Waqf: Islamic heritage and sustainable ethical model

Key points to remember: The waqf embodies a perpetual ethical investment, combining spiritual growth and social impact. By immobilizing productive assets for the common good, it has financed schools, hospitals and infrastructure for centuries. Case in point: the Rumah well, created in the 7th century, still generates income that is redistributed today.

Before banks, how did Muslim societies finance education, healthcare and infrastructure? The Islamic waqf, a mechanism of little-known power, offered an ethical and sustainable answer. From Al-Qarawiyyin University to the Bimaristan of Damascus, these foundations irrigated society's needs, proving that an immobilized asset could generate perpetual profits. Discover how this pillar of the Islamic economy combined sadaqat jariya and responsible governance, creating social systems independent of riba. Through historical examples and modern models such as cash waqf, explore a legacy that reinvents philanthropy as a force for collective progress, based on trust and sustainability.

Waqf, more than just alms: a pillar of the Islamic economy

Definition: the gift that keeps on giving

Le waqf (وقف) est une institution financière islamique unique. C’est l’acte par lequel un donateur, appelé waqif, immobilise un bien – qu’il soit mobilier ou immobilier – pour le dédier à une cause caritative de manière perpétuelle. Ce bien devient alors inaliénable, ce qui signifie qu’il ne peut être vendu, hérité ou donné. Les revenus générés par cet actif sont utilisés pour le bien-être de la communauté, tandis que la propriété du bien lui-même est considérée comme appartenant à Allah.

Spiritual and ethical foundations

Waqf embodies continuous almsgiving (sadaqa jariya), a spiritual investment whose benefits accrue to the community over generations, long after the donor's death.

This concept is based on the notion of sadaqa jariya, or continuous almsgiving, which in Islamic tradition enables the donor to continue reaping spiritual rewards even after death. This spiritual motivation is accompanied by a strong ethical foundation: it offers an alternative to riba (usurious interest), a practice formally forbidden in Islam. By enabling public-interest projects to be financed without recourse to interest-bearing debt, waqf has created a sustainable and ethical economic system.

A dual role: protecting heritage and driving social change

Beyond its spiritual aspect, waqf has played a crucial role in protecting heritage. In historical contexts marked by legal instability, declaring property to be "the property of Allah" protected it from arbitrary confiscation and inheritance disputes. This "wealth shelter" function was particularly valuable for women and vulnerable people, enabling them to secure their assets and ensure a steady income.

It also acted as a veritable social engine, anticipating certain aspects of the modern welfare state. By ensuring decentralized management of essential services - education, health, social assistance - the waqf enabled communities to take collective responsibility for themselves, reinforcing social and economic autonomy.

The origins of waqf: founding examples spanning the centuries

The waqf, or inalienable charitable endowment, has its roots in the founding acts of Islam. These pioneering initiatives, led by emblematic figures, have established a model of lasting generosity, combining faith and pragmatism.

The Prophet ﷺ's advice to 'Umar ibn al-Khattab

During the conquest of Khaybar, 'Umar ibn al-Khattab acquired fertile land that he considered to be his most valuable possession. Consulting the Prophet ﷺ, he received this decisive advice: "If you wish, immobilize the corpus and offer its income in alms". 'Umar then transformed this land into waqf, forbidding its sale or inheritance. The profits support the poor, travelers and the emancipation of slaves, embodying an essential virtue: giving what you cherish most.

Rumah's well: an active social investment

In Medina, the Rumah well illustrates the durability of the waqf. Owned by a miserly individual, access to it was reserved for the highest bidders. Faced with a shortage of fresh water for the Muhajiroun, the Prophet ﷺ promises a garden in paradise to whoever solves this problem. 'Uthman ibn 'Affan first bought half the well for free access, then the whole thing, dedicating it as waqf. Today, transformed into state-run orchards and investments, this waqf proves its ability to evolve while retaining its purpose: to feed humanity.

The first religious and community waqfs

It quickly established itself as a versatile tool. The Quba mosque, founded by the Prophet ﷺ, was the first religious waqf, linking worship and gathering. Another striking example: the seven orchards bequeathed by Mukhayriq, a Jew from Medina. Managed by the Prophet, these properties established waqf as a bridge between spirituality and solidarity. These early initiatives show how this institution met both the material and spiritual needs of the community.

