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Purpose COVID-19 has disrupted the economic development of both advanced and emerging markets. In addition to the stimulus packages to adjust the economic shock from COVID-19, regulators around the world are searching for innovative mechanisms to rebuild the economy. The purpose of this paper is to explore the potential of SRI Sukuk to serve as an Islamic social finance solution for development projects to mitigate the adverse economic effects of COVID-19. Design/methodology/approach This study uses a mixed-method research framework. The authors use a systematic literature review following the recommendations of Bowen (2009) to identify critical challenges financing PPP projects using SRI Sukuk. In the next phase, the authors interview participants involved in an SRI Sukuk financed PPP project to get more significant insights on the challenges identified through the literature review process. Findings The authors identify the need for greater transparency for SRI financed PPP projects. Also, organisational and legislative challenges are limiting the attractiveness of SRI Sukuk as a financing mechanisms for post-COVID development projects. Practical implications SRI Sukuk is an emerging financing concept, and the use of such an Islamic financial instrument in financing development projects can serve as a viable alternative for policymakers in a post-COVID economic environment. Social implications The successful completion of the development projects integrating the concept of Social Maslahah through SRI Sukuk in Malaysia could encourage other emerging economies to use such innovative Islamic financial instrument for economic development in post-COVID environment. Originality/value This paper is unique, as it provides evidence on the potential of SRI Sukuk to finance large scale public-private partnership projects.

Crowdfunding is an internet supported way to run businesses or raise money either in the form of donations or various investments from multiple individuals. This new form of fundraising technique has emerged since the wake of the 2008 financial crisis and its popularity has accelerated due to the impact of COVID 19 pandemic. With various constraints in obtaining financing from financial institutions, entrepreneurs started to look for capital generated from the other sources. The resources are still limited, but the Muslim crowdfunding ecosystem is diversifying from the most basic reward based to social lending, with an eye to the fintech. Using a quantitative research methodology, this paper uses secondary data research method to gain a broader understanding on the linkage between crowdfunding, fintech and NGO-I. This article firstly explores the current development of fintech usage for crowdfunding platform. This is followed by an analysis of the crowdfunding methods used by Islamic Non-Governmental Organization (NGO-I). Finally, it presents the Shariah governance aspect of fintech crowdfunding. This article encapsulates the potential of fintech in catalysing Islamic crowdfunding among Islamic Non-Governmental Organization (NGO-I) in Malaysia and the need for a Shariah governance framework for Islamic fintech.

Purpose This study aims to propose Islamic solutions to the Covid-19 health and economic crises, specifically using Islamic social finance (ISF) instruments, including zakat, infaq and waqf. Design/methodology/approach This study applies the qualitative content analysis method, guided by a model of composite approaches of poverty alleviation in Islam, integrated Islamic commercial and social finance (IICSF) and crisis management of Umar bin Khattab, to construct various programs and/or policy actions toward economic recovery in Indonesia. Findings The results show that ISF with its instruments, especially zakat, infaq and waqf could help the government and the economy to recover from the crisis. The proposed solutions include: save lives, including medical assistance using zakat-infaq and health-care waqf using waqf; save households, by creating a social safety net and graduation program using zakat-infaq; save businesses, especially micro-small enterprises (MSEs), through financial and business assistance (especially digital marketing) leveraging zakat-infaq-waqf and save financial institutions, especially micro-small financial institutions, by the development of cash waqf and the adoption of fintech and IICSF, especially in Islamic financial institutions targeting MSEs. Research limitations/implications This study is exploratory in nature, which needs further investigations using more sophisticated qualitative and/or quantitative methods. Practical implications If the above programs using ISF instruments are implemented, the economic surplus would be re-established and the acceleration of economic recovery can be realized. Social implications The successful adoption of ISF could at the same time reduce poverty, accelerate MSEs development and improve equitable well-being. Originality/value The Covid-19 pandemic has caused health, economic and social problems, which must be solved holistically, including ISF within IICSF.

PurposeSocial entrepreneurship is gaining increased attention from academia and practitioners worldwide. Owing to its financing challenges, academic pedagogies are seeking methods to strengthen the social financing dimension of this emerging discipline. This paper bridges the gap in social entrepreneurship education by portraying diverse perspectives on this topic from multiple actors in two cross-cultural contexts.Design/methodology/approachA qualitative case analysis was conducted to explore financing aspects of social entrepreneurship in France and the United States. The authors interviewed academicians and practitioners to learn about their current experiments and thoughts on integrating finance into the curriculum for social entrepreneurship.FindingsThe authors found multiple facets of the social entrepreneurship finance construct, focused not only on specific financial skills but also on a general approach to venture designs. Multidisciplinary knowledge is sought not just on the topic of finance but also in other disciplines that can broaden its scope of financing to a larger investor domain. While in France, this came out as a need for integrating the financial communication skills to personify the social value creation process; in the US, it was pointed out as the need for having a contractual knowledge to differentiate investment opportunities and comprehend their risks levels.Originality/valueBy bringing perspectives from multiple actors who have had experience in social entrepreneurship financing in regions with the fastest development, this paper is seminal in bridging the financing skill gaps that exist in social entrepreneurship discipline. The main theoretical contribution of this article concerns the skills, financial and otherwise that are useful in social finance.

The aim of this paper is to examine the relationship that exists between voluntary and non-non-voluntary Islamic social finance exclusion and sustainable livelihood assets (social capital, natural capital, physical capital, and human capital) among the household’s head in Zanzibar. The survey questionnaire was distributed to the head of household with sample size of 287 and data were collected and analysed based on both factor analysis and structural equation modeling using SPSS 23.0 and Amos 23.0 software. The results indicated that non-non-voluntary Islamic social finance exclusion factors impede financial inclusion of the poor in Zanzibar rather than voluntary Islamic social financial exclusion factors. This implies that non-voluntary Islamic social finance exclusion has great implication for the acquisition of the sustainable livelihood assets due to the combined effect of lack of awareness about Islamic social finance services on one hand and the cost associated to it on the other. This has great implications for the acquisition of the requisite livelihood assets needed to exit the persistent state of poverty raveling Zanzibar. This paper contributes to the government efforts through Waqf and Trust commission Zanzibar (WTCZ) to review these three Islamic social funds (Waqf, zakat and almsgiving) for the purpose of poverty alleviation in Zanzibar.

