WAQF INSTITUTIONS: A SYSTEMATIC LITERATURE REVIEW ON GOVERNANCE, FINANCIAL MODELS, AND SOCIO-ECONOMIC IMPACT IN ISLAMIC SOCIAL FINANCE

Abstract

Historically dedicated to charitable causes, Waqf institutions have adapted to contemporary needs, emphasizing the importance of examining their governance and socio-economic influence. This systematic review explores these aspects within the framework of Islamic finance. Utilizing the PRISMA Flow Diagram and implementing a comprehensive search strategy across Scopus and Web of Science databases, this paper systematically reviewed 28 articles. Expert validation categorized these articles into three key themes: (1) Governance and Accountability of Waqf Institutions, (2) Waqf-Based Financial Models and Sustainability in Islamic Social Finance, and (3) Socio-Economic Impact of Waqf Institutions. The findings emphasize the integral roles of governance, financial models, and socio-economic impact within Waqf institutions. Robust governance and accountability practices ensure transparency and trust, while innovative financial models, including crowdfunding and SRI Sukuk, offer the potential for sustainability. These models can rejuvenate Waqf institutions, optimizing their socio-economic impact and enhancing their relevance in today's financial landscape. In conclusion, this systematic review highlights the adaptability of Waqf institutions in addressing contemporary challenges. The interplay between governance, finance, and socio-economic impact provides actionable insights for policymakers and practitioners, fostering improved governance and the adoption of innovative financial models. The review contributes to a deeper understanding of the contemporary significance of Waqf in Islamic finance, advancing the discourse on sustainable and accountable financial practices.