ECONOMIC POTENTIAL OF WAQF FOR SOCIAL WELFARE: PATTERNS AND CONTRASTS IN MENAP AND COUNTRIES IN SUB-SAHARAN AFRICA

  • Mohammad Hariri Associate Professor, College of Business Administration, Umm Al-Qura University, Makkah, Saudi Arabia https://orcid.org/0000-0003-2350-380X
Keywords: Waqf, Awqaf, Economic and Social Development, Cross National Analysis

Abstract

The Waqf has become a matter of increasing priority for Islamic scholars and policymakers, given its potential as a mechanism for the socioeconomic advancement of Muslim communities worldwide. This systematic literature review investigated the critical economic and social dimensions of the Waqf in the Middle East, North Africa, and Pakistan (MENAP) region and predominantly Muslim nations of sub-Saharan Africa. Through a rigorous examination of academic databases, 61 relevant primary sources published since 2014 were analyzed using thematic analysis techniques to uncover patterns and contrasts in managing and utilizing the Waqf across countries. The findings reveal significant diversity in Waqf economic strategies implemented, with greater uptake of Cash Waqf and Waqf-based microfinance in MENAP countries compared to sub-Saharan Africa, where adoption is limited. Approaches also diverge regarding the investment of Waqf assets in financial products, with higher prevalence in the Gulf countries than elsewhere. In the social dimension, Waqf has funded traditional educational institutions in MENAP, but the innovation support is largely untapped. Health care and affordable housing are recurring areas of Waqf's contribution, but the impact is uneven: countries like Kuwait and Qatar show more advanced development than Yemen. Women's economic empowerment through the Waqf is more pronounced in the Gulf region than in countries like Nigeria. The review identifies gaps in understanding Waqf's performance in various countries, best practices, and underlying drivers, setting out a roadmap for further comparative research to unlock Waqf's potential as an inclusive development tool.

References

Abdelhady, H. (2014). Muslim financing to improve food security in the Middle East: WAQF Food Security. Sustainable development law and policy, 14(2), 30-36. https://doi.org/10.18356/8555b147-es

Abdulkareem, I. A., Mahmud, M. S., Abdul G., A., & Aliu, O. A. (2020). Establishment of the Waqf to alleviate poverty among Muslims in South West Oyo State, Nigeria: Testing the theory of planned behavior. Li Falah: Study Journal Ekonomi Dan Bisnis Islam, 5(2), 1-18. https://doi.org/10.31332/lifalah.v5i2.2253

Abdullah, A. (2020). The Waqf and State Interference: A Study in Phenomenology at Al-Azhar University, Egypt. Islamic Banking and Finance Journal, 3(1), 38–56. https://doi.org/10.22515/jfib.v3i1.2625

Abdullah, M. (2018). Evolution of Waqf Jurisprudence and Islamic Financial Innovation. Journal of Islamic Monetary Finance and Economics, 4(1), 161–182. https://doi.org/10.21098/jimf.v4i1.920

Abdullah, R., & Ismail, A. G. (2017). The balance sheet of the Islamic microfinance model based on the Waqf. International Journal of Social Economy, 44(8), 1018-1031. https://doi.org/10.1108/ijse-06-2015-0176

Abdullahi, J. A. (2021). Zakat and Waqf: a panacea to eradicate poverty and hunger in our societies/communities. AZKA International Journal of Zakat and Social Finance, 2(2), 41-51. https://doi.org/10.51377/azjaf.vol2no2.59

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

Alaeddin, T., & Arshad, I. (2018). Turkish Waqf after the 2004 Aceh Tsunami. Intellectual Discourse, 26(2), 1047–1064. Retrieved from https://t.ly/G0w4I

Alani, U. (2017). Waqf financing for microprojects. Awqaf Journal, 27, 115–162. https://dx.doi.org/10.2139/ssrn.3427854

Al-Daihani, M. (2021). The tilt towards Cash Waqf-based education funding: evidence from the Kuwait Waqf Public Foundation. Journal Application Manajemen, Ekonomi dan Bisnis, 5(2), 48-59. https://doi.org/10.51263/jameb.v5i2.125

Aldeen, K. N. (2021). Bibliometric analysis of 40 years of the Waqf: its current state and development, and paths for future research. Journal of Islamic Monetary Finance and Economics, 7(1), 181-200. https://doi.org/10.21098/jimf.v7i1.1308

Ali, K. M., & Kassim, S. (2020). Forest Waqf: How can the Waqf play a role in preserving forests and achieving the SDGs? Etikonomí, 19(2), 349-364. https://doi.org/10.15408/etk.v19i2.16310

Almanaseer, M., & Matarneh B. (2014). Waqf and its role in the social and economic development of the Hashemite Kingdom of Jordan. Journal of Economy and Sustainable Development, 5, 18-25. Retrieved from https://t.ly/0askC.

