1) The Waqf giver (al-waqif). The donor is the person who withholds (blocks) the property, provided that the Waqf is disposable, that is to say the person should be competent to practice tasks depending on man’s sanity. The one who is free, matured (baligh), sane or fully responsible (‘aqil), sincere and legally entitled to the wealth when declaring the Waqf. A Waqif was required to be a living Muslim and the act of establishment to be registered with an Islamic court. In the nineteenth century, the right to establish Waqf was extended also to the members of other faiths.(Hanafi Law clearly allows non Muslims to create Waqf based on certain condition. A non Muslim is not allowed to make waqf of or for a mosque.( Awqaf Experiences in South Asia, By: Syed Khalid Rashid,p30)) The declaration must be made voluntarily and in good faith.
2) The wealth designated for the endowment (al-mawquf). Wealth to be declared must be physically tangible items such as a house or plot of land. Donor must legally own the declared wealth or property and it must be able to benefits the community and transferable. In principle Waqf is permanent and there must be a clause in it that perpetuate its objective, such as income of the Waqf must be given to my daughter and after her death to the poor and needy in a given area or town. The Malikites allows a temporary Waqf, and this is very wise of them . This may be the reason why in Malaysia temporary Waqf is allowed emphasizing “why not use what is available”. The use of the property also must be governed by Islamic law. It must also be owned by the waqif and must be a valuable property which is independent and well defined.(Interest obtained from conventional banks is not money you own because it came to your hands by invalid contract. Therefore you should rid yourself of it as soon as you can by giving it to the poor and needy, better through Islamic charitable Organizations. It is not "clean or pure" money to give to the local mosque for instance. You cannot make Waqf out of it because Waqf, according to Shari'ah, can only be created out of one’s owned money or assets. This is not considered Sadaqah for the same reason but you will be rewarded for you intention and action of keeping you money untainted by, or pure off interest)(Jewelry may be endowed for wearing or lending as they are properties similar to real estates.) The donated property should not be assigned to others; such as mortgage, debt guarantee or related to any other right to others. For example, a real estate designated as a mosque cannot be sold or disposed of in any manner what so ever, except for replacing it with another real estate that is better, more useful for a mosque. The only difference between Islamic Jurists in this regards is that while the majority allows substitution for better usefulness, some jurists, the Malikites do not permit any replacement, even if the area where the mosque is located becomes completely deserted by Muslims . In the Islamic Shari’ah, Waqf’s Trustee/manager has no power to liquidate it. The rules and conditions for substitution of a Waqf property, to another are to make it almost impossible to eliminate a Waqf or affect its perpetuity.
3) The recipient of the endowment (al-mawquf ‘alaih). It can be specific (assigned) recipient whether one person or more. . The unassigned can be an entity, such as the poor, Mujahedeen (warriors), mosques, hospitals, schools, preparing the dead for burial and Quran. The beneficiary party should meet two conditions: First: To be competent for ownership whether being assigned or unassigned. Second: The beneficiary should be charitable field or good deed not for sinful purposes Waqf for dhimmis are allowed, but not for non Muslims worshipping places.(Waqf may be granted for non-Muslims that are not in war status with Muslims as they are entitled to Sadaqah (alms).)
4) The legal statement of the endowment (al-sighah). ‘Aqad is understandable words or writings for any purpose of Waqf whether general Waqf or specific Waqf. It is compulsory to validate the Waqf. Sometimes an action to denote a Waqf as known to people, such as making one's house a mosque and permitting people to perform their prayers in it, or assigning a piece of land to be graveyards and allowing people to bury their dead in it also amounts to expression .(Imam Abu Yusuf considers the declaration by the waqif of his intention to create Waqf.,(Awqaf Experiences in South Aisa, Syed Khalid Rashid,p8) Sighah should not be time specific or conditional. Aqad statement is of two types:
Explicit statement (lafz sorih): A clear statement that entails one exact meaning only like “I give my house to be Waqf for the poor people”. Such as saying I (endowed, blocked, devoted, named), these are clear words that do not have any other meaning but Waqf. When a person says any of those words the Waqf shall be valid.
Implicit statement (lafz kinayah): Statements that have more than one meanings like “My property is a charity (sadaqah) to the poor people”.
THE WISDOM OF WAQF
To express one’s submission and piety to Allah SWT
To get close to Allah SWT
To get a continuous charity in this and after life.
Sharing benefits with Muslim community like building mosques and schools.
To strengthen the unity of Ummah.
TYPES OF WAQF
Waqf is divided according to the area it was donated to. There are two types:
Charity Waqf (Waqf Khairi): It is blocked for a charitable entity for a certain period of time. Then, the Waqf is converted to a certain person or persons, such as endowment of a piece of land for a hospital or school to be handed back later to the person and his children. It is divided into:
General – Wealth that can be used (as stated by the giver) for any legal activity that benefits the community. For instance, when a person endowed a piece of land for charity. In this type of endowment, Nazir Waqf (endowment ownership) has to govern the land in any form of development that could provide benefits without any ties to the types of charity or in the form of development itself. While the benefits should be given to the community in any form of charity so that the ownership will continuously gain rewards.
Special – Wealth specified by giver to be used for specific purposes and functions, e.g. land for mosque, school, cemetery, business centers, house, etc.
Family or breed Waqf or Waqf Ahli: It is blocked for himself or a certain person and then transferred to a charitable body. It includes Waqf for immediate family members that include children, grand children, etc. Example; “I endowed all of my wealth to my son and grandson and to my entire heritage forever”.
Waqf regulations differ in differing Muslim societies and have also differed in history. In Ottoman times, there were two types of Waqf property. Private (Mulk) land could be donated to a permanent and inalienable trusteeship, a Waqf sahih. Miri land leased permanently from the Sultan on condition that it is worked could also be donated as Waqf with the permission of the Sultan. This type of Waqf was known as Waqf ghor shih and, though inalienable in theory, was sometimes sold in fact.
FORMS OF CHARITABLE WAQF
Irsod Endowment: Not from legal owner but wealth which has been officially by authority or state to be used for construction of mosque, school, orphanage and public cemetery.
Waqf of Shares: Shares and stocks that have designated for endowment by legal owner.
Shares which are Shari’ah-acceptably traded and its profits are then designated for Waqf. It comes from the revenue of shares.
