International Best Practices in Existing Corporate Waqf Models: A Retrospective – Introduction, Chapter Content, Best Practices

3. What Is Corporate Waqf?

Corporate waqf is an initiative that combines classical waqf concept and corporate business efforts (Saad, Sarif, Osman, Hamid and Saleem, 2017). According to Ibrahim, Noor, Shariff and Rusli (2016), the term ‘corporate waqf’ was popularized by Johor Corporation (JCorp) in 2006 when it launched its first corporate waqf scheme, Waqaf An-Nur Corporation Berhad. Meanwhile Securities Commission of Malaysia (2014) describes corporate waqf as a type of corporate instrument where liquid asset like shares or securities endowed as waqf assets and thus enabling the waqf institutions to benefit from the dividend that can finance any welfare project or initiative.

According to Tan Sri Ali Hashim, a trailblazer in the Malaysian corporate waqf industry, there are six models of corporate waqf that could be structured which includes: business entity or corporation, banking and financial institutions, universities, foundations, cooperatives, and hospitals or clinics (Jalil and Ramli, 2014). There are already corporations establishing corporate waqf based on those structures for example Johor Corporation, Koc Holdings, Social Investment Bank of Bangladesh, Tabung Haji Properties, Bank Muamalat Berhad, Larkin Sentral Sdn Bhd, Alinma Investment Bank. Three corporate waqf structures namely WANCorp, Larkin Sentral and Alinma Wareef have been selected for this chapter as they are considered as among the latest and innovative corporate waqf models around.