The golden age of waqf: how to finance a civilization without banks?

Education for all: the birth of universities

Il a permis l’essor des premières universités islamiques. L’université Al-Qarawiyyin à Fès, fondée en 859 par Fatima al-Fihri, a bénéficié de dotations financières pérennes pour offrir un enseignement gratuit. De même, Al-Azhar au Caire a pu financer logements, repas et salaires des enseignants grâce à ce modèle, garantissant une émancipation intellectuelle sans dépendance politique.

A revolution in public health: the bimaristan model

Medieval hospitals such as Nur al-Din's Bimaristan in Damascus (1154) offered free care to all. More than just a place to receive treatment, these establishments trained doctors and archived medical records, laying the foundations for modern medicine. The Bimaristan Mansouri in Cairo (1284) extended this commitment with specialized services accessible to all.

Building cities and connecting people

The Ottoman Empire brought the waqf to its apogee. Caravanserais welcomed merchants free of charge, and public fountains (sabil) provided access to water. These infrastructures, financed by endowments, formed a network of solidarity that stimulated trade without recourse to debt.

The key role of women in the development of waqfs

Les femmes ont créé près de 40 % des waqf recensés sous l’Empire ottoman. Hürrem Sultan, épouse de Soliman le Magnifique, a érigé en 1552 un complexe à Jérusalem incluant une soupe populaire et des logements pour pèlerins. Ce modèle d’émancipation économique, a permis à des générations de femmes de contribuer à la pérennité sociale sans dépendre des mécanismes financiers classiques.

Beyond large institutions: social ingenuity in the service of dignity

Waqfs for the most specific needs

His system reveals a deep social sensitivity in solving everyday problems. In Damascus, under Salah al-Din, an innovative waqf provided free milk and sugar water to mothers and their children on certain days of the week, meeting a nutritional need while easing domestic constraints. Another waqf, in Syria, provided for the replacement of broken utensils by servants, avoiding their punishment by their masters. These examples, though modest, restored dignity to people who were often invisible, reinforcing social cohesion.

The family waqf (ahli): between protection and controversy

It is divided into two categories: the waqf khairi, dedicated to the public good, and the waqf ahli, reserved for members of the donor's family. The latter, while offering intergenerational financial security, is the subject of much debate. Some researchers suggest that this type of endowment has sometimes contributed to the concentration of wealth within certain families, limiting the redistributive aspect of the system. For example, by triggering the inalienability of property, the waqf ahli protected inheritances, but could also freeze economic inequalities. An analysis of private waqfs highlights these tensions between family solidarity and social justice.

Despite these nuances, the family waqf remains a tool for heritage preservation, illustrated by the example of 'Umar ibn al-Khattab. His lands, dedicated to the poor and his family, show a delicate balance between collective generosity and private support. Although this model can be perfected, it testifies to a desire to anchor charity in human realities, without forgetting everyday vulnerabilities.

Governance and sustainability: the legal nuts and bolts

The pillars of a valid endowment

The operation of the waqf is based on precise legal foundations. Here are the key elements:

• The Waqif (donor): Must be of legal age, of sound mind and the owner of the property. He may not be bankrupt or encumbered without the consent of his creditors.
• Mauquf (the well-endowed): Must be lawful (halal) and productive. Excludes consumables, but includes real estate, furniture or financial assets invested according to the stipulation.
• The Mauquf 'alaihi (beneficiaries): Must be clearly defined in the waqf deed. Their cause must respect Islamic ethics, such as social aid, education or health.
• Fundamental principles: inalienability (the property cannot be sold, inherited or transferred) and perpetuity (the endowment is irrevocable, unless otherwise stipulated in waqfs of limited duration).

The role of the manager (mutawalli): between trust and control

The mutawalli embodies the conscience of the waqf. His main mission? To preserve the capital while distributing the income in accordance with the founder's wishes. Historically, this role was entrusted to a member of the donor's family or a pious individual. Today, it requires professional skills in management and regulatory compliance.

Good governance is the key to the sustainability of the waqf. The mutawalli is not an owner, but a custodian whose responsibility is to make a legacy bear fruit for the common good.

