An Analysis of the Effectiveness of Productive Waqf in Improving the Economic Welfare of Contemporary Muslim Communities.

Abstract

This study aims to analyze the effectiveness of productive waqf in improving the economic welfare of contemporary Islamic communities and to identify the factors influencing its success. The research employs a qualitative method with a case study design, selected for its ability to provide an in-depth understanding of productive waqf management processes, institutional dynamics, and the experiences of beneficiaries that cannot be adequately captured through quantitative approaches. The research site is the Daarut Tauhiid Productive Waqf Agency in Bandung City, Indonesia, chosen due to its sustained implementation of a micro-enterprise-based productive waqf model. The study involved eight informants consisting of waqf managers and beneficiary (mustahik) recipients, purposively selected based on their direct involvement and comprehensive understanding of productive waqf management and utilization. The findings indicate that professionally managed productive waqf contributes to increased income, enhanced economic independence, and improved business stability among beneficiaries. This study recommends strengthening professional management practices, enhancing nazir capacity, and fostering collaboration among waqf institutions, government bodies, and Islamic philanthropic organizations to expand the social and economic impact of productive waqf.