Waqf (also spelled as wakf or waqaf) is a concept in Islamic law that refers to the permanent dedication of a property or asset to a charitable purpose, usually in the form of a trust. The property or asset is donated by an individual or an organization, and the income generated from it is used for the benefit of the designated charitable cause. The concept of waqf has been used for centuries to support a variety of charitable causes, including education, healthcare, and social welfare.
Once a property is dedicated as a waqf, it cannot be sold, mortgaged or otherwise disposed of, and its use is restricted to the charitable purpose it was intended for. The administration and management of waqf assets are overseen by trustees who are responsible for ensuring that the property is properly maintained and that the income generated from it is used for the intended charitable purpose.
Waqf plays an important role in Islamic philanthropy and has been instrumental in the establishment of institutions such as schools, hospitals, and mosques throughout the Islamic world.
Waqf plays a crucial role in Islamic social finance as it serves as an important tool for promoting social welfare and charitable activities in Muslim communities. Waqf is a form of endowment or perpetual trust, in which an asset is dedicated to a charitable cause in perpetuity. The income generated from the asset is used to support social, religious, and educational causes, among others.
One of the key benefits of waqf is that it provides a sustainable and perpetual source of funding for charitable activities. As waqf assets cannot be sold, the capital is preserved in perpetuity and the income generated can be used to support charitable causes indefinitely. This makes waqf an attractive option for those seeking to establish a long-term and sustainable source of funding for charitable activities.
Waqf is also important in promoting social welfare and addressing social issues in Muslim communities. Waqf funds have historically been used to support a range of social and charitable activities, such as the establishment of hospitals, schools, and orphanages. In this way, waqf has helped to address social issues and provide essential services to those in need.
In summary, waqf is a key component of Islamic social finance, providing a sustainable and perpetual source of funding for charitable activities and promoting social welfare in Muslim communities.
WaqfChain is a blockchain-based technology platform developed by Finterra, a financial technology company that focuses on providing blockchain solutions for the global Islamic economy.
WaqfChain is designed to promote the development of waqf assets and facilitate the distribution of their benefits to those in need. It allows individuals and organizations to create and manage waqf assets in a transparent and secure manner, providing greater efficiency and accountability in the administration of waqf assets.
The platform is based on the Ethereum blockchain and uses smart contract technology to automate the management and distribution of waqf assets. It offers features such as secure and transparent transaction processing, real-time asset tracking, and automated reporting and compliance.
Overall, WaqfChain is intended to promote greater efficiency, transparency, and accessibility in the management and distribution of waqf assets, ultimately helping to advance the development of the global Islamic economy.
Islamic social finance refers to a range of financial instruments and mechanisms that are used to address social and economic issues in Muslim communities around the world. There are several key global players in Islamic social finance, including:
Islamic Development Bank (IDB): The IDB is a multilateral development bank that was established in 1973 to promote economic development and social progress in member countries through Islamic finance. It offers a range of financial products and services, including grants, loans, and technical assistance, to support social and economic development.
Zakat Foundation: The Zakat Foundation is a global charity organization that focuses on providing humanitarian assistance to those in need. It offers a range of social welfare programs, including food aid, healthcare, education, and emergency relief, among others.
Awqaf New Zealand: Awqaf New Zealand is a non-profit organization that aims to promote the development of waqf assets in New Zealand. It offers a range of services to help individuals and organizations establish and manage waqf assets, and works to promote social and economic development in the country.
Finterra: Finterra is a financial technology company that offers blockchain-based solutions and services for the global Islamic economy. It has developed a range of products and services to support Islamic social finance, including a digital wallet, payment gateway, and smart contract platform.
Islamic Relief Worldwide: Islamic Relief Worldwide is a global humanitarian organization that provides emergency relief and long-term development assistance to those in need. It operates in over 40 countries around the world, offering a range of programs and services, including healthcare, education, water and sanitation, and income generation, among others.
Overall, these organizations, among others, are working to advance the development of Islamic social finance and promote social and economic development in Muslim communities around the world.
Finterra is a financial technology (FinTech) company that offers blockchain-based solutions and services for the global Islamic economy. The company was founded in 2017 and is headquartered in Malaysia.
Finterra’s mission is to promote financial inclusion and innovation by leveraging blockchain technology to create new opportunities and solutions for the Islamic economy. The company’s offerings include a range of blockchain-based solutions for businesses and individuals, including a digital wallet, payment gateway, and smart contract platform.
Finterra has also developed a blockchain-based waqf platform, called Waqf Chain, that enables individuals and organizations to create and manage waqf assets in a transparent and secure manner. Waqf Chain is designed to promote the development of waqf assets and facilitate the distribution of their benefits to those in need.
Overall, Finterra is working to drive the growth and development of the Islamic economy through the use of innovative blockchain-based solutions.