Management challenges evolve over time. Poor governance, embezzlement and lack of transparency have led to modern reforms. This is whystandards bodies such as AAOIFI intervene to strengthen governance frameworks. Its standards, such as GS 13 on waqf governance, aim to restore confidence by introducing independent controls and accountability practices.

The waqf today: reviving a heritage for the challenges of the 21st century

From decline to rebirth: contemporary challenges

Its decline can be explained by historical and structural factors. Colonization marked a decisive turning point, with the confiscation of property and state centralization. In Turkey, waqf assets representing 20% of Ottoman GDP were transferred to state control after 1935, strangling its independence. In Egypt, the laws of 1954 nationalized 95% of endowments, transforming community initiatives into poorly managed public assets. These disruptions weakened a system that had once been a pillar of the Muslim social economy.

Today's challenges lie in outdated legal frameworks, insufficient transparency and a need for professionalization. Older structures, rich in history, struggle to adapt to contemporary economic realities. Yet these obstacles are not insurmountable. The professionalization of managers, the harmonization of laws with Sharia principles, and the establishment of independent monitoring mechanisms are concrete levers for revitalizing this institution. In Indonesia, the creation of a national waqf register has already made it possible to map 12,000 endowments, facilitating their monitoring and valuation.

Cash waqf: philanthropy within everyone's reach

Monetary waqf revolutionizes the accessibility of perpetual philanthropy. Gone is the need to own real estate: today, a person can donate €1 a month via an Islamic banking application, and see this sum accumulate to fund schools or dispensaries. In Malaysia, the "Wakaf Tunai" initiative even allows donations via mobile applications, with real-time tracking of the use of funds. This model democratizes continuous almsgiving(sadaqa jariya), making generosity accessible to all, including the younger generation.

These funds, managed by Islamic financial institutions, combine sustainability with modern management. In Indonesia, "Cash Waqf Linked Sukuk" combine endowments and Islamic bonds to finance schools and water wells. In Egypt, Al Baraka Islamic Bank has launched a platform enabling its customers to convert 1% of their income into cash waqf, illustrating how traditions are adapting to digital realities.

Integration into modern Islamic finance

The waqf is integrated into the Islamic ecosystem thanks to a number of innovations:

• Sukuk financing: In Malaysia, Sukuk Wakaf modernizes old madrasas while preserving their educational vocation, by mobilizing investors concerned with social impact.
• Waqf banks and microfinance: In Indonesia, Bank Wakaf offers interest-free loans to small traders, with profits reinvested in social projects. An entrepreneur can borrow €500 for his or her stall, with the virtual (non-halal) interest going towards a social canteen.
• Blockchain technology: In Saudi Arabia, pilot projects are using blockchain to track the use of waqf funds earmarked for humanitarian aid in real time, eliminating any ambiguity over the management of donations.

Modern Islamic banks play a key role in this development. For an in-depth analysis of ethical economics, see our article ethical economics and waqf.

Waqf, an ethical investment model for a sustainable future

The waqf embodies a system rooted in ethics and sustainability. It transforms a dedicated asset into a lever for collective development, bringing lasting benefits to the community. This mechanism combines spirituality and social impact, like the Rumah well in Medina, which has been active for 14 centuries. By immobilizing an asset for a charitable cause, it creates a virtuous circle in which each generation benefits from a unique gesture.

A "gift that keeps on giving" for future generations

Sadaqa jariya, or continuous almsgiving, is the foundation of this. By dedicating a gift to an enduring cause, the donor generates an eternal spiritual reward. Revenues are channeled into education, health and water projects, illustrating its lasting impact. Al-Qarawiyyin and Al-Azhar universities show how waqf provided free access to knowledge, a principle updated by modern funds for girls' education.

Lessons from a resilient system for tomorrow's finance

Historically, waqf has filled the gaps left by welfare states. Today, integrated into Islamic finance via waqf cash or sukuk, it inspires modern solutions. Initiatives supporting girls' education and health prove that a fair economy can be based on collective responsibility, without debt or interest. Platforms like Namlora update the model with transparency and technology, demonstrating thatethical investment can reconcile Islamic values with contemporary challenges.

Waqf embodies a timeless ethical investment, where every donation sows benefits for the future. By combining solidarity, resilience and innovation, it redefines finance as a lever for justice and sustainability. A lesson in heritage and collective responsibility for a world where ethics guide growth.

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