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WAQF-ENDOWMENTS WORLDWIDE AND IN UZBEKISTAN: A
COMPARATIVE ANALYSIS
Mumtozaposho Kurbonova
Teacher, Department of Islamic economy
and finace, religious tourism
International islamic academy of Uzbekistan
Pardayev Ozodbek G'ayrat o‘g‘li
Student, Department of Islamic economy
and finace, religious tourism
International islamic academy of Uzbekistan
ABSTRACT
This scientific article undertakes a comprehensive comparative analysis of waqf-
endowments, examining the distinct characteristics and trends in the global market as
well as within the specific context of Uzbekistan. Waqf, a traditional Islamic
philanthropic practice involving the endowment of assets for charitable purposes, has
gained renewed attention in the contemporary financial landscape. This study aims to
provide insights into the structure, impact of waqf-endowments on economic and social
development.
KEY WORDS:
Waqf, islamic philanthropy, sharia-compliant investments,
charitable endowments, community welfare, poverty alleviation, sustainable
livelihoods.
INTRODUCTION
The concept of waqf, an ancient Islamic philanthropic practice involving the
endowment of assets for charitable purposes, has experienced a resurgence in
contemporary global finance. Over the past decades, organizations and institutions
have increasingly recognized the potential of waqf endowments as a powerful
instrument for fostering sustainable development, poverty alleviation, and community
welfare. This resurgence is particularly evident in the context of the International Waqf
Fund (IWF) and other global players dedicated to reviving and modernizing waqf
practices. Concurrently, the landscape of waqf in specific regions, such as Uzbekistan,
presents a unique tapestry of historical, legal, and economic intricacies that shape its
role in societal development. This scientific article undertakes a comprehensive
analysis, both globally and within the specific framework of Uzbekistan, to illuminate
the nuances of waqf endowments.
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MAIN PART
The literal meaning of the word Waqf (Arabic: فْق
َو; plural فاق ْوَأ,
awqāf
;) in
Arabic means to prevent, to stop, to persevere. From an Islamic perspective, Waqf is a
voluntary and permanent dedication of a portion of one’s wealth—cash
or any kind—
to
Allah.
Let’s imagine that a field has been donated to a Waqf. Planting fruits and
vegetables on the field would be a beneficial use of the land for the community. For
instance, when the harvest is ripe, the entire community will benefit. The donation is
ongoing and will help future generations because no one actually owns the field.
Allah (SWT) says in the Holy Qur’an: “Indeed, those men and women who give
in charity and lend to Allah a good loan will have it multiplied for them, and they will
have an honourable reward.”
[Surah-Hadid: 18]
1
The individual to whom the donation was dedicated would benefit from the
continued reward because donations to Waqf can also be given in the name of a
deceased person (such as a family member or acquaintance).
Its religious origin
The following hadith - a saying of the Prophet Muhammad ﷺ serves as the
foundation for Waqf establishment: "When a man dies, his deeds come to an end
except for three things: Sadaqah Jariyah (ceaseless charity); a knowledge which is
beneficial, or a virtuous descendant who prays for him (for the deceased)."
(Reported
by Abu Huraira, Sahih Muslim).
2
People established Waqfs in the hope that they would
continue to accrue sawab (spiritual merit), or good deeds, after they passed away.
“Ibn ‘Umar reported: ‘Umar acquired land in Khaibar. He came to Allah’s Apostle
ﷺ and sought his advice in regard to it. He said: “Allah’s Messenger, I have acquired
land in Khaibar. I have never acquired more valuable for me than this, so what do you
command I do with it? Thereupon the Prophet ﷺ said: If you like, you may keep the
corpus intact and give its produce as Sadaqah. So ‘Umar gave it as Sadaqah declaring
that the property must not be sold or inherited or given away as a gift. And ‘Umar
devoted it to the poor, to the nearest of kin, to the emancipation of slaves, to
wayfarers/guests, and in the way of Allah. (
Sahih Muslim)
3
The aforementioned hadith established the standard for our honorable Sahaba r.a.
and Muslims from all backgrounds to spread the Waqf system for any imagined Sharia-
compliant purpose over the years. This command of the Prophet ﷺ and the action
of ‘Umar r.a. set into motion the first Social Development Waqf by means of an
income producing economic asset.
1
Translation by Dr. Mustafa Khattab: “The Clear Quran”
2
Riyad as-Salihin 1383, Book 12, Hadith 8
3
Sahih Muslim 1632a, Book 25, Hadith 21
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The Waqf system promoted the spread of Islam and promoted economic
development in the Middle East, South Asia, and North Africa.
Figure 1.
General principles of Waqf
4
The influence of Waqf on the West
Oxford University appears to be the epitome of an English intellectual
establishment. Oxford may, however, have owed a lot to the Islamic legal concept of
Waqf, or charitable trust in its early stages of growth.
Most people agree that the present college system was established with the
incorporation of Merton College in Oxford in 1274. The Regula Mertonensis was
regarded as representing the ideal collegiate organization by the other colleges at
Oxford, as well as Cambridge and numerous other universities. Merton College at the
University of Oxford was established with the aid of financial endowments, beginning
centuries of scholarships, education, and teaching.
5
The idea of the Waqf system ensures that the socioeconomic cohesion of the
community is more evenly distributed. When some people are opulently wealthy while
others are starving and unable to provide for their families' fundamental needs, such as
4
Developed by author
5
Monica M. Gaudiosi: “The influence of the islamic law of waqf on the development of the trust in England: The case
of Merton College”.
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food, shelter, and access to healthcare and education, a society cannot operate properly.
The Ottomans believed in defending the rights and well-being of the individual, but
because their empire was based on Islamic traditions, which place a great value on
communal well-being, it was also necessary to safeguard the well-being of the
community. High wealth disparity between the rich and the poor also has negative
effects on the economy and social welfare.
Historically, Awqaf have been very important in providing sustainable financing
for a variety of social services, including but not limited to health and education. In
fact, it has been claimed that more than 60% of public services were provided through
the system of Waqf during the Umayyad and Abbasid Caliphates. First, awqaf provided
funding for the essential social services (and infrastructure) of health, education, and
sustenance or social security for the poor. Second, in addition to meeting these
necessities, awqaf contributed significantly to the advancement of culture and science
by funding the publication of books, the building of libraries, and the support of
researchers in both secular and religious fields.
In contrast to today, when people are left at the whim of the free market, the
Ottomans considered the Waqf system as a means to help society thrive together rather
than leaving individuals isolated and alone. Although some affluent nations offer
"Band-Aid solutions" in the name of having a welfare state, the neoliberal system's
problem of the free market prevents those who are less fortunate from catching up. In
the end, the crisis widens the divide between the wealthy and the poor, as well as
between established and emerging nations.
Global Waqf Industry
The analytical data of the Waqf industry is greatly under-researched. The most
reliable and precise data was provided by the Islamic Finance News report on
September 26, 2012.
According to that, the global Waqf sector was worth over $105 billion. Although
a substantial portion of these assets are privately owned and managed, making it nearly
impossible to determine a precise amount, it is suggested that the industry's true worth
may be much higher.
6
Waqf assets have been projected to be worth RM1 trillion ($325.4 billion) in
Malaysia and SAR1 trillion ($266.6 billion) in Saudi Arabia alone, according to
informal estimations given by specialists a decade ago. According to a report by the
Ministry of Religious Endowment, Egypt's Waqf endowments are estimated to be
worth over $82 billion.
John Sandwick, an Islamic finance specialist and asset manager, is quoted as
saying that: “This market is just too big to ignore, but conventional asset managers
6
Islamic Finance news, redmoney publication, Volume 9 Issue 38, 2012.
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have spent their time selling derivatives and hedge funds rather than make eff orts to
unlock this sleeping giant.”
Several international organizations and institutions have been involved in global
waqf initiatives, contributing to the development and implementation of waqf projects.
Table 1.
Waqf organizations around the globe
7
№
Organization
Description
1
International Waqf Fund
(IWF)
Recognising the need for
sustainable charity, International
Waqf Fund began offering Waqf as
a way to donate under our previous
name Islamic Relief Waqf. The
Waqf pot has been collecting and
investing donations since the year
2000.
