Abstract
As at the end year of 2019, the Covid-19 pandemic outbreak had caused an unparalleled human crisis around the world. The disease is causing not just a health problem but also economic crisis. Numerous countries fell into meltdown and more people fell into poverty. The government may not be sufficiently able to take the economy back to its track. The concentration has now moved from the spread of the virus to the economic consequences it will bring to the community. The lack of production will lead to the deficiency of supply and therefore will end as loss of employment and jobs for a large number of people around the globe. The most significant sections of our society are SMEs and daily wage will bear the major burn of the crisis. Therefore, Islamic social finance, incorporating zakat and waqf, has to be adopted to address the Covid-19 pandemic crisis. Zakat and waqf are commonly practised in Muslims countries majority. Zakat and waqf function show the possibility and economic advantages of zakat and waqf properties for people’s prosperity. Moreover, zakat and waqf can be utilized to fill financial gaps and can likewise be utilized to create social wellbeing. This study explores the application and potential of zakat and waqf institutions for the social wellbeing of the people and economic development during and after Covid-19 pandemic. The study reviewed past studies on the potential of zakat and waqf as an alternative way for social development and economic growth. The study, therefore, observed that zakat and waqf institutions can improve economic activity through zakat and waqf properties use for various purposes such as health services, infrastructure, SMEs, poverty eradication and education.
Highlights
In the first quarter of 2020, a transmissible virus known as coronavirus was discovered in Wuhan City, China
This is based on the fact that Zakat is one of the five key pillars of Islam which entails the mandatory payment of the minimum of 2.5% of the wealth of qualified Muslim faithful
This study aims at conceptually exploring the role of Islamic social finance via zakat and waqf in mitigating the effect of the Covid-19 pandemic on the people and society at large
Summary
In the first quarter of 2020, a transmissible virus known as coronavirus was discovered in Wuhan City, China. On January 10 2020, the causes began to be obtained and identified the hereditary code, named as new coronavirus. On February 11, 2020, WHO named this virus covid (Hambari, Arif & Zaim, 2020). The spread of covid-19 pandemic has prompted the rise of several policies taken by the public authority such as the policy of maintaining distances or social distancing from larger numbers of people. These policies are considered to be factors that can greatly slow the spread of the deadly covid-19 illness. The approaches to handle the spread of covid-19 universally have multiplier consequences on several aspects of life towards health and towards other aspects such as economy, small and medium enterprises (SMEs), industries, business and all the socio-economic sectors around the globe (Ferdaus, Hidayatullah & Zahrati, 2020; OECD, 2020)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: The Journal of Management Theory and Practice (JMTP)
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
