An Overview of Waqf Assets in Yemen: Importance and Challenges

Abstract

Purpose of Study: Waqf has played a significant role throughout Islamic history. This has been possible through proper management, investment and financing of various Waqf assets to enhance the socioeconomic development of Muslim societies. In particular, it has contributed significantly to the encouragement of religious practices, improvement of education, health and helping the poor and the needy, creating employment and supporting other socio-economic activities.
 Methodology: The current study attempted to uncover these challenges facing by Waqf institution in Yemen. Particularly, issues such as management, investment and finance will be emphasized.
 Results: However, nowadays most of Waqf assets have become idle and no longer serves the needs of the Ummah due to problems, such as poor governance structure and human resource. Few studies have tried to address challenges facing Waqf but unfortunately these studies have been conducted in countries where the governance structure is robust and the quality of human resource is very good. Such models may not be suitable in contexts such as Yemen where Waqf assets are mostly in the form of physical assets such as lands and buildings and the quality of human resource and governance structure are poor.

Issues and Challenges of Waqf Practice in Malaysia: A Review

“…Funds on the waqf institution are not sufficient to cover the required costs (Mahmood, Mustaffha, Musafar Hameed, & Johari, 2017). This fund shortage problem not only occurs in Malaysia, but happens in other Muslim countries such as India, Yemen, Indonesia and others (Saad, Mohammed, & Al-Jubari, 2019) Idle assets and land According to statistics from the state Islamic Religious Council's records, Malaysia has over 33 thousand acres of waqf land. However, until in 2015, the notes showed only seven per cent of which were developed (Abd Jalil, 2018).…”

“…According to (The World Bank Group et al, 2019), many of the complaints on waqf assets and buildings were not adequately maintained. In Yemen, Saad et al (2019) recorded that most of the waqf land was not developed.…”

“…Typically workers must perform their duties due to lack of human resources (Mahmood, Shahimi, et al, 2017). In Yemen, according to Saad et al (2019), the waqf trustee has no experience in managing waqf. There is also a case, the manager who has already been competent to stop work (Binghaia & Kassim, 2017).…”

The Prospect of Waqf in Financing Small and Medium Enterprises (SMEs) in Yemen

“…It contributes significantly to economic development and social welfare through the establishment and financing of an extensive network of facilities and service projects in vital areas including education, health, culture, infrastructure, and others. Moreover, waqf has planty of lands, real estate, and cash which are financing alternatives appropriate to SMEs (Saad, Mohammed, and Al-Jubari, 2019).…”

Development of Islamic Bank-based Cash Waqf Management in Indonesia

“…The role of waqf has long played an important role in improving the social welfare of the ummah (Ihsan & Ibrahim, 2010) to bring significant movement for Muslims in various social and economic fields (Mohd Thas Thaker, 2018). During the Ottoman Turkish empire, for example, financial partnerships such as cash waqf were widely implemented in society (Grosjean, 2011), waqf in Indonesia itself has been known since Islam began to spread and the Muslim population increased (Oktarina & Asnaini, 2018), one of which was funding educational institutions (Saad et al, 2019), coupled with the issuance of Law Number 41 of 2004 concerning Waqf and Government Regulation Number 42, this regulation shows that the nature of waqf is more flexible and can be applied by anyone, be it individuals, communities, companies to the government (Iman & Mohammad, 2017).…”