 *Corresponding author.

Email: sapina@usm.my

eISSN: 2550-2166 / © 2020 The Authors. Published by Rynnye Lyan Resources

  Food Research 4 (4) : 1326 - 1332 (August 2020)
  Journal homepage: http://www.myfoodresearch.com

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Physicochemical and emulsifying properties of pre-treated octenyl succinic

anhydride (OSA) sago starch in simple emulsion system

1Saw, S.S., 1Shariffa, N.Y., 2Ruri, A.S. and 1,*Uthumporn, U.

1Food Technology Division, School of Industrial Technology, Universiti Sains Malaysia, 11800, USM

Penang, Malaysia
2Industrial Engineering Division, Polytechnic LP3I Medan, Indonesia

Article history:

Received: 30 December 2019

Received in revised form: 10

February 2020

Accepted: 14 February 2020

Available Online: 24 April

2020

Keywords:

Sago starch,

Pre-treated,

Octenyl succinic anhydride,

Emulsion

DOI:
https://doi.org/10.26656/fr.2017.4(4).426

Abstract

A study was carried out to determine the physicochemical and emulsifying properties of

pre-treated octenyl succinic anhydride (OSA) sago starch in simple emulsion. Sago starch

was pre-treated with STARGEN enzyme (EN OSA: single pre-treatment), heat moisture

treatment followed by STARGEN enzyme (HMT EN OSA: dual pre-treatment) before

being esterified with OSA. The ability of the pre-treated OSA sago starch to stabilize

emulsion was then investigated. Dual pre-treated starch, HMT EN OSA, had significantly

highest degree of substitution (DS), (DS = 0.0179) compared to single pre-treated starch,

EN OSA, (DS = 0.0159) and native OSA, N-OSA (DS = 0.0057). As compared to

emulsions prepared by N-OSA and HMT EN OSA, EN OSA had significantly highest

emulsifying activity throughout all starch concentrations and it produced a thick viscous

emulsion layer directly after emulsification. This might be due to enzymatic pre-

treatments may retained granule’s original shape and smooth appearance which allow

having a better fit during the emulsification process. The highest emulsion stability was

observed with the emulsion index values of EN OSA stabilized emulsions was the most

stable for all starch concentrations throughout storage study. After the 8th week of storage

study, the EN OSA remains the highest emulsion index from 0.37 to 0.56 for 200 mg/mL

oil to 500 mg/mL oil starch concentration. Light micrograph of EN OSA showed that

starch particles accumulated at the oil-water interface and cover the oil droplets with

higher degree of coverage than the HMT EN OSA and control. No spaces were observed

in the EN OSA stabilized emulsion which indicated that EN OSA modified sago starch

can effectively stabilize oil in water emulsion.

1. Introduction

Oil droplets stabilized by dispersed particles in water

were originated from Ramsden (1903) and Pickering

(1907). The use of particles to stabilize emulsions, such

as modified starch, has received substantial and

increased research interest because of their distinctive

characteristics and promising technological applications

in a range of fields. Pickering emulsion is an emulsion

that is stabilized by solid particles which adsorb onto the

interphase between the oil and water interfaces (Matos et

al., 2016).

In order to increase the hydrophobicity of starch,

chemical modification of sago starch can be conducted

by treatment with octenyl succinic anhydride (OSA). In

the United States, FDA approved the addition of OSA

for food applications since 1972 and must be no more

than 3% based on the dry weight of the starch (Song et

al., 2006). The substitution of hydrophobically OSA

group into the starch glucose unit will change the starch

properties from naturally hydrophilic to amphiphilic and

thus obtain surface-active properties (Yusoff et al.,

2017). Pre-treatment such as heat moisture treatment and

enzymatically pre-treatment before OSA modification

could facilitate the rapid entry of OSA into the granule

interior, thus enhance the reaction between OSA and

hydroxyl groups. The hydrophobic groups in the OS-

starch granules introduced by OSA have an affinity for

the oil phase, which can adsorb at the oil-water interface

and form a physical barrier that prevents the separation

of oil and water phases, and consequently affecting the

functional properties of the modified starch (Jiranuntakul

et al., 2014).

Octenyl succinic anhydride (OSA) modified starch

https://orcid.org/0000-0003-0594-7706

https://orcid.org/0000-0002-0741-0032

https://orcid.org/0000-0002-8852-476X

 Saw et al. / Food Research 4 (4) (2020) 1326 - 1332

eISSN: 2550-2166 © 2020 The Authors. Published by Rynnye Lyan Resources

with hydrophilic and hydrophobic groups has been

reported to be an excellent emulsifier in food,

pharmaceutical, personal care, and biodegradable plastic

industries. It has become increasingly popular due to its

low price and excellent emulsification. By incorporating

the lipophilic alkenyl groups from OSA into the

hydrophilic starch molecules, which is the linear portion

of amylose and branched portion of amylopectin, OSA

modified starch thus obtains a specific surface activity

(Simsek et al., 2015). Commonly, OSA modified starch

is prepared with a low concentration of alkali as a

catalyst in an aqueous medium. The reaction of OSA and

starch carried out in the aqueous phase results in poor

reaction efficiency and the uneven distribution of OSA

groups (Ačkar et al., 2015).

Thus, the application of pre-treatment such as heat

moisture treatment (HMT) and enzymatic pre-treatments

before OSA esterification could facilitate the rapid entry

of OSA into the granule interior and enhance the reaction

between OSA and hydroxyl groups, resulting in an

increase of hydrophobic groups and consequently

affecting the functional properties of the modified starch

(Jiranuntakul et al., 2014). Little work has been reported

on the physicochemical and emulsifying properties of

sago starch modification with OSA after single pre-

treatment by enzyme and dual pre-treatment by heat

moisture treatment and enzyme. Therefore, the objective

of this work is to study the physicochemical and

emulsifying properties of pre-treated OSA sago starch in

simple emulsion system.

2. Materials and methods

2.1 Materials

Sago starch (Metroxylon sagu) was obtained from

SIM Company Sdn. Bhd. (Penang, Malaysia). Octenyl

succinic anhydride (OSA) was purchased from Sigma

Aldrich, USA. Corn oil was purchased from Tesco

Stores (Malaysia) Sdn. Bhd. (Penang, Malaysia).

2.2 Enzyme

The commercial enzyme, STARGEN 002 enzyme

was used to hydrolyze the starches. It is a product of

Genencor International (Palo Alto, CA) containing

Aspergillus kawachi α-amylase expressed in

Trichoderma reesei and glucoamylase from Trichoderma

reesei. The pH of STARGEN 002 enzyme ranged from

4.0 to 4.5. The specific gravity of STARGEN 002

enzyme is 1.13-1.16 g/mL. The recommended

temperature for STARGEN 002 enzyme is 20-40°C. The

minimum activity of STARGEN 002 enzyme is 570

GAU/g. GAU is defined as Glucoamylase Units.

2.3 Enzymatic pre-treatment of sago starch

The starch was mixed with sodium acetate buffer

(25% w/v) with pH 4.4. The enzyme was added (1% w/

v) into the starch suspension and the process was

conducted in an orbital shaker (JEIO Tech, SI-600R,

Seoul, Korea) at 45oC with the speed of 170 rpm. After

24 h, the process was stopped by adding a pre-

determined amount of 2.0 M hydrochloric acid (HCl)

until the pH was 1.5-1.6. The pH of starch suspensions

was adjusted back to pH 5-6 by washing the starch with

distilled water and the starch residues were dried in an

air-drying oven at 40oC (Shariffa et al., 2017).

2.4 Dual pre-treatment of sago starch

Heat moisture treatment was carried out by

autoclaving method. The moisture content of starch was

adjusted to 20% (w/w wet basis) by mixing calculated

amounts of water into the starch for 15 mins. Next, the

mixed starch suspension was placed into a Duran glass

bottle 250 mL for 100 g starch 1 hr before autoclaving at

120oC for 60 mins as an optimum condition for sago

starch. Lastly, the bottles were cooled to room

temperature and dried overnight at 40-45oC in a hot air

oven and subsequently, the heat moisture treated starch

was subjected to enzymatic pre-treatments (Adawiyah et

al., 2017).

2.5 Preparation of OSA starches

Native and pre-treated sago starches (125 g) were

dispersed in 400 mL distilled water with agitations. The

pH of the slurry was adjusted to 7.20 by using 2% NaOH

solution. To this mixture, OSA at 2.5% (based on dry

starch basis) was added dropwise for 2 hrs. During the

addition of OSA, the pH was maintained at the set point.

The reaction was carried out for 9 h. After the reaction

time was ended, the pH of the starch slurry was adjusted

to 6.5 using 2% HCl to halt the reaction. The resulted

OSA starch was washed three times with distilled water

and acetone and centrifuged at 3000 rpm. The modified

starch was then collected by filtration using Whatman

filter paper No. 1 and dried in drying oven at 45oC for 24

hrs. After drying, the OSA starch was sieved with 0.35

mm siever and kept in an airtight container (Zainal

Abiddin et al., 2015).

2.6 Determination of degree of substitution (DS) of OSA

modified starch

The DS of OSA substitution was determined using a

titration method with slight modification (Rayner et al.,

2012). The DS was calculated by

Where V is the volume in mL of NaOH required for the

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sample and the blank titration (Vsample-Vcontrol), M is

the molarity of NaOH (0.1 M), W is the dry weight of

the starch in mg, 210 is the molecular weight of octenyl

succinate group.