Since the beginning of March 2020, Indonesia has faced a major epidemic that has haunted the world, namely the corona virus (covid-19) which of course has an impact on the global economy. This research was conducted with the aim of presenting the concept of wealth from an Islamic economic perspective and its role in the Covid-19 pandemic era. The results showed that the acquisition, management and use of assets must be in accordance with sharia. This concept indicates that there are binding rules in every human behaviour in treating his property. Because of in Islam, in the afterlife, people will be held accountable for their assets. Therefore, it is necessary to pay attention to the principles and principles of sharia in empowering the assets owned. Furthermore, Islamic social finance has an important potential in overcoming the global socio-economic problems of the impact of covid-19. Indonesia as a country with the largest Muslim majority can maximize the potential of Islamic social funds. There are two main tasks that can be done to fight the Covid-19 pandemic, namely prevention and solution measures. Empowerment of Islamic social funds can be maximized to help people survive.Kata Kunci : Harta, Ekonomi Islam, Pandemi Covid-19

Waqf received research attention due to its ability to contribute to socio-economic development. While a high volume of literary evidence on this Islamic social finance instrument is available, the research motivation and study findings are diverse. Therefore, we conduct a bibliometric analysis of waqf literature to understand the pattern and direction of research on Waqf broadly. We collect 319 articles, and reviews on Waqf extracted from the Scopus database, covering a period exceeding 100 years from 1914 until June 2020. We employ RStudio, VOSviewer, and Microsoft Excel for citation analysis, content, and network analyses. A systematic review of recent publications complemented the bibliometric analysis. Alongside revealing the most relevant scientific actors in waqf literature, most researchers on Waqf were from Malaysia; they conducted studies widely on cash Waqf. As a result, we identify four research themes for waqf studies which include (1) Cash Waqf endowment, (2) Islamic accountability and Waqf, (3) Waqf and Islamic social finance, and (4) Governance for Waqf endowment. This is the first study to provide a bibliometric review of waqf literature to address gaps in the existing research and offer directions for future research which could benefit early-career Islamic finance researchers.

The use of sukuk in social development is an under-researched area, especially in the context of Sub-Saharan Africa. Although the Kenyan government has issued the world’s first mobile bond and the Indonesian government has used mobile platforms as a distribution channels for the issuances of retail sukuk, little is known about mobile sukuk and its potential from the perspective Islamic social finance. This paper aims to explore the opportunities and challenges of mobile sukuk for social development, namely perpetual waqf mobile sukuk, where the concept of waqf is combined with qard. It is anticipated that the proposed type of sukuk has the potential to be used as an Islamic social finance instrument.

Purpose This paper aims to study the main trends of scientific research in Islamic finance’s social aspects to clarify place, role and functions, especially in the context of increasing social problems. To achieve this goal, this paper focuses on the social component of Islamic finance, analyzes publications on social Islamic finance in the Web of Science database, covering the period from 1979 to 2020, specify the geographical localization of research networks, determines the most cited authors and their scientific position. Design/methodology/approach The authors have applied several literature review techniques, a bibliometric citation and co-citation analysis, a co-authorship analysis and a review of the most cited papers. The analyzes’ results allow us to offer five future questions in Islamic social finance, zakat and waqf, which have not been investigated before and could influence Islamic social finance and Islamic finance research. Findings The authors also derive and summarize five leading future research questions. Research limitations/implications This is a limitation of using only the Web of Science Core Collection database as the premier resource and the most trusted citation index for the world’s scientific and scholarly research. Further study might expand the types of analyzed units, include more keywords and include other databases, such as Scopus. Originality/value This paper can be considered as an inspirational one to future researchers and policymakers in Islamic social finance.

In this paper, the author presents an overview of the development of socially oriented impact investing in country-specific markets as a development of the social finance model. This analysis focuses on socially responsible investing (SRI) or impact investing, which has experienced continuous growth in certain countries, including European (UK, particular Scandinavian) and US markets. The equity of social impact mutual fund markets has grown both in the number of funds and in the differentiation of the securities under the social finance model. Despite the fact that socially responsible investments or impact investments still lack a uniform definition under social finance, it mainly refers to investments that emphasize social/ecological/ethical value over monetary return. In the academic literature, it is not clear whether the behavior of impact investors will be sustainable toward the social finance paradigm, as their investment decision about the monetary return should be motivated by their economic behavior. The author analyzes the economic conditions of the capital market that provide long-term institutional support for socially oriented investments.

Purpose This study aims to explore the perceptions of zakah institutions and the intention of society towards the application of blockchain technology in zakah management. Design/methodology/approach The nature of this study is qualitative, attempting to indulge into the contribution of Fintech in Islamic social finance. This study uses a mixed-method to gauge the perception of stakeholders. For the quantitative approach, a survey was carried out focussing on zakah receiver and zakah payer. The data then was analysed based on the technology acceptance model. While interview survey with multiple stakeholders (zakah institutions, JAWHAR and university) was conducted to gauge the perception of zakah institutions in using blockchain technology. Findings The findings of this study provide a positive view for zakah institutions to embrace the usage of blockchain in its management, however, there are several concern that needs to be addressed. Practical implications This study provides new insights to the body of knowledge especially in the zakah management system and Fintech. Besides, from a managerial aspect, this study contributes to the new practices that could be implemented in zakah institutions. Social implications Many people lose jobs and income due to the economic turmoil and COVID-19 pandemic, which makes zakah an important Islamic social finance tool to assist in socio-economic development. It is high time for zakah institutions to implement blockchain especially during this pandemic crisis that requires a more contactless approach to ensure health and safety. Originality/value This study is important to encourage Islamic social finance institutions to embrace blockchain technology in providing an efficient service to the development of social and economic.

