Legal Constraints to the Development of Waqf

Though historically waqf played an important role in providing variety of social services in Muslim societies, its position has diminished significantly during contemporary times. The paper assesses the latent status of waqf by examining the legal constraints that waqf faces relative to other non-profit organizations. While Shariah principles and national laws affect the nature of waqf in contemporary nation states, the latter ultimately determines the legal requirements of establishment and operations of waqf institutions in different jurisdictions. Taking Bangladesh and The Gambia as case studies, the non-profit laws in general and waqf in particular are examined to identify the legal constraints that inhibit the establishment of waqf in these countries. The paper argues that either the absence or inefficiency of waqf laws can induce contemporary Islamic non-profit organizations to opt for organizational formats other than waqf. To mitigate the legal constraints, the paper argues the enactment of efficient waqf laws that reflect contemporary flexible Shariah rulings on the one hand and removing legal asymmetries between the waqf laws and other non-profit organizational laws on the other hand.