A company has purchased a building which it leases to a customer for a period of 5 years, with a promise that the leased asset at the end of the lease term, will be transferred to the lessee. Will zakat be due on the value of the building during the leasing period? According to some [...]
According to most scholars among the Hanafis, Shafi’is, and Hanbalis, a waqf must be perpetual. However, according to the Malikis (and one narration of Imam Abu Yusuf) waqf can be made for a temporary period. This means that once the stipulated period has ended, the waqf asset will be return to the original owner if [...]
According to the Hanafis, Shafi’is, and Hanbalis, it is not permissible to make a waqf of only the usufruct of an asset. For example, waqf of the right to use a rented property. They argue that such a waqf endangers the perpetuity aspect of the waqf asset. However, according to the Malikis, Waqf Al Manaafi’ [...]
Ultimately, one must protect and ensure the perpetuity of a waqf asset. If there is a need to trade the shares in order to acquire other shares in a different company then it is permissible. The main principle in this issue is, can we exchange a waqf asset with another? If the endower gave the [...]
It is permissible to make waqf of shares in a company. However, the company’s business must be halal and it must not have any sort of haram sources. And Allah knows best! (Mufti) Billal Omarjee
Can part of the cash waqf asset be set aside, in order to utilise it when needed during inflation? Financial institutions such as banks uses a process call ‘appropriation’ which is an allocation of the net profit of an organisation in its accounts. This allocation can be used to pay wages or to compensate for bad [...]
If someone made a cash waqf for a specific project, but before the project could start, the value of the money dropped, then what should the nazir/institutions do? According to Osama Abdul-Majid al-Ani, the nazir must take action to compensate for the loss of the cash value, in order to complete the project. The reasoning [...]
According to the scholars who allow the creation of cash waqf, it is permissible to lend the money to someone. This is also the view of Imam Malik in this scenario. However, since it is imperative to ensure the perpetuation of a waqf donation, one must ensure that the money will be returned. Hence, a [...]
Scholars differ as to whether it is permissible to make a cash waqf or not. Their opinions are centred around three principles which they claim ensure the validity of a waqf: A waqf must be perpetual. A waqf must not deplete. A waqf must not be movable. According to the above principles, some scholars say [...]
Can you exchange old gold with new gold? Ibn Abdi Bar reports that there is a scholarly consensus on the fact that gold can only be exchange with gold, if the amount is equal to equal and the gold is exchanged hand in hand. For example: A gives 100 grams of old gold to B [...]