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

Amrullah, K., Jamal, M., Khakim, U., Cahyo, E. N., & Zahro, K. (2022). The concept of Waqf from the worldview theory: the study of Sharia philosophy. Ulul Albab Studi Islam Journal, 23(1), 22-41. https://doi.org/10.18860/ua.v23i1.15694

Amuda, Y. J., Embi, A. C., & Babatunde, O. H. (2014). An agricultural approach to trading Cash Waqf between Malaysia and Nigeria. Journal of Advanced Management Sciences, 2(4), 344-348. https://doi.org/10.12720/joams.2.4.344-348

Awagy, O. A. E. (2016). The Waqf's Corporate Role in Enhancing Social Entrepreneurship in the Egyptian Community: Problems and Solutions. Journal of Public Administration and Governance, 6(4), 150–170. https://doi.org/10.5296/jpag.v6i4.10504

Ayub, M. (2018). Institutionalization of the 'Waqf' to achieve the goal of development shared by Islamic banks and financial institutions. Islamic Business and Management Journal, 8(2), 330–343. https://doi.org/10.26501/jibm/2018.0802-001

Azmi, A. S. M., Hanif, N. R., Mahamood, S. M., & Ali, S. N. M. (2019, November). Synthesizing the Maqasid al-Syariah for the waqf property development. In IOP Conference Series: Earth and Environmental Science (Vol. 385, No. 1, p. 012051). IOP Publishing. https://doi.org/10.1088/1755-1315/385/1/012051

Diniyya, A. A. (2019). Waqf-based microfinance development and its impact on poverty alleviation. Ihtifaz: Journal of Islamic Economics, Finance and Banking, 2(2), 107–123. https://doi.org/10.12928/ijiefb.v2i2.879

Gabil, H., Bensaid, B., Tayachi, T., & Jamaldeen, F. (2020). The need for Shari'ah compliant Awqāf banks. Journal of Financial and Risk Management, 13(4), 1-16, https://doi.org/10.3390/jrfm13040076

Gundogdu, A. S. (2019). Poverty, hunger, and inequality in the context of Zakat and Waqf. Darulfunun Ilahiyat, 30(1), 49-64. https://doi.org/10.26650/di.2019.30.1.0005

Gwadabe, N. A., & Rahman, A. A. (2020). The role of Islamic finance in mitigating the economic impact of COVID-19 towards the achievement of Maqasid Al Sharia: a case study of Waqf institutions in Kano State, Nigeria. Review of Muamalat and Islamic Finance Research, 17(3), 59-70. https://doi.org/10.33102/jmifr.v17i3.284

Haneef, M. (2018). Waqf is a socioeconomic institution. King Abdulaziz University Journal of Islamic Economics, 31(2), 71–78. https://doi.org/10.4197/islec.31-2.5

Haruna, H. T., & Ibrahim, A. S. (2021). The contribution of the Waqf institution as a financial tool to address poverty reduction: evidence from the literature. AZKA International Journal of Zakat and Social Finance, 2(2), 151-178. https://doi.org/10.51377/azjaf.vol2no2.64

Hassanain, K. M. (2015). Integrating Zakah, Awqaf, and IMF for poverty alleviation: Three models of Islamıc micro finance. Journal of Economic and Social Thought, 2(3), 193-211. http://dx.doi.org/10.1453/jest.v2i3.394

Islahi, I. (2018). The role of women in the creation and management of Awqāf: a historical perspective. Intellectual Discourse, 26(2), 1025–1046. Retrieved from http://bit.ly/3P5UtGK

Ismail, N., & Cahyo, E. N. (2017). The role of Islamic banks as providers of Islamic wealth management to enhance the potential of Waqf funds. Al-Iktisab: Journal of Islamic Economic Law, 1(1), 35–54. https://doi.org/10.21111/al-iktisab.v1i1.2381

Jahan, S., Muneeza , A. & Baharuddin, S. H. (2021). Islamic Capital Markets for Social Development: Waqf Mobile Sukuk Innovation in Sub-Saharan Africa. International Journal of Management and Applied Research, 8(2), 141-154. https://doi.org/10.18646/2056.82.21-009

Kasdi, A., Karim, A., Farida, U. & Huda, M. (2022). The development of the Waqf in the Middle East and its role in pioneering contemporary Islamic civilization: a historical approach. Journal of Islamic Thought and Civilization, 12(1), 187-198. https://doi.org/10.32350/jitc.121.10

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. (2021). Awareness and application of knowledge management in Waqf institutions: the perception of Waqf employees in Algeria. At the I International Congress of Advanced Technology and Engineering (ICOTEN) (pp. 1-9). https://doi.org/10.1109/icoten52080.2021.9493495

