Abdullahi Abubakar Lamido and Mohamed Aslam Haneef
This paper critically reviews and analyzes the trends in waqf studies within the Islamic economics literature. It analyzes the recent developments and debates in waqf reform and…
Abstract
Purpose
This paper critically reviews and analyzes the trends in waqf studies within the Islamic economics literature. It analyzes the recent developments and debates in waqf reform and advances the argument for prioritizing research on waqf economics; the waqf dimension that is concerned with modelling how to utilize it to enhance productivity, consumption, redistribution, investment and saving, and generally contribute sustainably towards poverty reduction, economic empowerment and development.
Design/methodology/approach
The paper is conceptual in nature, focusing on a systematic historical analytical review of waqf studies in Islamic economics literature.
Findings
Despite the documented historic role of waqf in constructing the Muslim socio-economic architecture as the third economic sector and a mechanism for civilizational development and renewal, it received little attention in the early writings on modern Islamic economics. While the past one decade has witnessed a renewed interest in waqf research, most studies focus on its legal, juristic and administrative aspects in addition to the nostalgic reflections on its past glories. Little attention is comparatively given to the socio-economic aspect, which represents the actual raison d’être for its institutionalization.
Practical implications
An important task ahead of the current generation of Islamic economists is to formulate waqf-based development models that are rooted in proper diagnosis and deep understanding of the current socio-economic realities of the OIC member countries for the purpose of uplifting living standards and stimulating sustainable socio-economic development.
Originality/value
The paper contributes to the debate on priorities in waqf studies and practice and can trigger further discourses and research on the future of research in waqf economics.
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Ascarya Ascarya, Raditya Sukmana, Siti Rahmawati and Atika Rukminastiti Masrifah
This study aims to develop cash waqf models for Baitul Maal wat Tamwil (BMT), a special Islamic microfinance institution in Indonesia, combining Islamic social finance in Baitul…
Abstract
Purpose
This study aims to develop cash waqf models for Baitul Maal wat Tamwil (BMT), a special Islamic microfinance institution in Indonesia, combining Islamic social finance in Baitul Maal (house of wealth) division and Islamic commercial finance in Baitut Tamwil (house of asset development) division, as integrated Islamic social and commercial microfinance in Indonesia, to achieve triple bottom-line, including outreach, sustainability and welfare impact.
Design/methodology/approach
This study uses Delphi and analytic network process methods, with three groups of relevant respondents, including experts (academic), BMT practitioners and regulators.
Findings
The results show that the best cash waqf model for BMT is “BMT as Nazir (waqf manager) and also as cash waqf receiver Lembaga Keuangan Syariah Penerima Wakaf Uang (LKSPWU)”, followed by “BMT Association as representative Nazir of several certified BMTs”. Moreover, “long-term investment deposit” is the best to account cash waqf in the BMT balance sheet. With regard to financing, the most preferred one is “financing to regular Micro and Small Enterprises” of BMT members.
Research limitations/implications
Having allowed BMT to be Nazir (waqf manager), this research might only benefit Indonesian policymakers, such as the Financial Services Authority and the Ministry of Cooperatives, BMTs and the National Waqf Board. But it may also benefit other countries which have similar characteristics.
Practical implications
BMTs could adopt several alternatives of best models in managing cash waqf most appropriate for their specific conditions.
Social implications
The management of cash waqf by BMT could help the social activities of the Baitul Maal through social cash waqf and, indirectly, by productive cash waqf.
Originality/value
Studies have been limited, and to the best of the authors’ knowledge, there is no specific study discussing the integrated cash waqf model, cash waqf account and cash waqf investment appropriate for BMT.
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Mohamed Abdeltawab Ibrahim, Arnida Abdullah, Ismi Arif Ismail and Soaib Asimiran
This study aims to explore the instructional leadership practices implemented by academic professionals and leaders to enhance the curriculum of Islamic economics and finance…
Abstract
Purpose
This study aims to explore the instructional leadership practices implemented by academic professionals and leaders to enhance the curriculum of Islamic economics and finance (IEF) in two public universities in Saudi Arabia.