Where 162 is the molecular weight of the glucose unit,

21000 is 100 x molecular weight of the octenyl succinate

group, 209 is the molecular weight of octenyl succinate

group minus the molecular weight of hydrogen atom.

2.7 Preparation of emulsions

Starches (200-500 mg starch per mL oil) were

suspended in distilled water, mixed with corn oil at the

volume ratio of 2:1 in a beaker, and then the resultant

mixture was homogenized using a high-speed

homogenizer (Ultraturrax T25, IKA, Germany) at 20,000

rpm for 2 mins (Timgren et al., 2013; Saari et al., 2016).

2.8 Emulsifying activity

Emulsion (50 μL) was pipetted into 5 mL of 0.1%

sodium dodecyl sulfate. The absorbance (emulsifying

activity, EA) was measured at 500 nm using UV

spectrophotometer (UV-1650PC, SHIMADZU, Kyoto,

Japan) after the formation of emulsion (Lu et al., 2016).

2.9 Emulsion index and storage stability

Aliquots (20 mL) of above emulsions were

accurately transferred into glass tubes, capped and

photographed on 1st day, 2nd, 4th, 6th and 8th week

(Timgren et al., 2013). The emulsions were monitored

for 60 days and emulsion index was calculated according

to the equation:

Where Hs is the height of serum measured after a

certain time of storage and He is the total height of the

emulsion

2.10 Optical microscopic observation

Optical microscopic observation of the emulsions

was performed using an Olympus BX41 light

microscope (Plan, Olympus, Tokyo, Japan). An aliquot

of the emulsions was placed in a clean dry microscopic

slide and covered with a cover slip (Marefati et al.,

2017).

2.11 Statistical analysis

All data were performed in triplicate and the results

were expressed as the mean values ± standard deviations.

The data were analysed using the analysis of variance

(ANOVA) and Duncan’s multiple range test for

significance at p < 0.05. One-way ANOVA was used for

DS and two-way ANOVA was used for EA and

emulsion stability. The statistical analysis was performed

using IBM SPSS Statistics version 23.0 software.

3. Results and discussion

3.1 Degree of substitution of OSA modified starches

Single pre-treatment and dual pre-treatment of heat

moisture treatment and enzyme hydrolysis had

significantly affected the DS value of OSA modification

of sago starch as shown in Table 1. The DS value

increased significantly with the pre-treatment following

the order: HMT EN OSA > EN OSA > control. Pre-

treatments significantly enhanced the efficiency of starch

reaction with OSA in accordance with FDA regulations

for food starch (DS<0.02). These observations indicated

that pre-treatment by enzyme and heat moisture

treatment improved the efficiency of the subsequent

OSA modification as HMT induced changes probably

occur in the amorphous regions of the starch granules.

HMT will cause more access to enzyme hydrolysis due

to increased swelling power of starch granules and

consequently increase DS values of starch (Zavareze and

Dias, 2011; Chen et al., 2014).

The starches that were subjected to the dual pre-

treatment exhibited significantly higher DS as to the

starches with only single pre-treatment. This is because

HMT resulted in the rearrangement of the starch

structure and could increase the binding site of the

enzyme, which promoted enzymatic hydrolysis and

facilitated enzymatic accessibility to the amorphous

regions and thus enhanced OSA droplets access to the

granules’ interior (Xie et al., 2018).

Our results were in accordance with Xu et al. (2015),

which showed that enzyme treatment had a thinning

effect at the starch particle surface, accompanied by the

appearance of the degree of polymerization 2-5 chains

and the increasing percentage of α-1,6 linkages. During

the esterification, the OSA reagents penetrate more

readily into the less density areas and then grafted on

glucan chain, resulting in more substituted OS and

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(2)

(3)

Sample  DS

N-OSA 0.0057±0.00038a

EN OSA 0.0159±0.00068b

HMT EN OSA 0.0179±0.00068c

Table 1. DS of 2.5 % OSA modified sago starch

Data are expressed as mean of 3 determinations ± standard

deviations. Values with different letter in the same column are

significantly different (p < 0.05). N: native; EN: enzyme;

HMT: heat moisture treatment; OSA: octenyl succinic

anhydride

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higher DS value. Lu et al. (2016) also reported that

enzyme-treated starch nanoparticle modified with OSA

was higher compared to the native starch nanoparticle

treated with OSA.

3.2 Emulsion properties: emulsifying activity (EA)

The EA of the modified starches is shown in Table 2.

The emulsifying activity of OSA sago starch were in the

range 0.04 – 0.54 throughout four starch concentration

and varied among samples. From the results, all

concentration of pre-treated OSA starch had higher EA

compared to control sago starch. These results revealed

that pre-treatment enhanced the modification with OSA

and increased the hydrophobicity of starch. Single and

dual pre-treatments by enzyme and heat moisture

treatment will increase the susceptibility of granular

starch to modification with OSA as those pre-treatments

create pinholes on the surface of starch granules, thus,

more OH groups are substituted by OSA and resulting in

an increased of the starch hydrophobicity (Wang et al.,

2017; McNamee et al., 2018). In contrast, the reaction

between OSA and native sago starch is retarded because

of poor penetration of the big oily droplets of OSA into

starch granules in an aqueous suspension, thus, less

octenyl succinic groups were grafted into the starch

chains (Chen et al., 2014).

As concentration increase, EA also increases as there

is a higher amount of starch allowed the stabilization of

larger surface area, which is in line with previous

investigations by Rayner et al. (2012) and Lu et al.

(2018).

According to the study of Lu et al. (2016), OSA-

starch with an amphiphilic character was an efficient

emulsifier, where it could generate a high surface load of

10 mg/m2 and forms a very thick layer of

macromolecules at the O/W interface. Starch modified

with OSA resulted in molecules with both hydrophilic

and hydrophobic properties as the hydrophilicity of the

starch is retained during modification process and can

attach strongly to the O/W interface (McNamee et al.,

2018). Thus, the presence of polar carboxyl groups and

non-polar acetyl groups in the modified sago starch

resulted in an enhancement of EA of OSA modified

starch. Kasprzak et al. (2018) showed that the emulsion

stabilized with the OSA starch showed no signs of

flocculation and the droplets were visibly smaller and

less polydisperse compared to non-OSA starch.

3.3 Effect of starch concentration on emulsion stability

Emulsion stability can be observed by calculating the

emulsion index (EI) and by visual observation. Referring

to Table 3, a significant difference for EI values was

observed with the highest values recorded for EN OSA,

followed by HMT EN OSA and the least for N-OSA.

Throughout storage study, the highest decline EI values

were found for HMT EN OSA, followed by N-OSA and

EN OSA.  As the starch increase in concentration, the

cream volume as the viscosity of the aqueous phase also

increased. For instance, for starch concentration at 200

mg / mL oil, EI values for HMT EN OSA decrease by

92.5%, followed by N-OSA decreased around 57.1% and

EN OSA which decrease by 41.3%.

Figure 1 and Figure 2 shows the photo of the

obtained emulsions after one day of productions and

after 8th week of storage study, respectively. After 24

hours of production, an oil layer was observed on top of

the emulsion layer stabilized by both N-OSA (Figure 1a)

and HMT EN OSA (Figure 1c). However, the oil layer

was not observed for the emulsions stabilized by EN

OSA (Figure 1b). Most of the samples contain an upper

layer composed of creamed emulsion droplets and a

bottom layer composed of sedimented free starch and

some emulsion droplets. A thin emulsion layer was

produced by N-OSA (Figure 1a) and HMT EN OSA

(Figure 1c), and both were observed to be stable after 24

hours. However, the layer became thin and the amount of

free starch high after the 8th week of storage study

(Figure 2a and 2c). In contrast, emulsions stabilized by

EN OSA produced thick, creamy layers directly after

emulsification (Figure 1b). As storage time increased,

the cream volumes decreased for all pre-treated OSA

modified sago starch as shown in Figure 2. EN OSA

starch were somewhat better stabilizers than the native

starch and dual pre-treated HMT EN OSA modified

starch.

Dual pre-treated HMT EN OSA was not able to

enhance the stability of emulsion as compared to single

pre-treated EN OSA. This might be due to a part of

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Sample

Emulsifying activity

Starch concentration (mg mL oil)

200 300 400 500

N-OSA 0.04±0.00a 0.07±0.01ab 0.12±0.00ac 0.18±0.00ad

EN-OSA 0.32±0.07ac 0.42±0.05bc 0.51±0.01c 0.54±0.02cd

HMT EN OSA  0.16±0.02ab 0.22±0.01b 0.27±0.01bc 0.31±0.00bd

Table 2. Emulsifying activity (EA) of 2.5 % OSA modified sago starch.

Data are expressed as mean of 3 determinations ± standard deviations. Values with different letter in the same column are

significantly different (p < 0.05). N: native; EN: enzyme; HMT: heat moisture treatment; OSA: octenyl succinic anhydride

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substituted octenyl succinic groups in HMT EN OSA

starch could not interact with the dispersed phase, as

some starch granules were not completely broken

(Jiranuntakul et al., 2014). On the other hand, single pre-

treatment EN OSA starch may have retained its smooth

appearance and original shape after enzymatic pre-

treatment process, which were believed to have a better

fit and maximize the packing at oil-water interphase

(Saari et al., 2016). N-OSA was able to stabilize oil-in-

water emulsions as the starch had modified to impart

amphiphilic characteristics. However, the emulsifying

abilities were not as good as EN OSA stabilized

emulsions as without pre-treatments, less octenyl

succinic groups were grafted into the hydrophobic starch

chain.

