Waqf in Islam is essentially identified as a property that is dedicated to God in charity. Besides it is perpetual in nature and at times irrevocable and inalienable. Literally waqf is defined as a detention of property to produce an income that can be made available for charitable deeds for the community and humanity at large. Basically, when a waqf is created, the property is detained or tied up forever and becomes untransferable.
Historically, waqf was one of the largest contributors in Islamic state in achieving the overall development and progress of its welfare system and for the longest time has been used to assist and support the unfortunate in the society. Inopportunely, the decline of governance under colonisation has led to the decay of the waqf system. Over time, it continues to suffer from mismanagement and lack of interest from the community in its development with waqf properties globally lacking the resources for their development.
However, both governments and regulators have been trying to manage a considerable amount of waqf properties and land through legislation, ministries, local and Islamic authorities, where the key challenges faced is to shy away from merely preserving waqf to waqf serving the community and humanity, which is serving its original purpose. As mentioned earlier, other major challenges involved are the many years of waqf mismanagement, lack of transparency and a trust deficit leading to the failure to attract interest of investors, even though globally waqf properties are estimated to be at USD 1 trillion.
It is notable to share that one of the effective ways of solving the problem is through leveraging on the GALLACTIC Blockchain platform initiated by FINTERRA, an organisation dedicated to developing the next generation of blockchain. This new technology is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transaction but virtually everything of value. Each blockchain created cannot be copied or replicated and is open to all ensuring transparency and accountability. Therefore, FINTERRA will use GALLACTIC technology to build a blockchain to host waqf contacts and transactions to attract investments to waqf properties development so beneficiaries globally can benefit from it. Finally, it aims to create social solutions to some of society’s pressing issues such as poverty, lack of equitable resource allocation and mismanagement of charitable funds.