Understanding Waqf Istithmar: The Concept of Investment Waqf #

Waqf Istithmar refers to the concept of investment waqf, a contemporary application of waqf principles designed to benefit both the donor and the associated projects.

In traditional waqf, once an asset is dedicated, the capital itself cannot be reclaimed. However, it is important to note that as a beneficiary of the waqf, you can receive returns generated from the investment of the waqf assets.

Key Characteristics of Waqf Istithmar: #

1. Ijtihadi Law: Waqf Istithmar operates under ijtihadi (interpretative) jurisprudence, adapting traditional waqf principles to modern economic contexts.
2. Mutual Benefit: This model allows the donor to support a cause while also reaping financial benefits from the investment, promoting sustainable growth and development.
3. Irrevocable Capital: Once the waqf is established, the original capital is permanently dedicated to the waqf, ensuring its ongoing contribution to the intended goals.
4. Returns on Investment: Although the original capital cannot be withdrawn, beneficiaries can still enjoy a share of the profits or returns generated from the invested assets.

This understanding of Waqf Istithmar was provided by Dr. Shamsiah during the Raya Networking Webinar in 2020.