3.4 Microstructure of the emulsions

Figure 3 shows the images of emulsions stabilized

by N-OSA modified and all the pre-treatments. The

emulsion stability seemed to increase in the order of

HMT EN OSA < N-OSA < EN OSA. Microscopic

images of HMT EN OSA showing larger spaces and

gaps on the drop's surface between adsorbed starch

granules. This is because HMT EN OSA may have a

larger surface area, and as the ratio of starch granule size

to forming drop size increases, the minimum surface

coverage required to stabilized drops decreases, as larger

spaces between the granules on the surface are possible

while maintaining enough of a steric hinders to prevent

coalescence (Timgren et al., 2013). Emulsions stabilized

by N-OSA was seen to be in a tightly packed state and

the oil droplets were the smallest where smallest droplets

can yield stable emulsion systems (Saari et al., 2016).

This was followed by the emulsions stabilized by EN

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Sample  Time

(mg starch /mL oil)  Day 1 Day 14 Day 28 Day 42 Day 56

N-OSA 200 0.07±0.01ae 0.06±0.00ad 0.05±0.01ac 0.04±0.00ab 0.03±0.01a

N-OSA 300 0.08±0.00 abe 0.07±0.01 abd 0.06±0.00 abc 0.05±0.01ab 0.04±0.00 ab

N-OSA 400 0.09±0.01bce 0.08±0.00bcd 0.07±0.01bc 0.06±0.00bc 0.05±0.01abc

N-OSA 500 0.10±0.00ce 0.09±0.01cd 0.08±0.00c 0.07±0.01bc 0.06±0.00ac

EN OSA 200 0.63±0.01ef 0.56±0.00df 0.54±0.01cf 0.48±0.00bf 0.37±0.01af

EN OSA 300 0.63±0.00eh 0.59±0.01 dh 0.55±0.00ch 0.53±0.01bh 0.41±0.00ah

EN OSA 400 0.62±0.01ei 0.61±0.00 di 0.59±0.01ci 0.58±.00bi 0.45±0.00ai

EN OSA 500 0.77±0.00ej 0.69±0.01 dj 0.69±0.00cj 0.59±0.01bj 0.56±0.01aj

HMT EN OSA 200 0.67±0.01de 0.28±0.01d 0.24±0.00cd 0.08±0.01bd 0.05±0.00ad

HMT EN OSA 300 0.76±0.01e 0.66±0.00de 0.48±0.00ce 0.19±0.00be 0.09±0.00ae

HMT EN OSA 400 0.80±0.00eg 0.71±0.01dg 0.58±0.01cg 0.24±0.01bg 0.11±0.01ag

HMT EN OSA 500 0.80±0.00ei 0.74±0.00di 0.66±0.01ci 0.59±0.00bi 0.14±0.01ai

Table 3. Effect of OSA starch concentration on emulsion stability.

Data are expressed as mean of 3 determinations ± standard deviations. Values with different letter in the same column are

significantly different (p < 0.05). N: native; EN: enzyme; HMT: heat moisture treatment; OSA: octenyl succinic anhydride

Figure 1. Effect of starch concentration on the stability of the emulsion after 1 day of production at room temperature (a) N-OSA

modified (b) single pre-treated EN OSA modified (c) dual pre-treated HMT EN OSA modified

Figure 2. Effect of starch concentration on the stability of the emulsion after 8th week of storage at room temperature (a) N-OSA

modified (b) single pre-treated EN OSA modified (c) dual pre-treated HMT EN OSA modified

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OSA, although the oil droplets were observed to be the

largest, however, the starch granules are clearly seen on

the drop surface with no gaps between the oil droplets. A

higher degree of coverage for these drops has been

formed by EN OSA.

A three-dimensional network had been formed,

which could prevent the oil droplet from freely moving.

Our results were consistent with Song et al. (2015),

where the starch granules were observed to stabilize the

oil-water interface in a closely packed layer. Among the

samples, EN OSA shows the best emulsifying abilities as

the drops were covered by the OSA modified sago starch

granule and no gaps have been observed between the

droplets.

4. Conclusion

Hydrophobic sago starch granules, especially when

modified with OSA, could be used to stabilise emulsions.

OSA modified sago starch with enzymatic pre-treatment

had the highest emulsifying activity, higher and stable

creaming index, and able to completely cover the oil

droplets. Results revealed that it is possible to create an

emulsion with OSA modified sago starch as the sole

emulsifier that could possibly replace synthetic and

chemically processed stabilizers in the food industry in

the future.

Conflict of Interest

The authors declare no conflict of interest.

Acknowledgments

The project was supported by Universiti Sains

Malaysia Research Universiti Grant: 1001/

PTEKIND/6711635.

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Figure 3. Micrographs of the O/W emulsions stabilized by (a) N-OSA modified (b) single pre-treated EN OSA modified (c) dual

pre-treated HMT EN OSA modified sago starch after one day of storage at room temperature (starch concentrations 400 mg/mL

oil).

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1

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THE FOUR INTRODUCTORY

THEORIES

OF FIQH MUAMALAT

[This page is intentionally left blank]

THE FOUR INTRODUCTORY

THEORIES

OF FIQH MUAMALAT

BY:

ABDULLAAH JALIL

ASHARAF MOHD RAMLI

SYAHIDAWATI SHAHWAN

WISDOM PUBLICATION

Nilai, Negeri Sembilan

Published by:
WISDOM PUBLICATION NS0078217-W
No. 110, Jalan Dillenia 3, Laman Dillenia,
Nilai Impian,
Nilai, Negeri Sembilan.
Tel: 06 794 6394
Email: wisdompublisher@gmail.com
Blog: www.wisdompublication.blogspot.com

Copyright © 2011 Wisdom Publication

ISBN 978-967-10299-0-9

First Edition (2011)
Printing: October 17, 2018

Design and Printing:
ZARASA ENTERPRISE,
001372482-A,
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All rights reserved. No part of this publication may be reproduced, stored in a
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mechanical, photocopying, recording or otherwise, without the prior
permission of the authors or Wisdom Publication (NS0078217-W), except by a
reviewer who may quote brief passages in a published review.

The opinions and positions expressed by the authors of this publication are not
necessarily the opinions or positions of Wisdom Publication (NS0078217-W).

Perpustakaan Negara Malaysia          Cataloguing-in-Publications
Data

Abdullaah Jalil
The four introductory theories of fiqh muamalat / by Abdullaah Jalil, Asharaf
Mohd Ramli, Syahidawati Shahwan.
Bibliography : p. 88
ISBN 978-967-10299-0-9
1. Finance--Religious aspects--Islam. 2. Economics--Religious aspects--Islam.
3. Finance (Islamic law). I. Asharaf Mohd Ramli. II. Syahidawati Shahwan.
III. Title.
332.091767

Allah  said (al-Nisa’:29):

 c b a ` _ ^ ] \ [ Z Y
r q p o n m l k j i h g f e d

Meaning: “O ye who believe! Eat not up your property among
yourselves in vanities: but let there be amongst you traffic and trade
by mutual good-will: nor kill (or destroy) yourselves: for verily Allah
hath been to you Most Merciful.”

[This page is intentionally left blank]

i

FOREWORD

In the name of Allah, the Most Gracious, and the Most Merciful. Praise be
to Allah . Peace be upon the Prophet Muhammad, his family and
companions, May Allah bless them with honour and graces,

“Muamalat” is a very familiar word nowadays. The Faculty of
Economics and Muamalat (FEM) at the Islamic Science University of
Malaysia (USIM) has established its name on this very word from the
beginning of its foundation. Indeed, FEM aims to be the leader and
reference in the education and research of Muamalat and Islamic finance
at the national and international level through best teaching and learning
approaches, researches, publications, consultations and etc.

Thus, the birth of this book and its similars by the academicians

from FEM is another milestone in the Faculty’s efforts to position itself as a
preferred centre of learning in this area of knowledge. Therefore, it always
gives me a great pleasure to cordially welcome the publication of this
book. It could be used as the textbook for the foundation of Fiqh
Muamalat subject and I would like to congratulate the authors who have
worked hard to produce this beneficial reference.

Fiqh Muamalat discipline is at the core of Islamic finance education

and industry. The right understanding of Shariah and Fiqh Muamalat is
very crucial for the right application of the knowledge. This book offers
the understanding of Fiqh Muamalat from the very beginning. It is very
excellent for the beginners to have a strong foundation in this discipline. I
look forward to see more remarkable writings being brought into
existence from the collaborations of efforts between the academicians of
FEM and I strongly believe that such teamwork would offer more great
contributions and benefits to the ummah.

Finally, I pray to Allah  to make this book a success and I believe

that this book would be of great use to all students, academicians and the
public who are interested in the area of Fiqh Muamalat and Islamic
finance.

Thank you and Wassalamu’alaikum.

Best Regards,
DR. ASMADDY HARIS, Dean of FEM [2011-2014], USIM.

ii

PREFACE

In the name of Allah, the Most Gracious, and the Most Merciful. Praise be
to Allah , Peace be upon the Prophet Muhammad, his family and
companions, May Allah bless them with honour and graces,

The interest on Fiqh Muamalat subject by has been growing
nowadays with the successful implementation and growth of the Islamic
financial industry. The core of Islamic finance lies on the understanding
and application of Fiqh Muamalat subject. However, without proper
teaching and learning methods and frameworks, a person may need many
years to really grasp the concepts of Fiqh Muamalat with the differences of
Islamic jurists’ views discussed in the discipline.