Design/methodology/approach
This study used a qualitative approach, using a case study methodology that focused on two meticulously chosen universities in Saudi Arabia. A total of 21 academics from two public universities in Saudi Arabia who worked in IEF schools were selected for semi-structured interviews.
Findings
The findings showed that two universities in Saudi Arabia that offer degrees in IEF exhibited limited instructional leadership. The findings indicate four apparent barriers that may explain the lack of involvement in instructional leadership and fair practices in the IEF curriculum at Saudi Arabian universities. According to this study, a positive collegial climate in Saudi universities’ IEF promotes shared instructional leadership.
Research limitations/implications
The use of a limited qualitative method and small sample of respondents in this study may not provide enough evidence to generalise the findings to all universities and higher education schools in Saudi Arabia. Although a case study was used to describe IEF curriculum management and implementation at the two universities, caution should be exercised when applying these findings to other institutions.
Practical implications
IEF schools in Saudi universities need to leverage their positive, collaborative and relationship-building environments to develop activities that promote shared instructional leadership.
Originality/value
The research findings can offer valuable insights and examples for school leaders to develop instructional activities and promote the concept of “shared instructional leadership”. This approach involves delegating responsibilities and actions to others to enhance the IEF curriculum’s quality. Policymakers and university officials can use these findings to enhance strategic policies.
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Fahmi Medias, Asmak Ab Rahman, Akhmad Akbar Susamto and Zulfikar Bagus Pambuko
This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf…
Abstract
Purpose
This paper aims to analyze the role of waqf in the socio-economic development of the organization of the Islamic Cooperation (OIC) countries. Various projects currently use waqf as an instrument for socio-economic development, as reported in the scholarly literature. This study will investigate this literature to explore trends in waqf studies and the role of this Islamic form of endowment in the socio-economic development of OIC countries.
Design/methodology/approach
This systematic literature review focuses on peer-reviewed journals and data obtained from the Mendeley database using specific criteria to analyze the socio-economic developmental role of waqf in OIC countries from 2011‐2020.
Findings
The socio-economic developmental role of waqf in OIC countries has been widely studied. In total, 68 academic articles were found that are relevant to themes of poverty alleviation, social welfare, entrepreneurship, education, health services and religious facilities. They reveal that the role of waqf in social welfare was the most discussed topic in the research. In addition, the majority of studies used an interview method to study waqf institutions in nine OIC countries. Furthermore, the number of publications on the theme has increased significantly every year, although the largest proportion occurred in unindexed journals.
Practical implications
This study provides an overview of research trends in the socio-economic developmental role of waqf. Its results can provide practical input for waqf institutions as they encourage its practice in OIC countries, and for policymakers in formulating their management strategies to promote the role of waqf in the social and economic aspects of society.
Originality/value
This paper reviews the current development of the socio-economic role of waqf in OIC countries. It will help researchers improve their understanding of this role. It will also provide waqf managers in OIC countries with adequate information on waqf projects which they can implement to achieve socio-economic development in their countries.
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Rindawati Maulina, Wawan Dhewanto and Taufik Faturohman
To better understand the characteristics of Indonesian Muslims, this study uses cluster analysis to group upper-middle-class Muslims based on psychographic variables related to…
Abstract
Purpose
To better understand the characteristics of Indonesian Muslims, this study uses cluster analysis to group upper-middle-class Muslims based on psychographic variables related to participation in cash waqf for productive purposes.
Design/methodology/approach
This study used mixed methods to build and analyse the segmentation of upper-middle-class Muslims towards cash waqf and propose scenarios for a cash waqf model based on the findings.
Findings
This study identified six clusters for upper-middle-class Muslims related to the participation in cash waqf for productive purposes. All clusters show heterogeneous values of all factors. Although relatively few Muslims perform cash waqf for productive purposes, the high scores for the economic rational, family and community factors indicate great potential for the development of various cash waqf models for investment purposes. The next challenge will lie in reviewing the “one-fits-all strategy” in the development of program, education and socialisation. Based on the findings, this study proposes three scenarios of cash waqf participation: as wakif only (waqf donor), investor only (capital provider) and hybrid participation (waqf donor and capital provider).
