Magda Ismail Abdel Mohsin (The Edge Communications Sdn. Bhd., 2016)
Wakaf, or a religious endowment for a charitable cause, is a lesser-known component of Islamic wealth management. It can be viewed as a way of doing good, giving back to society, or earning pahala (divine reward). These endowments have usually involved immovable assets such as buildings and land, but they can also be in the form of movable assets such as furniture and jewellery - as long as they are not forbidden in Islam. Setting up a cash wakaf, or trust fund, is another way to make an endowment. Cash wakaf, which is based on the concept of mudarabah, has been around since the 8th century. But the Islamic authorities have recently established a legal framework for such endowments in an effort to develop the segment. As a result, some new schemes have been implemented.