Therefore, this book is designed to be the introductory part of Fiqh

Muamalat by discussing the most basic concepts that should be learned
before the discussion of Muʿamalat contracts starts. Thus, it covers:

 The definition of Fiqh Muamalat and its position in Islam
 The theory of legal capacity
 The theory of property
 The theory of ownership and
 The theory of contract.

There is an Arabic saying that states: “There is a door for every single

thing” and the proper way to enter a house is through its door. The four
theories that are covered in the discussion of this book are considered as
the first door to Fiqh Muamalat study. These four theories shall enlighten
the reader on the required legal capacity that must be occupied by the
contracting parties, the nature of property from Islamic perspective, the
relationship between a property and its owner as well as the framework of
Shariah-compliant contract.

The authors sincerely hope that this book would benefit the readers,

students as well as academicians in learning Fiqh Muamalat in a more
proper way. The authors also pray that all the efforts that have been spent
by everyone to make this book a success are accepted by Allah  as good
deeds on “the day whereon neither wealth nor sons will avail, but only he
(will prosper) that brings to Allah a sound heart”, (Al-Shuʿara’:88-89).

AUTHORS

iii

ACKNOWLEDGEMENTS

In the name of Allah, the Most Gracious and Most Merciful. Peace be upon
the Prophet Muhammad, his family and companions. May Allah bless
them with honour and graces.

First and foremost, we thank Allah  who enabled us with tawfiq to
complete the writing and publication of this book.

Secondly, we would like to express our gratitude to our Islamic

jurists (fuqaha’) and scholars (ulama’) who have spent their lives in
protecting, distributing and developing the Shariah knowledge and the
virtues of the Prophet  to the mankind. May Allah bless them and reward
them with His blessing, forgiveness and paradise.

We would like to acknowledge Prof. Dr. cUthman Shubayr and Prof.

Dr. Wahbah al-Zuhayli as our inspiring scholars for this very book. Both of
them have written various books on the subjet of Usul al-Fiqh, Fiqh and
Fiqh Muamalat which form the main references of this book. May Allah
protect and bless both of them.

Then, we would like to thank all the relevant parties and individuals

who have directly or indirectly contributed to the completion of this book
especially Dr. Asmaddy Haris, Dean of the Faculty of Economics and
Muamalat (USIM), our academic colleagues at FEM for their continous
supports and valuable advices as well as Abang Mat for his guidance and
kind cooperation with us. Without their support and commitment, this
book would not have materialized.

Finally, our deepest gratitude goes to our beloved families, for their

understanding that inspired us along the way of this academic endeavour.

Authors

iv

DEDICATION

  

To my parents: Hj Jalil Omar and Hapisah Ismail, my beloved wife: Suraiya
Osman, my loving son: Abdurrahman al-Munib and my lovely daughters:
Maryam al-Safiyyah, Sara al-Ameena, Ibtisam al-Nafeesa, Muhammad al-
Habib and my family members.

Abdullaah Jalil

  

To my parents: Hj Mohd Ramli Seman and Hajah Normah Said, my beloved
wife: Roslizawati Mohd Ramly.

Asharaf Mohd Ramli

  

To my parents: Hj Shahwan Mansor and Hajah Siti Hayati Abas, my in laws:
Hajah Jamilah Abdullah and the late Haji Othman Ganyah, my beloved
husband: Md Fauzi Othman, my children: Amni Faatihah, Arham
Mardhiyyah, Asmaa’ al-Syaafiyyah and ‘Ammar al-Syaafi, and all my family
members, mentors and friends who continuously support my academic
route.

Syahidawati Shahwan

v

ABOUT THE AUTHORS

Abdullaah Jalil is a senior lecturer at the Faculty of Economics and
Muamalat, USIM. He obtained his MBA, with major in Islamic Banking and
Finance (IBF), from IIUM and was awarded the Best Student Award of MBA
(Islamic Banking and Finance) in August 2004. He completed his
Bachelor’s Degree in Shariah (Fiqh and Islamic Studies) (Hons) within three
years time from Yarmouk University, Jordan with “First Class” or “Mumtaz”
achievement. He has taught several subjects, inter alia, Qawaid Fiqh
Muamalat, Halal and Haram in Islam, Application of Fiqh Muamalat,
Management of Islamic Banking and Takaful Institutions, Fiqh Muamalat II
and Fiqh Muamalat III. His areas of research interest are Islamic financial
product development, Fiqh Muamalat application, Islamic banking and
finance, Waqf and Shariah audit. Currently, he is pursuing PhD in Islamic
Finance at the International Centre for Education in Islamic Finance
(INCEIF). He is also a member of Shariah Committee at Bank Rakyat,
PruBSN Takaful and Koperasi Kakitangan USIM.

Asharaf Mohd Ramli is a lecturer at the Faculty of Economics and

Muamalat, USIM. He obtained his MSC with distinction in Islamic Banking,
Finance and Management, from Loughborough University in September
2006. He completed his Bachelor’s Degree in Islamic Studies (Shariah)
(Hons) from National University of Malaysia. His areas of research interest
are Islamic banking and finance, Waqf and Islamic Economics. He is
currently on study leave for PhD in Islamic Banking and Finance at IIUM
Institute of Islamic Banking and Finance (IIiBF).

Syahidawati Shahwan is currently a senior lecturer at the Faculty

of Economics and Muamalat, USIM. Prior to her service at USIM, she was
lecturer at the Matriculation Centre, Islamic University of Malaysia (IIUM)
or currently known as Centre of Foundation Studies, IIUM. She obtained
her first degree from IIUM in Fiqh and Usul Fiqh with specialization in Usul
Fiqh. She then continued her study in Universiti Malaya (UM) under the
Department of Shariah and Economics, Akademi Pengajian Islam (API). Her
research interest includes, but not limited to, muamalat, Islamic banking
and finance, Shariah issues, Hajj and Umrah management and issues. She
is currently on study leave for PhD in Islamic Banking and Finance at IIUM
Institute of Islamic Banking and Finance (IIiBF).

vi

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vii

CONTENTS IN BRIEF

CHAPTER 1 .......................................................................................................... 1

THE POSITION OF FIQH MUAMALAT IN THE SHARIAH .................................... 1

CHAPTER 2 ........................................................................................................ 23

THE THEORY OF LEGAL CAPACITY (AL-AHLIYYAH) ........................................ 23

CHAPTER 3 ........................................................................................................ 45

THE THEORY OF PROPERTY (AL-MAL) ............................................................ 45

CHAPTER 4 ........................................................................................................ 67

THE THEORY OF OWNERSHIP (AL-MILKIYYAH) .............................................. 67

CHAPTER 5 ........................................................................................................ 95

THE THEORY OF CONTRACT (AL-CAQD) .......................................................... 95

viii

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ix

TABLE OF CONTENTS

FOREWORD .......................................................................................................... i

PREFACE .............................................................................................................. ii

ACKNOWLEDGEMENTS ..................................................................................... iii

DEDICATION ...................................................................................................... iv

ABOUT THE AUTHORS ....................................................................................... v

CONTENTS IN BRIEF ......................................................................................... vii

TABLE OF CONTENTS ........................................................................................ ix

CHAPTER 1 .......................................................................................................... 1

THE POSITION OF FIQH MUAMALAT IN THE SHARIAH .................................... 1

1.1 Introduction ........................................................................................................................... 2

1.2 Definition of Shariah, Fiqh and Mucamalat ................................................................ 2

1.2.1 Shariah ............................................................................................................................. 2

1.2.2 Fiqh ................................................................................................................................... 3

1.2.3 Mucamalat ....................................................................................................................... 6

1.3 Position of Fiqh Muamalat in the Shariah .................................................................. 7

1.4 Shariah Ruling of Learning Fiqh Muamalat and Its Significance ....................... 8

1.5 Salient Features of Fiqh Muamalat ............................................................................ 11

1.6 General Doctrines of Shariah in Dealing with Fiqh Muamalat
Discipline .................................................................................................................................... 12

1.6.1 Fiqh Muamalat is based on General Principles Basis ................................... 12

1.6.2 The Primary Ruling for Contracts and Conditions in Financial
Dealings is Permissibility .................................................................................................. 13

1.6.3 Fiqh Muamalat is established on the Consideration of Legal
Causes and Interests ........................................................................................................... 15

1.6.4 Fiqh Muamalat Combines between Permanence and Flexibility ........... 16

1.7 The Four Introductory Theories of Fiqh Muamalat .............................................. 17

x

Summary ..................................................................................................................................... 19

Key Terms and Glossary ......................................................................................................... 19

Review Questions .................................................................................................................... 20

Endnote ....................................................................................................................................... 20

CHAPTER 2 ........................................................................................................ 23

THE THEORY OF LEGAL CAPACITY (AL-AHLIYYAH) ........................................ 23

2.1 Introduction ........................................................................................................................ 24

2.2 Types of Legal Capacity .................................................................................................. 26

2.2.1 Capacity for Acquisition of Rights and Liabilities (Ahliyyat al-
Wujub) ...................................................................................................................................... 27

2.2.2 Capacity for Execution of Rights and Liabilities (Ahliyyat al- Ada’) ........ 28

2.3 Stages of Human Development Based on Their Legal Capacities ................. 30

2.3.1 Pre-Natal Stage: Stage of Embryonic (al-Janin) ............................................. 30

2.3.2 Stage of Pre-Discernment (al-Tufulah) ............................................................. 31

2.3.3 Stage of Discernment (al-Tamyiz) ....................................................................... 31

2.3.4 Stage of Maturity and Puberty (al-Bulugh) ...................................................... 33

2.3.5 Stage of Complete Discretion (al-Rushd) ......................................................... 34

2.4 Legal Impediments to Capacity (Mawanic/cAwarid al-Ahliyyah) ..................... 36

2.4.1 Based on the Causes of Legal Impediments ................................................... 37

2.4.2 Based on the Effects of Legal Impediments .................................................... 37

Summary ..................................................................................................................................... 41