Laallam, A., Kassim, S., Engku A., E., Rabiah A., & Saiti, B. (2020). Intellectual Capital in Non-Profit Organizations: Lessons Learned for Waqf Institutions (proceeding). ISRA International Journal of Islamic Finance, 12(1), 27-48. https://doi.org/10.1108/ijif-10-2018-0111

Listiana, L., Alhabshi, S. M., & Harjunadhi, A. W. (2020). Waqf for socioeconomic development: an Ibn Khaldun perspective. Journal of Ibn Haldun Studies, Ibn Haldun University, 5(1), 83-94. https://doi.org/10.36657/ihcd.2020.67

Lukman, R., Ashok, P., & Ismail, A. (2014). Corporate social responsibility, Waqf system, and Zakat system as a faith-based model for poverty reduction. World Journal of Entrepreneurship, Management and Sustainable Development, 10(3), 228-242. https://doi.org/10.1108/wjemsd-09-2013-0052

Lita, H. N. (2015). Implementation of corporate social responsibility (CSR) through the Waqf related to law number 41 of 2004 on Waqf. Tazkia Islamic Business & Finance Journal, 9(1), 41–59. Retrieved from https://t.ly/vl4LF

Miftahul, H., Imam, H., Adab, S., Achmad, F., & Fadhila, I. (2019). Conceptualizing the Waqf Insan on i-IDH (Islamic Human Development Index) through Maqashid Sharia management. ICBLP, 1-8. https://doi.org/10.4108/eai.13-2-2019.2286206

Moh’d, I. S., Omar Mohammed, M., & Saiti, B. (2017). The problems facing agricultural sector in Zanzibar and the prospects of Waqf-Muzar’ah-supply chain model: The case of clove industry. Humanomics, 33(2), 189-210. https://doi.org/10.1108/h-02-2017-0033

Mohamedaeali, K. (2018). Waqf resource mobilization for poverty alleviation based on the Maqasid framework. IRTI Policy Paper, 3. https://doi.org/10.2139/ssrn.3303707

Mohammad, T. S. H. M. (2015). Theoretical and trustee perspectives on the establishment of an Islamic social bank (Waqf). Humanómica, 31(1), 37-73. https://doi.org/10.1108/h-05-2013-0032

Mohammad, T. S. H. M. (2018). Maqāṣid al-Sharī'ah and Waqf: their effect on the law and economy of the Waqf. Intellectual Discourse, 26(2), 1065–1091. Retrieved from http://bit.ly/3Pxk4ty

Muhammad, I. N., Sadiq, B. A., Hussaini, H., & Umar, Y. R. (2018). The Hajiya Zainab Assibi Waqf, Kanti Kazaure, Jigawa State: Implications for property endowment by childless Hausa women in northwestern Nigeria. UMRAN - International Journal of Islamic and Civilization Studies, 5(1), 19-30. https://doi.org/10.11113/umran2018.5n1.135

Musaee, A. H. M., Abbas, E. M., Mujan, W. K., & Sidik, R. (2014). The Waqf's land in the West Bank and the current investment situation. Asian Social Sciences, 10(14), 23-39. https://doi.org/10.5539/ass.v10n14p23

Nawi, H. M., Mohaiyadin, N. M., Kumar, N., Ghazali, S. A. M., Sapiai, N. S., & Rusok, N. H. M. (2021). A bibliometric analysis on the Waqf. International Journal of Scholarly Research in Accounting, Finance, and Management Sciences, 10(2), 42-49. https://doi.org/10.6007/ijarafms/v11-i1/8833

Nienhaus, V. (2018). Awqāf: social spending, development strategy, and financing. Comparative Political Economy: Electronic. Journal of Social Welfare Policy, 31(2), 91–99. https://doi.org/10.4197/islec.31-2.7

Oladapo, H. B., Norma, S., Mustafa, O. M., & Gapur, O. (2017). Cash Waqf as an alternative panacea for poverty alleviation, an overview of human development in Nigeria. Turkish Journal of Islamic Economics, 4(2), 83-90. https://doi.org/10.26414/tujise.2017.4.2.83-90

Olaniyi, O. N., Thaker, M. A. B. M. T., Thaker, H. M. T., & Pitchay, A. A. (2014). The financing problems facing the agricultural sector in Nigeria and the prospects of the Waqf-Muzaraah supply chain model (WMSCM). Global Review of Islamic Business and Economics, 2(1).1-14. https://doi.org/10.14421/grieb.2014.021-01

Papa, M., & Santostasi, E. (2019). Real estate, usufruct rights, and the issue of Waqf assets in Egypt. European Journal of Islamic Finance, 1-8. Retrieved from https://ojs.unito.it/index.php/EJIF/article/download/3064/pdf

