Wakalah Waqf: An Agency-Based Model for the Sustainable Development of Productive Waqf Properties

Abstract

Waqf plays an important role in uplifting socio-economy. Nevertheless, waqf development in Malaysia is yet to meet the expectation. Report shows that quite a number of waqf properties are still undeveloped. As the sole trustee or ‘mutawalli’ of waqf property in the country, the State Islamic Religious Councils (SIRCs) are having constraint in getting the “know-who” and “technological know-how” to develop the property. With the major role to administer Muslim affairs, the SIRCs capability limitedly extends to managing development projects. It is therefore crucial in this regard, to find a way to solve the issue. Employing a content analysis approach, this study tries to seek the solution by analyzing the importance of wakalah to be applied in a waqf structure, as wakalah has been widely adapted in Islamic banking and finance products to clear out ambiguities and impediments. This study concludes on a conceptual framework of wakalah waqf structures that emphasises the fulfilment of wakalah and waqf pillars. The framework inductively highlights the interaction between significant stakeholders in a wakalah waqf structure. Consequently, this article highlights the function of wakalah in developing waqf property towards ensuring the sustainability and productivity of waqf produce, regardless of the property types.