Feasibility of Stock and Cash Waqf: A Financial Stock and Cash Waqf Institution in Iran

The institution of Waqf (endowment) has played a significant role throughout Islamic history, ever since the time of the holy Prophet (pbuh). Although this institution existed before the coming of Islam, Islam was the first religion to develop its legal framework and to regulate it. Thus, it became one of the devices created by the Muslims to render many crucial services in various sectors that are today financed by the state or the government, such as education, health care, national security, commercial business,transportation facilities shelter and food for the poor and needy, creating jobs, besides supporting the agricultural and industrial sectors without inflicting any cost on the government. This article underscores the importance of the establishment of this institution as a non-profit and a redistribution organization so as to drawn attention to the fact that it can provide financial support to the needy sectors of the Islamic world.This can be done by focusing on two sections: First, we will study the legal framework for the stock and cash Waqf; thereupon, by highlighting the role of the non-profit institution in the developed countries we will present a dynamic model of an effective financial waqf institution that performs simultaneously two roles of maximizing stakeholders’ wealth and optimizing resources allocation, albeit in complete compliance with Shariah rules and the goals set by the endowers.