Waqf and Endowment Islamic History of growth and decline

The history of Islamic waqf (endowment) is rich and has played a significant role in Muslim development throughout various periods. Waqf refers to the permanent dedication of a property, such as land, buildings, or funds, for charitable purposes according to Islamic principles. The origins of waqf can be traced back to early Islamic history, but it reached its golden age during the Islamic civilization's height. During the Islamic Golden Age, between the 8th and 14th centuries, waqf was central in facilitating socio-economic development and providing public services. It was instrumental in establishing institutions of higher learning, hospitals, mosques, libraries, and other infrastructure projects. These endowments served as centers for education, scientific research, healthcare, and community support, benefiting countless individuals and communities. Waqf allowed for the accumulation and preservation of wealth within the Muslim community while ensuring its continuous circulation for the greater good. It offered an alternative economic model based on the principle of perpetual charity, aiming to address social and economic inequalities. Through waqf, individuals could dedicate their assets to noble causes, ensuring their benefits extend beyond their lifetimes.

A comparatively holistic view of the evolution of waqf as a civil society institution and covers its principles' developmental stages. The historical phases in which the jurisprudence of waqf was formulated into three. The first phase of waqf jurisprudence “started after the death of the Prophet (Sallallahu alayhi wasallam) in the tenth year A.H., and continued till the end of the third century A.H..” The second phase for developing waqf rulings ranging from the fourth century A.H. to the thirteenth century. According to Ghanim, this period is best described as a “period of branching and elaboration,” in which jurists based their reasoning on the existing methodologies of specific jurisprudential schools. The third phase in which jurisprudence of waqf witnessed further evolution spanned from the fourteenth century A.H. to the modern day. In the last stage, “the codification of the Shariah and administrative regulations of waqf” was introduced in certain Arab countries (Ghanim, 2009).

Recommended and encouraged by Prophet Muhammad (Sallallahu Alayhi Wasallam), waqfs eventually became very popular. Indeed, Islamic economic history indicates that waqf, not zekat, was the most important institution for the redistribution of wealth (Hodgson, 1974, II: 124). However, the waqf as an institution that had a limited expansion in the eighth century and that played no formal role in the original Islamic economic system in the first Islamic community of Western Arabia. This was mainly because the state could provide public goods, which in other words, meant the community was relatively small and homogeneous enough to make their basic needs apparent and a centralized delivery system efficient. The proliferation of awqaf's accompanied establishing and developing successive Muslim-ruled states (Zilfi and Yediyildiz, 1991). After the initial three centuries, a complex body of law emerged to oversee the creation and administration of the waqf foundations (Gaudiosi, 1988).

One of the reasons why Waqf almost vanished is because most Muslims lack knowledge about Waqf. Some Muslim countries have state-owned Waqf, which involves repossessing Waqf properties. Due to the shortage of funds, the government used the Waqf system as a source of revenue. After it was abolished and nationalized, the family Waqf was constrained, and some banned the creation of new ones. Also, people have used Waqf for non-religious purposes such as tax avoidance. The decline can be linked to an absence of an entire Islamic legal system that can sustain its living. The second is political impact, and it varies by every Muslim country. Their reason is to regulate assets to maintain their existence or power. Therefore, it is meaningless to connect the decline of Waqf to Islamic legal doctrine. The challenge is if the present Waqf management system is adaptive to a fast-changing economy (Fahad Mohammed Alabdulmenem. 2017).

We have substantial historical evidence regarding the root of Waqf in Islamic history. For instance, during the 18th century, the total revenue of Waqfs in the Ottoman Empire equaled one-third to half of the total state revenues (Yediyildiz, 2003). Although some pre-Islamic civilizations were aware of waqf-like structures, for instance, the Roman fideicommissum, Islamic waqfs differed substantially from their predecessors (Buckland, 1931). Ottoman Waqfs were either managed directly by their founders or by the trustees appointed by them. During the 18th century, 67% of the Ottoman waqfs were managed by trustees appointed by founders. The rest were appointed by courts after the appointed trustees had expired (Yediyildiz, 2003).

Following are the famous Awqaf (Endowments) organizations established as Waqf for religious and other purposes. In Turkey alone, there were approximately 68 universities established and financed from waqf assets. Also, most of the mosques and madrasas are built on the principles of Waqf, which are numerous worldwide. So we cannot list them all, but the followings are some examples from many Awqaf (Endowments) established worldwide.

It goes without saying that with the exception of the oil-exporting countries, the Islamic world today is one of the poorest regions in the world. This stands in sharp contrast to the period 7th-13th centuries when it was the most advanced civilization in the world (Murat Cizakca, 2015). When we discuss Waqf, one of the universities that comes into focus is Al-Azhar University, and one fundamental question you may have is; Why is it that Al-Azhar, the oldest university in the World, established in the 10th century, did survive but cannot possibly compete with Western universities? There is evidence for this. While Oxford was chosen as the best university in the World in 2017, Al-Azhar is not even among the first 1000. Obviously, something very important is missing! That something is, in one word, incorporation. This means that even if we design the perfect waqf law and we do have the know-how to do just that, we would have won only half of the battle. Unless waqfs are incorporated, you can finance and create universities, but their educational standards would eventually fall behind. Now what does incorporation mean and why is it so important for educational reform? A corporation is an institution invented by the Catholic church. It is based upon the concept of juristic personality, another Western invention. Merton College of Oxford was the first true synthesis of the Islamic waqf and the Western Corporation having a juristic personality. The waqf/trust was founded by Walter de Merton, Exchequer of England. He had participated in the Crusades and learned about waqfs while in the Middle East. His waqf, trust, provided the land and the buildings and regular and perpetual annual revenue to cover the professors’ salaries and students’ scholarships. In short, while the incorporated waqf solves the information asymmetry problem, this problem continues unabatedly in the UNincorporated waqf, and the waqf cannot respond to the ever-changing circumstances adequately. This is one of the most important reasons why while the Oxbridge and Ivy League colleges have flourished, so many colleges in the World of Islam have disappeared(Cizakca, 2018). However, over time, several factors contributed to the diminishing prominence of waqf and it's declining impact:

Despite these challenges, waqf continues to exist and contribute to various sectors. Efforts have been made to revive and modernize waqf practices, integrating them with modern legal and financial systems. Governments, non-profit organizations, and individuals are exploring innovative approaches to leverage waqf assets for sustainable development and social impact, particularly in education, poverty alleviation, and community development. In conclusion, the history of waqf reflects its significant contributions during the golden age of Islamic civilization. While it faced challenges and diminished over time, waqf remains a valuable concept with the potential to address contemporary societal needs and foster inclusive development.