Strategies and Tools for Effective Awqaf Asset Management

Waqf is known to have played significant role over the years as an effective tool of poverty eradication through the provision of essential facilities and public goods for Muslim society. Unfortunately, in recent years, the vast potential of waqf has not been utilised optimally. The lack of required attention has subjected many waqf assets to abuse and neglect. Poor management and ineffective regulation among others issues greatly undermine the potential of waqf in many Muslims communities nowadays. The focus of this paper is to explore the strategies and tools to manage waqf assets effectively. In doing so, series of focus group discussions and interviews were conducted with mutawalli, waqf regulator and academicians. The findings of the study indicate that the role of effective regulation, improved waqf governance, appropriating financing instruments and continuous education is equally important as strategies in developing waqf assets. In addition, this study suggests some important mechanisms particularly accountability and risk management that are necessary for developing the right strategy for waqf administration.