Waqf the missing piece in Islamic Finance
Waqf (Wakaf) is the missing piece in Malaysia's Islamic financial system despite the country being the market leader with various sophisticated products and services.
CIMB Islamic Bank chief executive officer Badlisyah Abd Ghani said: "Malaysia has from the simplest saving products to sukuk as well as many different sophisticated products for institutional investors, corporate clients, small medium entrepreneurs and individuals.
"(But) what is missing in the market today is waqf in a commercial manner."
He told reporters this on the sidelines of the 10th Kuala Lumpur Islamic Finance Forum (KLIFF 2013) in Kuala Lumpur today.
Waqf is an Islamic endowment of property to be held in trust for religious or charitable purposes.
Badlisyah said to have waqf in the financial market, there is a need for a conducive legal framework that will allow it for its incorporation in an effective manner.
"If we have it, over time, waqf could be the bigger component of the Islamic financial market, as what was in the golden era of Islamic civilisation in the past," he added. -- Bernama