The Use of Islamic Real Estate Investment Trust (I-REITs) as a Contemporary Instrument in Developing Waqf Assets: Potential Structure, Issues and Challenges

  • Aznan Hasan
  • Syahnaz Sulaiman

Abstract

The primary objective of this paper is to explore the potential of Islamic Real Estate Investment Trusts (I-REITs) as an effective instrument for financing waqf development activities. This study employs legal research methodology, (the data used were largely library-based and documentary in nature), in which opinions of jurists, classical and contemporary are analysed in discussing the potential of I-REITs as a mechanism to develop waqf assets. Besides, several resolutions issued by relevant market authorities are referred to in this study. The study concludes that despite several challenges, with proper implementation, I-REITs may be adopted by a waqf institution as a mechanism to finance the development of their waqf assets. The novelty of this paper lies in the proposed structure of I-REITs, which can be a useful reference for the policy-makers and REITs issuers in establishing an enabling environment within which waqf I-REITs can potentially operate. Therefore, this study hopes to shed some light on the potential of waqf I-REIT to become an asset class to provide diversity for the public to give waqf.
Published
2016-12-28
How to Cite
HASAN, Aznan; SULAIMAN, Syahnaz. The Use of Islamic Real Estate Investment Trust (I-REITs) as a Contemporary Instrument in Developing Waqf Assets: Potential Structure, Issues and Challenges. Intellectual Discourse, [S.l.], v. 24, dec. 2016. ISSN 2289-5639. Available at: <http://journals.iium.edu.my/intdiscourse/index.php/islam/article/view/932>. Date accessed: 27 sep. 2017.

Keywords

Waqf, Islamic Real Estate Investment Trust (I-REITs), Social finance, Islamic finance, Malaysia