Investment of Cash Waqf A Comparative Study between Islamic Jurisprudence and the Algerian Waqf Law (Law No. 25-06)

Abstract

This study examines cash waqf investment as an emerging development tool that provides financial flexibility and liquidity to waqf institutions, addressing the issue of legislative and jurisprudential adaptation in Algeria under Law No. 25-06. The study demonstrates that the Algerian legislator has resolved the longstanding jurisprudential disagreement by affirming the permissibility of cash waqf, while expanding the recognition of investment instruments that combine developmental partnership-based models, such as mudarabah, musharakah, and investment funds, with sale and exchange-based contracts, particularly murabaha in its two forms. The study further confirms the capacity of the contemporary national legal framework to reconcile the preservation of the principal of waqf assets with the renewal and development of their benefits through Islamic financial instruments. The findings highlight the need to establish governance and risk-management mechanisms that ensure the sustainability of returns and efficiently direct them toward service complexes and public-benefit projects.