Combined Waqf (Waqf Musytarak): This is a Combination of several types of Waqf including one that is formed through binding protocol (istibdal) and Waqf shares.
Waqf Musya’: There are four pillars of Waqf: Waqf of private possession that is collectively owned by more than one party that cannot be divided.
MUTAWALLI
If the Waqf donor prerequisites that he or someone else shall appoint the trustee, (if more than one chain of inheritors shall be defined) the will shall be kept .(It was narrated that Omar was the trustee of his sadaqah (Waqf) then named his daughter Hafsa as his successor throughout her life then the wise of her family.)
Mutawalli of Waqf should meet the following terms
Islam: Trusteeship is a type of rule which cannot be entrusted to a non-Muslim
Sanity: The Mutawalli should not be insane
Maturity: The Mutawalli should not an enfant
Good Manners: The Mutawalli should be pious who is honest, avoids major sins and has good manners
Efficiency: The Mutawalli should be able to handle the properties he looks after. He must be observed that efficiency in managing the Waqf property is the important element in ensure the Waqf property is not wasted. This is especially important under today’s dynamic financial system which requires lot of expertise in managing funds. Mutawalli should be able to handle the properties he looks after.
The Mutawalli is required to do the best to preserve the Waqf and maintain its best interest. The Mutawalli’s tasks include the following:
Maintenance of Waqf: The Mutawalli is responsible for maintaining and safeguarding the property from destruction and damage
Meeting Waqf Terms: Those terms shall not to be violated or neglected
Defending Waqf Rights: in court disputes to keep those rights
Payment of Waqf debts: The debts are related to the revenues of Waqf not the assets. Payment of debts has a higher priority than spending on Waqf beneficiaries as delay of payment may result in the confiscation of its revenues.
Fulfilling beneficiaries' rights without any delay except for necessities, such as the need for maintenance, repair or payment of debt.
Limitation of the Mutawalli
The Mutawalli shall not do some actions, so as not to harm the interests of Waqf, such as:
Favouritism, in own favour like renting the property to himself or his son.
Borrowing against the Waqf so as to pay the debt from the Waqf revenues except in case of necessities. Such an action may result in the deduction of the Waqf revenues for the debtors. He may only borrow with the permission of court.
Mortgage of the Waqf property that may cause the loss of the bestowed property
Lending the Waqf property except for the beneficiaries
Residing in the Waqf property for free. He cannot transfer his duty or functions as well.
Mutawalli’s Remuneration
The Mutawalli is paid a salary that the Waqf donor assigned even if it exceeds what is given to similar persons. If the donor did not assigned a salary, the issue would be taken to court for the judge to decide a salary similar to his peers. Also if the donor assigns a lower salary than that given to his peers, the Mutawalli may refer to the judge to give him a similar salary.
Mutawalli transfers his duties to another person
If the he resigns, he may not transfer his duties to other without referring to the judge who shall appoint another person for that post. If the Waqf donor prerequisites the trusteeship to a certain person granting him the right to delegate such a right to others, it would be valid. The trusteeship will not be withdrawn as per this delegation, but the one he imposes shall be his agent.
Mutawalli Dismissal
The Mutawalli shall be dismissed if proved to be corrupted or if he loses competence. The judge may oust him even if the Waqf donor prerequisites his trusteeship. The judge, then, may appoint himself or any other person as Mutawalli. The trusteeship shall not be passed to the second person in Waqf donor's list as it is provided that the current Mutawalli shall lose his own trusteeship. If the Mutawalli regains competence he would be reassigned as Mutawalli if the donor had originally assigned him, or else he would not return.
WAQF ADDED AFTER DEATH
If the Waqf donor says "I hereby bequest this house for Waqf after my death", or "If I die this house will be Waqf", the Waqf will be valid as a will. In this case, it may not exceed one third of one's inheritance. The donor may withdraw this pledge but the Waqf may not be spent on an heir as the terms of Waqf would be valid (it may not be sold, granted or inherited). Waqf plays an important role in providing social and welfare security. It finances educational and welfare institutions (University of Azhar in Egypt is well known example which get support from Waqf.) It redistributes wealth in favour of poor and protects the wealth of Muslims nations by prohibiting sale and wasting by prodigals.
Saturday, July 11, 2009
Wednesday, July 8, 2009
WAQF-A UNIQUE ISLAMIC INSTITUTION
INTRODUCTION
The Waqf literally means holding, confinement or prohibition . Its literal meaning is also “tying up of property for some pious object recognized by Shari'ah to gain divine pleasure in such a way that the corpus (asl) remains intact and only its usufruct is spent on the named object”(Awqaf Experiences in South Asia, By: Syed Khalid Rashid,p7) . Waqf is withholding one's property to eternally spend its revenue on fulfilling certain needs depending on the choice and conditions made by the 'waqif' or the person who owns the property. Legally, Waqf is defined as to endow the property rights of a good to the public service perpetually and to prevent others from obtaining its property rights. It also is defined as the confinement of an amount of money by a founder and the dedication of its usufruct in perpetuity to the welfare of society. Thus, there are two main legal conditions for the establishment of a Waqf: the first is to dedicate one’s property rights to any public service and prevention of its re-ownership by others; and the second is the perpetuity of this dedication. Its use for other purposes or disposal is prohibited. Benefits of the given property can be used to finance the foundation’s activities without consuming the property itself, thus a Waqf remains as long as its assets last. Hence theoretically perpetuity implies that Waqf properties should not decrease.
An important rule was that stipulations of the Waqif had to be implemented exactly. The Waqf mission and the means to achieve its goals were specified in the Waqf deed and could not be changed even by the Waqif. If a Waqf’s mission was not relevant any more to the needs and conditions of the day, the Waqf would start to serve for the closest purposes in the same field. If this was not possible, resources of the Waqf would be allocated to the poor and the needy.
The basic regulations governing Waqf trusts are laid down in Shariah law, but interpretation and implementation may vary in different Muslim societies. At its heart the Islamic endowment is connected firmly with the religious precept of charity. Modern reforms in several Muslim countries have abolished nationalized or highly regulated Waqf. In the modern society Waqf remain devices for financing the administration of mosques and religious schools as well as for guaranteeing an inheritance.
One of the purposes of the Waqf is to circumvent regulations that do not allow inheritance, causing wealth of individuals to become property of the ruler. Rich families donate properties as Waqf, naming their sons as trustees. The trustee usually receives 10% of the income, guaranteeing that at least some of the money stays in the family.