Purpose This study aims to examine the role of Islamic social finance (ISF) instruments such as Zakah, Sadaqah and Waqf in the provision of social services by Islamic faith-based organizations (IFBOs) in Southwest Nigeria. Design/methodology/approach This study adopts exploratory approach based on field interviews conducted with leaders of IFBOs, whereas purposive sampling technique was used to select three case study organizations. Data collected from interviews and documents of case study organizations was analyzed using content and narrative analyses. Findings The first findings indicate faith in the Unseen God, scriptural texts and socio-economic factors as major motivation that accounted for the IFBOs’ concern for social services. The second finding shows that the ISF strategies used by the IFBOs to improve access to social services include Zakah, Awqaf, Sadaqah and gifts. The third finding reveals that the IFBOs have efficient stand-alone and windows operational structures that align with IFBOs corporate governance. The fourth finding also reveals the challenges facing the IFBOs such as inadequate funding, dearth of manpower, lukewarm and uncooperative attitude of Muslims and attitudinal behaviour of givers and takers. Research limitations/implications Absence of documented directory about the role IFBOs usage of ISF in providing social services in Southwest Nigeria affected the study. Many IFBOs were eliminated during the process of selection because of lack of records to indicate their social services relevant to the study. As such, information that could have been collected from the eliminated IFBOs could have contributed significantly to the study. Practical implications The major implications of the study are that ISF has been reinvented as an ethical social welfare framework for supporting the disadvantaged members of the society with ISF instruments and also highlighted the dichotomy existing between IFBOs in the North and Southwest Nigeria with respect to the legal and operational activities of IFBOs usage of ISF. Originality/value This study has contributed to a better understanding of the role of ISF instruments in the provision of social services in an area that is largely under-researched in Nigeria.

This study aims to determine the effect of Islamic bank’s activity as a zakat intermediator on profitability, efficiency, market share, and growth of Islamic banks in Indonesia. This research also analyses from the literature the possibility of zakat as the funding or financing product. The method used is the panel data method and granger causality. The Independent variable external zakat collection while the dependent variables are ROA, BOPO, Market Share, and Growth. The samples of the research are five Islamic Bank who has done the external zakat collection. The data used are quarterly data with a period from 2013 to 2020. The results of this study indicate that this divine role increase the cost of operation and in the same time decreasing the profitability. The result also stated that the intermediating activities of zakat collection is not significant to push the bank market share, profitability as well as the Bank Growth. However, although in terms of regulation bank cannot be the Amil, in the future, there is potential of zakat can push the Islamic market share and bank growth since the zakat collection, Islamic bank can offer third party funding product as the intermediation between the zakat payer and the Amil zakat whose eligible to collect zakat according to the government regulation.

Alleviating poverty and inequality are among the central objectives of zakah in the Islamic economic system. These objectives are also on top of the 17 SDGs of the UN 2030 Agenda. This research argues that microenterprise support programs (MSPs) have been proven as effective tools in combating poverty. However, lack of funds has always been a major challenge for the sustainability of those programs. Channeling zakah funds to MSPs will directly contribute to empowering deprived populations and helping them to lift themselves out of the poverty cycle. Two zakah-based MSPs have been analyzed in this chapter. The first one is the Asnaf Entrepreneurship Program of Lembaga Zakah, Malaysia and the second one is Baitul Maal Muamalat Indonesia (BMMI). According to literature, using zakah in (MSPs) requires a strict implementation of best practices including screening program beneficiaries, providing professional training and monitoring to businesses, and finally applying a graduation scheme.

The coronavirus disease (COVID-19) pandemic has severe health effects and serious implications for economic. This research is a conceptual article that describes concepts and principles of Islamic wealth management (IWM), Islamic financial planning practice during Covid-19 pandemic, and Islamic social finance for reducing the pandemic effect. There are five stages in IWM that is wealth accumulation, wealth consumption, wealth purification, wealth distribution, and wealth protection. Wealth distribution such as alms, grant, and waqf are important in reducing social and economic impacts due to a pandemic. The existence of Islamic social financial institutions becomes very important to manage that fund. In other hand, practicing Islamic financial planning in household level can mitigate potential poverty in the crisis period. The financial planning manage the provision given by Allah as well which is beneficial for the life of the world and for the afterlife.

In the development of the agricultural sector, farmers are the key to its success. However, to a certain extent, specific interventions need to be done considering the problems faced by most farmers, such as financial constraints, lack of assistance, facilities, agricultural tools, and lack of land, which are obstacles to developing farmers enterprises. Therefore, this study attempts to analyze the potential of Islamic social finance tools in farmers development, particularly in facilitating financial problems of farmers in line with the government efforts in strengthening the agricultural sector. The distribution of productive zakat, infaq, alms and waqf (ZISWAF), based on the application of contractual contracts inherent from Islamic legislation and the management of productive ZISWAF, will be highlighted in this paper. The methodology of this study is based on a qualitative approach like gathering information from library research, and hence it is analyzed based on a deductive approach. The management of ZISWAF is divided into two, namely consumptive and productive ZISWAF. Consumptive ZISWAF can assist farmers in meeting their daily needs. At the same time, productive ZISWAF can develop farmers agricultural enterprises through musaqah, muzaraah, mukharabah, and ijarah contracts. Accordingly, it can be argued that Islamic social finance can play a positive role and be an alternative solution to farmers to promote agricultural land development.

Purpose This paper aims to examine the determinants of intention to adopt Islamic microfinance among prospective customers in Nigeria, to enhance access to formal financial services. Design/methodology/approach The quantitative study used the proportionate stratified random sampling technique to collect data from 450 respondents, using close-ended questionnaires. The data was analyzed using analysis of moment structures-structural equation modeling. The decomposed theory of planned behavior (DTPB) was used as the underlying theory to test 10 hypotheses. Findings Results showed the intention toward the adoption of Islamic microfinance is high in Nigeria. In total, 8 of the 10 study hypotheses were supported, out of which attitude, subjective norm and perceived behavioral control were found to have a positive and significant influence on the behavioral intention to adopt Islamic microfinance. Consequently, the study recommends the need for stakeholders in the Nigerian financial system to embark on enlightenment campaigns that will improve the public attitude on the role of Islamic microfinance banks in the promotion of financial inclusion and poverty reduction. Research limitations/implications The study focused specifically on three selected states in Northern Nigeria that are predominantly Muslim. The findings and indeed the conclusions of the study, may not be suitable for generalization to other parts of the country. Practical implications The study found that three constructs: attitude, subjective norms and perceived behavioral control were found to affect behavioral intention. Thus, the Central Bank of Nigeria and Islamic financial institutions should tailor their enlightenment campaigns toward improving public attitude on the need to adopt Islamic microfinance banks to further enhance financial inclusion, and thus reduce the incidence of poverty. Islamic microfinance banks should complement their commercial products and services with Islamic social finance products such as Sadaqat, Zakat and benevolent loan, as is the practice in jurisdictions where Islamic finance is institutionalized. Social implications The social implication of the study is its ability to determine factors that will enhance financial inclusion in Nigeria. This will assist in reducing poverty and income inequality. Originality/value The study was also able to extend the DTPB by introducing awareness as an additional latent construct in explaining attitude.

