Awqaf al-nuqud

Dictionary term

Definition of "Awqaf al-nuqud"

Lit: Cash endowments. Tech: An institution prevalent in the Ottoman Empire from fifteenth century. It was a means of providing public services like education, health and other welfare activities. People with surplus funds would form a trust with their funds with the stipulation that the principal sum will remain intact and the return on it will be used for socially beneficial activities. The principal sum could be invested only on lawful activities like mudarabah, joint ventures and could not be lent on interest. The ‘cash endowments’ were distinct from the commonly known endowments where an immovable property was usually subject of the endowment. Cash endowments became a channel for providing finance to those who needed it by the wealthy people.

Create Your FREE Account…

IslamicBanker helps professionals navigate Islamic markets by providing powerful insights, analytics and collaboration tools.