Productive Waqf: Building a Sustainable Islamic Economy

Productive waqf is now becoming an increasingly relevant topic and attracting the attention of many people. The term “waqf” is often synonymous with religious charity related to property and alms jariyah, but more than that, waqf can also have a productive dimension that can influence sustainable economic development and provide many benefits to the wider community. 

In the dynamic era, the concept of productive waqf has become an innovative solution in facing various social and economic challenges if managed properly. Check out the following review will discuss clearly about productive waqf.

Definition of Productive Waqf

Productive waqf (Wakaf produktif ) is the concept of managing waqf assets (konsep pengelolaan aset wakaf) to obtain profits and sustainably generate community benefits. The profit from asset management is then oriented to create a sustainable positive impact on many people’s lives. For example, building educational facilities, health facilities, helping to meet the needs of orphans, and other productive assistance. 

History of the Application of Productive Waqf

Productive waqf has been implemented for a long time during the Prophet SAW. At that time Umar bin Khattab entrusted his fertile land in Khaibar to be managed. The results of the land management are for the community’s benefit.

Other Companions also entrusted some of their property as did Umar bin Khattab. Abu Talha entrusted his beloved date palm garden. Usthman bin Affan entrusted a well with abundant water sources. Ali ibn Abi Talib with his fertile land, and many other companions and generous Muslims who participated in the endowment.

During the caliphate of Umar ibn Khattab, he managed waqf productively. He managed waqf effectively and efficiently so that it provided significant benefits to the community at that time. These historical traces provide inspiration for Muslims to implement productive waqf in the contemporary context.

Also Read: Wakaf Produktif, Sumber Dana Abadi bagi Kebutuhan Umat

Types of Property That Can Be Entrusted

Productive waqf can involve different types of property that have the potential to generate long-term benefits for society. Here are some types of property that can be endowed:

  1. Land and Property

Farmlands, plantations, commercial buildings, or residential houses can be entrusted and managed to generate income to be used for social and humanitarian programs.

  1. Farm Animals as Productive Waqf

Farmed animals, such as cows, goats, chickens, ducks, and other livestock, are halal for consumption by the community. Waqf management in the form of livestock is carried out by maintaining and breeding them well until they become healthy animals and have good selling value.

The purpose of this animal husbandry product can be utilized for the community. Such as, meeting the needs of meat and milk, as well as other needs that can be utilized from the body parts of these livestock. Proceeds from livestock endowments are also allowed to be sold as long as the proceeds are used for the benefit of the community.

  1. Productive Business

Businesses such as companies, shops, or workshops can be entrusted to finance social projects, provide skills training, or assist other productive economic activities.

  1. Stocks and Investments

Investment in stocks or other financial instruments can be entrusted to support the economic activities of Muslims and strengthen their economy.

  1. Education for the Community

Productive waqf in education can generate scholarships, build schools, or support skills development programs to improve access to education for communities.

  1. Health Facilities

Health facilities such as hospitals, clinics, or other health centres can be entrusted to ensure access to quality health services for people in need.

Benefits Resulting from Productive Waqf

Productive waqf can provide broad and sustainable benefits to the community. Some of the benefits that can result from productive waqf if appropriately managed are:

  1. Poverty Alleviation

Through productive asset management, waqf can provide an additional source of income for disadvantaged groups of society, thus helping to alleviate poverty. For example, Sahabat entrusted a piece of land to be used as a vegetable plantation. The resulting economic profits are used to finance business operations and development and finance social education programs for the poor. In addition to creating jobs and helping the economy of the surrounding residents, the results of the waqf also carry out social programs in a sustainable manner.

Also Read: Green House Lido: Implementasi Wakaf Produktif Dompet Dhuafa di Sektor Pertanian, Berdayakan Petani Lokal

  1. EmpowermEconomic ent of People

Productive waqf increase opportunities and access to people’s economic empowerment. By investing waqf funds in productive businesses and projects, Muslims can develop economically and improve their standard of living. Waqf with a productive system, can create job opportunities to empower the community (dapat memberdayakan masyarakat) to build prosperity in cooperation.

    3. Improved Access to Education and Health

Productive endowments in education and health can improve access to quality education services and adequate health care.

    4. Empowering Women and Marginalized Communities

Productive endowments can be used for programs that help empower women and marginalized communities to participate in social and economic development.

    5. Social Infrastructure Development

The productive assets entrusted can be used to build social infrastructure such as mosques, madrassas, and community centers, thereby improving the community’s quality of life.

Baca Juga: Manfaatkan Wakaf Produktif Guna Lahirkan Lapangan Pekerjaan Baru

The Important Role of Productive Waqf in Building a Sustainable Islamic Economy

Productive endowments can play a significant role in efforts to build a sustainable Islamic economy. Here are some of the leading roles that result from endowments.

Reducing Socio-Economic Inequality 

By allocating a portion of the property to productive programs, endowments can help reduce socio-economic disparities between well-off and underprivileged groups.

Encouraging Sustainable Investment

Productive endowments encourage investment in sustainable projects that have a long-term impact on society, such as micro and small enterprises, which are the backbone of the ummah’s economy.

Strengthening the Local Economy

Productive endowments focus on local economic development, which can strengthen communities’ competitiveness and economic resilience in the face of global challenges.

Upholding the Principle of Social Justice

In Islam, the principle of social justice is strongly emphasized. This principle can be realized through productive endowments by equalizing opportunities and access for all members of society.

Teaching the Value of Sharing and Kindness

Productive waqf is a tangible manifestation of the value of sharing and kindness in Islam. By practising productive waqf, Muslims learn to care for the needs of others and make a real contribution to society.

Baca Juga: Dompet Dhuafa dan Bappeda Aceh Jalin Sinergi Pengembangan Wakaf Produktif

Waqf in Dompet Dhuafa

Waqf is a practice that has jariyah rewards in it. The more benefits generated from the waqf property, the more the reward flows endlessly to the wakif (the person who is endowment). Entrust your waqf assets with a professional and trustworthy system. Waqf with Dompet Dhuafa to build Islam Rahmatan Lil ‘alamin sustainably.