1. The Concept
of Waqf and
its Application
in Takaful
A presentation by:
Nabil Bello

2. Tankertanker Design
Tankertanker Design
Tankertanker Design
Definition of Waqf
• Waqf is an Arabic word, which
has its root from the Arabic verb
“waqafa”. The plural is awqaf.
Literally it means to ‘stand’. It also
means to ‘cause a thing to stop
and standstill’ or ‘detention’,
‘holding’ and ‘keeping’. (Lisan al-
Arab)
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3. Tankertanker Design
Tankertanker Design
Tankertanker Design
Definition of Waqf
Technically, waqf is defined as
taking the corpus (‘ain) of any
property from personal
ownership, transferring it
permanently to the ownership of
Allah and dedicating its usufruct
(manfa’ah) to purposes recognized
by the Shariah as pious or
charitable. (Islahi, 1992)
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4. Tankertanker Design
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Tankertanker Design
Shariah Authority
• Qur’an:
((‫يكفروه‬ ‫فلن‬ ‫خري‬ ‫من‬ ‫ا‬‫و‬‫يفعل‬ ‫وما‬))
“Of the good that they do, nothing will be
rejected Of them; for Allah knoweth well
those that do right.” (Suratu Ali Imran)
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5. Tankertanker Design
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Shariah Authority
• Hadith:
‫هللا‬ ‫صىل‬ ‫نىب‬‫ل‬‫ا‬ ‫ن‬‫أ‬ ‫نه‬‫ع‬ ‫هللا‬ ‫رىض‬ ‫يرة‬‫ر‬‫ه‬ ‫ىب‬‫أ‬ ‫عن‬‫وسمل‬ ‫يه‬‫عل‬
‫قال‬" :‫ش‬‫أ‬ ‫ثالثة‬ ‫من‬ ‫ال‬‫ا‬ ‫معهل‬ ‫نقطع‬‫ا‬ ‫دم‬‫أ‬ ‫بن‬‫ا‬ ‫مات‬ ‫ذا‬‫ا‬‫ياء‬:
‫ي‬ ‫صاحل‬ ‫ودل‬ ‫و‬‫أ‬ ،‫به‬ ‫نتفع‬‫ي‬ ‫عمل‬ ‫و‬‫أ‬ ،‫ية‬‫ر‬‫جا‬ ‫صدقة‬‫هل‬ ‫دعو‬"
When a man dies, all his acts come to
an end, but three; recurring charity
(sadaqa jariya) or knowledge (by
which people benefit), or a pious
offspring, who prays for him”5/31/2014

6. Tankertanker Design
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Types of Waqf
Waqf Khairy (Philantrophic
Endowment)
Waqf Ahly (Family Endowment)
Waqf Deeny (Religious Endowment)
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7. Tankertanker Design
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Main Features
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Perpetuity of
the waqf
contract
Permanence of
stipulations of
the waqf
founder

8. Tankertanker Design
Tankertanker Design
Tankertanker Design
Application of Waqf in Takaful
• Takaful is defined as a scheme based on
brotherhood, solidarity and mutual
assistance which provides for mutual
financial aid and assistance
to the participants, in
case of need whereby the
participants mutually
agree to contribute for that
purpose. (Takaful Act, 1984)
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9. Tankertanker Design
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Operation of Takaful
Shariah Compliant Products –
mudharabah, wakalah, waqf, etc.
Maisir
Gharar
Riba
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10. Tankertanker Design
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Application of
waqf
Pure waqf model Hybrid model
Wakalah/waqf
model
Mudharabah/waqf
model

11. Tankertanker Design
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Tankertanker Design
Pure Waqf Model
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12. Tankertanker Design
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Tankertanker Design
Wakalah Waqf Model
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13. Tankertanker Design
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Mudharabah Waqf Model
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Surpluses
• May be kept as reserve to mitigate future
losses.
• May be distributed as a cash distribution to
the participants.
• May be used for charitable purposes.
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15. Thank you