Chapter 10: Waqf-based Financial Intermediation for Realising the Potential of Ethical and Responsible Social Finance

This chapter explores waqf as a foundation for ethical and responsible social finance, positioning it as a key instrument for welfare-oriented financial intermediation. Historically, cash waqfs financed education, health, and infrastructure, reducing public borrowing and stabilising economies. In the modern context, integrating waqf with fintech, crowdfunding, and waqf ṣukūk enables micro-level participation, transparent fund management, and sustainable development financing. The chapter outlines models for waqf-based fund management, budgetary support, and social inclusion, emphasising the role of regulatory, sharīʿah, and governance frameworks to ensure transparency and integrity. A roadmap is proposed for leveraging waqf to support green projects, entrepreneurship, and impact-oriented investments, positioning it as part of key economic growth activities alongside Islamic finance and the digital economy. By aligning waqf with technology and sound regulation, societies can build an ethical financial architecture that promotes shared prosperity, reduces inequality, and strengthens resilience.