Philanthropic financial instruments utilize donated funds or assets in order to deliver social services for society. NGOs may not be able to operate the social services efficiently in the absence of such funds. Lately, there are plenty of organizations that have taken initiatives to render social services for targeted populations in order to curb social problems such as poverty, hunger, crimes, etc., through the use of some forms of philanthropic instruments including Islamic social finance, ethical finance, and others. Today, however, philanthropic financial instruments such as socially responsible investment (SRI), social impact bonds (SIB), and even Waqf are issued by financial institutions rather than socially driven institutions. As such, they have been treated as commercial financial instruments rather than socially driven mechanisms. This paper aims to elucidate the potentials of selected modern financial philanthropic instruments that deal with the healthcare sector. The strengths and weaknesses of the selected instruments will be assessed to explore their potentials in serving the healthcare services sector particularly for the underprivileged. The healthcare sector is highlighted as the focus of this study due to its relevance to the present challenge of the Covid-19 pandemic. This is an exploratory study that adopts the qualitative method whereby a rigorous review of the relevant literature is conducted to examine the potential that philanthropic Islamic financial instruments can offer in providing healthcare services to the underprivileged. The findings elaborate on three important models of philanthropic instruments, namely social impact bonds (SIB), development impact bonds (DIB), and takaful-waqf models. It was also found that these philanthropic instruments have varied strengths and weaknesses that require rectification in the future.

In recent years social financiers have been increasingly investing in alternative food systems to improve sustainability outcomes. However, social finance for alternative food systems remains small and marginalized. This article seeks to understand why this approach is not yet making a larger impact towards food system transformation. It does so by investigating a specific application of social finance through the case of Slow Money to get answers as to why social finance occupies a niche role in food system transformation. These answers provide helpful lessons for Alternative Food Networks (AFNs) seeking to transform food systems towards greater sustainability. This study tracks the intended impacts of these initiatives and provides insights about the potential role of social finance for promoting AFNs. Key themes emerged regarding the ability of social financing initiatives to support AFNs and transform the food system for greater sustainability. These themes resonate with the literature on AFNs in meaningful ways, but also highlight an important contradiction between systemic change and individual action. The findings show that the Slow Money model contains some useful elements for radical transformation but is ultimately limited in its ability to support deeper, transformative change. The conclusion advances recommendations for ways of enhancing the transformative potential of community financing initiatives in light of the findings, emphasizing the role of public investments.

In this article, I take the framework of neuroliberalism as an analytical lens to explore the functioning and implementation of a social impact bond-funded welfare service for young homeless people in the UK. After reflecting on the lines of connections and divergences between social impact bonds and neuroliberal logics, I draw attention to the limitations that exist in welfare interventions inspired by neuroliberal thought. On the one hand, the studied intervention functioned mainly through designing trustful, ideal-type relationships as a means to ‘fix’ people, thereby focusing on behavioural and biographical deficiencies and spreading good life ideals of a marketized world. On the other hand, I demonstrate how this focus on adjusting micro-contexts and tinkering with the affective, relational infrastructure fails to understand systemic constraints. Those were particularly evident with regard to the precarious labour market environment and colliding welfare agendas individuals were confronted with.

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.

Governments are increasingly intrigued by the possibility of harnessing the private ‘social investment’ market to finance the delivery of social services. One social investment initiative in particular – Social Impact Bonds (SIBs) – has spread extensively within the global North. This article investigates the transnational mobility of SIBs by exploring the adoption and implementation of SIBs in New Zealand. It considers SIBs as a case of ‘fast policy’, a concept that describes both the increasing rapidity of policymaking and the proliferation of ‘best practice’ policy models. Although the model was adopted relatively quickly in New Zealand, implementation spanned a number of years following various complications and setbacks, echoing experiences in other places. This article seeks to extend conceptions of policy mobility and fast policy by arguing for both fast and slow temporalities of policy movement, contending that while adoption of mobile policies tends to be rapid, implementation can follow a much more gradual pace as they mediate, and are mediated by, local political, institutional and ideological factors.

Impact investing is an emerging alternative asset class. In the last few years, the investment in impact investing has grown many folds, however the research has not kept pace with the growing practitioner interest. The lack of knowledge about the field coupled with the lack of knowledge production of field might be dangerous in the long run. This is a systematic review of impact investing. This systematic review involves study of 85 published articles and reports. This literature was collected using the harzing’s publish or perish academic search engine and cross-checked against databases such as JSTOR and Web of Science. This review has four major contributions. First, the study reveals a unique longitudinal perspective on how the field is evolving and moving from pre-paradigm stage to the stage of proper scientific inquiry. It reveals that the field is evolving, as the reviewed literatures find that a higher number of empirical works were published recently. Second, the field impact investing is unique on six characteristics namely (1) capital invested, (2) degree of engagement with the investee, (3) process of selection, (4) social and commercial outcomes, (5) reporting outcomes, and (6) government role. Third, it reveals that the scholarship in the field has been mostly exploratory. Only recently the field is engaging in confirmatory studies. The research methods have used existing databases or existing single or multiple case studies. Finally, the field has to delve deeper into concepts like selection process, stakeholder management, opportunity recognition, and performance reporting to move the field forward and generate applied knowledge.