Rashid, S. K. R. S. K. (2018). Waqf potential in the contemporary world. King Abdulaziz University Journal of Islamic Economics, 31(2), 53–69. https://doi.org/10.4197/islec.31-2.4

Shaikh, I. A. (2018). The foundations of Waqf institutions: a historical perspective. Intellectual Discourse, 26(2), 1213–1228. Retrieved from http://bit.ly/44BXowo

Saad, A. Y. Q., Mohammed, M. O., & Al-Jubari, I. (2019). An overview of the Waqf's assets in Yemen: importance and challenges. Humanities and Social Sciences Reviews, 7(5), 1065–1072. https://doi.org/10.18510/hssr.2019.75142

Saad, A. Z. A., Noor, A. B. M., & Sharofiddin, A. (2020). Effect of the total quality management application on improving the performance of the Al-Waqf societies of Albr in Saudi Arabia: a theoretical framework for the "Deming model." International Journal of Ethics and Corporate Governance, 3(2), 12-32. https://doi.org/10.51325/ijbeg.v3i2.24

Saiti, B., Dembélé, 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

Salman, M. J., Mohamad, N. A., & Sadique, M. A. (2022). Implementation of the e-Waqf: a paradigm shift in the Nigerian Waqf system. Journal of Social Sciences and Humanities of Asia and Africa, 7(4), 41-53. https://doi.org/10.55327/jaash.v7i4.255

Saragih, M. I. (2021). The role of journalists in the socialization of Waqf money. British International. Journal of Humanities and Social Sciences, 3(2), 361-369. https://doi.org/10.33258/biohs.v3i2.456

Sarea, A. M. (2019). Establishment of the first WAQF bank in Bahrain: exploratory study. Journal of Developing Areas, 53(2), 221–228. https://doi.org/10.1353/jda.2019.0032

Sayyed, H. S. M., Ebrahimi, S. T., & Narimani, Z. A. S. M. (2014). Study of the Cash Waqf and its impact on poverty (Iran case study). Atlantic Journal of Economics, 2(1), 1-19. Retrieved from https://www.econstor.eu/bitstream/10419/146585/1/833286609.pdf

Shirazi, N. S., Obaidullah, M., & Haneef, M. A. (2015). Integration of the Waqf and Islamic microfinance for poverty reduction. Journal of economic research and business administration. 1(127), 152-162. Retrieved from https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/16

Sulaiman, S., Hasan, A., Johari, F., & Mirza, A. A. I. (2021). Unit Trust with Waqf characteristic as a conceptual model of sustainable investment in the post-COVID-19 era. Ulum Islamiyyah, 33(S4), 203-216. https://doi.org/10.33102/uij.vol33nos4.424

Uluyol, B., Secinaro, S., Calandra, D., & Lanzalonga, F. (2021). Waqf research mapping: 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

Umar, A., & Aliyu, S. (2019). Sukuk – A true tool for effective Waqf fund management in Nigeria. Iqtishadia, 12(1), 1-11. https://doi.org/10.21043/iqtishadia.v12i1.4618

Urrutia, G., & Bonfill, X. (2010). PRISMA Statement: a proposal to improve the publication of systematic reviews and meta-analyses, Medicina clínica, 135(11), 507-511. Retrieved from https://revistas.um.es/eglobal/article/download/251571/242631/

Usman, M., & Rahman, A. A. (2021). Financing of higher education through the Waqf in Pakistan: problems and challenges. Junal Pengurusan, 62, 159-171. https://doi.org/10.17576/pengurusan-2021-62-13

Yulia, Q. (2016). The context of the Waqf in the philosophy of Islamic law is based on the Qur'an and hadith. Lambung Law Review Mangkurat, 1(1), 15-26. Retrieved from https://www.academia.edu/download/46977688/02.pdf

Yusuf, A. O., Junurham, N. L. N. P., & Adam, U. A. (2021). Bibliometric evaluation of scholarly publications on Waqf (Islamic endowment). International Journal of Economics, Management and Accounting, 29(1), 223-241. Retrieved from http://bit.ly/3Pmdipt

Yusuff J. A. (2016). Commercializing the Cash Waqf in Nigeria: An Analysis of Its Implementation (Ph.D. Thesis, University of Malaya, Kuala Lumpur, Malaysia). Retrieved from http://studentsrepo.um.edu.my/7103/4/yusuff.pdf

Published
2023-09-16
How to Cite
Hariri, M. (2023). ECONOMIC POTENTIAL OF WAQF FOR SOCIAL WELFARE: PATTERNS AND CONTRASTS IN MENAP AND COUNTRIES IN SUB-SAHARAN AFRICA. International Journal of Sukuk and Waqf Research, 4(1), 1-14. https://doi.org/10.46281/ijswr.v4i1.2079
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper