ISSN: 2222-6990
Open access
Islamic Social Finance (ISF) is a Corporate Social Responsibility (CSR) initiative in the form of humanitarian and socio-development programmes. ISF is done through various approaches and structures that are predefined by Syariah Law. Among the main structures in ISF programmes are Zakat, Awqaf, Purification Fund, Sadaqah, Microfinance and Sukuk. Innovative investments in humanitarian action through ISF will not only lead to long-term social improvements, but also to long-term resilience and to adaptive capacity-building for communities at risk. Such investments will empower communities to recover more strongly from shocks as well as facilitate social and economic inclusion within their populations. However, there has been limited study to discover its potential as it is at its nascent stage. The purpose of this study is to investigate how Zakat, Waqf, and Sadaqa can contribute to the development of Islamic Social Finance. This paper also details the role of zakat, waqf and philanthropy on economic development and the impact on social development. This study utilized content analysis to evaluate the issues and challenges of achieving Islamic Social finance goals from the secondary resources. Library methods of study, interviews, documentation and research are used to collect information related to Islamic social finance. Islamic Social Finance is an important area of growth similar to Islamic Finance. The results would provide us an opportunity to further develop the potential of Islamic Social Finance in enhancing the society and wellbeing of the Ummah.
Ahmad, M. F. (2020). Determinants of Corporate Waqf Contribution from the Perspective of Muslims in Malaysia. ICR Journal, 11(2), 252–276.
Ghazaleh, P. (2011). Held in Trust: Waqf in the Islamic World (1st ed.). The American University in Cairo Press.
Hassan, S. A., & Khairuldin, W. (2020). Research Design Based on Fatwa Making Process: An Exploratory Study. International Journal of Higher Education, 9(6), 241-246.
Khalaf, A. M. (2021). Role of zakat in the economy. ahmad khalaf, mba, cclp. Retrieved January 5, 2022, from https://www.linkedin.com/pulse/rolezakat-economy-ahmad-khalaf-bba-cclp.
Liberto, D. (2021). Zakat Definition. Investopedia. Retrieved January 5, 2022, from https://www.investopedia.com/terms/z/zakat.asp.
Mateen, M. Z. (2022). 4 Pillars of Waqf | Walking Through Waqf - Part 2 | Global Sadaqah Blog. GlobalSadaqah.Com Blog. Retrieved January 19, 2022, from https://www.globalsadaqah.com/blog/waqf-4pillars-conditions/.
Mohsin, M. I. A., Dafterdar, H., Cizakca, M., Alhabshi, S. O., Razak, S. H. A., Sadr, S. K., Anwar, T., & Obaidullah, M. (2016). Financing the Development of Old Waqf Properties: Classical Principles and Innovative Practices around the World (Palgrave Studies in Islamic Banking, Finance, and Economics) (1st ed. 2016 ed.). Palgrave Macmillan.
Najeeb, S. F., & Lahsasna, A. (2013). Qar? ?asan: its Shari’ah Rules and Applications in Islamic Finance. Journal of Islamic Business and Management, 3(1), 15–34. https://doi.org/10.12816/0004986
Ng, A. (2018). Islamic Wealth Management: Theory and Practice Edited by Mohamed Ariff and Shamsher Mohamad. Journal of Islamic Studies, 30(2), 293–297. https://doi.org/10.1093/jis/ety047
Sumai, S., Mutmainnah, A. N., Nurhamdah, & Arsyad, M. (2019). Role of zakat in poverty reduction and food security. IOP Conference Series: Earth and Environmental Science, 343(1), 012254. https://doi.org/10.1088/1755-1315/343/1/012254
Suprayitno, E., Aslam, M., & Harun, A. (2017). Zakat and SDGs: Impact Zakat on Human Development in the Five States of Malaysia. International Journal of Zakat, 2(1), 61–69. https://doi.org/10.37706/ijaz.v2i1.15.
Zain, N. R. M., & Ali, E. R. A. E. (2017). An Analysis on Islamic Social Finance for Protection and Preservation of Maq??id Al-Shari’ah. Journal of Islamic Finance, 6 (Special Issue), 133–141. https://doi.org/10.12816/0047345
In-Text Citation: (Mustafa et al., 2022)
To Cite this Article: Mustafa, Z., Dzalihu’zzabir, M. F. H., Moin, N. A. A., Shamsuddin, A. E., Fauzi, N. A. M., & Sabri, N. H. S. B. (2022). Islamic Social Finance and its Roles in Developing Islamic Economy in Addressing Various Issues During The Covid-19 Pandemic. International Journal of Academic Research in Business and Social Sciences, 12(10), 1118 – 1130.
Copyright: © 2022 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode