The Role of Waqf in Financing Education: A Case Study of the Waqf Fund of Central Bank of Bahrain

Abstract

This study aims to present the Waqf Fund model or cash Waqf model of the Central Bank of Bahrain (CBB) and illustrate its role in enhancing the Islamic finance industry through its various education related enterprises which were all applied in the Kingdom of Bahrain. The concept of Waqf is an old one in Islam. Deriving from the Arabic notion of holding, Waqf was first used in Islamic estate and has then developed through time to also be used for the well-being of the society, such as the financing of education. The Waqf Fund of the CBB was established in November 2006 in partnership with Islamic Financial Institutions in the Kingdom of Bahrain. With a total contributions amount of US$ 7.5 million, the Waqf Fund is dedicated to finance education related initiatives that center on Islamic finance. The achievements of the Waqf Fund of the CBB has produced a high level of success and satisfaction for its stakeholders and therefore its cash Waqf model could be a good example for other countries to implement.