FatwaFederal TerritoriesEndowment (Waqf) & Religious Property
IRSYAD HUKUM SIRI KE-936: HUKUM PENUBUHAN WAKAF REIT (REAL ESTATE INVESTMENT TRUST) BAGI MEMELIHARA TANAH MELAYU
What is the Islamic ruling on establishing a Waqf REIT to develop and preserve waqf land and Malay reserve land?
Short answer
A property investment structure that places waqf assets in an investment trust, managed professionally with returns distributed to beneficiaries or the original waqf heirs, is permissible in Islamic law.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Federal Territories Mufti Office
- Date
- Status
- Opinion (irsyad)
- Series
- Irsyad al-Hukum (Umum)
- Topic
- Endowment (Waqf) & Religious Property
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
A property investment structure that places waqf assets in an investment trust, managed professionally with returns distributed to beneficiaries or the original waqf heirs, is permissible in Islamic law. The land must remain waqf and cannot be sold, with the REIT serving only as a management vehicle. Dividends are lawful as they come from rental benefits, and the scheme must be monitored by the State Islamic Religious Council and supervised by a Shariah adviser. Land whose endower specified direct use, such as a mosque, school or surau, is excluded.
Written in our own words from the original fatwa — check the source before acting on it.
Oleh itu, secara asasnya struktur pelaburan hartanah yang menggabungkan aset wakaf ke dalam amanah pelaburan kemudian diurus secara profesional dan pulangannya diagihkan kepada penerima manfaat atau pewaris wakaf asal adalah harus dan dibenarkan syarak.
Read the full fatwa on the Federal Territories website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Federal Territories Mufti Office. “IRSYAD HUKUM SIRI KE-936: HUKUM PENUBUHAN WAKAF REIT (REAL ESTATE INVESTMENT TRUST) BAGI MEMELIHARA TANAH MELAYU”, 7 October 2025. https://muftiwp.gov.my/ms/artikel/irsyad-hukum/umum/6391-irsyad-hukum-siri-ke-936-hukum-penubuhan-wakaf-reit-real-estate-investment-trust-bagi-memelihara-tanah-melayu. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/ruling-on-waqf-reit-malay-land/