INTEGRATING WAQF MU’AQQAT AND EQUITY CROWDFUNDING FOR THE SUSTAINABLE DEVELOPMENT OF IDLE WAQF LAND
DOI:
https://doi.org/10.21837/pm.v24i44.2282Keywords:
Waqf land, Equity Crowdfunding, Islamic Finance, Urban developmentAbstract
In Malaysia, it was reported that an estimated 17% of waqf lands remains undeveloped in 2024 due to financial and managerial constraints. Agricultural use of idle waqf land could generate up to RM18,000 per hectare annually, reflecting significant unrealised economic value. Hence, it results in substantial opportunity costs, including lost financial sustainability and socio-developmental capacity of waqf institutions. In this context, developing idle waqf land for sustainable agriculture strengthens food security and socio-economic outcomes. It also can support local economic development by creating employment across the agricultural value chain. Overall, productive waqf land utilisation promotes income generation, rural livelihoods, and inclusive development. Therefore, this study aims to develop a sustainable financing model using equity crowdfunding to support the development of idle waqf land through sustainable agricultural initiatives. To achieve these objectives, this study adopts a qualitative research approach through a comprehensive analysis of relevant literature and semi-structured interviews with selected experts and practitioners from State Islamic Religious Councils (SIRCs), agricultural agencies, and land-related authorities. It was found that an alternative financing is crucially needed for waqf land development. Thus, equity crowdfunding can be proposed as a means of sustainable financing. However, to adapt into waqf land, it is suggested equity crowdfunding is integrated with waqf muaqqat (temporary waqf). This study contributes to the country economy agenda by developing idle land and providing venture capital for the agriculture sector business. At the same time, it aligns with Financial Sector Blueprint 2022-2026 in terms of advancing digitalisation of the financial sector and value-based finance through Islamic finance leadership Islamic finance. Finally, this model support Capital Market Masterplan 2026-2030 by encouraging development of innovative Islamic social finance products and frameworks, including waqf-linked investment for social and climate objectives.
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