A Comparative Analysis of the Ottoman Cash Waqf in the XVI-XIX Centuries and Modern Financial Institution Fatchul Wachid
Islamic Economics and Finance, Sakarya University, Sakarya, Turkey
The waqf institution has an important role in the social and economic development of the Ottoman which has a vast territory. For many years, most of public services during Ottoman period were provided by waqf institution. One of the main factors that causes people to compete to establish waqf institution is the strong influence of Islamic value especially the concept of fastabiqul khairat on the socio-economic of the Ottoman society. They finance the community needs such as education services, religious services, health, social, infrastructure and so on by establishing waqf institution. Cash Waqf is a type of waqf institution that has very important role in financing community needs. Cash Waqf undertake important functions in the socio-cultural and economic development. Cash Waqf as a waqf institution which capital is in the form of cash providing financial support to entrepreneurs who need it accordance with the principle of Islamic law. Cash Waqf is one of the waqf institution that continues to be used until the end of the Ottoman period. The Ottoman government developed this cash waqf institution with the aim of fighting against European financial institution that developed rapidly in that period. Therefore, the XVI-XIX period is an important period to understanding the concepts of Ottoman economic thought. This study aims to analyze the concepts of Ottoman economic thought and cash waqf institutions through primary sources. We also analyzed the concept of financial institution in Europe in the same period and compare them.