Optimizing Waqf as a Socio-Economic Financing Instrument in the Digital Era
Article Sidebar
-
Digital Era, Digital Technology, Optimizing Waqf
Abstract
Waqf, an important Islamic philanthropic tool for social and economic financing, has a long history. However, the management and distribution of waqf often hinders wider potential benefits. Information technology can be a useful tool to overcome these various obstacles in the current digital era. The aim of this research is to identify various technologies that can be used to optimize waqf management. Specifically, this research aims to identify technologies that can be used to increase efficiency and transparency in waqf management, evaluate how the application of these technologies impacts the effectiveness of waqf management, and make strategic recommendations for waqf managers and other stakeholders. Data was collected through in-depth interviews with waqf managers, Islamic economic experts and information technology experts. In addition, annual reports of waqf institutions, government policies related to waqf, and academic literature on the digitalization of waqf management were analyzed. Thematic analysis techniques are used to find main research patterns and themes. The research results show that using digital technology in waqf management has many major advantages. Technologies such as smart contracts and blockchain can increase the security and transparency of waqf transactions, reduce the possibility of abuse, and enable more effective audits. In addition, wider waqf fundraising is made possible by digital-based crowdfunding platforms. This research finds that digital technology has great potential to optimize waqf management as a socio-economic financing tool. This technology can overcome many of the traditional problems faced by waqf management, such as lack of transparency and efficiency.
Full text article
References
Ab Shatar, W.N., Hanaysha, J.R., & Tahir, P.R. (2021). Determinants of cash waqf fund collection in Malaysian Islamic banking institutions: Empirical insights from employees' perspectives. ISRA International Journal of Islamic Finance, 13(2), 177–193.https://doi.org/10.1108/IJIF-06-2020-0126
Abd Jalil, MI, Yahya, S., & Allah Pitchay, A. (2019). Building committed Waqif: The role of information disclosure. Journal of Islamic Accounting and Business Research, 10(2), 185–215.https://doi.org/10.1108/JIABR-05-2016-0058
Abdul Shukor, S., Johari, F., Abd Wahab, K., Kefeli @ Zulkefli, Z., Ahmad, N., Haji Alias, M., Abdul Rahman, A., Mohd Orip, NM, Ibrahim, P. , & Abu-Hussin, MF (2019). Trust on awqaf institutions: Evidence from Malaysia. Journal of Islamic Marketing, 10(2), 511–524.https://doi.org/10.1108/JIMA-05-2017-0054
Abdullah, M. (2019). Waqf and trust: The nature, structures and socio-economic impacts. Journal of Islamic Accounting and Business Research, 10(4), 512–527.https://doi.org/10.1108/JIABR-10-2016-0124
Abu Talib, N.Y., Abdul Latiff, R., & Aman, A. (2020). An institutional perspective for research in waqf accounting and reporting: A case study of Terengganu state Islamic Religious Council in Malaysia. Journal of Islamic Accounting and Business Research, 11(2), 400–427.https://doi.org/10.1108/JIABR-11-2016-0132
AFROZ, R., MUHIBBULLAH, Md., & MORSHED, M.N. (2019). Factors Affecting the Intention of the Rice Farmers to Adopt the Integrated Cash Waqf Environmental Protection Model: An Empirical Study in Kedah Malaysia. The Journal of Asian Finance, Economics and Business, 6(4), 189–199.https://doi.org/10.13106/JAFEB.2019.VOL6.NO4.189
Ahmad, M. (2019). An empirical study of the challenges facing zakat and waqf institutions in Northern Nigeria. ISRA International Journal of Islamic Finance, 11(2), 338–356.https://doi.org/10.1108/IJIF-04-2018-0044
Ali, KM, Hassan, MK, & Ali, AEES (Eds.). (2019). Revitalization of Waqf for Socio-Economic Development, Volume I. Springer International Publishing.https://doi.org/10.1007/978-3-030-18445-2
Ali, KM, & Kassim, S. (2021). Development of Waqf Forest in Indonesia: The SWOT-ANP Analysis of Bogor Waqf Forest Program by Bogor Waqf Forest Foundation. Journal of Tropical Forest Management, 27(2), 89–99.https://doi.org/10.7226/jtfm.27.2.89
Alshater, M.M., Hassan, M.K., Rashid, M., & Hasan, R. (2022). A bibliometric review of the Waqf literature. Eurasian Economic Review, 12(2), 213–239.https://doi.org/10.1007/s40822-021-00183-4