ORIGIN AND LEGALITY OF WAQF
The first Waqf in Islam is that of Omar Ibn Al Khattab. Ibn Khozaima included in his book : where he mentioned the story of Ibn Omar in comment. The Qur’an contains no specific reference to the endowment (Waqf) and its legal parameters have been developed through centuries by jurists. It is inspired from repetition and emphasis upon charity within Islam as an act of devotion to God. There are many texts in the Holy Quran and the Hadith sayings that advocate religious bequest, advise making it or explain its canons .
As for the Holy Quran, there are general texts that comprise all kinds of charity and beneficenceRefer Quran :(51:19), (90:12-17), (93:9), (107:1-3,7), (2:83,177), (4:8), (9:60), (2;261) , including Waqf endowment and other deeds, as stated in Allah Almighty’s verse: "Ye will not attain unto piety until ye spend of that which ye love” in another verse; Allah S.W.T said; “The likeness of those who spend their wealth in Allah’s way is as the likeness of a grain which growth seven branches, in every branch contains of hundred seeds, and (remember) Allah will give increase manifold to which he will and Allah is All Embracing and All Knowing” .
In Hadithrefer;Sahih Muslim,vol.4,Bab al-Waqf; Sunan Ibn Majah, vol. 4, Bab al-Waqf; Sunan Abu Daud, al-Wasaya; Sunan al-Nisai, Kithab al- Ahbas, Bab 3. ; According to Abdullah Ibn Omar (May Allah be well-pleased with him), Omar obtained a land lot in Khaibar; he came to the Prophet PBUH asking him for advice. He said: "Ye Apostle of Almighty, I obtained a land in Khaibar. I never obtained a property more precious to me than this. What do you advise me? He said: "If you want, you can bequeath it, and give it as a charity; provided that it should not be sold, bought, given as gift or inherited." He said, “Then Omar gave it as charity for the poor, relatives, slaves, wayfarers, and guests. There is no harm for the person responsible for it to feed himself or a friend from it but for free.”
Prophet (PBUH) said in his well known Hadith, "When a human being dies, his work for God comes to an end except for three: a lasting charity, knowledge that benefits others, and a good child who calls on God for his favour." So here the Waqf also included. It means that Waqf has considered as a matter of charity for the society as it give benefit on the usage of it.
Religious scholars also have mentioned about Waqf: Shoukani said: "We do not know of a difference of opinion among Imams (scholars) on withholding bridges and mosques, but they differed in other items. According to Anas Ibn Malik said Prophet Mohammed (PBUH) said: “Seven cases the person will benefit from after his death in his grave: knowledge he gave, a river he dug, a well he dug, a palm he cultivated, a mosque he built, a Quran book he left as inheritance, or a child he left who calls on God for his favour after his death.
ENDOWMENTS IN THE PAST & THE PRESENT
A Waqf in pre-commercial society would ordinarily be arable land, farms or oases. In theory the Waqf is absolutely permanent, and once established, the contract cannot be altered or the property sold or alienated. Exceptions occur if the contract is violated in some way or if the founder or manager becomes an apostate.see
Waqf was realized by old nations when real estates were endowed to be worship places ever since man knew worship. Waqf was not confined to worship place as one of Nubian ruler (Benout), during the reign of Ramsis IV, blocked a piece of land he owned to use its revenues to buy an ox to be slaughtered every year.
Monuments indicated that ancient Greeks knew Waqf when a piece of land was endowed for holding religious ceremonies in some cities. At Roman times, at during the republican era, their regime upgraded after the emergence of Christianity. The government appointed a public servant for Waqf to ensure the implementation of donors' terms.
Waqf land ownership is one of the legal modes of land ownerships prevalent in the Ottoman Empire. The Ottoman society left the funding health, education and welfare entirely to the Waqf system (Cizakca (1995), p.314 ( Waqf System as a redistribution mechanism in Ottoman Empire, By Birol Baskan Northwestern University Department of Political Science (April 2002)) so much so that the following saying does not exaggerate its central importance: "thanks to the Waqfs flourished during the Ottoman Empire, a person would have borne into a Waqf house, slept in a Waqf craddle, ate and drank from Waqf properties, read Waqf books, taught in a Waqf school, received his salary from a Waqf administration, and when he died, put into a Waqf coffin and buried in a Waqf cemetery.” Almost all of the researches emphasize the central importance of the Waqf system on social, economic and cultural life of the Ottoman Society.
In the pre-Islamic period, Arabs had worship houses and temple annexes where presents, votive offerings and Waqf crops were stored. As for breed Waqf, it was known in ancient Egypt where properties were withheld to spend on a certain family, their children and ancestors without having the right to sell them. The Romans also knew breed Waqf so did Europe for generations where certain amount of money of the nobles was withhold for the elder son to cover costs necessary for titles that were inherited. Then the French campaign put an end to that system.
Being developed during 7th and 8th centuries AD, Waqf is definitely 4 to 5 hundred years older than English trusts and uses. Many Awqaf institutions exist today were created more than 1000 years ago.(Awqaf Experiences in South Asia, By: Syed Khalid Rashid,p22;English trusts might have Originated from Waqf)
In managing Waqf, there appears to have a mixture of pre-Islamic and non-Islamic traditions. There have always been regional differences in the ways of regulating the Waqf. In Muslim societies, regulations on inheritance have represented a problem for rich families: properties have been considered as belonging only to its owner but not to his or her descendants. When the owner dies, the property would then be transferred to the ruler. But with Waqf, rich families have established Waqf and had children put up as trustees.
LEGAL CONDITIONS OF WAQF
Waqf creation requires certain conditions; the most important among them are the following
1. The property must be a real estate or a thing which has some meaning of perpetuity. Muslim societies has Waqf land, buildings, camels, cows, sheep, books, jewelry, swords and other weapons, agricultural tools, etc.
2. The property should be given on a permanent basis. Some jurists approve temporary Waqf only in the case of family Waqf.
3. The Waqf founder should be legally fit and apt to take such an action, i.e., a child, an insane or a person who does not own the property cannot make Waqf.
4. The purpose of the Waqf must, in the ultimate analysis be an act of charity from both points of view of Shari’ah and of the founder. Hence Waqf on the rich alone is not permissible because it is not charity.
5. Finally, beneficiaries, person or pur¬pose, must be alive and legitimate. Waqf on the dead is not permissi¬ble. And Waqf to animals are also not allowed.
