• ABIDULLAH KHAN Sukkur IBA University, Sukkur, Sindh, Pakistan
  • RADITYA SUKMANA Universitas Airlangga, Surabaya, Indonesia
  • ABID MAHMOOD Sukkur IBA University, Sukkur, Sindh, Pakistan



zakat, waqf, sadaqah, Islamic social finance, crowdfunding


Social finance is a naïve concept in the mainstream of social entrepreneurial and finance literature. Particularly, in Islamic finance environment it could not attract significant attention from the researchers, academicians, and practitioners. Though, some studies have discussed the tools of Islamic social finance, however, the focus on developing a practicable conceptual framework remained least attentive in recent studies. This study aims to fill this gap and attract the attention of all stakeholders to augment the Islamic Social finance theory and provide grounds for practitioners and academicians to implement technological tools to enhance its social impact. This study uses a qualitative library research approach to develop the spectrum of Islamic social finance and identify the issues faced by the key players within the spectrum. Likewise, technological advancement in the form of crowdfunding is exclusively proposed for the Islamic social finance spectrum in order to overcome all related issues and meet the objectives of SharÊ‘ah i.e., MaqÉÎid al SharÊ‘ah which are embedded in its CSR values. This study is envisioned to open the doors of debate for academicians to further enhance the general theory of Islamic Social finance. Moreover, this study also expects to pave the way for practitioners to further improve the suggested model through blockchain technology.


Download data is not yet available.


Silvana Secinaro, Davide Calandra, Denisa Petricean, and Federico Chmet. “Social Finance and Banking Research as a Driver for Sustainable Development: A Bibliometric Analysis.” Sustainability 13, no. 1 (2020): 330.

Muhammad Yunus and Karl Weber, “Creating a World without Poverty : Social Business and the Future of Capitalism” (Philadelphia: PublicAffairs, 2007).

Michele-Lee Moore, Frances R. Westley, and Tim Brodhead. “Social Finance Intermediaries and Social Innovation.” Journal of Social Entrepreneurship 3, no. 2 (2012): 184–205.

Alex Nicholls and Jed Emerson, “Social Finance: Capitalizing Social Impact,” in Social Finance, ed. Alex Nicholls, Rob Paton, and Jed Emerson (Oxford, 2015).

Nor Razinah Mohd Zain and Engku Rabiah Adawiah Engku Ali, “An Analysis on Islamic Social Finance for Protection and Preservation of Maqāṣid Al-Sharī’ah,” Journal of Islamic Finance 6, no. Special Issue (2017): 133–41,

Ahmed Tahiri Jouti, “An Integrated Approach for Building Sustainable Islamic Social Finance Ecosystems,” ISRA International Journal of Islamic Finance 11, no. 2 (2019): 246–66,

M Kabir Hassan, “An Integrated Poverty Alleviation Model Combining Zakat , Awqaf and Micro-Finance,” in The Tawhidi Epistemology: Zakat and Waqf Economy (Bangi, 2010), 261–81.

Ascarya, Raditya Sukmana, and Siti Rahmawati, “Cash Waqf and Islamic Microfinance Institutions: Business Models in Indonesia,” in 2nd Islamic Finance, Banking & Business Ethics Global Conference (Kuala Lumpur: INCEIF, 2017).

Mohamed Aslam Haneef et al., “Integration of Waqf-Islamic Microfinance Model for Poverty Reduction: The Case of Bangladesh,” International Journal of Islamic and Middle Eastern Finance and Management 8, no. 2 (2015): 246–70.

Peter C. Hennigan, The Birth of Legal Institution: The Formation of Waqf in Third-Century A.H. Hanafi Legal Discourse (Boston: Brill Publishers, 2004).

Abidullah Abid and Muhammad Hakimi Mohd Shafiai, “Financial Problems of Bottom 40 Percent Bumiputera In Malaysia: A Possible Solution through Waqf-Based Crowdfunding,” Turkish Journal of Islamic Economics 4, no. 1 (2017): 49–65.

Abidullah Khan et al., “Demographic Determinants of Charity Donors and Its Implication for Cash Waqf Institutions in Malaysia,” Journal of Islamic Marketing 13, no. 2 (2022): 508–25,

Fuadah Johari et al., “The Role of Zakat in Reducing Poverty and Income Inequality among New Convert ( Muallaf ) in Selangor , Malaysia,” Research in Islamic Studies 1, no. 3 (2014): 43–56,

Nasim Shah Shirazi, “Integrating Zakāt and Waqf into the Poverty Reduction Strategy of the IDB Member Countries,” Islamic Economic Studies 22, no. 1 (2014): 79–108.

