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. 181 (7/19)

Waqf of Shares, Ṣukūk, Moral Rights, and Benefits

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 19th session in Sharjah, United Arab Emirates, on 1–5 Jumādā al-Ūlā 1430h (26–30 April 2009),

Having examined the research papers submitted to the Academy concerning the Waqf of Shares, Ṣukūk, Moral Rights and Benefits,

Having listened to the discussions on the subject,

Resolves

First: Waqf is one of the Fiqh areas that are widely open for ijtihād (interpreta- tive judgement). It is reasonable disposal that has close relevance to Shariah ob- jectives and is meant to achieve particular the welfares of donors and beneficiaries.

Second: Waqf in the Form of Shares, Ṣukūk, Moral Rights, Bene- fits and Investment Fund Units

1. Shariah texts on Waqf are absolute and therefore can encompass the di- verse types of Waqf, including perpetual versus temporary; specific versus common; assets and benefits versus money; and real estate versus the moveable property. Being a donation, Waqf is permitted in a wide scope of forms and people are encouraged to perform it.
2. Waqf of company shares, that are permissible to own, is Also permissible is Waqf of ṣukūk, abstract/intellectual rights, usufructs, and investment units, since all these are Shari’ah-recognizable properties.

3. Waqf in the form of shares, ṣukūk, rights, benefits and the like is subject to several rulings, of which most important are the following:

   1. In principle, when shares are donated as Waqf they should be retained while their return is used in for a charitable They cannot be used for trading purposes in the financial market because the Waqf superintendent is unauthorized to dispose of them except for a most likely attainable interest or as per a stipulated donor condition. That is to say, the shares become subject to the known rulings on istibdāl

(substitution).

1. If a company is liquidated or ṣukūk are redeemed, shares or ṣukūk value can be used for the purchase of other assets such as real estates, company shares or ṣukūk, based on donor’s conditions or availing of most important interest of the
2. If a Waqf is temporary according to the donor’s will, it should be liquidated
3. When a cash Waqf is invested in purchasing shares, ṣukūk or other assets, purchased shares or ṣukūk are not themselves considered Waqf instead of the original cash, unless donor has so It is permissible to sell such shares or ṣukūk for making a better investment for the Waqf. In this case, the principal cash amount is the perpetual Waqf asset.
4. Waqf of usufructs, services or cash is permissible. Examples are services of hospitals, universities and educational institutions, telephone, electricity, and usufructs of houses, bridges and
5. Temporary dedication of property as Waqf does not affect the ability of the donor to dispose of that property, provided that the right of the Waqf in the benefit is well
6. Waqf of moral rights expires on expiry of the period set by law for such rights.
7. Temporary Waqf means that Waqf will survive for a specific period after which it will no longer exist. Timing of Waqf per donor’s condition is permissible in all types of Waqf
8. It is permissible for a person who acquires suspicious or ill-gotten properties whose owners are not known, to seek aquittances by declaring such properties as Waqf for public charitable purpose, other than those relating to warship, such as building of mosques or printing of the Consideration should be given to impermissibility of owning shares of conventional banks and insurance companies.
9. It is permissible for a person who has properties whose returns are prohibited, to establish a Waqf out of the capital of such properties the returns shall then be considered irsad (dedication for charity). This is because the use of such returns and capitals is for helping the poor and needy and other general benevolent purposes (when it is not possible to give them back to their owners). The Waqf nazir

should, as soon as possible, replace such properties with Shariah- compliant properties, even if that is counter to donor’s condition. Adherence to donor’s condition is binding only when such condition does not contradict with the rulings of Shariah.

1. Temporary dedication of property as Waqf means that Waqf will survive for a specific period after which it will no longer
2. Timing of Waqf as per donor’s condition is permissible in all types of Waqf
3. It is permissible for a person who acquires suspicious or ill-gotten funds and fails to know the whereabouts of their original owners to seek acquittance by using such funds for establishing a Waqf for public charitable purposes, other than those relating to worships, such as the building of mosques or printing of the Quran. Consideration should be given to the impermissibility of ownership of shares of conventional banks and insurance companies.
4. It is permissible for a person who acquires funds that have a forbidden return to establish a Waqf out of his capital in these funds, while the return can be donated in the form of irsad (dedication), which is a donation form that falls under the same rulings on charitable The most suitable outlet for returns of this type, when it is not possible to repay them to their owners, is their spending on charitable purposes in favor of the poor and needy. As soon as possible, the Waqf superintendent should replace such funds with a Shariah- compliant property, even if that is counter to the donor’s condition. Adherence to donor’s condition is binding only when such condition does not contradict with the rulings of Shariah.

Recommendations

1. Calling upon governments and legislative bodies in Muslim countries to revisit their Waqf laws and regulations in a way that conforms to the Academy
2. Calling upon ministries of education and universities in Muslim coun- tries to develop special curricula and courses to facilitate objective learn- ing in the area of
3. In its forthcoming sessions, the Academy is to look into a comprehensive study on Waqf management covering bases, organization, criteria, and standards of appointment and continuity of the Waqf administration. This subject should be given much care, as it constitutes a fundamen-

tal prerequisite for the revival, advancement, and success of the Waqf institution.

Indeed, Allāh is All-Knowing.