Key Terms and Glossary ......................................................................................................... 42

Review Questions .................................................................................................................... 43

CHAPTER 3 ........................................................................................................ 45

THE THEORY OF PROPERTY (AL-MAL) ............................................................ 45

3.1 Introduction ........................................................................................................................ 46

3.2 Definition of al-Mal (Property) ...................................................................................... 46

3.2.1 Literal Meaning of al-Mal ........................................................................................ 46

3.2.2 Al-Mal according to Islamic Jurists ...................................................................... 47

3.2.2.1 Hanafiyyah ........................................................................................................... 47

3.2.2.2 Jumhur .................................................................................................................. 49

3.3 The Islamic perspective towards al-Mal ................................................................... 51

xi

3.3.1 Human as Vicegerent of Allah .............................................................................. 51

3.3.2 Seeking al-Mal is a Fitrah with Guidelines ....................................................... 52

3.3.3 Al-Mal is a Life Attraction, Test and Responsibility ....................................... 53

3.3.4 Al-Mal and Worship Should Not Contradict Each Other ............................ 55

3.3.5 Al-Mal is one of the Five Vital Elements of Human That Must Be
Protected ................................................................................................................................ 56

3.4 Types of al-Mal and Their Significances ................................................................... 57

3.4.1 Based on the Shariah Approval ........................................................................... 58

3.4.2 Based on Movability................................................................................................. 59

3.4.3 Based on Similarity ................................................................................................... 59

3.4.4 Based on Usability .................................................................................................... 61

3.4.5 Based on Function (as Medium of Exchange) ................................................ 62

3.4.6 Based on Potential Growth and Zakah ............................................................. 62

3.4.7 Based on Observability ........................................................................................... 63

Summary ..................................................................................................................................... 64

Key Terms and Glossary ........................................................................................................ 65

Review Questions .................................................................................................................... 65

CHAPTER 4 ........................................................................................................ 67

THE THEORY OF OWNERSHIP (AL-MILKIYYAH) .............................................. 67

4.1 Introduction ........................................................................................................................ 68

4.2 Definition of Ownership ................................................................................................. 69

4.3 Eligibility of Ownership .................................................................................................. 70

4.4 Types of Ownership ......................................................................................................... 70

4.4.1 Based on Extent of Ownership Capacity .......................................................... 71

4.4.1 Complete Ownership .......................................................................................... 71

4.4.1.2 Partial/ IncompleteOwnership ..................................................................... 72

4.4.2 Based on Owners ...................................................................................................... 73

4.4.2.1 Private Ownership............................................................................................. 74

4.4.2.2 Public Ownership .............................................................................................. 74

4.4.2.3 National Ownership (Bayt al-Mal)................................................................ 75

4.5 Methods of Ownership Establishment ..................................................................... 77

4.5.1 Establishment of Complete Ownership ........................................................... 77

4.5.1.1 Taking Possession of Permissible Properties .......................................... 77

4.5.1.2 Contracts of Ownership Transfer................................................................. 83

xii

4.5.1.3 Expansion of the Property .............................................................................. 83

4.5.1.4 Succession ............................................................................................................ 84

4.5.2 Establishment of Partial Ownership ................................................................... 85

4.5.2.1 Public Easements Right ................................................................................... 85

4.5.2.2 Private Easements Rights ............................................................................... 86

4.5.2.3 Contracts of Usufruct Ownership Transfer............................................... 89

4.5.2.4 Inheritance of Usufruct .................................................................................... 90

4.6 Removal of Ownership ................................................................................................... 91

Summary ..................................................................................................................................... 91

Key Terms and Glossary ......................................................................................................... 92

Review Questions .................................................................................................................... 93

CHAPTER 5 ........................................................................................................ 95

THE THEORY OF CONTRACT (AL-CAQD) .......................................................... 95

5.1 Introduction ........................................................................................................................ 96

5.2 Definition, Consent and Sanctity of cAqd (Contract) in Islam .......................... 96

5.3 Types of Contract .............................................................................................................. 98

5.3.1 Based on Legality/Pemissibility ........................................................................... 98

5.3.2 Based on Nomenclature ......................................................................................... 98

5.3.3 Based on Purpose ..................................................................................................... 99

5.3.4 Based on Reciprocity.............................................................................................. 100

5.3.5 Based on Validity ..................................................................................................... 102

5.3.6 Based on Executability .......................................................................................... 104

5.3.7 Based on Bindingness ........................................................................................... 104

5.3.8 Based on Possession Requirement ................................................................... 105

5.3.9 Based on the Effectiveness of the Commitment ......................................... 105

5.4 Pillars of Contract ............................................................................................................ 107

5.4.1 Offer and Acceptance ............................................................................................ 108

5.4.2 Contracting Parties ................................................................................................. 111

5.4.3 Subject Matter .......................................................................................................... 112

5.4.4 General Conditions (Shurut) of a Contract ..................................................... 113

5.5 Invalidating and Corrupting Factors of Financial Contract ............................. 114

5.5.1 Riba ............................................................................................................................... 115

5.5.1.1 Riba in Debts (Riba al-Duyun) ...................................................................... 116

5.5.1.2 Riba in Sales (Riba al-Buyuc) ......................................................................... 116

xiii

5.5.2 Gharar .......................................................................................................................... 118

5.5.3 Darar ............................................................................................................................ 120

5.5.4 Violation of the Shariah Sanctity ....................................................................... 121

5.6 Some Issues Related to the Theory of Contract from the Islamic
Perspective ............................................................................................................................... 122

5.6.1 Adhesion Contracts (cUqud al-Idhcan) ............................................................. 122

5.6.2 Combination of Contracts and Grouping of Contracts in One
Transaction .......................................................................................................................... 123

5.6.3 Additional Terms and Conditions Stipulated with the Contract .......... 124

5.7 Termination of Contract ............................................................................................... 126

5.7.1 Termination of Binding Contract (cAqd Lazim) ............................................ 126

5.7.2 Termination of Non-Binding Contract (cAqd Ghayr Lazim) ..................... 127

5.7.3 Termination of Suspended Contract (cAqd Mawquf) ................................ 128

Summary ................................................................................................................................... 128

Key Terms and Glossary ...................................................................................................... 129

Review Questions .................................................................................................................. 130

BIBLIOGRAPHY ............................................................................................... 131

APPENDIX ....................................................................................................... 133

Appendix I: Transliterations Table ................................................................................... 133

131

BIBLIOGRAPHY

AAOIFI. (2010). al-Macayir al-Sharciyyah. Manama: AAOIFI.

Abu Bakr Ibn al-ʿArabī. 2003. Aḥkam al-Qur'ān. Dār al-Kutub al-ʿIlmiyyah.

al-Buhūtī, Manṣūr. (1993). Sharḥ Muntahā al-Irādāt. ʿĀlam al-Kutub.

al-cImrani, A. M. A. (2006). al-ʿUqud al-maliyyah al-murakkabah: Dirasah
fiqhiyyah ta'siliyyah wa tatbiqiyyah. Riyad: Dar Kunuz Ishbiliya.

al-Ghazali, M. (1998). Ihya' culum al-din. cAmman: Dar al-Arqam.

al-Husayni, A. I. B. (1936). al-Mucmalat al-Sharciyyah al-Maliyyah. al-
Qahirah: Dar al-Ansar.

al-Makki, Abu Talib. (2005). Qūt al-Qulūb fi Muʿāmalat al-Maḥbūb wa Waṣf

Ṭarīq al-Murīd ilā Maqām al-Tawḥīd. Bayrūt: Dār al-Kutub al-ʿIlmiyyah.

al-Suyūṭī, Jalāl al-Dīn. (1999). Al-Ashbāh wa al-Naẓā'ir. Bayrūt: Dār al-Kutub

al-ʿIlmiyyah.

al-Zaydan, A. K. (1998). al-Madkhal li dirasah al-Shariah al-Islamiyyah.
Bayrut: Mu'assasah al-Risalah.

al-Zuhayli, M. (1993). al-Nazariyyat al-fiqhiyyah. Dimashq: Dar al-Qalam.

al-Zuhayli, W. (1997). al-Fiqh al-Islamiyy wa adillatuh. Dimashq: Dar al-Fikr.

Al-Zuhayli, W. (2007). Financial Transactions in Islamic Jurisprudence (M. A.
El-Gamal, Trans. Second ed.). Damascus: Dar al-Fikr.

JAKIM, & MAMPU. (2011). Al-Quran - Terjemahan (Publication. Retrieved
January 12, 2011: http://www.islamgrid.gov.my/quran/terjemahan.php

Ibn ʿĀbidīn. (1992). Radd al-Muḥtār ʿalā al-Durr al-Mukhtār. Bayrūt: Dār al-
Fikr.

Muhamad Muda, & Abdullaah Jalil. (2007). Islamic Financial Product
Development: Shariah Analysis. Paper presented at the IIUM International
Conference on Islamic Banking and Finance (IICiBF) 2007.

132

Muhamad Muda, & Abdullaah Jalil. (2008). Islamic Financial Product
Development: A Study on the Practice of Selected Malaysian Islamic
Financial Institutions. Unpublished Research Report, Islamic Science
University of Malaysia, Nilai.

