Waqf in Socio-Economic and Political Life of Muslim Countries

Abstract

The paper proposes a waqf institution as part of an Islamic economic system. The first waqfs were established by Prophet Muhammad himself and by his companions. Waqfs were the main source of funding education and other spheres in Islamic world in the Middle centuries, such as medical services. Later on, waqf lost its importance in the economic development.
Nowadays the waqf institution should play more complicated role, than it has played before. Contemporary waqf may be used in Islamic banking, takaful (Islamic insurance), Islamic capital markets, etc. Special part should be assigned to a cash waqf.
The modern waqf has undergone some important changes. For example, Iranian bonyads, which are the modern form of waqfs have more common features with foundation than with classical waqf institution.
As the previous experience shows, the most successful manager (mutawalli) of a waqf property is not a state or a private individual, but a special entity. 

Keywords:

Islamic economics