This study aims to build an integrated model between Islamic social finance, government sukuk financing and Indonesian food security. This study proposes an integrated model between Islamic social finance and government sukuk to build community food security through the cash waqf linked sukuk model. This model based on a modification of Sukuk issued by The Central Bank of Bahrain to provide a commodity in the future. The model proposed in this study is an innovative productive waqf model. The management involves both government and private companies. Sukuk are issued by the government through the ministry of finance or Bank Indonesia. Sukuk issued in social purposes with the underlying transaction is an innovative productive waqf. After the sukuk is issued, the funds are collected by means of a waqf contract, through cash waqf and assets. The funds or assets collected are submitted to the operational manager. The operational manager provides sukuk funds to farmers as capital for carrying out agricultural, plantation and livestock activities. Products that are prioritized are the primary needs of the community, including agricultural products of superior quality from biotechnology research, superior quality vegetables from biotechnology research in the field of plantations, livestock products from research field. The harvest is sold through the ministry of agriculture or through the traditional market to support the availability of food in sufficient quantities in a minimum price. The preferred products are the products of the primary needs of the community.

This paper aims to examine the spread of social tools of Islamic finance before and after the Covid-19 pandemic in Kazakhstan, as the country where Islamic finance is most promoted in the region. As a result of the absence of official and centralized information, the research has been done on an internet-based survey. The results of the research have been based on the stratified sample of 1252 respondents before and after the emergency was declared in Kazakhstan as a result of the global Covid-19 pandemic. The authors applied SPSS statistics and survey-based indicators. The findings revealed the depth of awareness of social tools of Islamic finance, understanding of the main principles of Zakat and Sadaqah and difference of them. It was found that the age of the respondents has positive effects on the periodicity and amount of the donations. Furthermore, the results showed that the absence of a centralized system of charity in the country and the mistrust of intermediaries inhibit the development of Islamic finance instruments and lead to donations directly to needy people. The major constraints impeding Islamic social finance include the underdevelopment of Islamic finance as a value-based financial system. Islamic social finance tools could be both a resource and a solution for solving sustainability issues during and after the pandemic period in the country. The authors identified the impact of the Covid-19 pandemic on the structure of the charity projects, on the increase of the demand for financial assistance by individuals and the income decrease of the donators.

Purpose This study aims to propose a hybrid microfinance model that integrates various Islamic commercial and social finance institutions through Fintech for efficient and impactful results. The microfinance model caters to the financial and social intermediation needs through a set of financial services and non-financial support. Design/methodology/approach The study uses both a mathematical model and an empirical estimation using micro panel data to establish the core problem in microfinance operations. Conclusions from the mathematical model and estimated results in the empirical analysis are used to suggest an institutional design which embeds technology in the delivery of Islamic microfinance in an integrated structure. For screening and incentive conditions, the study gives illustration through numerical examples. Findings The mathematical model highlights the need for financial sustainability, outreach, scale and complementariness of non-financial factors such as commitment, repayment incentives and skills enhancement multiplier. In light of this, the proposed Islamic microfinance model is outlined to create synergies by integrating a diversity of funding sources through social savings and impact investments. The programme also blends financial services with non-financial support to ensure engagement and commitment on a long-term basis. It uses Fintech in various demand and supply-side operations to show how technology embeddedness can help in achieving cost efficiencies and extend outreach. Originality/value It is the first study in integrated institutional design in Islamic microfinance literature that embeds Fintech in both demand side and supply side operations comprehensively. The proposed model is conducive for enhancing outreach, scale and impact in the Islamic microfinancial services.

This study aims to analyze the role of Islamic social finance institutions in building the halal industry in Indonesia. Five hypotheses were formulated, and PLS-SEM was used to estimate and test the hypothesized model. The results show that only two hypotheses are supported. Zakat institution has a significant effect on building the halal industry and reduce the practice of conventional moneylenders. It implies that with Islamic social finance institution can develop halal industry and reduced Riba. So, there are solutions that have great potential. If the halal industry and Islamic social finance institution can be well integrated, it can help the process of developing the halal industry. The solution is in the Islamic social finance is Zakat and Wakaf.

Although early-stage finance is critical to the growth of most ventures, it is even more important for social ventures as they face the challenges of balancing their social and commercial objectives. Drawing on institutional logics and signaling theory, this study uses a panel data set of 3,401 nascent social ventures to investigate the important role philanthropic grant funding plays in the organizational and financial development of social ventures. We find mixed results, with positive effects on employment and subsequent access to debt finance, but no effects on revenues and access to equity. Our findings connect these theories by suggesting philanthropic grants provide social ventures with flexibility to invest in human capital without pushing them to pursue short-term financial objectives, and that receiving a philanthropic grant provides a signal that is interpreted differently by debt and equity financiers. These findings are especially relevant as funders increasingly use grants to support social entrepreneurship.

Purpose This paper aims to study waqf practice in Pakistan with regard to its utilisation in funding for higher educational institutions (HEIs) and investigates waqf raising, waqf management and waqf income utilisation. Design/methodology/approach The paper is based on the views of 11 participants who are actively involved in the waqf, its raising, management and income utilisation, and is divided into three subcategories: personnel of higher educational waqf institution, personnel of waqf regulatory bodies and Shari’ah and legal experts as well as archival records, documents and library sources. Findings In Pakistan, both public and private awqaf are existing, but the role of private awqaf is greater in higher education funding. However, due to lack of legal supervision private awqaf is considered as a part of the not-for-profit sector and legitimately registered as a society, foundation, trust or a private limited company. Waqf in Pakistan is more focusing on internal financial sources and waqf income. In terms of waqf management, they have firm guidelines for investing in real estate, the Islamic financial sector and various halal businesses. Waqf uses the income for developmental and operational expenditure, and supports academic activities for students and staff. Waqfs are also supporting some other HEIs and research agencies. Thus, it can be revealed that a waqf can cater a sufficient amount for funding higher educational institutions. Research limitations/implications In Pakistan, both public and private awqaf are equally serving society in different sectors, but the role of private awqaf is much greater in funding higher education. Nevertheless, the government treats private awqaf as a part of not-for-profit sector in the absence of a specific legal framework and registers such organisations as society, foundation, trust or private limited company. The waqf in Pakistan mostly relies on internal financial resources and income from waqf assets. As the waqf managers have over the time evolved firm guidelines for investment in real estate, Islamic financial sector and various other halal businesses, and utilisation of waqf income on developmental and operational expenditures, academic activities of students and educational staff, other HEIs and research agencies, it can be proved that the waqf can potentially generate sufficient amount for funding HEIs. Practical implications The study presents the waqf as a social finance institution and the best alternative fiscal instrument for funding works of public good, including higher education, with the help of three selected waqf cases. Hence, the paper’s findings offer some generalisations, both for the ummah at large and Pakistan. Social implications The paper makes several policy recommendations for policymakers, legislators and academicians, especially the government. As an Islamic social finance institution, the waqf can help finance higher education anywhere around the world in view of the fact that most countries grapple with huge fiscal deficits and are hence financially constrained to meet growing needs of HEIs. Originality/value The study confirms that the waqf can be an alternative source for funding higher education institutions whether it is managed by the government or is privately controlled.

