An analysis of Waqf, Zakāt, Qard and Takāful as Islamic social finance instruments juristic views

Mahadi, Nur Farhah (2022) An analysis of Waqf, Zakāt, Qard and Takāful as Islamic social finance instruments juristic views. IIUM Law Journal, 30 (2). pp. 37-56. ISSN 0128-2530 E-ISSN 2289-7852

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Abstract

This paper discusses how waqf properties, zakāt and qarḍ which are Islamic social finance (ISF) instruments, can be used to assist different categories of low-income individuals and groups to achieve financial empowerment and widen their financial well-being. In addition, this paper explains how takāful products and services can prevent financial anxiety and strengthen the financial resilience of low-income individuals and groups against unpredictable shocks. Qualitative approach is used to review opinions of both classical and contemporary jurists from four major Sunni madhāhib namely, the Ḥanafiyyah school, the Mālikiyyah school, the Shāfiʽīyah school and Ḥanbaliyyah school on the useability and application of waqf, zakāt, qarḍand takāful as social financing tools. In addition, the paper discusses ijtihād heldby a number of Muslim jurists whoare known for deep thought and their ability to scrutiniseand compare opinions and views from different Shari’ahsources. As the result, the divergent views expressed by these jurists are to some extent reconciled to help the policymakers and other interested parties to have a clear understanding of the actual meaning of the concept of sufficiency of sustenance/need (ḥājah) and conditions that deem to appropriately align with the concept. This is expected to provide the basis for the policymakers to formulate policies and strategies for the intended beneficiaries who are the low-income individuals and groups who constitute the vulnerable groups in a society. This research is supported by Ministry of Education (MOE) through Fundamental Research Grant Scheme (FRGS/1/2021/SS01/UIAM/03/3).

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic Social Finance, Juristic Views, Waqf, Zakāt, Qarḍ, Takāful, Financial Resilience.
Subjects:	BPH Islamic Economics BPK Islamic law. Shari'ah. Fiqh BPK Islamic law. Shari'ah. Fiqh > BPK36 Islamic law (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Nur Farhah Mahadi
Date Deposited:	27 Dec 2022 12:03
Last Modified:	27 Dec 2022 12:04
URI:	http://irep.iium.edu.my/id/eprint/102351

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