Feasibility of Stock and Cash Waqf: A Financial Stock and Cash Waqf Institution in Iran

Authors

1 Faculty member of Imam Sadiq University

2 Doctor of financial management, University of Tehran

3 Doctor of accounting, Allamah Tabatabai University

Abstract

The institution of Waqf (endowment) has played a significant role throughout Islamic
history, ever since the time of the holy Prophet (pbuh). Although this institution existed
before the coming of Islam, Islam was the first religion to develop its legal framework
and to regulate it. Thus, it became one of the devices created by the Muslims to render
many crucial services in various sectors that are today financed by the state or the
government, such as education, health care, national security, commercial business,
transportation facilities shelter and food for the poor and needy, creating jobs, besides
supporting the agricultural and industrial sectors without inflicting any cost on the
government. This article underscores the importance of the establishment of this
institution as a non-profit and a redistribution organization so as to drawn attention to the
fact that it can provide financial support to the needy sectors of the Islamic world.
This can be done by focusing on two sections: First, we will study the legal
framework for the stock and cash Waqf; thereupon, by highlighting the role of the
non-profit institution in the developed countries we will present a dynamic model of
an effective financial waqf institution that performs simultaneously two roles of
maximizing stakeholders’ wealth and optimizing resources allocation, albeit in
complete compliance with Shari'ah rules and the goals set by the endowers.

Keywords

Journal of Iran's Economic Essays (JIEE)
Volume 6, Issue 12 - Serial Number 12
September 2009
Pages 59-89

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