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Integrating Zakah, Awqaf and IMF for Poverty Alleviation: Three Models of Islamic Micro Finance

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  • Khalifa M HASSANAIN

    (Islamic Research and Training Institute, Saudi Arabia.)

Abstract

The objective of this paper is to present theoretical proposals for institutional structure in the context of Islamic Microfinance by first comparing Conventional and Islamic microfinance institutions and then by highlighting some of the pioneering work of conventional microfinance models that paved the way for Islamic Microfinance. In this paper, we review the literature of micro finance models that simultaneously deals with several facets of poverty by combining Waqf and Zakah principles together or individually. There are three models examined in this paper. Waqf-Based Islamic Microfinance Institutions, a Model of Zakah and Awqaf-based MF Organizations and an Integrated Awqaf and Zakah Model of Microfinance. Both Zakah and Waqf mechanisms are considered for Islamic microfinance not only because of their frameworks that are in accordance to the Shariah but they are the original concepts provided in Islam that serve people in need i.e the poor. In tandem with the doctrine of microfinance, Zakah and Waqf are seen as tools best suited to assist the poor who require financing and ultimately could be effective for poverty reduction. The paper derives recommendation for integrating microfinance models into the overall economic policy.

Suggested Citation

  • Khalifa M HASSANAIN, 2015. "Integrating Zakah, Awqaf and IMF for Poverty Alleviation: Three Models of Islamic Micro Finance," Journal of Economic and Social Thought, KSP Journals, vol. 2(3), pages 193-211, September.
    • Handle: RePEc:ksp:journ3:v:2:y:2015:i:3:p:193-211
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    References listed on IDEAS

    as
    1. Ines Ben Abdelkader & Asma Ben Salem, 2013. "Islamic vs Conventional Microfinance Institutions: Performance analysis in MENA countries," International Journal of Business and Social Research, LAR Center Press, vol. 3(5), pages 218-233, May.
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    Cited by:

    1. Sulistyowati, 2018. "Designing Integrated Zakat-Waqf Models For Disaster Management," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 4(2), pages 347-368, November.
    2. Siti Nadiah Mohd Ali & Salbiah Mokhtar & Abdul Halim Mohd Noor & Noraini Johari & Nor Aini Salleh & Nurul Sahida Fauzi, 2018. "A Conceptual Framework in Synergizing Waqf Real Estate and Zakat through Strategic Integration for Malaysian Asnaf," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 815-828, January.
    3. repec:idn:jimfjn:v:4:y:2018:i:2i:p:1-22 is not listed on IDEAS

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    More about this item

    Keywords

    Awqaf Funds; Monetary waqf; Zakah; Microfinance; Islamic Microfinance and Poverty.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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