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FatwaPenangEndowment (Waqf) & Religious Property

HARTA PUSAKA SAEDAH BINTI NOORDIN, SI MATI LOT 200, 251 DAN 252, MUKIM 4, SEBERANG PERAI TENGAH

Is it permissible to develop waqf land with a developer, and what is the ruling on dividing housing units between the trustee and the developer?

Short answer

Development of waqf land by its trustee is permissible, whether in partnership with Muslims or non-Muslims, provided the land is not sold.

PenangFatwa committee decision

A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.

Authority
Penang State Mufti Department
Date
Status
Fatwa committee decision
Series
Keputusan Fatwa Negeri Pulau Pinang (e-Fatwa)
Topic
Endowment (Waqf) & Religious Property

No evidence of gazettement in the source — this is not a gazetted fatwa.

Summary

Development of waqf land by its trustee is permissible, whether in partnership with Muslims or non-Muslims, provided the land is not sold. Dividing housing units in fixed proportions between the trustee and the developer is not allowed, since the developer is expected to sell its share and selling waqf property is forbidden. Building on the land to rent out, with the rental income returned to the trustee, is permitted as long as the buildings are not used for sinful activities. If the trustee deviates from Shariah rules, the Islamic Religious Council may take control of the land.

Written in our own words from the original fatwa — check the source before acting on it.

Harus dilakukan pembangunan di atas tanah wakaf itu oleh pemegang amanahnya sama ada berkongsi dengan orang Islam atau bukan Islam dengan syarat tidak berlaku penjualan terhadap tanah wakaf tersebut.

Excerpt from the original fatwa · Penang

Read the full fatwa on the Penang website (new tab)

How to cite

Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.

Penang State Mufti Department. “HARTA PUSAKA SAEDAH BINTI NOORDIN, SI MATI LOT 200, 251 DAN 252, MUKIM 4, SEBERANG PERAI TENGAH”, 8 May 1986. http://efatwa.penang.gov.my/fatwa_details.php?fatwaid=1073. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-developing-waqf-land-with-developer/