The Waqf literally means holding, confinement or prohibition . Its literal meaning is also “tying up of property for some pious object recognized by Shari'ah to gain divine pleasure in such a way that the corpus (asl) remains intact and only its usufruct is spent on the named object”(Awqaf Experiences in South Asia, By: Syed Khalid Rashid,p7) . Waqf is withholding one's property to eternally spend its revenue on fulfilling certain needs depending on the choice and conditions made by the 'waqif' or the person who owns the property. Legally, Waqf is defined as to endow the property rights of a good to the public service perpetually and to prevent others from obtaining its property rights. It also is defined as the confinement of an amount of money by a founder and the dedication of its usufruct in perpetuity to the welfare of society. Thus, there are two main legal conditions for the establishment of a Waqf: the first is to dedicate one’s property rights to any public service and prevention of its re-ownership by others; and the second is the perpetuity of this dedication. Its use for other purposes or disposal is prohibited. Benefits of the given property can be used to finance the foundation’s activities without consuming the property itself, thus a Waqf remains as long as its assets last. Hence theoretically perpetuity implies that Waqf properties should not decrease.
An important rule was that stipulations of the Waqif had to be implemented exactly. The Waqf mission and the means to achieve its goals were specified in the Waqf deed and could not be changed even by the Waqif. If a Waqf’s mission was not relevant any more to the needs and conditions of the day, the Waqf would start to serve for the closest purposes in the same field. If this was not possible, resources of the Waqf would be allocated to the poor and the needy.
The basic regulations governing Waqf trusts are laid down in Shariah law, but interpretation and implementation may vary in different Muslim societies. At its heart the Islamic endowment is connected firmly with the religious precept of charity. Modern reforms in several Muslim countries have abolished nationalized or highly regulated Waqf. In the modern society Waqf remain devices for financing the administration of mosques and religious schools as well as for guaranteeing an inheritance.
One of the purposes of the Waqf is to circumvent regulations that do not allow inheritance, causing wealth of individuals to become property of the ruler. Rich families donate properties as Waqf, naming their sons as trustees. The trustee usually receives 10% of the income, guaranteeing that at least some of the money stays in the family.
ORIGIN AND LEGALITY OF WAQF
The first Waqf in Islam is that of Omar Ibn Al Khattab. Ibn Khozaima included in his book : where he mentioned the story of Ibn Omar in comment. The Qur’an contains no specific reference to the endowment (Waqf) and its legal parameters have been developed through centuries by jurists. It is inspired from repetition and emphasis upon charity within Islam as an act of devotion to God. There are many texts in the Holy Quran and the Hadith sayings that advocate religious bequest, advise making it or explain its canons .
As for the Holy Quran, there are general texts that comprise all kinds of charity and beneficenceRefer Quran :(51:19), (90:12-17), (93:9), (107:1-3,7), (2:83,177), (4:8), (9:60), (2;261) , including Waqf endowment and other deeds, as stated in Allah Almighty’s verse: "Ye will not attain unto piety until ye spend of that which ye love” in another verse; Allah S.W.T said; “The likeness of those who spend their wealth in Allah’s way is as the likeness of a grain which growth seven branches, in every branch contains of hundred seeds, and (remember) Allah will give increase manifold to which he will and Allah is All Embracing and All Knowing” .
In Hadithrefer;Sahih Muslim,vol.4,Bab al-Waqf; Sunan Ibn Majah, vol. 4, Bab al-Waqf; Sunan Abu Daud, al-Wasaya; Sunan al-Nisai, Kithab al- Ahbas, Bab 3. ; According to Abdullah Ibn Omar (May Allah be well-pleased with him), Omar obtained a land lot in Khaibar; he came to the Prophet PBUH asking him for advice. He said: "Ye Apostle of Almighty, I obtained a land in Khaibar. I never obtained a property more precious to me than this. What do you advise me? He said: "If you want, you can bequeath it, and give it as a charity; provided that it should not be sold, bought, given as gift or inherited." He said, “Then Omar gave it as charity for the poor, relatives, slaves, wayfarers, and guests. There is no harm for the person responsible for it to feed himself or a friend from it but for free.”
Prophet (PBUH) said in his well known Hadith, "When a human being dies, his work for God comes to an end except for three: a lasting charity, knowledge that benefits others, and a good child who calls on God for his favour." So here the Waqf also included. It means that Waqf has considered as a matter of charity for the society as it give benefit on the usage of it.
Religious scholars also have mentioned about Waqf: Shoukani said: "We do not know of a difference of opinion among Imams (scholars) on withholding bridges and mosques, but they differed in other items. According to Anas Ibn Malik said Prophet Mohammed (PBUH) said: “Seven cases the person will benefit from after his death in his grave: knowledge he gave, a river he dug, a well he dug, a palm he cultivated, a mosque he built, a Quran book he left as inheritance, or a child he left who calls on God for his favour after his death.
ENDOWMENTS IN THE PAST & THE PRESENT
A Waqf in pre-commercial society would ordinarily be arable land, farms or oases. In theory the Waqf is absolutely permanent, and once established, the contract cannot be altered or the property sold or alienated. Exceptions occur if the contract is violated in some way or if the founder or manager becomes an apostate.see
Waqf was realized by old nations when real estates were endowed to be worship places ever since man knew worship. Waqf was not confined to worship place as one of Nubian ruler (Benout), during the reign of Ramsis IV, blocked a piece of land he owned to use its revenues to buy an ox to be slaughtered every year.
Monuments indicated that ancient Greeks knew Waqf when a piece of land was endowed for holding religious ceremonies in some cities. At Roman times, at during the republican era, their regime upgraded after the emergence of Christianity. The government appointed a public servant for Waqf to ensure the implementation of donors' terms.
Waqf land ownership is one of the legal modes of land ownerships prevalent in the Ottoman Empire. The Ottoman society left the funding health, education and welfare entirely to the Waqf system (Cizakca (1995), p.314 ( Waqf System as a redistribution mechanism in Ottoman Empire, By Birol Baskan Northwestern University Department of Political Science (April 2002)) so much so that the following saying does not exaggerate its central importance: "thanks to the Waqfs flourished during the Ottoman Empire, a person would have borne into a Waqf house, slept in a Waqf craddle, ate and drank from Waqf properties, read Waqf books, taught in a Waqf school, received his salary from a Waqf administration, and when he died, put into a Waqf coffin and buried in a Waqf cemetery.” Almost all of the researches emphasize the central importance of the Waqf system on social, economic and cultural life of the Ottoman Society.
