Developing Best Practices in Managing Al-Mafqud Real Estate (AMRE) among Muslims in Malaysia

Abstract

Al-mafqud real estate(AMRE) management is a new area of study in Malaysia. Nowadays, the
Malaysian legislation freezes AMRE and all unclaimed properties/real estate. The waiting period of al-mafqud
is four years (minimum) and if no one claims for al-mafqud (if al-mafqud returned) or by al-mafqud heirs (if al- mafqud not return), thus those properties will be managed by Baitulmal to be used for the benefit of Muslim
community in general. The purpose of this study therefore is to propose best practices in managing AMRE, avoiding it from being frozen particularly during the four years waiting period. These best practices were
delivered and investigated by reviewing Hadith and Shariah practices. The identified suggestions are also based
on legal factors, laws, Islamic principles and existing management practice before being improvised for
Malaysia. For data collection, the researchers employ document analysis method to analyse qualitative data
derived from related document such as newspapers clipping. The researchers found that the AMRE can be
invested and developed by third parties with the permission of law and regulation after taking into account the
Shariah requirements. Since there is no specific procedure in conducting AMRE for the investment purpose has
been discussed so far, this study could produce the best suggestion for establishing the procedure. Thus, this will
be finally helping in maximizing the Muslim economic activity at large