» IC Journal of Science, Technology and Society
The growing importance of digital technologies is revolutionising not only financial systems but also philanthropy and socio-economic development, all over the world. In response to this, technologies like AI, blockchain, FinTech, big data and smart contracts are altering financial resource mobilisation, management and distribution processes. Islamic finance and digital innovations has to embraced several digital technologies. This paper explores how digitisation can re-energise the institution of waqf and enhance its role to be one of the main pillars of the future Islamic financial system. The paper also conceptualises the Smart Digital Waqf Ecosystem (SDWE) to bridge Islamic philanthropy and contemporary technologies in order to improve the governance, transparency, efficiency, accountability and ultimately impact of waqf on social and economic well-being in the digitalised world. This qualitative research paper is documentary in nature and will draw on a range of primary Islamic classical jurisprudential sources as well as contemporary literatures regarding waqf, Islamic finance, digitisation and digital transformation, FinTech and blockchain and the sustainability concerns and development aims. Analytical and conceptual methodology approach is followed in order to synthesise current knowledge and formulate a framework in respect of digital waqf governance. The research suggests that digitisation offers unparalleled potential for broadening the engagement of waqf beyond the provision of essential services, such as funding education, healthcare, scientific research, and adequate housing. It is argued that blockchain could fortify transparency, trust and efficiency, given the immutability and transparency for transactions, thereby facilitating more efficient cross-border and intra-organisation donations. AI and big data could also potentially be adopted to better tailor waqf endowments to impact investment opportunities, enhance the effectiveness of investment allocation, assess risk and evaluate socio-economic impacts more effectively. The article therefore proposes the concept of the Smart Digital Waqf Ecosystem (SDWE), which conceptually links waqf institutions with Islamic financial institutions, FinTech providers, policy makers, regulators, researchers, entrepreneurs, academics and beneficiaries, to optimise performance, ensure governance and transparency and promote sustainable and inclusive social and economic outcomes.