A Framework for Waqf-Linked Sukuk to Develop Idle Waqf Land in Malaysia

Mohamed Ayaz Mohamed Ismail

Aishath Muneeza

Magda Ismail Abdel Mohsin

 

Abstract: This note explores the challenges surrounding idle Waqf (Endowment) land in Malaysia and proposes an innovative framework for Waqf-linked Sukuk (Bonds) to address funding constraints and unlock the potential of Waqf assets for socio-economic development. Drawing on the evolution of Waqf and Sukuk, guided by Islamic principles, this note examines the legal, regulatory, and societal implications of the proposed framework. By integrating Waqf into Malaysia's sophisticated Islamic finance system, the framework aims to mobilize funds for Waqf projects while ensuring Shariah compliance and investor confidence. This note discusses the influence of Islamic principles on Waqf and Sukuk development and highlights the societal and transnational impacts of the proposed framework. Ultimately, the research underscores the importance of innovative strategies to harness Waqf assets for sustainable socio-economic progress, offering insights for policymakers, scholars, and practitioners in Islamic finance and philanthropy.