ENGLISH-CASH WAQF: A LIMITLESS POTENTIAL FOR ECONOMIC AND SOCIAL DEVELOPMENT

Abstract

Traditional institutions of Islamic economics hold significant potential for social development and welfare. Historically, the institution of Waqf played a crucial role in the golden era of Islamic civilization. A key evolution within this system is Cash Waqf, which was notably encouraged during the Ottoman era. Due to its flexibility, it was used to overcome different issues and challenges associated with traditional real estate endowments. Cash Waqf is easier to establish and manage, allowing it to serve a larger segment of society. It can be utilized for direct financing or invested, and the profits generated will be used for funding microfinance and social goals. In the contemporary era, Cash Waqf has regained attention and is being applied to innovative concepts like Islamic insurance (Takaful). This underlines the importance of this tool and its capacity to establish a humanitarian and moral economy in the world.