Ari, I., & Koc, M. (2021). Towards sustainable financing models: A proof-of-concept for a waqf-based alternative financing model for renewable energy investments. Borsa Istanbul Review, 21, S46–S56.https://doi.org/10.1016/j.bir.2021.03.007
Ascarya, A., Hosen, MN, & Rahmawati, S. (2022). Designing simple productive waqf models for Indonesia. International Journal of Ethics and Systems, 38(3), 380–401.https://doi.org/10.1108/IJOES-07-2020-0101
Asni, F., Mahamud, MA, & Sulong, J. (2020). Socio-economics and management of Muslim cemetery waqf using istibdal and GIS method in Penang state. Journal of Islamic Accounting and Business Research, 11(7), 1343–1362.https://doi.org/10.1108/JIABR-01-2019-0026
Azrai Azaimi Ambrose, A.H., & Abdullah Asuhaimi, F. (2021). Cash waqf risk management and perpetuity restriction conundrum. ISRA International Journal of Islamic Finance, 13(2), 162–176.https://doi.org/10.1108/IJIF-12-2019-0187
Che Mohd Salleh, M., Razali, SS, Megat Laksana, NN, Che Embi, NA, & Abdullah, NI (2020). Developing a sustainable model of Waqf-based Takaful for flood victims in Malaysia. Journal of Islamic Accounting and Business Research, 11(10), 1941–1952.https://doi.org/10.1108/JIABR-10-2016-0114
David, D. (2019). The role of Islamic governance in the strengthening waqf reporting: SIRC Malaysia case. Journal of Islamic Accounting and Business Research, 10(3), 392–406.https://doi.org/10.1108/JIABR-01-2017-0008
Eficandra, E. (2022). The Reconstruction of High-Inherited Wealth in Minangkabau through the Cash Waqf Movement. JURIS (Shariah Scientific Journal), 21(1), 121.https://doi.org/10.31958/juris.v21i1.5850
Elnazer, AA, Seleem, E.-MM, Zeid, SAM, Ismail, ISA, Bahlol, HA, & Salman, SA (2021). Hydrochemical evaluation of the quaternary aquifer and its suitability for different purposes at southern Al Waqf city, Qena, Upper Egypt. Groundwater for Sustainable Development, 12, 100517.https://doi.org/10.1016/j.gsd.2020.100517
Hapsari, MI, Bin Mohd Thas Thaker, MA, Mohammed, MO, & Duasa, J. (2022). A qualitative investigation into crowdfunding framework as a source of financing for waqf land development. Journal of Islamic Accounting and Business Research, 13(3), 425–443.https://doi.org/10.1108/JIABR-10-2020-0311
Hassan, MK, Karim, MF, & Karim, MS (2019). Experiences and Lessons of Cash Waqf in Bangladesh and Other Countries. In KM Ali, MK Hassan, & AEES Ali (Eds.), Revitalization of Waqf for Socio-Economic Development, Volume I (pp. 59–83). Springer International Publishing.https://doi.org/10.1007/978-3-030-18445-2_5
Kamaruddin, MIH, & Hanefah, MM (2021). An empirical investigation on waqf governance practices in waqf institutions in Malaysia. Journal of Financial Reporting and Accounting, 19(3), 455–473.https://doi.org/10.1108/JFRA-03-2020-0055
Kasri, RA, & Chaerunnisa, SR (2022). The role of knowledge, trust, and religiosity in explaining the online cash waqf among Muslim millennials. Journal of Islamic Marketing, 13(6), 1334–1350.https://doi.org/10.1108/JIMA-04-2020-0101
Khan, T. (2019). Venture waqf in a circular economy. ISRA International Journal of Islamic Finance, 11(2), 187–205.https://doi.org/10.1108/IJIF-12-2018-0138
Laallam, A., Kassim, S., Engku Ali, ERA, & Saiti, B. (2020). Intellectual capital in non-profit organizations: Lessons learned for waqf institutions. ISRA International Journal of Islamic Finance, 12(1), 27–48.https://doi.org/10.1108/IJIF-10-2018-0111
Laila, N., Ratnasari, RT, Ismail, S., Mohd Hidzir, PA, & Mahphoth, MH (2023). The intention of small and medium enterprises' owners to participate in waqf: The case of Malaysia and Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 16(3), 429–447.https://doi.org/10.1108/IMEFM-01-2022-0014
Masrizal, M., Sukmana, R., Trianto, B., & Zaimsyah, AM (2023). Determinant factor of crowdfunders' behavior in using crowdfunding waqf model in Indonesia: Two competing models. Journal of Islamic Marketing, 14(7), 1793–1816.https://doi.org/10.1108/JIMA-08-2021-0246
Medias, F., Rahman, AA, Susamto, AA, & Pambuko, ZB (2022). A systematic literature review on the socio-economic roles of waqf: Evidence from organizations of the Islamic cooperation (OIC) countries. Journal of Islamic Accounting and Business Research, 13(1), 177–193.https://doi.org/10.1108/JIABR-01-2021-0028
