Waqf-Linked Unit Trust Funds: A Qualitative Analysis of Recent Application in Malaysia
Keywords:
Waqf, governance, Islamic finance, Shariah-compliant unit trust fund, philantrophyAbstract
The waqf concept has been integrated into a variety of financial assets, including Shariah-compliant investment vehicles like unit trusts. With the appropriate structure and strategy, waqf can support many spheres of life, including the growth of the mainstream economy. This paper aims to highlight the recent development of waqf-linked unit trust funds within the Malaysian context and identify the underlying governance principle for waqf. The current study employed a qualitative research approach through document analysis of previous literature. The paper concludes that the waqf unit trust fund, which upholds strong governance of accountability and transparency as well as backed by the stakeholder theory may contribute to advancing the social and economic well-being of the ummah.
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