Al-Fadilah: Islamic Economics Journal
Vol. 4 No. 1 (2026): Potential and Innovation in Islamic Economic

The Effectiveness of Productive Waqf in Supporting Sustainable Development: An Analysis of its Impact on Socio-Economic Growth

Eka Putriana (Program Studi Manajemen Zakat dan Wakaf, Fakultas Ekonomi dan Bisnis Islam, UIN Sunan Ampel Surabaya)
Diva Aulia (Program Studi Manajemen Zakat dan Wakaf, Fakultas Ekonomi dan Bisnis Islam, UIN Sunan Ampel Surabaya)



Article Info

Publish Date
03 Jun 2026

Abstract

Productive waqf is increasingly viewed as a strategic instrument in supporting the achievement of sustainable development goals (SDGs) through the provision of long-term, sustainable social funding. This study aims to analyze the effectiveness of productive waqf in supporting sustainable development and its impact on community socio-economic growth. Using a literature review method, this study examines various academic sources discussing the concept, regulation, implementation, and impact of productive waqf. The study results indicate that productive waqf has the potential to support socio-economic development through increased income, job creation, poverty alleviation, empowerment of MSMEs, and the provision of social services such as education and health. However, this effectiveness is still affected by various obstacles such as weak governance, lack of professionalization of nazhir (managers), and suboptimal investment management. This study emphasizes the need to strengthen institutional capacity, transparency, and integrate waqf into national development strategies so that its benefits can be felt sustainably. These findings contribute to the development of Islamic social finance theory and practice and serve as a reference for policymakers in optimizing the role of productive waqf for community welfare.

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Journal Info

Abbrev

i

Publisher

Subject

Religion Economics, Econometrics & Finance Social Sciences

Description

The aim of this journal publication is to disseminate the conceptual thoughts or ideas and research results that have been achieved in the area of Islamic Economics particularly focuses on the main problems in the development of the sciences of islamic economics areas as follows: Islamic Finance ...