WAQF SECURITIES AS A SUSTAINABLE FINANCING INSTRUMENT FOR SOCIOECONOMIC DEVELOPMENT
DOI:
https://doi.org/10.22373/aiszawa.v2i1.9766Keywords:
Waqf Securities, Islamic Finance, Sukuk, Social Development, Shariah ComplianceAbstract
This research analyses the development and potential of waqf securities as a modern financial instrument in the context of socio-economic development, particularly in Malaysia. Historically, waqf, a charitable endowment in Islam, has only focused on immovable assets such as land and buildings. However, the rapid development of Islamic finance has seen the emergence of waqf shares, sukuk, Islamic unit trusts, and also Waqf Real Estate Investment Trusts (REITs) shares as instruments for waqf asset development. This research has shown that the use of these instruments can facilitate sustainable development by applying the concept of Islamic social finance in the capital market. This study uses a qualitative method by looking at the Ahmed Dawjee Dadabhoy Wakaf Project and the Seetee Aisah land development project which demonstrate the impact of religious integration and innovation in finance. While much has been achieved, much remains to be done in the areas of governance, public understanding, and alignment with laws and regulations. The proposed strategies to achieve this goal include the expansion of the digital framework, the advancement of regulatory policies, and the development of educational initiatives targeted toward stakeholders.
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