Unemployment in Indonesia is currently dominated by young people. Zakat as one of the Islamic social finance instruments which has a crucial impact in the socio-economic development of a country. The aim of this research is to explore the relationship between zakat institution support, the successful of youth empowerment program, and individual welfare by Al-Azhar Zakat Institution. This paper also develops a model for the youth empowerment programs that will have an impact on the individual welfare mustahik based on Maqashid Sharia indicators and mustahik social welfare. This study uses primary data with purposive sampling and uses quantitative approach a path model. The main finding of this research showed that success of youth empowerment program fully significant mediated the relationship between zakat institution support and individual welfare. The study contributes to the existing literatures and managerial implications for zakat institution in developing a youth empowerment model to increase social prosperity.

The debate, especially in policy circles, around the emergence of Social and Sustainable Finance (SSF), depict as ‘paradoxical’ the contrast between SSF as a relatively under-developed field of knowledge and thought, and yet as an area of practice with ‘vast potential’ that is experiencing an ‘explosion’ in practitioner numbers. Such potential, in term of economic and social value that SSF can deliver, is reflected in the increasing of interest within the public policy-making arena in the achievement of Sustainable Development Goals (SDGs). More in detail, it is also underlined by the raising of public and private investment into promoting and supporting them. Within such evolving arena, the exact scale and scope of SSF’s contribution to the improvement of SDGs worldwide is difficult to delineate and measure accurately, but there seems to be universal agreement that SDGs represent an ideal and widespread area where SSF can register a significant growth. However, limited research addressed the marriage of these two fields. The purpose of this research are: i) to shed light on existing academic literature embracing both Social and Sustainable Finance and SDGs issues, ii) explore emerging trends deriving from international policy-making actors, market builders, managers, senior academics and, iii) to identify the main areas for further research focusing on SSF and SDGs. In order to derive a research agenda about such emerging research topic, the study adapts a triangulated approach based on qualitative mixed methods. With such objectives in mind, the study provides an extensive literature review in order to depict a comprehensive overview of existing knowledge considering both SSF and SDGs topics. The analysis is therefore enhanced by the trends identified from literature deriving from public policy-making actors and market-builders as well as from invited commentaries on SSF from senior scholars and managers. Thus, a holistic perspective on SSF experience, useful to identify the main areas for further research on SSF in the sustainability industry, was derived. The study, therefore, aims to provide, through a triangulated analysis of the concepts, frameworks and trends, a detailed understanding of the mechanisms for managing the interplay between SSF and SDGs, by highlight future avenues of research in this field.

In recent years, a significant revolution has begun in social entrepreneurship, with public funding organizations and private investors beginning to pursue social purpose. At the heart of the revolution is the ambition of these entities to use innovation and entrepreneurship to sustain and scale impacts in support of social and environmental objectives. This article provides a framework that conceptualizes social innovation and finance as a multi-level and evolving complex system. Two trajectories of transformation, niche-regime and within-regime, are used to frame a broad range of examples of impact entrepreneurship and social financing. Social finance is viewed as the key to release the ‘lock-in’ of social innovation, as it is able to gather and coordinate capital, resources, knowledge and ability. Using meta-analysis, the article explores the characteristics, dynamics and ecosystem of social innovation, impact entrepreneurship in China. The study maps the landscape of social finance in China and estimates there are untapped social finance opportunities worth from US$93 to US$208 billion.

