Can shares be given as Waqf?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Shares can be designated as the underlying Waqf asset. The shares will be the Waqf asset regardless of their fluctuating value. Any dividend received will be distributed to the Waqf beneficiaries. The late Egyptian Mufti Muhammad Bakhit al-Muti’i states:
“These shares etc. are all included under the term movables and the pertinent rule is as follows: “….the waqf of movables as accessories to land is valid without any difference of opinion between Imam Abu Yusuf and Imam Muhammad. If the waqf of such movables be made independently (not as accessories to land) then Imam Abu Yusuf rejects it, but Imam Muhammad accepts subject to customary practice. This opinion has been adopted by the majority of jurists of various countries as stated in the books Hidayah, the Is’af, and in the Zahiriyya. Moreover, it has been stated in the Mujtaba on the authority of the Siyar that according to Imam Muhammad it is valid to make a waqf of movables unrestrictedly and according to Imam Abu Yusuf only when there is customary practice. Therefore, when a practice has arisen as to making Waqf of these securities and shares, their Waqf is valid, especially as they are of the nature of coins, dirhams and dinars.”
And Allah Alone Knows Best
Mufti Faraz Adam,
I Waqf Shariah Advisor