Research limitations/implications
The limitation of this study is the location and object of the sample are only Muslims in Indonesia who are categorised as upper-middle class in terms of their monthly income. Based on this study’s findings, other Muslim-majority countries worldwide have the potential to develop a cash waqf model that is integrated with financial instruments and involves the role of Islamic banking and other Islamic commercial institutions in future research development. Researchers can also attempt to include a simulation or experiment method to construct and validate the proposed cash waqf model based on this study’s findings and to explore other factors that have not been addressed.
Practical implications
The findings of this study can contribute as a foundation for the development of a cash waqf model and business-marketing strategy to increase the participation of upper-middle-class Muslims.
Social implications
The findings of this study will support the acceleration of cash waqf collection for investment initiatives, which in turn will have a broader social and economic impact nationally.
Originality/value
To the best of the authors’ knowledge, this study constitutes the first attempt to specifically investigate upper-middle-class Muslim segmentation toward cash waqf participation for productive purposes. This study’s knowledge is helpful for various stakeholders such as academia, the Islamic banking industry, regulators and the Muslim community about customer segmentation to Islamic banking products and services related to cash waqf.
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Aimatul Yumna, Joan Marta and Ramel Yanuarta RE
This study aims to examine the impact of social and financial inclusion on the welfare of the impoverished through a Waqf-based microfinance organization.
Abstract
Purpose
This study aims to examine the impact of social and financial inclusion on the welfare of the impoverished through a Waqf-based microfinance organization.
Design/methodology/approach
This study used a structured questionnaire to collect primary data from 282 respondents, 150 of whom were customers and 132 of whom were not customers of an Indonesian Waqf-based microfinance organization. The impacts of financial and social inclusion on well-being were examined using generalized least squares with random effects.
Findings
This study discovered that financial inclusion has little influence on customer well-being, but it significantly improves the well-being of non-customers. Social inclusion, on the other hand, has a major influence on improving the well-being of consumers but has little effect on noncustomers. This study demonstrates that financial and social inclusion have varied effects on the well-being of two distinct groups of respondents.
Practical implications
These findings have significant implications for Waqf-based microfinance to restructure its programs to enhance financial inclusion by promoting financial literacy and developing partnership with commercial financial institutions.
Originality/value
Previous study examined into qard hassan’s contribution to financial inclusion and well-being, but the impact of social inclusion on well-being has received less attention. Thus, the objective of this research is to understand how financial and social inclusion might improve the well-being of Waqf-based microfinance customers.
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Syahnaz Sulaiman, Aznan Hasan, Azman Mohd Noor, Muhd Issyam Ismail and Nazrul Hazizi Noordin
This paper aims to present the viability of unit trust waqf (Islamic endowment) as an alternative asset class for waqf creation.
Abstract
Purpose
This paper aims to present the viability of unit trust waqf (Islamic endowment) as an alternative asset class for waqf creation.
Design/methodology/approach
This paper starts with the conceptual exploration of the literature in the areas of waqf. The sources of the literature cover authentic sources of the Qurʾān and ḥadīth, as well as secondary sources such as books, journal articles and online resources.
Findings
This paper provides the conceptual framework of five models of unit trust waqf and their investment management parameters.
Originality/value
The novelty of this paper lies in its attempt to highlight the importance of waqf investment strategy in ensuring sustainable returns for waqf. It does so by introducing the conceptual models of unit trust waqf as viable mechanisms to pool more cash waqf from individual investors. The sustainability of the capital waqf assets in the form of unit trusts is maintained through the parameters for its application proposed towards the end of the paper.
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Meshari Al-Daihani, Khadar Ahmed Dirie, Md. Mahmudul Alam and Ahmad Sufian Abdullah
Cash waqf is a powerful financial instrument that deals with the issue of liquidity constraints in waqf institutions. While there are several models of cash waqf operating in…
Abstract
Purpose
Cash waqf is a powerful financial instrument that deals with the issue of liquidity constraints in waqf institutions. While there are several models of cash waqf operating in different countries, there is increasing demand for innovative cash waqf models, especially within the financial technology context. This paper aims to propose a practical alternative model of funding for waqf institutions using the concepts of crowdfunding and cash waqf.
