Cash Waqf: An innovative instrument of personal Finance in Islamic Banking

Monzer Kahf, Amiirah Nabee Mohomed

Research output: Contribution to journalArticle


Personal financing in the practice of Islamic banks refers to responding to cash provision or simply financing cash. From Shari'ah perspective, personal finance or giving loans is a benevolent provision that should not be offered by Islamic financial institutions for a profit. Different motives or factors affect demand for personal financing whether for individuals, corporates, financial institutions or governments and genuine needs for cash may arise under specific circumstances. Some needs which should be responded only by cash or cash loans cannot be financed against an increment, such as debt settlements or rollovers, for which the solution is the Cash Waqf-based instrument. This study investigated lending cash through operationalization of Cash Waqf fund as a non-profit based instrument for personal finance, especially for individuals, within a banking context. The dynamics of this Cash Waqf instrument's establishment and operational issues are discussed and its potential advantages and disadvantages are also examined.

Original languageEnglish
Pages (from-to)13-29
Number of pages17
JournalJournal of Islamic Economics, Banking and Finance
Issue number3
Publication statusPublished - 1 Jul 2017



  • Awqaf
  • Cash Waqf
  • Islamic banks
  • Islamic finance
  • Personal financing
  • Shari'ah

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance
  • Development

Cite this