Skip to main content

Integrating Awqaf and Zakat: A Case Study of Land Development for the Poor in State Islamic Religious Councils Terengganu, Malaysia

  • Conference paper
  • First Online:

Abstract

The purpose of this paper is to investigate the integration of awqaf land and zakat fund for the various purposes of development and assistance to the needy. Awqaf is an endowment made by a Muslim for a religious, educational, or other charitable causes. The development of awqaf land is a part of the social obligations which can contribute to improving the quality of life of the zakat’s recipients. Zakat plays an important role in providing a better life for the poor. Despite the enormous potential of zakat and waqf, these two instruments have yet to be fully utilized for helping the poor. Among the main obstacles in developing awqaf land is the inadequate budget received by the State Islamic Religious Councils (SIRCs). Furthermore, the lack of involvement of professional bodies from the initial stage of the development results in the unawareness of potential land development. Taking into account the financial requirement in developing awqaf land, the need to integrate zakat and awqaf is important to ensure continuity of the developments. This paper describes briefly the impact of having comprehensive integration of awqaf and zakat. Data from interviews and documents in State Islamic Religious Councils Terengganu are analyzed, and there is a proof that awqaf and zakat integrations have already occurred. By integrating awqaf and zakat, the quality of life among asnaf can be further enhanced. This paper contributes to the body of knowledge of integrating awqaf and zakat as the key instrument for SIRCs to develop the best development for the ummah.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   299.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   379.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   379.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Ahmed, H. (2004). Role of Zakah and Awqaf in Poverty Alleviation (1st Ed., p. 150). Jeddah, Saudi Arabia: Islamic Development Bank, 2004 Islamic Research and Training Institute.

    Google Scholar 

  • Çizakça, M. (1998). Awqaf in history and its implications for modern islamic economies*. Islamic Economic Studies, 6(1), 69.

    Google Scholar 

  • Hasan, Z., & Abdullah, M. N. (2008). The investment of waqf land as an instrument of muslims’ economic development in Malaysia. In Dubai International Conference on Endowments’ Investment, 4–6th February 2008 (pp. 1–25). Dubai, the United Arab Emirates: Awqaf and Minors Affairs Foundation, Dubai, The United Arab Emirates.

    Google Scholar 

  • Hashim, M. A. (n.d.). Promoting charity via “waqf.” The Star Online. Ikim’s Centre for Economics and Social Studies. Retrieved from http://www.thestar.com.my/Opinion/Columnists/IKIM-Views/?c={37AC162B-B67C-4329-A1C4-13EC6A8FADC7}

  • Hassan, A. (2010a). Management and development of the awqaf assets. In M. M. A. Shahid, A. Hassan (Eds.), Seventh International Conference—The Tawhidi Epistemology: Zakat and Waqf Economy, Bangi 2010 (pp. 309–328).

    Google Scholar 

  • Hassan, M. K. (2010b). An integrated poverty alleviation model combining zakat, awqaf and micro-finance an integrated poverty alleviation model combining zakat, awqaf and micro-finance. In Seventh International Conference—The Tawhidi Epistemology: Zakat and Waqf Economy, Bangi 2010 AN (pp. 261–281). Bangi, Selangor, Malaysia.

    Google Scholar 

  • Ihsan, H., Hameed, H., & Mohamed Ibrahim, S. (2011). Waqf accounting and management in Indonesian Waqf institutions. The cases of two Waqf foundations. Emeraldinsight, 27(Humanomics), 252–269. doi:10.1108/08288661111181305

    Google Scholar 

  • Mahamood, S. M. (2008). Waqf in Malaysia: Legal and administrative (vol. 16, No. 2(983), pp. 299–305). Kuala Lumpur: University of Malaya Press (book review 2006).

    Google Scholar 

  • Mohsin, A. B., & Mohammad, M. T. S. H. (2011). Weaknesses of current capital raising, financing, and investment methods of awqaf (Islamic Trusts). In International Conference on Social Science and Humanity (Vol. 5, pp. 401–405).

    Google Scholar 

  • Muhamat, A. A., Jaafar, N., Rosly, H. E., & Manan, H. A. (2013). An appraisal on the business success of entrepreneurial asnaf: An empirical study on the state zakat organization (the Selangor Zakat Board or Lembaga Zakat Selangor) in Malaysia. Journal of Financial Reporting and Accounting, 11(1), 51–63. doi:10.1108/JFRA-03-2013-0012

    Google Scholar 

  • Nahar, H. S., & Yaacob, H. (2011). Accountability in the sacred context: The case of management, accounting and reporting of a Malaysian cash awqaf institution. Journal of Islamic Accounting and Business Research, 2(2), 87–113. doi:10.1108/17590811111170520

    Google Scholar 

  • Nurzaman, M. S. (2010). Zakat and Human development: An empirical analysis on poverty alleviation in Jakarta, Indonesia. In 8th International Conference on Islamic Economics and Finance Zakat.

    Google Scholar 

  • Rahman, R. A., & Dean, F. (2013). Challenges and solutions in Islamic microfinance. Humanomics, 29(4), 293–306. doi:10.1108/H-06-2012-0013

    Google Scholar 

  • Singer, A. (2008). Charity in Islamic societies. New York: Cambridge University Press.

    Google Scholar 

  • Siwar, C., & Yusof Kasim, M. (1997). Urban development and urban poverty in Malaysia. International Journal of Social Economics, 24, 152–1535. Retrieved from http://www.emeraldinsight.com/doi/pdfplus/10.1108/03068299710193958

  • Siwar, C., Ahmed, F., Diana, N., & Idris, M. (2013). Relationship between poverty and socio-demographic characteristics of poor households: A case study in Kelantan, Malaysia, (Asshm) (pp. 679–684).

    Google Scholar 

  • Wahab, N. A., & Rahman, A. R. A. (2012). Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis. Studies in Economics and Finance, 29(3), 197–210. doi:10.1108/10867371211246876

    Google Scholar 

  • Yusuf, M.-B. O., & Derus, A. M. (2013). Measurement model of corporate zakat collection in Malaysia: A test of diffusion of innovation theory. Humanomics, 29(1), 61–74. doi:10.1108/08288661311299321

    Google Scholar 

Download references

Acknowledgements

This study was supported by Universiti Teknologi MARA and received funding from the Department of Higher Education, Ministry of Higher Education (MOHE), which is under Research Acculturation Grant Scheme (RAGS) GRANT (RAGS/2013/UiTM/SSI11/22).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mohd Saifol Amri Shari .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer Science+Business Media Singapore

About this paper

Cite this paper

Ali, S.N.M., Noor, A.H.M., bt Chuweni, N.N., Ismail, N.R.P., Dahlan, F.M., Shari, M.S.A. (2016). Integrating Awqaf and Zakat: A Case Study of Land Development for the Poor in State Islamic Religious Councils Terengganu, Malaysia. In: Ab. Manan, S., Abd Rahman, F., Sahri, M. (eds) Contemporary Issues and Development in the Global Halal Industry. Springer, Singapore. https://doi.org/10.1007/978-981-10-1452-9_19

Download citation

  • DOI: https://doi.org/10.1007/978-981-10-1452-9_19

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-1450-5

  • Online ISBN: 978-981-10-1452-9

  • eBook Packages: Social SciencesSocial Sciences (R0)

Publish with us

Policies and ethics