Mohd Thas Thaker, MA, Amin, MF, Mohd Thas Thaker, H., Khaliq, A., & Allah Pitchay, A. (2021). Cash waqf model for micro enterprises' human capital development. ISRA International Journal of Islamic Finance, 13(1), 66–83.https://doi.org/10.1108/IJIF-08-2018-0091
Muneer, F., & Khan, F. (2019). QARD-AL-HASSAN AS A TOOL FOR POVERTY ALLEVIATION A CASE OF FAEL KHAIR WAQF PROGRAM IN BANGLADESH. Journal of Islamic Monetary Economics and Finance, 5(4), 829–848.https://doi.org/10.21098/jimf.v5i4.1100
Nour Aldeen, K., Ratih, IS, & Sari Pertiwi, R. (2022). Cash waqf from the millennials' perspective: A case of Indonesia. ISRA International Journal of Islamic Finance, 14(1), 20–37.https://doi.org/10.1108/IJIF-10-2020-0223
Osman, A.Z., & Agyemang, G. (2020). Privileging downward accountability in Waqf management. Journal of Islamic Accounting and Business Research, 11(3), 533–554.https://doi.org/10.1108/JIABR-05-2017-0064
Razak, SHA (2020). Zakat and waqf as instruments of Islamic wealth in poverty alleviation and redistribution: Case of Malaysia. International Journal of Sociology and Social Policy, 40(3/4), 249–266.https://doi.org/10.1108/IJSSP-11-2018-0208
Saiti, B., Dembele, A., & Bulut, M. (2021). The global cash waqf: A tool against poverty in Muslim countries. Qualitative Research in Financial Markets, 13(3), 277–294.https://doi.org/10.1108/QRFM-05-2020-0085
Saiti, B., Salad, AJ, & Bulut, M. (2019). The Role of Cash Waqf in Poverty Reduction: A Multi-country Case Study. In EM Ghazali, DS Mutum, M. Rashid, & JU Ahmed (Eds.), Management of Shari'ah Compliant Businesses (pp. 21–34). Springer International Publishing.https://doi.org/10.1007/978-3-030-10907-3_3
Soemitra, A., Kusmilawaty, & Rahma, TIF (2022). The Role of Micro Waqf Bank in Women's Micro-Business Empowerment through Islamic Social Finance: Mixed-Method Evidence from Mawaridussalam Indonesia. Economies, 10(7), 157.https://doi.org/10.3390/economies10070157
Sukmana, R. (2020). Critical assessment of Islamic endowment funds (Waqf) literature: Lessons for government and future directions. Heliyon, 6(10), e05074.https://doi.org/10.1016/j.heliyon.2020.e05074
Sulaiman, M., & Alhaji Zakari, M. (2019). Financial sustainability of state waqf institutions (SWIs) in Malaysia. Journal of Islamic Accounting and Business Research, 10(2), 236–258.https://doi.org/10.1108/JIABR-05-2016-0054
Sulaiman, S., Hasan, A., Mohd Noor, A., Ismail, MI, & Noordin, NH (2019). Proposed models for unit trust waqf and the parameters for their application. ISRA International Journal of Islamic Finance, 11(1), 62–81.https://doi.org/10.1108/IJIF-02-2018-0019
Sulistiani, SL (2021). The Legal Position of Waqf for Non-Muslims in Efforts to Increase Waqf Assets in Indonesia. Samarah: Journal of Family Law and Islamic Law, 5(1), 357.https://doi.org/10.22373/sjhk.v5i1.9161
Tahiri Jouti, A. (2019). An integrated approach for building sustainable Islamic social finance ecosystems. ISRA International Journal of Islamic Finance, 11(2), 246–266.https://doi.org/10.1108/IJIF-10-2018-0118
Uluyol, B., Secinaro, S., Calandra, D., & Lanzalonga, F. (2021). Mapping waqf research: A thirty-year bibliometric analysis. Journal of Islamic Accounting and Business Research, 12(5), 748–767.https://doi.org/10.1108/JIABR-01-2021-0031
Usman, M., & Ab Rahman, A. (2021). Funding higher education through waqf: A lesson from Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 14(2), 409–424.https://doi.org/10.1108/IMEFM-05-2019-0200
Zain, NS, & Muhamad Sori, Z. (2020). An exploratory study on Musharakah SRI Sukuk for the development of Waqf properties/assets in Malaysia. Qualitative Research in Financial Markets, 12(3), 301–314.https://doi.org/10.1108/QRFM-09-2018-0099
Zauro, N.A., Saad, RAJ, Ahmi, A., & Mohd Hussin, M.Y. (2020). Integration of Waqf towards enhancing financial inclusion and socio-economic justice in Nigeria. International Journal of Ethics and Systems, 36(4), 491–505.https://doi.org/10.1108/IJOES-04-2020-0054
Zawawi, Z., Yasin, Y., Helmy, MI, Ma'yuf, A., & Arwani, A. (2023). Waqf and sustainable development law: Models of waqf institutions in the Kingdom of Saudi Arabia and Indonesia. Ijtihad: Journal of Islamic Law and Humanitarian Discourse, 23(1), 93–114.https://doi.org/10.18326/ijtihad.v23i1.93-114
Authors
Copyright (c) 2024 Didih Muhamad Sudi, Akbar Sarif, Yuanyuan Wang, Guijiao Zou
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