Muhamad Muda, & Abdullaah Jalil. (2008). Pengurusan Dana Sedekah
Secara Sistematik: Analisa Peranan Institusi Kerajaan dan Swasta. Paper
presented at the Jawhar Intellectual Course 2008.

Muhammad Wohidul Islam. 1999. Al-mal: The concept of property in
Islamic legal thought, Arab law quarterly, 2009, volume 23, issues no. 4,
pg. 361-368.

Qalcahji, M. R. (2000). Fiqh Muamalat al-mushajjar. cAmman: Dar al-Nafa'is.

Shubayr, M. U. (2000). Muamalat al-Maliyyah al-Mucasirah. cAmman:
Muassasah al-Risalah.

Shubayr, M. U. (2004). al-Madkhal ila Fiqh Muamalat al-Maliyyah. Amman:
Dal al-Nafa'is.

SunniPath. (2005). The Jibril hadith xxplained - Essentials of Islam, Iman &
Ihsan.   Retrieved February 15, 2011, from
http://qa.sunnipath.com/issue_view.asp?HD=7&ID=879&CATE=1

Wizarat al-Awqaf wa al-Shu'un al-Islamiyyah (Ed.) (1983) al-Mawsucah al-
Fiqhiyyah. Kuwayt: Wizarah al-Awqaf wa al-Shu'un al-Islamiyyah.

133

APPENDIX

Appendix I: Transliterations Table

A. Table 1: Consonants

 ق q  ز z  ء ’
b ب  s س  k ك
t ت  sh ش  l ل

th ث  ṣ ص  m م
j ج  ḍ ض  n ن
ḥ ح  ṭ ط  h هـ

kh خ  ẓ ظ  h ة
d د  ʿ ع  w و

dh ذ  gh غ  y ي
r ر  f ف

B. Table 2: Vocalisation Signs (Representing Arabic Vowels)

Ā,ā َ   Ī,ī ِ   Ū,ū ُ

i. Short vowels illustrated with consonant “d” / “د”

da  َد  di  ِد  du  ُد

134

ii. Long vowels illustrated with consonant “d” / “د”

dā ا  دُو dū  دِي dī  دَ
C. Table 3: Diphthongs

 aw و  َ    ay ي  َ

 ū  ّو  ُ    ī  ّي  ِ

Examples: ḥawl  ٌل وْ نٌ  dayn   حَ يْ   دَ

 ʿulū  ٌّو لُ ٌّ  mithlī   عُ ثْيلِ   مِ

D. Words Containing Shaddah (   ّ◌   )

i. Shaddah involving consonants other than و   and ي  : Double the
letter

Examples: murakkab  ٌكَّب رَ قٌّ  ḥaqq  مُ    حَ

ii. Shaddah involving consonants و   and ي  :

a. Double the letter when the shaddah is in the middle.

Examples: mufawwaḍah  ٌة ضَ وَّ فَ لِيَّةٌ  ahliyyah  مُ    أَهْ

b. If the letter is in the end:

135

i. Double the letter if the letter before the shaddah is
assigned fathah (  .( ّو / ّي   َ

Examples: jaww  ٌّو يٌّ  ṭayy  جَ    طَ

ii. Represent (و) as “u” and (ي) as “i”when the letter before
each is assigned dammah dammah (    ◌ُ ) and kasrah (    ◌ِ

) respectively.

Examples: matlū  ٌّو تلُ بِيٌّ  nabī  مَ    نَ

E. Words Containing the Prefix “ال”

The prefix “ال” is always transliterated “al” regardless of whether it is
shamsiyyah or qamariyyah and a hyphen is used after “al” to indicate that
it is a prefix.

Examples: al-khayr  ُري -al  اخلَ
sharr

 ُّ    الرشَّ

E. Words Containing Hamzah “ء”

Hamzah “ء” in the initial position, whether it is preceded by the prefix “ال”
or not, is not represented in transliteration but how it is vocalized is
indicated. This rule applies to both hamzat al-qatc and hamzat al-wasl.

Examples: al-insān ان نسَ اك idrāk  اإلِ    إِدرَ

 al-umm  ُّاألُم
F. Words Containing Ta’ Marbutah “ة”

Ta’ Marbutah “ة” at the end of nouns is transliterated “h”.

136

Examples: madrasah  ٌة سَ درَ -al  مَ
ḥasanah

نَة سَ    احلَ

Notwithstanding the above rule, Ta’ Marbutah “ة” is transliterated “t” when
it is present in the first word of a construct pair (idafah).

Examples: Kulliyyat al-
Iqtiṣād

يَ  لِّ ةُ كُ
اد  االقتِصَ

 Majallat al-Islām  ُة َلَّ جمَ
 اإلِسالَم

Ta’ Marbutah “ة” is transliterated as “h” if it is present in a word with the
prefix “ال” or it is present in the end of a construct pair.

Examples: al-maktabah al-
ahliyyah

تَبَة  املَكْ
لِيَّة  األَهْ

 dar wahbah بَة هْ ارُ وَ  دَ


 1

ISLAMIC EQUITY FINANCING FOR SMEs DEVELOPMENT
By:

Abdullaah Jalil

Hisham Sabri1

INTRODUCTION

Following the Asian Financial Crisis 1997-98, the Malaysian government started to focus

on the strength of the domestic economic activities rather than reliance on the foreign

investment and trade which are subject to volatilities (Fong, 2003). This fact entails

efforts to foster the development of small-and-medium scale enterprises (hereafter stated

as SMEs) in order to make them as the national backbone for future growth. Considering

the significance of SMEs to the national outlook, this humble chapter seeks to discuss the

role of Islamic equity financing in developing more and more successful SMEs. The

discussion commences with the definition of SMEs in Malaysia and a brief highlight on

their needs to equity financing. Then, the authors generally describe the modes of Islamic

equity financing available in Islamic jurisprudence. The following chapters briefly

discuss on the applicability of the two widely quoted Islamic trading partnerships i.e.

Mudarabah and Musharakah in SMEs development. Finally, a bold concluding section

wraps up the whole article with several recommendations.

1 Both authors are lecturers in the Faculty of Economics and Muamalat, Islamic Universit College of
Malaysia. All correspondence should be directed to Fakulti Ekonomi dan Muamalat, Kolej Universiti Islam
Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan. Tel: (606) 798 8753/21. Fax: (606) 798 8198.
Email: abdullaah@admin.kuim.edu.my /hishams@admin.kuim.edu.my .

mailto:abdullaah@admin.kuim.edu.my

mailto:hishams@admin.kuim.edu.my

 2

DEFINITION OF SMEs IN MALAYSIA

In Malaysia, the definitions of SME are based on two criteria i.e. number of employees

and annual sales turnover. These two criteria provide broader and wider coverage and

applicability of SMEs definitions. The definitions of SMEs apply for the following

sectors: primary agriculture; manufacturing (including agro-based); manufacturing

related services (MRS); and services (including Information and Communications

Technology)2 (BNM, 2005). Each sector has its own general and specific definitions for

micro, small and medium enterprises. However, it is not within the discussion of this

chapter. Table 1 and 2 summarize the definition of SMEs in Malaysia based on number

of full-time employees and annual sales turnover.

Table 1: Definitions of SMEs Based on Number of Full-Time Employees

 Size
Primary Agriculture Manufacturing (including Agro-

Based) & MRS
Services Sector
(including ICT) Sector

Micro Less than 5 employees Less than 5 employees Less than 5 employees

Small
Between 5 & 19

employees Between 5 & 50 employees Between 5 & 19
employees

Medium
Between 20 & 50

employees Between 51 & 150 employees Between 20 & 50
employees

Source: National SME Development Council, BNM

Table 2: Definitions of SMEs Based on Annual Sales Turnover

 Size
Primary Agriculture Manufacturing (including

Agro-Based) & MRS
Services Sector (including

ICT) Sector
Micro Less than RM200,000 Less than RM250,000 Less than RM200,000

Small
Between RM200,000 &
less than RM1 million

Between RM250,000 & less
than RM10 million

Between RM200,000 &
less than RM1 million

Medium
Between RM1 million &

RM5 million
Between RM10 million &

RM25 million
Between RM1 million &

RM5 million
Source: National SME Development Council, BNM

2 Services sector also includes mining and quarrying sector and construction sector.

 3

Based on Table 1 and 2, it can be observed that SMEs are small and new in nature. Most

of them do not have strong, appealing and convincing financial track records in the eyes

of potential lenders and investors. However, it is not a common practice in the real world

for SMEs to obtain external equity financing. Hence, this paper insists on the need for the

establishment of Islamic equity-based financing for SMEs development programme. In

fact, SMEs represent the earlier stages of big businesses and with good monitoring and

mentoring processes, they would constitute a vast potential of medium and long-terms

investment opportunities.

