Application of waqf for social and development finance

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Purpose: This paper aims to discuss the application of waqf (endowment) in the social finance sector for funding social and development projects and services. Design/methodology/approach: The study is qualitative. It reviews literature and provides descriptive data to present its main idea. Findings: Most Muslim-majority countries are generally income-poor, and the governments are generally weak in their tax collection, effective governance and capacity for development spending. Private sector financial institutions are scarce and mostly cater to the people who can meet the income-based lending criteria. Thus, the institution of waqf can fill the gap as a social finance institution by providing intermediation services for effectively utilising perpetual social savings. Flexibility in the rules of waqf enables it to serve beneficiaries directly or through financial institutions and to provide a wide range of social services. Research limitations/implications: This conceptual research highlights the need and potential of waqf without discussing the regulatory and operational details of how to effectively institutionalize it in different regions. Practical implications: The institution of waqf can harness the potential of selfless charitable giving in an effective way for better economic impact in the targeted social segments of society. Originality value: The paper suggests the establishment of waqf-based training and vocational centres which will increase opportunities of self-employment and contribute in upward social mobility of beneficiaries.

Original languageEnglish
Pages (from-to)5-14
Number of pages10
JournalISRA International Journal of Islamic Finance
Volume9
Issue number1
DOIs
Publication statusPublished - 10 Jul 2017

Fingerprint

finance
income
self employment
literature review
economic impact
development project
private sector
savings
methodology
self-employment
Social Mobility
lending
taxes
mobile social services
Muslim
flexibility
funding
services
Income
Financial institutions

Keywords

  • Charitable giving
  • Selfless behaviour
  • Waqf

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Development

Cite this

Application of waqf for social and development finance. / Shaikh, Salman Ahmed; Ismail, Abd. Ghafar; Mohd. Shafiai, Muhammad Hakimi.

In: ISRA International Journal of Islamic Finance, Vol. 9, No. 1, 10.07.2017, p. 5-14.

Research output: Contribution to journalArticle

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