Abstract

Waqf is a well-known institution in Islam. In Islamic law, charitable endowments are known as Waqf and are regulated by the Law of Waqf (Hoexter, 1998, p. 134). The institution of Waqf can be defined as an arrangement whereby a property which is privately owned by a Muslim is endowed for some charitable purposes (Al-Kubaiysī, 1977, vol.1, p.55). The Waqf is a financial instrument that is used solely for social needs, whether to combat poverty, improve the economic situation of the public or for social development in general. It is a long-standing financial instrument that is held in trust and plays a significant role in Muslim communities (Su Ye Che, 2015, p. 8).
The evolution of this institution has not been so dramatic as the change it has to adopt for the current modern age. The new so-called ‘Waqf Company’ has stirred up much controversy in current times mainly because immovables in Waqfs and establishing cash waqfs are being used which goes against the Ḥanbalī Jurisprudence which is the official School of Jurisprudence of Saudi Arabia. This modern form of Waqf is being hotly debated and is somewhat controversial among contemporary Islamic scholars and jurists (fuqhā) of Saudi Arabia.


The primary aim of this thesis is to present a clearer picture regarding the legitimacy of the Waqf company based on the analysis of classical Islamic jurisprudential literatures and wants to identify the gaps in legal framework for Waqf company in Saudi Arabia and present recommendations to remedy the situation. This thesis is an investigation into ‘Waqf Company’ and it functions within Saudi Arabian civil law. It takes a critical look at the controversial issues pertaining to this topic which presents great challenges in Islamic jurisprudence and reconciling it with modern times. These issues are related to the topics of lack of perpetuity, irrevocability and inalienability all of which are main features of Waqf in classical Islamic jurisprudence. This thesis challenges some of the archaic Islamic principles and presents tangible solutions which makes Waqf law function, practical and relevant for the modern age.

The methodological basis of this thesis is focused on qualitative research that is a broad analytical methodology that encompasses a variety of research approaches, the document analysis paradigm would be used as the conceptual framework and research approach for dealing with data, as the thesis is entirely focused on literature.
The conclusion of this thesis is that by the adaptation of the Waqf Company in the light of the Integral-Pillars (Rukn) of Waqf, the research findings show that the model of the Waqf company is compliant with the Waqf principles and rules imbedded within classical fiqh but it should be noted that not all type of company/ies models can be suit with the rulings and principles law of Waqf.