What can be done with gold if it is given as Waqf?​

Mufti Faraz Adam has spent almost a decade studying Islamic law. He completed his Islamic studies in the six-year Alimiyyah degree at Darul Uloom Leicester. He then went…Read More

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Gold can be designated as Waqf. The gold Waqf can be lent, leased, invested or traded. If gold is lent, the borrower can use the gold as collateral or in another permissible manner. If the gold is leased, the Waqf beneficiaries will receive rental income but the lessee will have right to use the gold Waqf. In a gold Waqf investment or trade, the gold can be sold in mark-up trades where the gold is sold with profit. The profit can be distributed among the Waqf beneficiaries; however the capital must be used to repurchase an asset as identical as possible to the original Waqf asset.

And Allah Alone Knows Best

Mufti Faraz Adam,

I Waqf Shariah Advisor