Sustainable development has recently emerged as one of the hottest issues in the field of socioeconomic development. Throughout the Islamic history, waqf has played an essential role in supporting the sustainable development of Muslim communities. This paper attempts to provide a state-of-the-art review of waqf sukuk with special focus on the Malaysian context. Qualitative method has been utilised to collect data. Six semi-structured interviews have been conducted with waqf and sukuk experts in Malaysia. Research has found that so far there has not been any issuance of waqf sukuk in Malaysia. Interviewed experts have rightly pointed out a number of Shariah, legal, regulatory and operational challenges facing the issuance of waqf sukuk in Malaysia. Challenges include the lack of awareness on the importance of waqf sukuk, besides the serious lack of skilled and competent human resources and staff working in waqf administration and governance.
Alleviating poverty and inequality are among the central objectives of zakah in the Islamic economic system. These objectives are also on top of the 17 SDGs of the UN 2030 Agenda. This research argues that microenterprise support programs (MSPs) have been proven as effective tools in combating poverty. However, lack of funds has always been a major challenge for the sustainability of those programs. Channeling zakah funds to MSPs will directly contribute to empowering deprived populations and helping them to lift themselves out of the poverty cycle. Two zakah-based MSPs have been analyzed in this chapter. The first one is the Asnaf Entrepreneurship Program of Lembaga Zakah, Malaysia and the second one is Baitul Maal Muamalat Indonesia (BMMI). According to literature, using zakah in (MSPs) requires a strict implementation of best practices including screening program beneficiaries, providing professional training and monitoring to businesses, and finally applying a graduation scheme.
This chapter examines the prospects and challenges of using zakah as a source of funding in microenterprise support programs for refugees. According to the literature, lack of funds represents a fundamental obstacle in supporting refugees' livelihood in particular in microenterprises programs. Zakat is one of the five pillars of Islam. All Muslims have to pay 2.5% of their wealth every year to the poor and needy. Refugees represent one of the main beneficiaries of zakah. Recently the UNHCR has established a zakah fund to mobilize zakah funds to help refugees. This chapter argues that instead of assisting refugees with cash money, zakat funds or at least part of the zakat funds can be used to provide microcredit grants to support the refugees and help them to help themselves. Despite all the challenges of microfinance programs in particular in the context of refugees, well-designed microfinance programs can provide a more sustainable solution to refugees in particular those trapped in protracted situations.
Alleviating poverty and inequality are among the central objectives of zakah in the Islamic economic system. These objectives are also on top of the 17 SDGs of the UN 2030 Agenda. This research argues that microenterprise support programs (MSPs) have been proven as effective tools in combating poverty. However, lack of funds has always been a major challenge for the sustainability of those programs. Channeling zakah funds to MSPs will directly contribute to empowering deprived populations and helping them to lift themselves out of the poverty cycle. Two zakah-based MSPs have been analyzed in this chapter. The first one is the Asnaf Entrepreneurship Program of Lembaga Zakah, Malaysia and the second one is Baitul Maal Muamalat Indonesia (BMMI). According to literature, using zakah in (MSPs) requires a strict implementation of best practices including screening program beneficiaries, providing professional training and monitoring to businesses, and finally applying a graduation scheme.
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