
today strives to offer.
 Awqaf was the nation’s main provider of education, healthcare, and non-medical welfare
for Muslims as well as non-Muslims living in Muslim societies.
 Not only that, but Awqaf scope was as wide as taking care of sick and stray animals.
 This continued until the 19th and 20th Century when the Muslim world fell under the
Western occupation and the colons confiscated the best of awqaf especially agricultural
lands (as in the case of Algeria).
* Hisham Dafterdar (nd)Towards Effective Legal Regulations And Enabling Environment for Awqaf

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Historical Development of Awqaf
◊After the Islamic waqf law and madrassah foundations were firmly established by the
10th century, the number of Bimaristan hospitals multiplied throughout Islamic lands.
◊In the 11th century, every Islamic city had at least several hospitals.
◊The waqf trust institutions funded the hospitals for various expenses, including the wages
of doctors, ophthalmologists, surgeons, chemists, pharmacists, domestics and all other
staff, the purchase of foods and medicines; hospital equipment such as beds, mattresses,
bowls and perfumes; and repairs to buildings.
◊The waqf trusts also funded medical schools, and their revenues covered various
expenses such as their maintenance and the payment of teachers and students
http://en.wikipedia.org/wiki/Waqf

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Some Awqaf Success Stories
◊ Historically, there were also:
◊ Awqaf to improve the conditions of prisoners and take care of their nutrition, and
guidance.
◊ Awqaf to help young people to marry.
◊ Awqaf to provide new mothers with milk and sugar for their children
◊ Awqaf for helping the debtors in distress.
Awqaf for the treatment of patients psychologically by arranging some people to
whisper behind them and make them hear that the doctors say that this patient is
recovering well and responding well to the treatment.
Ahmad, Habib (2004), The Role of Zakat and Awqaf in Poverty Alleviation,
Occasional paper No.8, IRTI, Jeddah

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Some Awqaf Success Stories
◊ As reported in the “Moorish Medicine Health Care”:
◊ “Every religion (irrespective of social status - the rich and the poor ) were
treated equally in Birmanistan Islamic hospitals.
◊ Staff, too, were multicultural with Islamic, Christian and Jewish members.
◊ Women also worked in Islamic hospitals as doctors, surgeons and nurses”.
◊ Regulation attire for Doctors, was white.
◊ Their nails were to be short and clean.
◊ Moorish doctors had to be genuinely caring about their patients.
◊ Doctors' behaviour towards patients was to be dignified and respectful -
even if they were insulted and threatened for their work.
http://www.andalucia-andalusia.com/Moorish-Medicine-Health-Care.html

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Some Awqaf Success Stories
◊ ÇIZAKÇA (1989) wrote: “Indeed, economists looking at the waqf system would be
perplexed by the fact that a myriad of essential services such as health, education,
municipal, etc., were provided in history at no cost whatsoever to the government.
◊ Therefore, assuming that the efficiency problems are solved, the waqf system can
significantly contribute towards that ultimate goal of every modern economist;
massive reduction in government expenditure, which leads to a reduction in the
budget deficit, which lowers the need for government borrowing thus curbing the
‘crowding-out effect” and leads to a reduction in the rate of interest consequently
reining a basic impediment for private investment and growth”.
Çizakça, Murat (1998) “Awqaf in History and its Implications for Modern Islamic Economies”,
in Islamic Economic Studies, Vol. 6, No. 1, November 1998.

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Some Awqaf Success Stories
◊ Awqaf to take care of the orphans, the disabled and the blind, providing them with food,
housing, and clothing.
◊ Awqaf to provide musafirs/travellers with lodges and food
◊ Awqaf for paving roads and building bridges
◊ Awqaf to pay salaries of Imams, ‘Ulama’, Muezzins and teachers
◊ Awqaf to provide stipends and support for students
◊ Awqaf to teach skills, craft training and job creation guilds
◊ Awqaf to provide utensils and trousseau for disadvantaged brides
◊ Awqaf to provide public water fountains
◊ Awqaf to take care of animals and stray pets, by providing them with shelter, food and
treatment of sick animals.
Ahmad, Habib (2004), The Role of Zakat and Awqaf in Poverty Alleviation, Occasional paper No.8, IRTI
http://awqafsa.org.za/waqf/benefits-of-making-a-waqf/

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26/05/2015
Some Famous Awqaf
◊ One of the famous Awqaf is the waqf of Zubaida the wife of Caliph Harun Al-Rashid for
providing drinking water to pilgrims from Arafat to Makkah Al-Mukarramah via Muzdalifah
and Mina through dams and canals.

