Abstract
Harnessing a sustainable waqf model remains as the key challenge faced by waqf managers particularly in the mid of socio-economic crisis post-COVID-19 pandemic. This paper aims to present the viability of unit trust waqf as an alternative asset for waqf creation. This study employed a qualitative research design using document analysis of classical Islamic books, Islamic ruling (fatwa), journal articles, books, online and policy documents. The novelty of this paper lies in its attempt to highlight the importance of waqf investment strategy in ensuring sustainable returns for waqf particularly during this difficult time in reducing the socioeconomic impact of COVID-19 catastrophe, by introducing conceptual model of unit trust waqf as potential mechanisms to pool more cash waqf from individual investors. This paper submitted that waqf plays a significant role as a global financial cure for economic revival post COVID-19. The sustainability of the capital waqf assets in the form of unit trust is preserved through the distinctive fixed price feature of the unit trust waqf as proposed toward the end of the paper.
Highlights
The recent COVID-19 catastrophe that hit the whole world is an example of the greatest challenge faced by humankind
Based on the review of literature, we explored and identified a number of important underlying themes related to unit trust waqf, which we utilised in formulating the relevant conceptual models
With the proposed conceptual model of cash collection from unit trust waqf, a portion of the dividend can be used in the setting up of special fund known as the COVID-19 Fund to minimise economic and social impact of COVID-19 crisis mainly for those who are affected financially
Summary
The recent COVID-19 catastrophe that hit the whole world is an example of the greatest challenge faced by humankind. COVID-19 pandemic is considered a major disruptive event of this decade, raising unforeseen socioeconomic implications worldwide. Due to social and economic challenges facing by human societies and their growing complexity, governments are becoming more and more incapable of tackling all the socioeconomic issues or of reducing their impact. Conducting projects with greater social impact requires coordination between all the stakeholders, and requires mobilisation of sufficient financial allocation. The roles and functions of various organisations such as government agencies health care providers, Islamic banking and financial institutions, zakat and waqf centres and non-governmental organisations (NGOs) in providing the best services to the affected community are tested during this challenging time. Involving other parties and adopting a more effective approach has become crucial during this difficult time
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