In the pre-Islamic period, Arabs had worship houses and temple annexes where presents, votive offerings and Waqf crops were stored. As for breed Waqf, it was known in ancient Egypt where properties were withheld to spend on a certain family, their children and ancestors without having the right to sell them. The Romans also knew breed Waqf so did Europe for generations where certain amount of money of the nobles was withhold for the elder son to cover costs necessary for titles that were inherited. Then the French campaign put an end to that system.
Being developed during 7th and 8th centuries AD, Waqf is definitely 4 to 5 hundred years older than English trusts and uses. Many Awqaf institutions exist today were created more than 1000 years ago.(Awqaf Experiences in South Asia, By: Syed Khalid Rashid,p22;English trusts might have Originated from Waqf)
In managing Waqf, there appears to have a mixture of pre-Islamic and non-Islamic traditions. There have always been regional differences in the ways of regulating the Waqf. In Muslim societies, regulations on inheritance have represented a problem for rich families: properties have been considered as belonging only to its owner but not to his or her descendants. When the owner dies, the property would then be transferred to the ruler. But with Waqf, rich families have established Waqf and had children put up as trustees.
LEGAL CONDITIONS OF WAQF
Waqf creation requires certain conditions; the most important among them are the following
1. The property must be a real estate or a thing which has some meaning of perpetuity. Muslim societies has Waqf land, buildings, camels, cows, sheep, books, jewelry, swords and other weapons, agricultural tools, etc.
2. The property should be given on a permanent basis. Some jurists approve temporary Waqf only in the case of family Waqf.
3. The Waqf founder should be legally fit and apt to take such an action, i.e., a child, an insane or a person who does not own the property cannot make Waqf.
4. The purpose of the Waqf must, in the ultimate analysis be an act of charity from both points of view of Shari’ah and of the founder. Hence Waqf on the rich alone is not permissible because it is not charity.
5. Finally, beneficiaries, person or pur¬pose, must be alive and legitimate. Waqf on the dead is not permissi¬ble. And Waqf to animals are also not allowed.
Monday, May 11, 2009
Maldivian economy - a brief introduction
Just 1.5 meters above sea level, the Maldives (0.35 million inhabitants) is made up of a chain of 1190 islands, of which 198 are inhabited and around 100 are exclusive resort islands which lie off the Indian sub-continent. The country was long a sultanate, first under Dutch and then under British protection. The Maldives became a republic in 1968, three years after independence. The economy of the Maldives is a typical island economy, with a narrow based economic infrastructure and a substantial deficit on the current account, largely compensated by money transfers from Maldivians living abroad to their families on the islands. Annual GDP growth has averaged 7.9 percent over the last 15 years and per current per capita income is around US $3000, while inflation has been maintained at modest levels. The Maldives economy is largely based around two industries—tourism and fishing. Other complementary activities to tourism and fishing, including retail and wholesale trade, construction, communication and transportation, are increasingly becoming important sectors.
Prudent macro-economic management and a stable political environment have enabled the Maldives to achieve uninterrupted economic growth in the past. Infant mortality rate has fallen and adult literacy rate has reached about 97%. The country was heavily hit by the December 2004 Indian ocean Tsunami, destroying much of its economic infrastructure. The impacts of globalization and the challenges for been a part of the wider global economy is even greater (Dicken, 2003). Changes that take place in both internal and external environment directly affect vulnerable economy due to the greater dependence on tourism as a key economic activity. Since inception in 1972, tourism has been developing in the Maldives, and today, tourist arrivals to the country doubled the population of the country. (The Seventh National Development Plan 2007).
With the shock of tsunami 2004, Tourism (traditionally accounting for over 40% of GDP) came to a hold, while many other industries suffered stagnation in production. The situation has further worsened the situation due to the continued political unrest especially with the recent development of multi-party political system.
There has been complete transformation in the Maldivian political and civil environment with the introduction of various independent commissions. Maldives has been experiencing larger current account deficit over the years. The Maldives’ economy collapsed after the Tsunami. The country lost a significant part of income from tourism while export revenues halved. Adequate information about the country’s economy is scarce. Estimations of the current account deficit vary from 15% of GDP to nearly 40% of GDP. Maldivian Balance of payments deficits during the first half of the 1980s were caused largely by the international shipping recession, the collapse of world tuna prices, and a brief downturn in tourism caused by the violence in nearby Sri Lanka. The government began an economic reform program in 1989, by lifting import quotas and opening some exports to the private sector. In recent years, it has encouraged more foreign investment by liberalizing regulations.
Advantages and disadvantages of bay’ al-dayn
Dayn means debt and bay’ means trade or exchange. Thus, bay’al-dayn refers to sale of debt. There are disagreements among the scholars whether the debt can be sold or not; some scholars argue that the debt arise from sale of commodity can be sold while other says that selling of debt involves usury or riba and elements of gharar. Despite that, this essay will focus the advantages and disadvantages of bay’al-dayn (sale of debt).
One of the biggest advantages of bay’ al-dayn is that it helps the firm to reduce cash flow problems as it boosts large immediate cash flow to the business .This immediate cash flow will help the business to solve its working capital problems such as paying wages and utilities on time which will ensure the smooth running of the business. The possibility of sale of the debt will further helps smoother cash flow and better financial planning which in turn will help the other operations of the business.
The second advantage of bay’al-dayn is that it will reduce the business administrative cost to a certain extent. It is like out sourcing the business sales ledger and the owners and business managers can concentrate more on managing other areas of business when they have ample free time. In other words, bay’ al-dayn will reduce the time spend on credit control and some other administrative cost like record keepings which would rise cost of running the business thus reducing the overall profit.bay al-dayn may also help the business to eliminate the risk of bad debts and provision for doubtful debts (non-recourse factoring)
Sale of debt to a respected and trust worthy business like to a well known bank may boost the customers’ (debtors) morale to pay debt more quickly. In such a situation the business will enjoy the expansion of market and provide kind of marketing and free advertising to the company. In other words the level of market activities will increase which may increase the future demand for the firms’ product.