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Some Famous Awqaf
◊ Hejaz Railway: the railway which once connected Istanbul,
Damascus and Medina. One of the greatest development
projects in the reign of the Ottoman government. It was
completed in 1908 and funded by the voluntary
contributions of Muslims from all over the world. It
continued to work until the First World War broke out. It
fell victim of the local and regional political conflicts.
◊ Ain Al-Azizyah, a source to provide drinking water for
Jeddah population in Saudi Arabia

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Some Latest Awqaf
◊ King Abdul Aziz Waqf in Makkah
 Scandinavian Waqf, Malmo, Sweden

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Some Latest Awqaf
 Islamic Foundation, Markfield UK
 Markfield Institute of Higher Education, UK

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Some Latest Awqaf
The Indus Hospital in Karachi, PakistanAMAF, Dubai, UAE
The Salma Relief project will provide preserved halal
meat to people in crisis-hit locations – as a result of
wars and natural disasters – swiftly and in a
comprehensive and sustainable manner.

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The Decline of Awqaf
 Due to a variety of reasons including the legacy of colonisation of Muslim countries,
the role of the Awqaf as an effective tool for socio-economic development became
neglected and often forgotten.
 This is evident by the fact that not only much less new Awqaf are donated
nowadays, but also in the dormant nature of many Awqaf assets.
 A large number of Awqaf properties were expropriated, lost, or remained
undeveloped or under-utilized and the latent wealth of Awqaf remains largely
untapped.
 The decline started since the 10th Century AH (16th Century AD).
* Hisham Dafterdar (nd)Towards Effective Legal Regulations And Enabling Environment For Awqaf

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Causes of Decline of Awqaf
◊Awqaf’s role became limited to the establishment of mosques, religious schools and putting
copies of Holy Qur’an in mosques.
◊This is due to many factors including:
◊The Colonization of almost all Islamic lands by western forces.
◊The confiscation of most Awqaf by the colons.
◊The spread of ignorance and illiteracy among the Muslims due to the colonization of their
lands and the colons’ policy to keep them ignorant so it is easy for them to subdue them.
◊After independence, many influential people exploited the messy situation after the
departure of the colons and grabbed a lot of Awqaf.
◊In some other cases the replacement of deteriorated Awqaf was used as a pretext to grab
them by non-fearing Allah people.
◊The weakness of government regulations or the rejection of secular governments to anything
that is moral or religious

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Recommendations
 If we were to make a difference and enhance the quality life, we need
to revive and reactivate Awqaf. Alhamdulillah KAPF has been active in
doing this not only in Kuwait but all over the world.
 Encourage Muslims to establish and practice Awaqf
 Institutionalize the redistributive instruments including Awqaf.
 enact the laws and bylaws to regulate it.
 Clear the misunderstanding about it.
 Spread awareness about its importance.
 Encourage Muslims to establish Awqaf or share in the establishment
of Awqaf for the benefit of the Muslim Ummah
 Facilitate its registration, administration and good governance.

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Conclusion
 The institutions of Zakat and Awqaf are very important keys to better socio-
economic development that leads to better welfare to Islamic societies.
 If encouraged and implemented properly, they can play a major role in
reducing unemployment and poverty and contribute to the enhancement of
the standard of life of people with less reliance on taxation. They can help:
 Create jobs
 Reduce unemployment
 Reduce poverty
 Raise the standard of life
 Reduce government expenditures

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References
◊ Ahmad, Habib, Integrating Waqf and Islamic Finance, Power Point Presentation, Durham University.
◊ Ahmad, Habib (2004), The Role of Zakat and Awqaf in Poverty Alleviation, Occasional paper No.8, IRTI, Jeddah.
◊ Boudjellal, Mohammed, The Need for a New Approach of the Socio-economic Developing Role of Waqf in the
21st Century, Power Point Presentation.
◊ Çizakça, Murat (1998) “Awqaf in History and its Implications for Modern Islamic Economies”, in Islamic
Economic Studies, Vol. 6, No. 1, November 1998.
◊ Dafterdar, Hisham (nd)Towards Effective Legal Regulations And Enabling Environment For Awqaf
◊ Kahf, Monzer (2003) The Role of Waqf in Improving the Ummah welfare
◊ Qureshi, Anwar Iqbal, Fiscal System of Islam, Institute of Islamic Culture, printed by Zahid Iqbal Printing Press,
Lahore, Pakistan, 1967, pp. 186-187.
◊ http://www.andalucia-andalusia.com/Moorish-Medicine-Health-Care.html

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‫جزيال‬ ‫شكرا‬
Thank You very much
Merci Beaucoup
Muchas Gracias
Email: achachi@isdb.org
Tel. +966-12-646 6229
Fax. +966-12-637 8927
Website: irti.org