INTRODUCING THE CONCEPT OF WAQF IN WEALTH AND ESTATE MANAGEMENT
Labuan International Business and Financial Centre (Labuan IBFC) is Asia's only midshore jurisdiction with conventional and Islamic wealth management solutions. Capitalising on this strength, the jurisdiction has introduced the concept of "Waqf" by private foundation, with the launch of the Labuan International Waqf Foundation (LIWF).
The concept of Waqf is a key aspect of Islamic wealth management. Historically, Waqf has been used to generate revenue towards supporting a myriad of charitable purposes such as education, welfare and even the building as well as management of public hospitals.
Waqf is a functioning element of the Shariah legal system, allowing ummah from around the world to have the peace of mind that their assets are used for good deeds.
In essence, LIWF is an Islamic private foundation which holds and manages properties for identified beneficiaries based on the Shariah principles on Waqf, while it adopts the legal form of a foundation, provided by the Labuan Foundations Act 2010.
A unique feature of LIWF is its flexibility, allowing it to be utilised as an Islamic wealth management vehicle and at the same time, providing for charitable purposes, which may be extended to promote financial inclusion.
The distinct advantage of establishing a Waqf using a foundation as its legal structure, is that it offers the founder (Waqif) legal certainty, thus allowing for proper control and management of the Waqf in accordance with his wishes.
LIWF can be established for different types of Waqf:
FREQUENTLY ASKED QUESTIONS
WAQF IN GENERAL
What is a Waqf and why is it important? "Waqf" means holding a certain property and preserving it in order to ensure that its benefits continuously flow to a specified group of beneficiaries for religious, charitable or pious purposes as recognised by the Shariah for the pleasure of Allah SWT. The properties, after being declared as Waqf, no longer remain in the ownership of the donor. The beneficiaries of a Waqf can benefit from the proceeds of the dedicated property. Waqf has tremendous potential to spur the economic growth and development of a nation. Historically, Waqf has been proven as one of the most effective mechanisms to support noble charitable purposes such as education, social welfare and healthcare in countries like Turkey and Egypt. Besides philanthropic considerations, Waqf can also be established for private wealth and...