Application of waqf for social and development finance

Akhmed, Salman and Ghafar, Abdul and Hakimi, Muhammad (2017) Application of waqf for social and development finance. Application of waqf for social and development finance, 9 (1). pp. 5-14.

Text (Application of waqf for social and development finance) Application of waqf for social and development fi.pdf - Published Version Restricted to Repository staff only Download (137kB)

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.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Fakultas Syariah > Perbankan Syariah
Depositing User:	S1 SYARIAH IKHAC
Date Deposited:	20 Nov 2020 01:41
Last Modified:	20 Nov 2020 01:41
URI:	http://repository.ikhac.ac.id/id/eprint/727

Actions (login required)

View Item