2
Islamic Development Bank
(IsDB)
Awqaf Properties Investment
Fund (APIF) participates in the
financing
of
waqf/endowment
income generating commercial and
residential real estate properties to
enhance the financial sustainability
of its beneficiaries and support
their
social
and
charitable
activities.APIF is established as a
U.S. Dollar denominated fund
managed
by
the
Islamic
Development Bank
3
Indian Auqaf Foundation
It is a ‘Not for Profit’
organisation being set up to carry
forward
the
implementation
of “Bengaluru
Declaration on
Auqaf in India”.
4
National Awqaf Foundation
of South Africa
Awqaf SA is the leading
charitable
endowment
(Waqf)
institution in Southern Africa. It
was pioneered in 2000 as an
independent community-based and
owned trust, dedicated to the
7
Developed by author
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establishment of the institution of
Waqf and the empowerment of
communities.
5
Awqaf New Zealand
Focused on the New Zealand
region, it is engaged in promoting
Islamic
endowments
for
community
development,
education, and charitable purposes.
6
Yayasan Waqaf Malaysia
(YWM)
It is a national waqf entity. It
was officially established on 23
July 2008 under the Trustees Act
1952
through
Legal
Affairs
Division of the Prime Minister's
Department. Its establishment was
initiated by the Department of
Waqf, Zakat and Hajj of the Prime
Minister's
Department
("JAWHAR").
7
Qatar Charity
A
group
of
Qatari
philanthropists, alarmed by the
rising
number
of
children
orphaned by wars and conflicts in
neighboring
countries,
came
together to form a community
initiative called “The Committee
of Qatar for Orphan Sponsorship”.
Eight years later, an international
NGO was set up under the name
“Qatar Charity” to scale up the
initiative, broaden its range of
activities and augment its outreach
These organizations vary in their scope, focus areas, and regional influence.
Additionally, governments and financial institutions in various Muslim-majority
countries often play a role in supporting and regulating waqf activities.
Specifically focusing on International Waqf Fund, based on their annual report
2022, it has raised more than £8 million with an annual average return of around 7 %
from waqf shares. In 2022, they implemented projects in sectors such as Health and
Nutrition, Education, Qurbani, Water and Sanitation, and Sustainable Livelihoods. The
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Fund aims to facilitate a better life for communities in need to thrive, by uplifting
themselves out of poverty through long-term sustainable projects.
8
In 2022, IWF worked in the following 14 countries: Niger, Gaza, Afghanistan,
Iraq, Yemen, Kenya, Kosovo, Bangladesh, Lebanon, Sudan, Indonesia, Mali, Bosnia
and Herzegovina, Pakistan.
Table 2.
Donations by sectors.
9
№
Sector
Amount
1
Health and Nutrition
£40,000
2
Orphan and child
welfare
£65,314
3
Water and sanitation
£68,250
4
Sustainable livelihood
£75,000
5
Emergency and
disaster preparedness
£25,000
6
Ramadan
£17,832
7
Education
£167,717
8
Qurbani
£15,048
Total:
£474,161
With the Emergency and disaster preparedness project alone, in Afghanistan 360
of the most vulnerable households (2,538 individuals) were provided with
humanitarian assistance. With the Waqf share returns, we were able to provide 190
households with a one-month ration food pack and 170 households with hygiene kits.
In the case of Lebanon through Orphan and child welfare project, the intervention
has given micro-finance conditional cash grants to business owners and skillful
workers (orphans mothers and widows) to help them start or restart their businesses.
The project targeted 50% from the Lebanese host community, 35% Syrian refugees
and 15% Palestinian refugees.