Islamic banking (further referred to as the Bank) faces two significant problems: excessive concentration in Murabaha financing contracts and high cost of funds. These two classic problems directly impact the development of the Bank and give rise to the stigma of a less innovative and unprofitable industry. This research aims to make a new product breakthrough that can help stakeholders overcome the two problems above. Term Deposit Waqf Linked Isthisna (TDWLI) has 4 variants: TDWLI Perpetual Principal, TDWLI Perpetual Principal + Profit Sharing, TDWLI Periodic Principal, TDWLI Periodic Principal, and + Profit Sharing. The TDWLI Periodic Principal is the variant that is most ready to be applied because, in accounting terms, it has been regulated in PSAK 112. In general, this TDWLI product will provide several advantages for banks to reduce the cost of funds (especially in the main variant of Waqf only). It will increase Isthisna financing, referring to OJK data in 2019, only 0.3% of total financing. In terms of accounting treatment, PSAK 112 must be adjusted especially if the Bank will release a Perpetual-based product variant. The main problem with perpetual-based products is the uncommon features. In perpetual, cash waqf cannot be withdrawn or, in other words, eternal. This research recommends that OJK is expected to study this product more deeply to develop healthy and innovative Islamic banking.Abstrak: Perbankan syariah (selanjutnya disebut Bank) saat ini sedang menghadapi 2 masalah besar yaitu konsentrasi berlebihan di akad pembiayaan Murabaha serta tingginya Cost of Fund. Kedua masalah klasik ini berdampak langsung kepada perkembangan Bank dan memunculkan stigma industry yang kurang inovatif dan tidak menguntungkan. Penelitian ini bertujuan untuk membuat terobosan produk baru yang dapat membantu stakeholders dalam mengatasi kedua masalah diatas. Produk Deposito Waqf Linked Isthisna (DWLI) dengan 4 varian nya baik itu DWLI Perpetual Pokok, DWLI Perpetual Pokok + Bagi Hasil, DWLI Periodic Pokok dan DWLI Periodic Pokok + Bagi Hasil. DWLI Periodic Pokok menjadi varian yang paling siap untuk diaplikasikan karena secara akuntansi sudah diatur dalam PSAK 112. Secara umum produk DWLI ini akan memberikan beberapa keuntungan bagi bank dalam rangka menurunkan cost of fund (terutama pada varian Wakaf pokok saja) serta akan menaikkan pembiayaan Isthisna yang merujuk kepada data OJK tahun 2019 hanya 0,3% dari total pembiayaan. Secara perlakuan akuntansi, PSAK 112 harus disesuaikan terutama apabila Bank akan merelaisasikan varian produk berbasis Perpetual. Permasalahan utama dari produk berbasis perpetual adalah ketidak umuman fitur dimana dalam perpetual, Wakaf uang tidak dapat ditarik atau dengan kata lain abadi. Rekomendasi dari penelitian ini adalah OJK diharapkan dapat mengkaji produk ini lebih dalam demi perkembangan perbank syariah yang sehat dan inovatif.Islamic banking (further referred to as the Bank) faces two significant problems: excessive concentration in Murabaha financing contracts and high cost of funds. These two classic problems directly impact the development of the Bank and give rise to the stigma of a less innovative and unprofitable industry. This research aims to make a new product breakthrough that can help stakeholders overcome the two problems above. Term Deposit Waqf Linked Isthisna (TDWLI) has 4 variants: TDWLI Perpetual Principal, TDWLI Perpetual Principal + Profit Sharing, TDWLI Periodic Principal, TDWLI Periodic Principal, and + Profit Sharing. The TDWLI Periodic Principal is the variant that is most ready to be applied because, in accounting terms, it has been regulated in PSAK 112. In general, this TDWLI product will provide several advantages for banks to reduce the cost of funds (especially in the main variant of Waqf only). It will increase Isthisna financing, referring to OJK data in 2019, only 0.3% of total financing. In terms of accounting treatment, PSAK 112 must be adjusted especially if the Bank will release a Perpetual-based product variant. The main problem with perpetual-based products is the uncommon features. In perpetual, cash waqf cannot be withdrawn or, in other words, eternal. This research recommends that OJK is expected to study this product more deeply to develop healthy and innovative Islamic banking

Baitul Maal wat Tamwil has two directions, namely managing business and social affairs. The basic problem for BMT is that the management of social funds in BMT has not been maximized. This is indicated by the distribution of charity social funds. Based on these problems, this paper intends to explore how the implementation and role of BMT social finance in growing financial inclusion?. The method used is a qualitative type and descriptive approach. The results of this paper are first, the implementation of social finance are source of fund’s social finance management and distribution. Source of fund’s social finance are in the form of zakat, infaq, social funds, and distribution of social finance are social assistance, scholarship and qardul hasan financing. Second, the role of Baitul Maal wat Tamwil Pahlawan Tulungagung's social finance role in fostering financial inclusion, among others in the form of Qardh al-Hasan financing and other direct assistance. Direct assistance has no impact on savings opportunities. The role of social finance in growing financial inclusion in the BMT Podo Joyo Blitar includes, among others, the financing of Qardh al-Hasan and assistance for orphans in the form of savings accounts as well as from assistance for widows.

PurposeThis paper aims to build upon the various studies conducted on the ecosystem and expands the understanding of the ecosystem of microfinance institutions (MFIs) in India. The discussions in this essay entail a literature review that analyzes the discourse on the ecosystem of MFIs, and based on this an attempt has been made to conceptually design a model for the ecosystem of MFIs in India.Design/methodology/approachThe authors design the “Indian microfinance ecosystem model” based on the actors in the broader financial ecosystem (Bloom and Dees, 2008; Ledgerwood and Gibson, 2013) and the capital infrastructure and the context-setting factors of the social entrepreneurship ecosystem (Deeset al., 2008) that best describes the Indian MFI scenarios.FindingsThe ecosystem of MFIs in India is found to be very complicated. The interactions among numerous actors – who are core product or service providers, facilitators, client, beneficiaries, resource providers, competitors, complementary organizations, regulators, opponents and influential bystanders. The authors also observed that the capital infrastructure and context-setting factors such as policy, politics, media, economic and social conditions are equally crucial for the MFIs to survive and flourish. Moreover, the ecosystem is also dynamic and could change with the environmental conditions and entry of new entrants into the ecosystem.Research limitations/implicationsUnderstanding the ecosystem of MFIs from the strategic perspective would also be of interest to stakeholders such as donors, investors, banks, government and so on. For MFIs, knowing their place in the ecosystem is an essential step in determining their strategy.Practical implicationsUnderstanding the elements of the ecosystem would help MFIs to assess whether they have achieved the minimum critical environmental conditions in the ecosystem for their business model to succeed.Social implicationsBetter understanding of the ecosystem will help create social benefits through better service delivery to the low-income population.Originality/valueExpands the existing business ecosystem literature by extending it to the social policy, social entrepreneurship and more specifically to the microfinance sector. Fills a void in ecosystem literature by designing a comprehensive ecosystem model of MFIs in India. Understanding the ecosystem would help market system actors and facilitators to understand what they have to do to achieve their objectives of participating in the ecosystem. Knowing their place in the ecosystem is an essential step in determining what they should do and how they should do it. In addition to MFIs, it could have important implications for policymakers, particularly the government, that are trying to achieve financial inclusion.

