Islamic Endowments and the Land Economy in Singapore

Abstract

This paper emphasizes the deeply embedded economic interests of Islamic charities: the accumulation of land and property, commercial and financial activities, rather than their role in providing social welfare, educational opportunities, and facilities for individuals to perform the Hajj. These entrepreneurial priorities are global, since the waqf (Islamic endowment) is linked to the homeland of the founders in the Hadhramaut and to Saudi Arabia. The paper appraises the application and success of Islamic finance in the commercial exploitation of these assets. The focus then shifts to the role of shari'a law in determining and shaping the issuance of bonds and derivatives. Throughout the paper, attention is given to the nature of an ‘ethical capitalism’ that emerges, and a brief comparison is drawn with the Chinese or Confucianist Tong (lineage).