Importance of Waqf funds highlighted

31/10/2014 10:00 AST

Waqf, the fund harnessed or asset set up to generate income for Muslim community was described as the most promising development factor in the Muslim world, but it is a sleeping giant that needs to be re-awakened.

The panel discussing the topic; “Mobilising Capital from Waqf, Pension Funds and Unit Trusts: Developing Best Practices” showed how Waqf funds uplifted the Muslims community in Singapore largely because of good management.

“The employed 270,000 Muslims contribute some fee on a monthly basis which goes directly to the Islamic Religious Council of Singapore. We have managed to set up assets that oil our operation,” said the Singapore panelist, Dr Shamsiah Abdul Karim.

A Saudi panelist, Abdulla M Al Fouzan said: “Waqf is a sleeping giant that only needs to be awakened.” He said Saudi Arabia has mainly directed its $150 billion Waqf fund annually generated to health care and education of which “$25 billion goes to Harvard University in the USA.”

He noted that Waqf is dogged by “the worst condition of negligence, maintenance, irregularity and mismanagement.”

Al Fouzani said that despite cases where some countries integrate Waqf funds into national budgets, which they may use to fight some wars (which is unacceptable in the management of Waqf), “Waqf is the most promising development factor in the Islamic world.”

The Chief Executive Officer and Co-Founder of Falah Capital in the USA, Thomas Polson urged the participants to consider Waqf fund critically. For the Malaysian panelist, Datuk Shahril Ridza Ridzuan said that of globe’s $300bn pension funds, the member countries of Organisation of Islamic Cooperation (OIC) command less than 5 per cent.

he Gulf Today