MODES OF ISLAMIC EQUITY FINANCING (PARTNERSHIP)

Islam encourages Muslims to participate in a partnership as it is a form of cooperation

and collaboration between individuals. Moreover, it leads to more efficient and better use

of resources (Al-Masri, 1999). Some individuals only have resources but they do not

have the expertise or even the time to manage the resources. Hence, partnership projects

are necessary to make use of the resources and put them in more productive and

beneficial activities. With the combination of the resources and expertise, the resources

would be used more efficiently and not left idle. Therefore, we can see that a number of

partnership projects have been established and discussed in the area of Islamic

jurisprudence. In general, partnership in Islamic jurisprudence (fiqh) is of two types:

holding and contract partnerships. A holding partnership refers to the joint ownership by

two or more persons of an asset by ‘optional’ or ‘compulsory’ means of inheritance or

wills or joint purchase or other circumstances. In the other hand, a contract partnership

 4

refers to a ‘joint commercial enterprise’ or mutual agreement by two or more persons to

contribute to the capital of the partnership and share in its profit or loss. (AAOFI, 1998;

Usmani, 2002). Partnership projects for commercial purposes basically can be further

divided into two major categories i.e. trading and agricultural partnerships, and can take

place in several forms. The divisions can be illustrated by the following points (Al-Masri,

1999; Nyazee, 2002):

1) Agricultural Partnerships (Al-Sharikat Al-Zira‘iyyah). This category has three

forms:

a. Muzara‘ah (Share-cropping): It is a type of agricultural partnership

with land contributed by one party and work by another. The land is

cultivated and the yield is shared between them.

b. Musaqah (Share-watering): It is a type of agricultural partnership

whereby the trees and land are contributed by one party and their care

(watering) is undertaken by another with their fruit being divided

between the parties.

c. Mugharasah (Share-planting): It is a type of agricultural partnership

where the land and plants are contributed by one party and the work of

planting is provided by another party with a portion of plants being

given to him.

2) Trading Partnerships (Al-Sharikat Al-Tijariyyah). This type of partnership is

different from the previous one as the partners share the profit, neither crops

 5

nor plants, between them. This can be further divided into two categories.

This category has two forms:

a. Mudarabah: It is a type of trading partnership in which capital is

contributed by the capital provider (rabb al-mal) and labour from the

entrepreneur (mudarib). The profit is shared between them. In case of

loss, it is born by the capital provider. The entrepreneur only suffers

from the fruitless efforts.

b. Shirkah: It is a profit and loss sharing partnership and takes three

major forms.

i. Shirkat al-Amwal: It is a partnership in which participation is

based on the contribution of capital by all partners.

ii. Shirkat al-Abdan: It is a partnership in which participation by

the partners is based on labour or skill.

iii. Shirkat al-Wujuh: It is a partnership based on the credit-

worthiness of the partners. The ratio of loss is based on the

liability borne whereby the ratio of profit could be based on

either the liability borne by each partner or mutual agreement

between them.

These three types of trading partnerships could be based on either

‘inan or mufawadah partnership.

A mufawadah partnership is based on wakalah (agency) and kafalah (surety) that entails

full commitment from the partners. To achieve this purpose, all partners should maintain

equality in capital, labour, liability and legal capacity. It declares each partner to be an

 6

agent of and surety for the other. In an ‘inan partnership, the equality of legal capacity

and contribution by each partner is not necessary (Nyazee, 2002). See Figure 1 for

illustration.

Figure 1: Partnership in Islamic Jurisprudence

Based on Figure 1, there are several concepts of Islamic partnership that can be applied

for the purpose of Islamic equity financing. However, due to the limitation of this

chapter, we will only focus our discussion on the two widely quoted Islamic trading

partnership i.e. Mudarabah and Musharakah.

Contract (Commercial) Partnership

Trading Partnership Agricultural Partnership

Muzara’ah MugharasahMusaqahMusharakahMudarabah

Shirkah al-amwal Shirkah al-wujuhShirkah al-a’mal/ al-abdan

Shirkah al-’inan or Shirkah al-mufawadah

© Abdullaah Jalil 2006

Holding Partnership

Partnership

Optional Compulsory

 7

MUDARABAH AS A MODE OF SMEs DEVELOPMENT

Mudarabah is the one of the widely quoted operating principles in Islamic finance for

business joint venture. In classical fiqh (Islamic jurisprudence) books, mudarabah is also

named as qirad or muqaradah or muamalah. There are several translations and

terminology for mudarabah used in English literatures such as trust financing, profit

sharing, trustee profit sharing and sleeping partnership with profit sharing.

Theoretically, the definition of Mudarabah is a contract in which a party provides capital

to the other party who offers his labor with the hopes of getting profits which will be

distributed among the parties according to the ratio agreed on between them in the

contract.

Classical mudarabah refers to a joint venture by two parties in business activities from

the inception of the joint venture until the end when all the assets are liquidated (Usmani,

n.d.). Today’s modern mudarabah is very much for the financing purpose where the

financier (capital provider) will sell his portion of joint venture to the entrepreneur

(mudarib) or third party. Mudarabah could be general or specific in nature.

With regard to the application of mudarabah for SMEs development, specific/restricted

mudarabah is more appropriate to take place as the conditions and stipulations laid down

by the financier could safeguard their capital outlay. In Islamic jurisprudence discipline,

the financier is termed as the sahib al-mal or rabb al-mal or muqarid (capital provider) as

he is the party who provides a specific amount of capital to the SMEs. SMEs provide –

 8

acting as mudarib or ‘amil - entrepreneurship and management expertise for carrying out

the specified business venture, trade, industry or services. Profit will be divided between

as pre-determined ratio.

In today’s dynamic world, mudarabah can take place in various forms and it is flexible in

nature. For example, the capital provider could place his representative in the company’s

BOD (Board of Director) to monitor their investment and involve in the company’s

decision making. In the other hand, the enterprise and its staff could claim wages (al-

ujrah) in advance prior to the finalized profit calculation. As trustee, the enterprise acts as

an agent of business. It is assumed to act with prudence and in good faith. It is

responsible for looses incurred due to his full negligence and breach of contract. It is also

expected to employ and manage the capital in such manner as to generate optimum

profits for the business without violating the value of Islam.

In the case of loss (without negligence or misconduct), the financial loss will be incurred

by the financier and the entrepreneur will suffer a fruitless effort. The enterprise will have

a bad track record which would lead to bad reputation of the company. This is indeed a

fair division of profit and loss.

 9

Figure 2: Division of Profit and Loss in Mudarabah Model

MUSHARAKAH AS A MODE OF SMEs DEVELOPMENT

Musharakah is another potential model for SMEs development. Perhaps, it is more

practicable and realistic compared to mudarabah where total financial capital is

contributed by only one party. In musharakah model, both financier and SMEs contribute

to the capital of the joint venture and participates in work. The relationship between the

financier and SMEs in a contract of musharakah from the fiqh viewpoint is a partner-to-

partner relationship.

In a real situation, the financier could contribute e.g. 90% of the total capital outlay while

the rest is contributed by the enterprise. However, the enterprise may carry out 90% of

Capital Provider Entrepreneur

Joint Venture

H
um
an C

apital

F
in
an
ci
al
 C
ap
ita
l

Profit Loss

Financiers SMEs

Financial
profit as
pre-agreed

ratio

H
um
an
 c
ap
ita
l l
os
s

F
in
an
ci
al
 lo
ss

© Abdullaah Jalil 2006

 10

the labor and management aspects in the joint venture. In other words, the financier

contributes most of the financial capital while the enterprise contributes most of the

human capital.

According to Hanafis and Hanbalis, profit can be divided in proportion to capital

contribution; or equally divided even the capital contributions are different; and

unequally divided even the capital contributions are equal. However, Malikis and Shafi’is

state that profit should be in proportionate to the size of capital contribution. In the case

of loss (without negligence or misconduct), the scholars agree that the loss should be

divided in proportion to their respective shares in the capital. This is based on principle of

“Profit should according to what they (partners) stipulated, and the loss should be

proportionate to both funds (AAOIFI, 1998).

Figure 2: Division of Profit and Loss in Musharakah Model

Partner Partner

Joint Venture

F
inancial &

 H
um
an C

apitalF
in
an
ci
al
 &
 H
um
an
 C
ap
ita
l

Profit Loss

Pre-agreed
ratio

Financiers SMEs

Capital
contribution
& human
capital loss

 11

Diminishing musharakah could be applied in a joint venture between the financier and

SMEs. Based on the concept, the financier and enterprise will participate in the joint

ownership of a commercial property or equipment, or in a joint commercial enterprise.

The share of the financier will be divided into units and they will be sold to the enterprise

gradually, thus increasing the enterprise’s own share until all the units are purchased by

him. At the end of the contract, the entrepreneur will be the sole owner of the commercial

property or equipment or commercial enterprise (Usmani, 2002).

Figure 3: Diminishing Musharakah Model of a Joint Asset

Partner Partner

Joint Asset

Financial

Capital

Financiers SMEs

© Abdullaah Jalil 2006

90% 10%

Financial

Capital

100%

90%

80%

70%

60%

50%

40%

30%

20%

10
%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10
%

Total ownership of the asset
by the SMEs (at the end)

Gradual sale of the financiers’
shares to the SMEs

 12

CONCLUSION

Based on the previous discussions, it is observed that mudarabah and musharakah could

be viably applied in the process of SMEs development. In addition, there are several

numbers of Islamic modes for equity financing that are underutilized in the real worl.

Financial institutions and government sectors that are heavily involved with SMEs should

include Islamic equity financing into their various financing scheme. SMEs need further

risk sharing instrument to be more innovative, creative and independent entity. It is

highly regrettable if our Malaysian Muslim entrepreneurs have to adopt for conventional

equity financing due to the absence or small-size of Islamic equity financing.

Conventional equity financiers may include certain conditions and stipulations that are

not Shariah-compliant in their financing scheme. Additionally, they may overlook certain

Shariah criteria for decision making. The authors strongly believe that Islamic modes of

equity financing could promote entrepreneurship as enterprises could obtain financial

resources at the minimum price with less risk. However, these modes of financing require

robust trust (amanah) and full of transparency between the parties involved.