The fourth advantage of bay’ al dayn is that it may enable the firm to get useful information about the credit standing of business customers from the company to which the debt is sold and they can help the business to negotiate better terms with your suppliers. Such better terms may include higher trade discounts and longer credit payments as the business popularity in the market is high in the market for debt.
Another advantage of bay’al-dayn is that selling a debt will generate larger immediate cash is flow to the business as soon as orders are invoiced and is available for capital investment and funding of business next orders. For example if the business can pay the suppliers promptly the business is likely to reap higher discount rate from suppliers and better terms like free delivery depending on the market situation. Similarly, huge cash flow at once and on time enable better expansion strategies and funding of mega projects. On time capital expenditure will reduce various costs and will reduce the farms business need for borrowing which is very useful where the borrowing is difficult and interest rate is higher in case if borrowed.
Despite these advantages, there are number of disadvantages in bay’al-dayn. It may give rise to disputes and queries and business is required to be efficient. One of the major drawback of bay’ al dayn is that it will reduce profit margin of sale of every product or supply of services as the business has to share part of profit to the company which buys the debt. In other words if the business wait for the full payment from the debtors they would get higher amount than what they get from the firm which buys the debt.
The second disadvantage is that some of the customers may prefer to deal with the company directly. That means those customers will not be happy if the business sell their debt and in case of bay’al-dayn those customer may prefer brand switching or reduction on their loyalty towards the business. In other words the relationship between the customer and business may worsen in case of bay’ al dayn if the customer may not prefer to deal with the debt purchaser and that will have a long run negative impact on the business. In some cases the suppliers may have some assumptions that the business is having liquidity crises if the business is selling debts especially if the debt price is too low indicating urgent need of cash.
Another con that exists in case of bay’al-dayn is that the buyer of debt may vet the business customers and sometimes may influence the way business is doing its business. The interference on of business-customer relationships will have long term consequences which the business has to take special care. Losing a customer means also blocking of arrival of new customers as well. It is proven fact that finding of new customer is much more expensive than keeping a customer or maintaining the customer loyalty. Therefore it is risky for the business to invole in bay’ al-dayn if its customers are sensitive towards those issues.
Fourth disadvantage is that choosing a good factor or purchaser of debt is important as the way the factor deal with the customers hugely impact the business. Especially what the customer think about the business which is critical in long run. This means even the less sensitive customer may become sensitive towards some issue if the factor deals with them in a wrong manner which is not acceptable to them. So the business must use reputable company which will not damage the business reputation.
Another disadvantage is that bay’al-dayn is costly in many ways. The business may have to pay more or lose more if the factor (buyer of debt) may demand more to cover liability for the bad debts. It may also be difficult to end factoring as business will have to pay off any money it has advanced on invoices if the customer has not paid them yet. And sometimes it makes difficulty in borrowing as book debts will not be available as security.
References: www.livingislam.org www.businesslink.gov.uk www.zaharuddin.net www.insolvencyhelpline.co.uk www.cert.com.my
One of the biggest advantages of bay’ al-dayn is that it helps the firm to reduce cash flow problems as it boosts large immediate cash flow to the business .This immediate cash flow will help the business to solve its working capital problems such as paying wages and utilities on time which will ensure the smooth running of the business. The possibility of sale of the debt will further helps smoother cash flow and better financial planning which in turn will help the other operations of the business.
The second advantage of bay’al-dayn is that it will reduce the business administrative cost to a certain extent. It is like out sourcing the business sales ledger and the owners and business managers can concentrate more on managing other areas of business when they have ample free time. In other words, bay’ al-dayn will reduce the time spend on credit control and some other administrative cost like record keepings which would rise cost of running the business thus reducing the overall profit.bay al-dayn may also help the business to eliminate the risk of bad debts and provision for doubtful debts (non-recourse factoring)
Sale of debt to a respected and trust worthy business like to a well known bank may boost the customers’ (debtors) morale to pay debt more quickly. In such a situation the business will enjoy the expansion of market and provide kind of marketing and free advertising to the company. In other words the level of market activities will increase which may increase the future demand for the firms’ product.
The fourth advantage of bay’ al dayn is that it may enable the firm to get useful information about the credit standing of business customers from the company to which the debt is sold and they can help the business to negotiate better terms with your suppliers. Such better terms may include higher trade discounts and longer credit payments as the business popularity in the market is high in the market for debt.
Another advantage of bay’al-dayn is that selling a debt will generate larger immediate cash is flow to the business as soon as orders are invoiced and is available for capital investment and funding of business next orders. For example if the business can pay the suppliers promptly the business is likely to reap higher discount rate from suppliers and better terms like free delivery depending on the market situation. Similarly, huge cash flow at once and on time enable better expansion strategies and funding of mega projects. On time capital expenditure will reduce various costs and will reduce the farms business need for borrowing which is very useful where the borrowing is difficult and interest rate is higher in case if borrowed.
Despite these advantages, there are number of disadvantages in bay’al-dayn. It may give rise to disputes and queries and business is required to be efficient. One of the major drawback of bay’ al dayn is that it will reduce profit margin of sale of every product or supply of services as the business has to share part of profit to the company which buys the debt. In other words if the business wait for the full payment from the debtors they would get higher amount than what they get from the firm which buys the debt.
The second disadvantage is that some of the customers may prefer to deal with the company directly. That means those customers will not be happy if the business sell their debt and in case of bay’al-dayn those customer may prefer brand switching or reduction on their loyalty towards the business. In other words the relationship between the customer and business may worsen in case of bay’ al dayn if the customer may not prefer to deal with the debt purchaser and that will have a long run negative impact on the business. In some cases the suppliers may have some assumptions that the business is having liquidity crises if the business is selling debts especially if the debt price is too low indicating urgent need of cash.
Another con that exists in case of bay’al-dayn is that the buyer of debt may vet the business customers and sometimes may influence the way business is doing its business. The interference on of business-customer relationships will have long term consequences which the business has to take special care. Losing a customer means also blocking of arrival of new customers as well. It is proven fact that finding of new customer is much more expensive than keeping a customer or maintaining the customer loyalty. Therefore it is risky for the business to invole in bay’ al-dayn if its customers are sensitive towards those issues.
Fourth disadvantage is that choosing a good factor or purchaser of debt is important as the way the factor deal with the customers hugely impact the business. Especially what the customer think about the business which is critical in long run. This means even the less sensitive customer may become sensitive towards some issue if the factor deals with them in a wrong manner which is not acceptable to them. So the business must use reputable company which will not damage the business reputation.
