The Impact of Waqf on Economic Growth

Abstract

Waqf or Islamic endowment fund has been practiced since the era of Rasulullah ? as it is one of the crucial elements which lies under the Islamic economic system. This socioeconomic tool was proved to be effective in supporting the development of ummah as it has a primary function in alleviating poverty and improving other sectors such as education and infrastructure welfare. However, the needs of the ummah grow and change as the world changes rapidly. This matter has caused the need to shift from consumptive waqf to productive waqf, to leave a dominant impact on the economic growth. The role of waqf and vital component of sustainable development goals which are related to the implementation of waqf in the Muslim world will be discussed in this paper. In addition, it also aims to shed light on the impact of waqf as a pillar in supporting the economic growth and to explore the status of this socioeconomic instrument in Muslim nations. To achieve this, this paper would explain the impact of waqf will be elucidated from the perspective of four prominent jurisprudential sects of Islam which are Maliki, Hanafi, Hanbali and Shafi’i. As a result, some suggestions, and recommendations of waqf will be stated in this paper which enable the Muslim countries to enhance their economic growth.