FatwaKedahEndowment (Waqf) & Religious Property
WAKAF UNIT AMANAH
What is the ruling on endowing unit trusts as waqf according to the Kedah fatwa?
Short answer
The Kedah Fatwa Committee ruled that waqf of unit trusts is permissible, as unit trusts are assets recognised under Islamic law, are valuable, easily liquidated and generate returns.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Kedah State Mufti Department
- Date
- Status
- Gazetted
- Series
- Fatwa Yang Diwartakan
- Topic
- Endowment (Waqf) & Religious Property
Gazette evidence in the source: Tarikh Diwartakan: 04-Apr-21
Summary
The Kedah Fatwa Committee ruled that waqf of unit trusts is permissible, as unit trusts are assets recognised under Islamic law, are valuable, easily liquidated and generate returns. The main purpose is to preserve the original form of the units, while the profits are used for the waqf objectives and not traded in the financial market. The units may not be sold except for urgent needs and subject to the regulations on istibdal.
Written in our own words from the original fatwa — check the source before acting on it.
Hukum wakaf unit amanah adalah harus kerana ia adalah dalam bentuk aset yang diiktiraf menurut Hukum Syarak berdasarkan hujah-hujah berikut:
Read the full fatwa on the Kedah website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Kedah State Mufti Department. “WAKAF UNIT AMANAH”, 4 April 2021. https://ifatwa.kedah.gov.my/wp-content/uploads/2022/09/8.-WAKAF-UNIT-AMANAH.pdf. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-waqf-of-unit-trusts/