In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 140 (6/15) Investment of Waqf, its Yields, and Incomes

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 15th session in Muscat, Sultanate of Oman, on 14–19 Muḥarram 1425h (6–11 March 2004),

Having examined the research papers submitted to the Academy concerning the Investment of Waqf, its Yields, and Incomes,

Having listened to the discussions on the subject,

Having considered the resolutions and recommendations of the seminars and conferences held on the subject,

Resolves

First: Investment of Waqf Properties

1. Investment of the Waqf properties refers to the efforts to develop the assets or increase the Waqf ’s income through Shariah-acceptable means of
2. The Waqf property should be preserved to ensure continuity of its asset and
3. Waqf properties, whether real estate and moveable assets, should be in- vested, except when such properties are intended for being utilized di- rectly by the beneficiaries.
4. The donor’s condition should be observed whether if he stipulates that part of the Waqf income should be used for its development, because such condition is not contrary to the Shariah requirements of Waqf or if he stipulates that all the Waqf ’s income should be spent on its objectives, then nothing should be retained for asset development purposes.
5. The principle is: It is not permissible to invest any part of the income when the Waqf founder makes no reference to investing out of the Waqf ’s income except with approval of all beneficiaries in the family Waqf, while in Charity Waqf such investment decision could be made when there is a likely interest to be achieved, and subject to the conditions that shall be

stated later in this resolution.

6. It is permissible to invest the excess income of the Waqf for developing the Waqf property or its income. This should be done only after payment of amounts due to beneficiaries and deducting all related expenses and It is also permissible to invest the accumulated funds that result from delay in settlement of outstanding commitments.
7. It is permissible to use the accumulated provisions for maintenance, re- habilitation, and other legitimate purposes.
8. There is no Shariah restriction against investing the funds of different Awqāf in one combined investment fund, as long as the conditions of each Waqf founder and the amounts owed by or due to each Waqf are well

9. In investing the Waqf ’s properties, the following conditions should be observed:

   1. Shariah acceptability of the modes and fields of
   2. Diversification of investments to mitigate their risks, obtainment of guarantees and securities, authentication of contracts, and preparation of adequate project feasibility studies.
   3. Selection of low-risk modes of investment and avoidance of high- risks investments as per commercial and investment traditions.
   4. Selected Shariah modes of investment should be suitable to the nature of the Waqf assets and appropriate for achieving the welfare of the Waqf, preserving its principal, and serving the interests of the Accordingly, if the Waqf ’s assets are physical assets they should be invested in ways that would not endanger their existence, and if they are liquid funds they can be invested through any of the Shariah-acceptable modes of investment, such as Muḍārabah, Murābaḥah, Istiṣnāʿ, etc.
   5. Regular disclosure of the investment operations, and dissemination of information about them as per standard business practices.

Second: Waqf of Cash

1. Creating cash Waqf is permissible since it satisfies the Shariah objective of Waqf that is retaining the principal and offering its benefits and because units of money have no specific merits that prevent units from standing for and replacing each other.
2. Money can be made principal of Waqf for extending goodly loans or for

investment, either directly or through the participation of several Waqf founders in one fund. Money can also be mobilized for Waqf purposes through the issuance of Waqf shares to donors to encourage giving Waqf and to promote collective participation in it.

3. When a money Waqf is invested in purchasing physical properties (as when the Waqf manager uses it for purchasing a real estate or contracting a manufactured asset), the purchased property does not itself become Waqf in replacement of the money. Therefore, the properties purchased in this manner can be resold to continue the investment process, while the original amount of money will always constitute the

Recommendations

1. Calling upon the Member states of the Organization of the Islamic Conference and the Muslim communities in non-Muslim countries to preserve the institution of Waqf, promoting it and protect its properties, and revive some of its ancient forms, such as Family Waqf, which has been completely abolished in some Arab and Muslim
2. Calling upon the Arab and Muslim countries, as well as the concerned organizations, institutions and international bodies, to shoulder their re- sponsibilities towards preservation, protection and development of Waqf properties in Palestine in general, and Al-Quds in particular, to enable these properties to achieve their noble objectives.
3. Calling upon the governments of the Muslim countries to do their best for bearing the expenses of Awqāf management as much as possible, for the sake of public interest, and because governments are entrusted with the duty of pursuing the interests of their countries and people.
4. Calling upon the concerned institutions to prepare standards for Shariah, financial and managerial auditing of the Waqf management activities, be it given by individuals, committees, institutions or ministries. Awqāf management should be subject to strict auditing regulations according to Shariah, managerial, financial and accounting norms of best
5. There is a dire need for developing normative standards to be used as benchmarks for monitoring the Waqf ’s expenses, including marketing, informational, administrative, payroll and bonus, etc. and to serve as a measuring rod for performance appraisal.
6. Encouraging the revival of the Waqf institution in all its forms as it has played a significant role in the growth of the Islamic civilization, and in boosting the process of scientific, social, economic and human

development.

7. Making use of leading experiences of Waqf management, preservation, and promotion in some Arab and Muslim
8. In the investment of Awqāf assets, priority should be given to Muslim

Indeed, Allāh is the Giver of Success.