Waqf and Capitalism: Interactions and Contrasts in the Modern Economy
Waqf and capitalism are often seen as two opposing economic systems. Waqf is rooted in religious values and long-term social benefit orientation, while capitalism grows from market logic and profit accumulation. However, the two aren't always in conflict and can interact as long as waqf's core values aren't eroded by an excessive capitalistic mindset.
Waqf operates as an asset-locking mechanism for the common good, with continuous benefits flowing, such as through waqf land for mosques, schools, or productive economic centers. Capitalism, on the other hand, is based on private ownership and asset management for profit, which drives economic growth but can also create inequality if left unchecked.
In modern practice, waqf has evolved into productive waqf, adopting modern management principles like investment and efficiency. Yet, its ultimate goal remains different: waqf uses market mechanisms to amplify social benefit, not personal profit, thereby serving as a corrective to capitalism by emphasizing social ownership and sustainable benefit distribution.
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