Another disadvantage is that bay’al-dayn is costly in many ways. The business may have to pay more or lose more if the factor (buyer of debt) may demand more to cover liability for the bad debts. It may also be difficult to end factoring as business will have to pay off any money it has advanced on invoices if the customer has not paid them yet. And sometimes it makes difficulty in borrowing as book debts will not be available as security.
References: www.livingislam.org www.businesslink.gov.uk www.zaharuddin.net www.insolvencyhelpline.co.uk www.cert.com.my
Wednesday, April 8, 2009
Speech Outline - Global warming
Introduction
How many of you are aware of about earth hour today? Why we mark an hour for mother earth? I think the answer lies in global warming which is due to green house effect. In simple words, Global Warming can be defined as the increase of the average temperature on Earth. And because of human activities the earth’s natural balance has lost. Level of CO2 has increased more than 30% than the pre-industrial level the trees can photosynthesize. As a result the world is overheating. Out of the 20 warmest years on record, 19 have occurred since 1980. The three hottest years ever observed have all occurred in the last eight years. Research done by Intergovernmental Penal on Climate Change (IPCC), by 2000 scientists found that man are responsible for Global warming.
Causes:
- Burning fossil fuel- With less than 5% of population the USA produces 21.1% of all CO2 emitted, china 28%, India and Japan above 4%., haven’t sign Kyoto protocol yet!
- Deforestation-jungles and rainforests were the lungs of the world.
- Predicted average global temperatures would rise 2.5 to 10.4 degrees by the end of this century. The rise from 1901 to 2005 was just 1.2 degrees.
Effects:
- Climate change-monsoon disasters
- Melting of glaciers on north and South Pole. Disappearance of nations, cities and islands
- Biodiversity-more than I million species extinction- agricultural crops-economic consequences.
- Results in the extinction of 30% of species and the loss of 30% of coastal wetlands.
What you can do:
- Raise your voice, first start with yourself
- Reduce! Reuse! Recycle!
- Saving electricity, conserving fuels, Planting more trees, etc..
- Buy and encourage environmentally friendly products
Conclusion
Scientists say that we must reduce our carbon emissions by at least 80% by 2050.Reduction does not remove effects at once as gases and its impact lasts more than 200years. To visualize the effects of global warming and its consequences I recommend to you watch the Oscar nominated” inconvenient truth” from former vice president of USA, Al Gore. Do not let our selfishness destroy the moth earth and extinctions of species. Everyone can make a difference! After all, it will be our next generation that will feel the effects.
References
http://www.climatenetwork.org/climate-change-basics/usa-and-australia
http://www.sierraclub.org/energy/tenthings/
http://www.globalwarmingreview.com/
How many of you are aware of about earth hour today? Why we mark an hour for mother earth? I think the answer lies in global warming which is due to green house effect. In simple words, Global Warming can be defined as the increase of the average temperature on Earth. And because of human activities the earth’s natural balance has lost. Level of CO2 has increased more than 30% than the pre-industrial level the trees can photosynthesize. As a result the world is overheating. Out of the 20 warmest years on record, 19 have occurred since 1980. The three hottest years ever observed have all occurred in the last eight years. Research done by Intergovernmental Penal on Climate Change (IPCC), by 2000 scientists found that man are responsible for Global warming.
Causes:
- Burning fossil fuel- With less than 5% of population the USA produces 21.1% of all CO2 emitted, china 28%, India and Japan above 4%., haven’t sign Kyoto protocol yet!
- Deforestation-jungles and rainforests were the lungs of the world.
- Predicted average global temperatures would rise 2.5 to 10.4 degrees by the end of this century. The rise from 1901 to 2005 was just 1.2 degrees.
Effects:
- Climate change-monsoon disasters
- Melting of glaciers on north and South Pole. Disappearance of nations, cities and islands
- Biodiversity-more than I million species extinction- agricultural crops-economic consequences.
- Results in the extinction of 30% of species and the loss of 30% of coastal wetlands.
What you can do:
- Raise your voice, first start with yourself
- Reduce! Reuse! Recycle!
- Saving electricity, conserving fuels, Planting more trees, etc..
- Buy and encourage environmentally friendly products
Conclusion
Scientists say that we must reduce our carbon emissions by at least 80% by 2050.Reduction does not remove effects at once as gases and its impact lasts more than 200years. To visualize the effects of global warming and its consequences I recommend to you watch the Oscar nominated” inconvenient truth” from former vice president of USA, Al Gore. Do not let our selfishness destroy the moth earth and extinctions of species. Everyone can make a difference! After all, it will be our next generation that will feel the effects.
References
http://www.climatenetwork.org/climate-change-basics/usa-and-australia
http://www.sierraclub.org/energy/tenthings/
http://www.globalwarmingreview.com/
Islamic Monetary System
The distinctive facet of an Islamic financial system is the absolute prohibition of interest (riba) and well functioning zakah system. Islam aims to promote the virtues of ‘Adl and Ihsan among its followers and after providing basic necessities to all the government need minimum state intervention to establish a just social and economic order. However, to ensure social justice and, in the context of prevalent conditions, the state is empowered to take all necessary actions within the framework of Islamic Shari’ah to achieve this objective. The countries that have chosen to bring their economic parallel with the rules prescribed by Islamic law have had to restructure their banking systems to conform to the restriction on interest-based financial transactions.
Islamic banking system is fundamentally an equity-based system in which depositors are treated as if they were shareholders of the bank. Accordingly, depositors are not guaranteed the nominal value, or a predetermined rate of return. To remain consistent with Islamic law, the bank cannot charge interest in its lending operations, but has to use special modes of investment and financing that are also based on the concept of taking up profit and loss mutually.
The conduct of monetary policy in an Islamic economy has also been addressed recently in a number of papers1 .Similar to conventional system Islaic monetary systems seeks to establish monetary stability with economic well being and full employment along with economic growth. In addition, it aims to promote social distributive just by recognizing need for elimination of poverty. There are a number of policy instruments available for controlling domestic liquidity. These include, for example, changes in reserve requirements, overall and selective controls on credit flows, changes in the monetary base through management of currency issue, and moral suasion. Central bank should allow expansion of money supply only to the extent it is justified by a possible contribution to growth in real balances Furthermore, as pointed out by Akram Khan (1982) and Siddiqi (1982), open market operations could still be conducted with securities that do not bear a fixed rate of return. The monetary authorities also have the possibility of directly changing the rates of return on both deposits and loans by altering the ratios in which the banks and the public are expected to share in the profits and losses that are associated with the transactions, i.e., the profit-sharing ratios. Other than their own capital and equity, the main sources of funds for Islamic banks are two forms of deposits - transaction deposits and investment deposits. Murabahah, musharakah leasing etc are Islamic tool of financing investment.
