Waqf Sukuk as Instruments of Sustainable Development and Challenges of Issuing Them A Field Study in Malaysia

Abstract

Sustainable development has recently emerged as one of the hottest issues in the field of socioeconomic development. Throughout the Islamic history, waqf has played an essential role in supporting the sustainable development of Muslim communities. This paper attempts to provide a state-of-the-art review of waqf sukuk with special focus on the Malaysian context. Qualitative method has been utilised to collect data. Six semi-structured interviews have been conducted with waqf and sukuk experts in Malaysia. Research has found that so far there has not been any issuance of waqf sukuk in Malaysia. Interviewed experts have rightly pointed out a number of Shariah, legal, regulatory and operational challenges facing the issuance of waqf sukuk in Malaysia. Challenges include the lack of awareness on the importance of waqf sukuk, besides the serious lack of skilled and competent human resources and staff working in waqf administration and governance.