Regarding Water project, Mali is one of the poorest countries in the world with
over 50% of the population living in poverty. Instability and poor governmental
structures have led to unavailability of basic social services, such as access to clean
and safe drinking water. Therefore, also increasing the risk of water-borne diseases. In
each of the three intervention villages, a borehole was built, equipped with a solar
system. In each village, there is now four drinking water collection points to serve
2,000 people at a rate of 500 people per collection point.This practice will allow women
to collect water easily and in a short time allow them to better devote themselves to
their activities of production, maintenance of the children and to exempt the girls who
will be able to concentrate on their studies. The communities of each beneficiary
8
International Waqf Fund Annual Report 2022
9
Developed by author
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village have democratically installed a management committee. The committee
members will be trained in their roles and responsibilities and will ensure that the
communities’ access to water is sustainable and inclusive.
Inspired by Islamic values, IWF envisages a world in which thriving communities
help everyone achieve their God-given potential.
Waqf in Uzbekistan
Public charity foundation ‘Vaqf’ is currently the only and central foundation in
Uzbekistan. It has 13 branches all over the country. In the official website at
daily updated donations statistics are presented.
Figure 1
. Donation statistics of ‘Vaqf’.
10
Briefly analyzing the figures, in September alone, 3 billion and 283 million soums
were spent to cover the needs of the underprivileged, preservation, repair and
improvement of mosques, schools, etc.
10
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Figure 2.
Expenses pie chart of ‘Vaqf’.
11
The system is so transparent that the data regarding each transaction, receiver,
the sum of the payment, its type, etc. are provided in a chart.
Figure 3
. The table of daily expenses of ‘Vaqf’.
12
Look at the chart; it can be seen that on October 4th, by 15:07 there were 21
expenses totaling 142 million 905 thousand soums.
In conclusion, this comprehensive exploration of waqf endowments on both a
global scale and within the context of Uzbekistan unveils the multifaceted nature of
this ancient philanthropic practice. The resurgence of waqf, exemplified by
organizations like the International Waqf Fund (IWF), underscores its potential to
transcend cultural and geographical boundaries, serving as a dynamic force for positive
change. The comparative analysis has shed light on the diverse legal frameworks,
12
https://vaqf.uz/en/transactions/statistics
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cultural influences, and economic conditions that shape waqf practices globally and,
more specifically, in Uzbekistan.
The implementation of waqf initiatives in sectors such as Health and Nutrition,
Education, Qurbani, Water and Sanitation, and Sustainable Livelihoods underscores its
capacity to address a spectrum of societal needs. The impact assessment reinforces the
vital role that waqf plays in facilitating sustainable development, poverty alleviation,
and community welfare.
In essence, this study contributes to the broader discourse on Islamic finance,
philanthropy, and economic development, emphasizing the resilience and adaptability
of waqf endowments as a powerful tool for fostering positive societal transformation.
It is our hope that this research inspires further inquiry and action, fostering a deeper
understanding of waqf's potential to uplift communities and contribute to a more
equitable and sustainable world.
REFERENCES
1.
Translation of the Holy Quran by Dr. Mustafa Khattab: “The Clear
Quran”.
2.
Riyad as-Salihin 1383, Book 12, Hadith 8.
3.
Sahih Muslim 1632a, Book 25, Hadith 21.
4.
Monica M. Gaudiosi: “The influence of the islamic law of waqf on the
development of the trust in England: The case of Merton College”.
5.
Islamic Finance news, redmoney publication, Volume 9 Issue 38, 2012.
6.
International Waqf Fund Annual Report 2022
7.
8.
9.
10.
11.
https://www.islamicfinancenews.com/
12.
BIBLIOGRAPHY
13.
Ahmed Tahiri-Jouti, “Waqf offshore centers and cross-border waqf
operations”, Journal of Financial Instruments and Cash Waqf, 2022, pp. 207-226.
14.
Aisyah As-Salafiyah, “Finding waqf literacy strategies for millennials”,
International Journal of Waqf, 2022.
15.
Achmad Yani, “Reconstruction of the Waqf pledge as a juridical acronym
for expert waqf dispute resolution”, Management of Zakat and Waqf Journal
(MAZAWA), 2023, pp. 105-121.
16.
Asyifa Nur Aziza, “Twitter analysis on Waqf and health”, International
Journal of Waqf, 2023.
17.
Aam Slamet, R. and Mohammad Mahbubi Ali, “Clustering research on
Sukuk-waqf”, International Journal of Waqf, 2023.