To begin with many seemingly makeshift and second-best policies have been adopted, but this is only to be expected as Islamization of the economy involves a learning process . What Islamic economic system looks like is not like what Islamic banks are right now. Considerably more theoretical analysis and actual experimentation is required to reconcile the rules and codes of economic behavior that have evolved over fourteen hundred years with the functioning of a modern-day economy. Yet Islamic banking has proven that equity based banking is still most viable and best source to prevent handle financial shocks. However, economists still have much to contribute concerning the directions that the Islamization of economies takes.
Saturday, October 18, 2008
capital punishment is justifiable!!!!!! speech outline
Introduction
-defines execution as the act or an instance of putting to death or being put to death as a lawful penalty.
There are various hot debates on this issue especially criticizing Muslims but that doesn’t end as capital punishment exist in most western countries like USA and UK.
-shouldn’t we think of the families that are broken apart now because of the merciless acts of these criminals?
Body
Incapacitation of the criminal.
Capital punishment permanently removes the worst criminals from society and should prove much cheaper and safer for the rest of us than long term or permanent incarceration. It is self evident that dead criminals cannot commit any further crimes, either within prison or after escaping or being released from it.
Some criminals are beyond rehabilitation; it may be that capital punishment should be reserved for serial killers, terrorists, murderers of policemen and so on. There is evidence that Major religions also support death penalty as a principle depending on circumstances.
Costly.
Money is not an inexhaustible commodity and the state may very well better spend our (limited) resources on the old, the young and the sick etc., rather than on the long term imprisonment of murderers, rapists, etc. key advantage of the death penalty over life imprisonment: it saves tax-payers the huge cost of keeping murderers locked up.
Why should the taxpayer bear the cost of supporting a murderer for an entire lifetime? Huge opportunity cost shows that such money could be used much beneficial way to the society.
Retribution.
Execution is a very real punishment rather than some form of "rehabilitative" treatment, the criminal is made to suffer in proportion to the offence. Although whether there is a place in a modern society for the old fashioned principal of "lex talens" (an eye for an eye), is a matter of personal opinion.
Some may argue that death penalty is barbaric but the reality is big criminals the ones that make nations uncivilized. They are the ones that are the most uncivilized individuals. If anything, the death penalty is not enough. It can never bring back the loved ones to the families that have lost them. It can never bring back the innocent lives that have been taken in cold blood Retribution is seen by many as an acceptable reason for the death penalty according to survey results.
Deterrence.
Statistics prove that consistent application of death penalty deter crimes, in those countries (e.g. Singapore) which almost always carry out death sentences, there is far less serious crime. Suspension in death penalty in Britain showed 125% rise in murder. This tends to indicate that the death penalty is a deterrent, especially where execution is an absolute certainty.
A 1985 study (Stephen K. Layson, University of North Carolina) showed that 1 execution deterred 18 murders. it may be better for them get one big punishment before dieing of small painful punishments.
Conclusion
We can no longer sit and let our lives be terrorized. No longer can we sit back and watch criminals be released and then kill again. If we give up our punishing a deadly criminal, then we throw our society into chaos and let the criminals freely do as they please.
We must make the world safe so that we and our children may once again live in a world without the fear of being senselessly killed or losing our loved ones. For a cold blooded killer, capital punishment is the only true justice.
-defines execution as the act or an instance of putting to death or being put to death as a lawful penalty.
There are various hot debates on this issue especially criticizing Muslims but that doesn’t end as capital punishment exist in most western countries like USA and UK.
-shouldn’t we think of the families that are broken apart now because of the merciless acts of these criminals?
Body
Incapacitation of the criminal.
Capital punishment permanently removes the worst criminals from society and should prove much cheaper and safer for the rest of us than long term or permanent incarceration. It is self evident that dead criminals cannot commit any further crimes, either within prison or after escaping or being released from it.
Some criminals are beyond rehabilitation; it may be that capital punishment should be reserved for serial killers, terrorists, murderers of policemen and so on. There is evidence that Major religions also support death penalty as a principle depending on circumstances.
Costly.
Money is not an inexhaustible commodity and the state may very well better spend our (limited) resources on the old, the young and the sick etc., rather than on the long term imprisonment of murderers, rapists, etc. key advantage of the death penalty over life imprisonment: it saves tax-payers the huge cost of keeping murderers locked up.
Why should the taxpayer bear the cost of supporting a murderer for an entire lifetime? Huge opportunity cost shows that such money could be used much beneficial way to the society.
Retribution.
Execution is a very real punishment rather than some form of "rehabilitative" treatment, the criminal is made to suffer in proportion to the offence. Although whether there is a place in a modern society for the old fashioned principal of "lex talens" (an eye for an eye), is a matter of personal opinion.
Some may argue that death penalty is barbaric but the reality is big criminals the ones that make nations uncivilized. They are the ones that are the most uncivilized individuals. If anything, the death penalty is not enough. It can never bring back the loved ones to the families that have lost them. It can never bring back the innocent lives that have been taken in cold blood Retribution is seen by many as an acceptable reason for the death penalty according to survey results.
Deterrence.
Statistics prove that consistent application of death penalty deter crimes, in those countries (e.g. Singapore) which almost always carry out death sentences, there is far less serious crime. Suspension in death penalty in Britain showed 125% rise in murder. This tends to indicate that the death penalty is a deterrent, especially where execution is an absolute certainty.
A 1985 study (Stephen K. Layson, University of North Carolina) showed that 1 execution deterred 18 murders. it may be better for them get one big punishment before dieing of small painful punishments.
Conclusion
We can no longer sit and let our lives be terrorized. No longer can we sit back and watch criminals be released and then kill again. If we give up our punishing a deadly criminal, then we throw our society into chaos and let the criminals freely do as they please.
We must make the world safe so that we and our children may once again live in a world without the fear of being senselessly killed or losing our loved ones. For a cold blooded killer, capital punishment is the only true justice.
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