From the end of World War Two, the core methodology of law and development projects has been to transplant the best legal institutions of Western capitalism to poor and emerging economies. In many post-colonial contemporary Muslim-majority countries, such programs have not adequately engaged with local legal systems, cultures and traditions. Contrary to the restrictive modernist approach to law and development, and inspired by the Sharia, there are numerous Islamic social finance mechanisms that can be utilised for poverty alleviation and their existence is evident across Bangladesh. These cover the full spectrum of philanthropic to financing, investments and insurance built upon Sharia norms and principles. Unfortunately, the true potential of Islamic social finance is considerably constrained by the weak regulatory and policy environment. Islamic social finance does not feature in national development plans, is regulated through a patchwork framework, and operates at a negligible scale. This paper provides a detailed analysis of the existing regulatory and institutional landscape of Zakah (obligatory almsgiving), awqaf (perpetual endowments), Islamic microfinance and microtakaful (microinsurance) in Bangladesh and examines the potential and challenges for Islamic social finance to reduce poverty. Thereafter, several pertinent policy and institutional recommendations are provided to effectively modernise and advance the effectiveness of Islamic social finance institutions. The methodology employed is a mixed approach incorporating literature review, legal analysis of laws and regulation and contextual analysis and field interviews among industry stakeholders. Ultimately, while private investment and initiatives are always able to support the Islamic social finance sector, this paper focuses on the extent to which the regulatory and policy environment is a crucial enabler for widespread and sustained development impact.

Although Islamic social finance including zakat has witnessed an upsurge in development in quantum, which reached US$2 trillion in 2015 and is projected to exceed US$3 trillion by 2020, due to a lack of transparency, trust, and timely disclosure to public has resulted in inefficient of zakat collection and ineffective disbursement for the wellbeing of recipients. The reason for this could be neglecting adoption of financial technology specifically blockchain and artificial intelligence system in zakat management to enhance proper collection and efficient distributions timely and effectively reporting to public. Therefore, this research proposes an ‘Islamic Social Welfare Financial Technology' (ISW FinTech) as an innovative framework that assesses zakat institutions operational efficiency of zakat collection, transparency, and effective distribution that would lead to wellbeing of zakat recipients. This framework is based on new six clusters according to their needs and priority, which convert them from being zakat recipients into zakat payers.

Zakat is a religious obligation that must be complied with by all eligible Muslims. Therefore, it plays a significant role as an Islamic social finance instrument that could finance specific programs to achieve social, political, and economic development among Muslim communities. This study aims to analyze the impact of zakat distribution in achieving sustainable development goals in the state of Kedah, given the constraint faced by the Kedah State Zakat Board. This study employs secondary data and documentation and uses descriptive analysis to analyze the data and answer the research objective to provide empirical evidence and justifications to the analysis. This study reveals that zakat distribution in Kedah, Malaysia was in line with sustainable development goals (SDGs). Thus, there is excellent potential to achieve the SDGs provided that zakat institutions make specific alignments and improvements to improve the effectiveness of zakat distribution to achieve the targeted SDGs. However, its success still depends upon the amount of zakat collection and better management.

In this article, we investigate the notion of doing well while doing good from the perspective of passive portfolio strategies. We analyze a number of asset allocation strategies based on ESG-weighting and compare their financial and ESG performance for the US and Europe. We find no significant difference in the financial performance but superior ESG performance of ESG-based strategies. It can be concluded that, compared to a naive strategy, socially responsible investors are willing to pay a small premium for the impact of the portfolio via transaction costs when rebalancing the portfolio according to their preferences for social responsibility. In addition, when comparing the ESG-based strategies to a value-weighted strategy, we observe no significant difference in ESG performance but a high degree of significance in the superior financial performance of the ESG-based strategy. We also analyze the strategies with regards to the factor loadings given by the Fama–French five-factor model and a sixth factor denoted GMB (Good minus Bad) and find significant differences across the regions and strategies. Overall, the results show strong support of ESG-based strategies being preferred by socially responsible investors but also suggest that such strategies might be preferred by conventional investors looking for a passively managed alternative compared to a value-weighted index. Furthermore, it seems that such a strategy might be a more adequate benchmark for active SRI funds.

In the aftermath of the global financial crisis, concern regarding the social purpose of finance has increased. The role played by peer-to-peer lending (P2PL) seems to resemble the role historicall...

Purpose Bringing more impact seems to be a real issue for social initiatives and organizations requiring the adoption of new approaches. The paper aims to define an integrated approach for building, maintaining and upgrading Islamic social finance and sustainable ecosystems. Design/methodology/approach The paper presents a conceptual framework based on case studies and literature review describing the methodology and the necessary steps to build sustainable ecosystems. Findings The paper shows the impact of building social finance ecosystems on tackling social issues. It emphasizes the idea that solving social issues is everybody’s business – from governments to businesses – and that those initiatives require sufficient Sharīʿah-compliant funding to achieve sustainability goals. Research limitations/implications The paper does not focus on the Islamic world experiences in building ecosystems serving social causes. Practical implications The paper gives an overview on how collaboration between the different social oriented organisations can enhance the social impact of the different initiatives. The aim is to ensure adequate financing to all the ecosystem components during the whole lifecycle. Social implications The suggested approach of building sustainable ecosystems can serve as a way to assess the existing social initiatives and practices to find relevant combinations targeting more impact. Originality/value In the social sphere, the idea of building ecosystems has been explored in different ways but never in a way that gathers all the components including finance providers, coordinators and the different types of initiatives. The paper adapts the ecosystem concept to the Islamic finance specificities.

International audience; The Social Impact Bond (SIB) is a new funding mechanism for welfare programs. It is supposed to create savings for the public sector from which private returns can be deduced. Presented as a purely technical solution, SIBs discard their political morality. The Welfare Convention Approach (WCA) is designed for studying SIBs as disputed and versatile welfare apparatuses. We claim that elements from diverse historical welfare conventions (the philanthropic, communitarian, civic, market, full employment, entrepreneurial, financial, and behavioral) reveal the diverse institutional conflicts and compromises of SIBs at the time they are implemented. In so doing, the WCA informs comparative research on SIBs. 2

Ending poverty is the first of the 17 goals of the 2030 Agenda for Sustainable Development set by the United Nations. The target is to have no more than 3 percent of the world’s population living on just $1.90 a day by 2030. A review on existing literature suggests that the United Nations need a more diverse approach to boost farming and alleviate poverty in order to meet its target. The paper is an effort to explore the possible application of an Islamic banking instrument in meeting the 2030 Agenda for Sustainable Development. This paper aims to explore the feasibility of Salam as an alternative mode of agricultural financing. The concept of the paper can be extended to non-farming industry especially the manufacturing industry. This paper describes the modus operandi of the proposed models, and identifies potential risks involved. Some recommendations are also given as risk mitigation methods.