Digital Waqf: The Role of Technology in Revitalizing Islamic Endowments for Sustainable Development

Abstract

Objective: The purpose of this project is to look into how digital technology might help revive waqf, or Islamic endowments, as tools for sustainable development in areas with a majority of Muslims. Theoretical framework: The study is based on two complementary theoretical frameworks: Islamic economic theory, which emphasizes the ethical, legal, and redistributive aspects of waqf, and institutional economics, which studies how institutional arrangements influence economic performance.  A comprehensive evaluation of how digital tools might improve waqf management's efficiency and ethical accountability is made possible by this dual viewpoint. Literature review: Although researchers like Monzer Kahf, Mehmet Asutay, and Siti Mashitoh Mahamood have examined the socio-economic benefits of waqf, the literature review emphasizes that there is still a dearth of research that operationalizes technology-driven strategies for waqf revival.  The systemic potential of digital integration for scaling the developmental impact of waqf is underexplored in existing research, which mostly concentrates on traditional governance or micro-level case studies. Methods: Methodologically, this research utilizes a qualitative, comparative approach, analyzing policy documents, legal frameworks, and case studies from countries such as Malaysia, Indonesia, Turkey, and the Gulf states.  It combines institutional assessment of technology adoption with doctrinal examination of maqāṣid al-sharīʿah (the goals of Islamic law). Results: According to the findings, digital technologies can help with major waqf management issues such as low donor confidence, underutilization of assets, and a lack of transparency. Blockchain-powered crowdfunding for micro-waqf projects and blockchain-powered waqf asset monitoring pilot projects show greater donor engagement, enhanced accountability, and closer alignment with the Sustainable Development Goals (SDGs).  However, obstacles to broader adoption include unclear regulations, a lack of technological expertise, and worries about Sharia compliance. Implications: This study has important ramifications for civil society organizations, Islamic financial institutions, and governments.  The study provides a solution to modernize waqf without compromising its religious core by fusing technical advancement with traditional waqf ideals. This will increase waqf's contribution to environmental sustainability, healthcare, education, and poverty alleviation. Novelty: This study is innovative because it combines digital innovation with Islamic economic theory to create a paradigm focused on policy that reframes waqf as a dynamic, technology-enabled tool for sustainable development.