Smart sukuk as a mechanism for developing and mobilizing waqf resources in the age of digital technology

Zakariyah, Habeebullah and Ali, Jawwad Ali (2025) Smart sukuk as a mechanism for developing and mobilizing waqf resources in the age of digital technology. AL AWQAF JOURNAL, 6 (2). pp. 194-225. ISSN 2959-8966 E-ISSN 2959-8958

PDF - Published Version Restricted to Registered users only Download (991kB) | Request a copy

Abstract

Waqf, an Islamic endowment dedicated to the welfare of society, holds signi cant potential for contributing to socio-economic development. However, many Waqf properties remain underutilized due to administrative, nancial, and structural challenges. These issues hinder the transformative role that Waqf can play in addressing contemporary socio-economic challenges, particularly in many countries. Hence, the objective of this study is to explore innovative and sustainable approaches for revitalizing Waqf assets through the integration of digital technology particularly blockchain into Islamic nancial instruments. By conducting alibrary-based qualitative research, this paper critically reviews existing literature on traditional Waqf models, Islamic nancial instruments such as Sukuk al-Intifa’, Sukuk Musharakah, and cash Waqf-linked Sukuk, and emerging technological innovations including blockchain-based smart Sukuk. The ndings reveal that while traditional Islamic nancial instruments have made strides in improving Waqf utilization, they still face limitations related to governance, scalability, and operational transparency. In contrast, blockchain-integrated smart Sukuk offer a more robust, transparent, and decentralized framework for issuing and managing Waqf-based investments. This approach not only facilitates the transformation of idle Waqf properties into productive assets such as schools, hospitals, and commercial buildings but also creates employment opportunities and enhances asset value. As such, the Waqf-based smart Sukuk model emerges as a forward-looking and sustainable mechanism for mobilizing resources and ful lling the core objective of Waqf: the promotion of long-term social and economic welfare

Item Type:	Article (Journal)
Uncontrolled Keywords:	Waqf, Smart Sukuk, Social Welfare, Development, Digital Technology.
Subjects:	BPH Islamic Economics > BPH437 Sukuk - Islamic Bond BPH Islamic Economics > BPH741 Waqf
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	UNSPECIFIED
Depositing User:	DR HABEEBULLAH ZAKARIYAH
Date Deposited:	12 Jan 2026 15:54
Last Modified:	12 Jan 2026 15:54
Queue Number:	2026-01-Q1584
URI:	http://irep.iium.edu.my/id/eprint/126773

Actions (login required)

View Item