Design/methodology/approach
This study evaluated the literature relevant to cash waqf models that have been implemented in different countries and proposed a new viable alternative model.
Findings
Results offer an alternative financing model, named crowdfunding cash waqf model, for waqf institutions to overcome monetary constraints and enable development projects to be completed.
Practical implications
The current study has important implications for both officials and relevant stakeholders. It is sought to bring better consistency between cash waqf donors, solving the liquidity problem faced by waqf institutions, enhancing the transparency of waqf institutions and their use of waqf funds, wealth circulation and financing businesses without interest-based loans (riba). By incorporating a crowdfunding and investment mechanism in the model, this method of collecting funds will assist governments in reducing their expenditure on waqf institutions and other social development programmes.
Originality/value
The proposed model differs from current methods of generating cash waqf, including those are also internet-based. The proposed model is devised to help waqf institutions achieve financial sustainability by including an investment mechanism in the model to sustain the development of waqf projects.
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Martini Dwi Pusparini, Raditya Sukmana and Rodame Monitorir Napitupulu
This study aimed at exploring to what extent social media has educated and shaped public opinion regarding cash waqf. This research comprehensively analyzed the social media…
Abstract
Purpose
This study aimed at exploring to what extent social media has educated and shaped public opinion regarding cash waqf. This research comprehensively analyzed the social media content to find the most discussed topic and highlighted the trends in cash waqf literacy.
Design/methodology/approach
Twenty-nine videos discussing cash waqf in Indonesia from the YouTube platform were analyzed using NVivo R1 with a content analysis approach.
Findings
The research findings revealed that YouTube videos addressing cash waqf were categorized into four distinct clusters: government, ulama/influencers/professionals, nadzir (waqf manager) and TV stations, with the government cluster producing a higher number of videos (n = 11) than the other clusters. The findings also highlighted the limited involvement of nadzir in educating the public about cash waqf, as evidenced by a smaller number of videos (n = 5). Among these videos, the most frequently discussed topics included the utilization of cash waqf (n = 20), promotion of cash waqf (n = 14) and risk management (n = 13). Negative sentiment (n = 262) was observed to exceed positive sentiment (n = 107).
Practical implications
The findings of this study contribute to the fundraising aspect of cash waqf because the inclusivity of digital content in cash waqf campaigns is crucial to raise awareness of the public. In addition, these findings may help waqf managers (nadzir) assess the extent of educational content about cash waqf on YouTube and the public’s response to this content.
Originality/value
To the best of the authors’ knowledge, this study is the first to analyze the social media content, particularly from YouTube platforms, and public sentiment against cash waqf.
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This chapter is about the role Islamic finance has been able to stay on the track of facing social–economical predicaments and on the way to sustainable development with the…
Abstract
This chapter is about the role Islamic finance has been able to stay on the track of facing social–economical predicaments and on the way to sustainable development with the involvement of social prosperity. When trying to investigate the convergence between social finance and Islamic standards, what is argued is that a need for observing financial operations in the same way as prodevelopment theories arise. It is considered that in a holistic approach, which assumed a social justice as the basic ethic of the Islamic financial system, the final result tends to be more appropriate. One of the main elements that makes Islamic banking stand up in a high grade is maqasid al-Shari'ah due to its responsibility to assess social performance and apply new updated technologies for sustainable growth based on Sustainable Development Goals (SDGs). In addition to that, the situation is critically observed and the gap between ambitions functions and the reality in Islamic banking and finance is also pointed out to find some reconciliation between aspirations and facts. While its ancient foundations did point to the prospect of Islamic banking to serve as a major contributor to the social and economic development, the industry players of today have now been preoccupied with the profit-making objectives and financial performance rather than social banking. This chapter focuses on the role of Islamic finance as a breakthrough force and shows the way that this influence could shape the discussions of financial systems, so that economics follow, and ethical principles and become factors for the national economy to grow more robustness.