 13

REFERENCES

AAOIFI. 1998. Accounting and auditing standards for Islamic financial institutions.

Manama: AAOIFI.

Al-Masri, Rafiq Yunus. (1999). Usul al-Iqtisad al-Islami. Bayrut: Dar Al-Shamiyyah.

Al-Zuhayli, Wahbah. (1998). Usul al-fiqh al-Islami. (2nd ed.). Dimashq: Dar Al-Fikr.

BNM. 2005. Definitions for Small and Medium Enterprises in Malaysia.

<smeinfo.com.my/pdf/sme_definitions_ENGLISH.pdf>

Fong, David. 2003. Venture Capital and SMEs - A Malaysian Perspective. (Speech).

Apec Symposium on Best Practices for Enhancing Financing Chain for SMEs at

Differeing Growing Stages, 26 Ogos 2003, Taipeh.< www.mvca.org.my>

Nyazee, Imran Ahsan Khan. (2002). Islamic law of business organization: partnerships.

Selangor: The Other Press.

Usmani, Muhammad Imran Ashraf. 2002. Meezanbank’s guide to Islamic banking.

Karachi: Darul Ishaat.

Usmani, Muhammad Taqi. n.d. Musharakah and mudarabah as modes of financing.

<www.failaka.com/Library/Articles/ Usmani%20-%20Modes%20of%20Finance.pdf >

http://www.mvca.org.my/

 14

About the Article:

Reference Type: Book Section
Record Number: 33
Author:  Abdullaah Jalil,

Hisham Sabri,
Year:   2007
Title:  Islamic Equity Financing for Small and Medium-Size Enterprises (SMEs)

Development
Editor:  Suhaila Abdul Hamid,

Amir Shaharuddin,
Norhaziah Nawai,

Book Title:   Readings in Islamic Financial Services
City:   Nilai
Publisher:  Kolej Universiti Islam Malaysia (now known as Universiti Sains Islam

Malaysia)
Pages:   91-104
Chapter:   10
ISBN:   983-2950-28-7

ISLAMIC EQUITY FINANCING FOR SMEs DEVELOPMENT

INTRODUCTION

DEFINITION OF SMEs IN MALAYSIA

MODES OF ISLAMIC EQUITY FINANCING (PARTNERSHIP)

MUDARABAH AS A MODE OF SMEs DEVELOPMENT

MUSHARAKAH AS A MODE OF SMEs DEVELOPMENT

CONCLUSION

REFERENCES


CORPORATE WAQF MODEL AND

ITS DISTINCTIVE FEATURES:

THE FUTURE OF ISLAMIC

PHILANTHROPY

ASHARAF MOHD RAMLI

ABDULLAAH JALIL

FACULTY OF ECONOMICS AND MUAMALAT

UNIVERSITI SAINS ISLAM MALAYSIA

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            WORLD UNIVERSITY ISLAMIC PHILANTHOPY 2013

THIS STUDY IS PART OF A RESEARCH TITLE “PEMBENTUKAN MODEL BARU WAKAF KORPORAT DI MALAYSIA”. THE

RESEARCH IS GRANTED BY THE MINISTRY OF EDUCATION MALAYSIA UNDER THE FUNDAMENTAL RESEARCH GRANT

SCHEME (FRGS).

Presentation Outlines

 Introduction

Problem Statement and Objectives

Conceptualization Of Corporate Waqf

Corporate Waqf Models

Shariah Considerations of Corporate Waqf

Conclusions

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Introduction

• In Malaysia, the initiative to develop corporate waqf turns into a

national agenda for empowering the socio-economic condition of

Muslims in the country

• Prime Minister in his speech during Bajet 2013 had outlined the

focus on establishing corporate waqf at the national level.

• Recently, during the launching of Bumiputera Economic

Empowerment Program, Prime Minister was again reiterated the

main role of corporate waqf entity towards enhancing the value of

idle lands belonging to Bumiputera Muslims.

• The corporate culture of accountability, prudence and transparency

applied in corporate waqf concept is expected to bring new

dimension into current waqf practice.

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Problem Statement and Objectives

• Corporate Waqf has not been recognized well as an

independent and standalone category of waqf practices.

• The concept of corporate waqf is yet to be conceptualized

and defined academically and independently

This study aims to:

• Identify the models of corporate waqf, and

• Highlight the Shariah considerations on this new form of

waqf concept

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Conceptualization Of Corporate Waqf

1. Corporate Waqf Models

• Tan Sri Ali Hashim (2012) outlines six models of corporate waqf that

could be structured including:

 (i) business entity or corporations, (ii) banking and financial institutions,

(iii) universities, (iv) foundations, (v) cooperatives, and (vi) hospitals or

clinics.

• Currently in Malaysia, corporate waqf structured on Business

Corporation and Banking and Financial institution have been applied by

Johor Corporation and Bank Muamalat Malaysia Berhad

• The conceptual corporate model based on university is expected to be

adopted by public universities for income generating purposes.

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Corporate Waqf Model

1. Business Corporation

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Corporate Waqf Model

2. Banking and Financial Institution

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Corporate Waqf Model

3. Universities

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Conceptualization Of Corporate Waqf

2. Shariah Consideration

• Shakhsiyyah I’tibariyyah: Ahliyyah (Legal Capacity) and

Wilayah (Legal Authority)

• Waqf of al-Waqif on Himself

• Al-Waqif Stipulates the Waqf’s Proceeds (al-Ghallah) for

Himself

• Hybrid Waqf (Waqf Mushtarak): Combination of Waqf Khayri

and Waqf Ahli/Dhurri

• Istibdal

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Cont..Shakhsiyyah I’tibariyyah: Ahliyyah (Legal

Capacity) and Wilayah (Legal Authority)

• The two most important requirements that must be enjoyed by the

representative (mumaththil) of this shakhsiyyah ictibariyyah are ahliyyah

(legal capacity) and wilayah (legal authority).

• The second requirement means that the donor must be the owner of the

subject matter or an agent (wakil) appointed by the owner who performs

the contract based on wakalah (agency) contract.

• If the donor has neither wilayah nor wakalah on the subject matter, his

transaction on the subject matter is known in Islamic jurisprudence as

fadalah.

• Hanafiyyah, Malikiyyah and an opinion of Imam Ahmad validate the

contract of fadalah but it is suspended and subject to the approval of the

owner. On the other hand, Shaficiyyah and an opinion of Imam Malik dan

Imam Ahmad state that the contract is invalid

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Cont…Waqf of al-Waqif on Himself

• The mainstream stance of the Islamic jurists on this matter view this

matter as invalid as the waqif could not re-own himself what he already

owns. This is the stance of al-Malikiyyah, al-Shaficiyyah in their strongest

view (al-asahh), the authorized view of al-Hanabilah (al-madhhab) and

Muhammad Ibn al-Hasan of al-Hanafiyyah.

• On the other hand, this practice has been approved by Abu Yusuf of al-

Hanafiyyah, and this is their (al-Hanafiyyah) formal stance, an opinion of

al-Shaficiyyah and a view of al-Imam Ahmad.

• The authors favor the second opinion with regard to the practice of

corporate waqf as the institutions usually do not really mean to re-own

the waqf asset.

•  Such practice is carried out to give the corporate institutions full

flexibility and right in managing, distributing and channeling the waqf

proceeds or even utilizing it.

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Cont…Al-Waqif Stipulates the Waqf’s Proceeds (al-

Ghallah) for Himself

• Another issue which may seem to be similar with the

previous one is the situation where the waqif stipulates

himself as the sole beneficiary or the major beneficiary or

amongst the beneficiaries of the waqf’s proceeds.

• Hanabilah, Hanafiyyah and an opinion of Shaficiyyah view

such practice as permissible in order to encourage the

people to make endowments and based on several Shariah

evidences.

•  On the other hand, Shaficiyyah and Muhammad Ibn al-

Hasan of Hanafiyyah view such practice as generally

impermissible with certain exceptions.

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Cont… Hybrid Waqf (Waqf Mushtarak):

Combination of Waqf Khayri and Waqf Ahli/Dhurri

• From a fiqh perspective, the combination between waqf
khayri and waqf dhurri is known as waqf mushtarak.

• From a managerial perspective, waqf mushtarak could

provide advantages for the institutions that involve in the

corporate waqf. The institution may design its corporate

waqf scheme to be in tandem with its CSR programmes.

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Cont…Istibdal

• The corporate waqf model as pioneered and practiced by WANCorp has

undergone the practice of Istibdal i.e. replacement of waqf asset with its

similar.

• The practice has taken place on 29th June 2009 where the waqf shares

of Johor Land Berhad has been replaced with shares of Al-‘Aqar KPJ

REIT since Johor Land Berhad has been delisted form Bursa Malaysia.

• The istibdal practice was based on the (market) value of the shares and

not the quantity (units) of the shares. The 4.32 million units of waqf

shares of Johor Land Berhad which have current market value of RM 13

million has been replaced with 12.62 million share units of Al-‘Aqar KPJ

REIT which have the same market value of RM 13 million.

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Conclusions

• The advantages of corporate waqf could be observed from several

aspects. With the huge size of assets and funds, professional

management team, public confidence towards their practices and

government’s recognition, the corporate waqf could be viewed as the

most promising star in the area of waqf development.

• However, such potentials may only be cultivated and enriched

optimally with the support of the authorities such as MAINs, JAWHAR

and Malaysian fatwa bodies.

• The synergy between the institutions could bring up further the waqf

corporate practice to rejuvenate and restitute the waqf system of the

ummah.

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Thank you.

        Q & A Session.

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