Hj Ibrahim, “Zakat as an Alternative Redistribution Mechanism : A Review,” Jurnal Syariah 9, no. 2 (2001): 53–60.

Abd Halim Mohd Noor et al., “Efficiency of Islamic Institutions: Empirical Evidence of Zakat Organizations’ Performance in Malaysia,” Journal of Economics, Business and Management 3, no. 2 (2015): 282–86,

S Khan, A E Sheikh, and M Abu Bakar, “Zakat: Financial Inclusion Nexus: Empirical Evidence from Pakistan,” International Journal of Innovation, Creativity and Change 8, no. 9 (2019): 18–30.

Sri Herianingrum et al., “Zakat as an Instrument of Poverty Reduction in Indonesia,” Journal of Islamic Accounting and Business Research Ahead of P, no. Ahead of Print (2023).

IRTI. “Islamic Social Finance Report.” Jeddah, 2020.

Pakistan Centre for Philanthropy. “The State of Individual Philanthropy in Pakistan 2016,” 2017.

Nurul Huda, Nova Rini, Yosi Mardoni, Khamim Hudori, and Desti Anggraini. “Problems, Solutions and Strategies Priority for Waqf in Indonesia.” Journal of Economic Cooperation & Development 38, no. 1 (2017).

Muhammad Iqmal Hisham Kamaruddin, Rosnia Masruki, and Mustafa Mohd Hanefah, “Waqf Management Practices: Case Study in a Malaysian Waqf Institution,” World Journal of Social Sciences 8, no. 3 (2018): 1–12.

N Iman, A Santoso, and E Kurniawan, “Online Based Waqf Management System in Indonesia: A New Model in Management of Waqf Administration,” Int. J. Innov. Creat. Chang 10, no. 11 (2020): 164–80.

Shahid Iqbal, “Agriculture Credit Target Missed by Banks in FY21,” Dawn, 2021,

Michele Lee Moore, Frances R. Westley, and Tim Brodhead, “Social Finance Intermediaries and Social Innovation,” Journal of Social Entrepreneurship 3, no. 2 (2012): 184–205,

Wahibur Rokhman and Harif Amali Rivai, “Evaluation of Customer Satisfaction on Islamic Microfinance: Empirical Evidence from Central Java, Indonesia,” South Asian Journal of Management Sciences (SAJMS), Iqra University 8, no. 2 (2014): 60–69.

Kausar Abbas and Nasim Shirazi, “The Key Players’ Perception on the Role of Islamic Microfinance in Poverty Alleviation: The Case of Pakistan,” Journal of Islamic Accounting and Business Research 6, no. 2 (2015): 244–67.

Khalifa Mohamed Ali, “Integrating Zakah , Awqaf and Islamic Microfinance for Poverty Alleviation : Three Models Of Islamic Micro Finance,” IRTI Working Paper Series (Jeddah, 2014).

Muhammad Naveed Aslam, “Role of Islamic Microfinance in Poverty Alleviation in Pakistan: An Empirical Approach,” International Journal of Academic Research in Accounting, Finance and Management Sciences 4, no. 4 (2014): 143–52.

Abidullah Abid and Muhammad Hakimi Mohd Shafiai, “Islamic Microfinance for Rural Farmers: A Proposed Contractual Framework for Amanah Ikhtiar Malaysia,” Jurnal Hadhari 9, no. 1 (2017): 33–47.

Md Sohel Rana et al., “Waqf-Based Microfinance: An Alternative Solution to Poverty Reduction,” Selangor Business Review 5, no. 1 (2020): 40–54.

Shirazi, “Integrating Zakāt and Waqf into the Poverty Reduction Strategy of the IDB Member Countries.”

Buerhan Saiti, Abdiwali Jama Salad, and Mehmet Bulut, “The Role of Cash Waqf in Poverty Reduction: A Multi-Country Case Study,” in Management of Shari’ah Compliant Businesses, ed. E; Ghazali et al. (Springer, 2019), 21–34.

Mejda Bouanani and Besma Belhadj, “Does Zakat Reduce Poverty? Evidence from Tunisia Using the Fuzzy Approach,” Metroeconomica, 2020, 1–16.

Abidullah Abid and Muhammad Hakimi Mohd Shafiai, “Overcoming Income Disparity amongst Bumiputera by Improving Zakāt and Waqf System: A Special Focus on Improving Assets Management and Accounting Transparency,” Journal of Philanthropy 1, no. 1 (2017): 61–76.

Abidullah Khan, Muahmmad Hakimi Mohd Shafiai, and Shabeer Khan, “The Rise and Fall of Cash WAQF Crowdfunding: Exploring the Shortcomings,” International Journal of Innovation, Creativity and Change 8, no. 9 (2019): 57–77.




How to Cite


Most read articles by the same author(s)