Islamic Wealth and the SDGs : Global Strategies for Socio-economic Impact

The SDGs, developed by the UN in 2012, focuses on 17 goals for the betterment of humanity and humanitarian causes. Among the core objectives of Shari'ah in Islamic finance is to offer a helping hand, emphasizing the efforts and scope of the SDGs. This book explores how Islamic ethical wealth is structured to contribute to the SDGs and an overall socio-economic impact within the principles of Maqasid al-Shari'ah. Focusing areas such as Islamic micro-finance, wealth inclusion, corporate and agro-Zakat, Awqaf, SRI Sukuk, and green Sukuk, this book will feature contributions from the leading researchers in sustainability and Islamic finance and will be of interest to scholars, researchers, industrialists, NGOs, UNDP and students studying both areas. Mohd Ma'Sum Billah, PhD is a Professor of Finance, Insurance, FinTech, Investment and Capital Market at the Islamic Economics Institute of King Abdul Aziz University, Kingdom of Saudi Arabia. He is an internationally renowned Islamic finance scholar. He has served and contributed to academia and corporate industries for over 20 years providing management, teaching, research and problem-solving, particularly in the areas of Islamic finance and insurance (Takaful), and the Halal standard. Billah has published 36 books and chapters in books as well as over 300 articles in journals and on social media. He has presented at numerous conferences, seminars, executive workshops, and industrial training sessions around the globe. In addition, he has been affiliated with various companies, universities, and financial institutions including central banks, international corporate organizations, governments, and NGOs in his capacity as a member on boards, an advisor, a strategic decision-maker, and a reformer with a strategic solution provider. His areas of interest include Islamic finance and insurance (Takaful), crowdfunding, investment, Awqaf, capital markets (Sukuk), social finance, SDGs, Crypto-currency, and FinTech Preface Acknowledgments Introduction Contents About the Author/Editor Notes on Contributors List of Figures List of Tables Part I Chemistry of Islamic Ethical Wealth for SDGs 1 How Compatible Are SDGs with Divine Principles? A Critical Literature Review (CLR) Introduction Methods and Analysis Theoretical Framework Doctrine of Maqāṣid al-Sharīʿah (Objectives of Divine-Revelations) Development of Modern Day Global Bodies and SDGs Discussing Each of the SDGs in Light of Qur’an and Sunnah Conclusion and Implications for Policy and Practice References 2 The Worldview of Islamic Ethical Wealth and Its Implications for SDGs: The Case of Waqf Introduction Review of Related Works on Worldview of Islamic Ethical Wealth The Socio-Economic Role of Islamic Ethical Wealth and the History of Waqf Islamic Worldview and Its Significance to the Components and Dimensions of Islamic Ethical Wealth The Worldview of Waqf as Distinct from Other Types of Islamic Ethical Wealth Developing the Islamic Ethical Wealth Worldview Framework Analysis of Selected Issues Based on Waqf Worldview Framework Implications for SDGs Conclusion References 3 How Islamic Ethical Wealth May Strategically and Technically Support SDGs Plan? Introduction Conceptual Framework of Zakat on Sustainable Development Goals (SDGs) Zakat Programs and SDGs Priority Pillar of Zakat Programs Conclusion References 4 Shari’ah, Ethical Wealth and SDGs: A Maqasid Perspective Introduction Ethical Wealth and Sustainable Development Goals Wealth and Maqasid al-Shariah SDGs, Ethical Wealth and Maqasid al-Shariah Conclusion References 5 Analysis of the Compatibility of SDGs with Development Goals Based on Divine Principles Introduction Review of Related Works SDGs and Their Philosophies Compatibility of SDGs with Sustainable Development Based on Divine Principles Divine Principles Relative to Sustainable Development Compatibility of SDGs with Sustainable Development Based on Al-Maqasid The Concept of Maslahah The Concept of Needs The Concept of Limitations The Concept of Objectives Conclusion and the Way Forward References 6 Integrated Islamic Social and Commercial Finance to Achieve SDGs Introduction Social and Commercial Finance in Islam Islamic Social Finance Islamic Commercial Finance Integration of Islamic Social and Commercial Finance Models of Integrated Islamic Social and Commercial Finance Integrated Islamic Commercial and Social Bank Discussion Integrated Islamic Commercial and Social Finance to Achieve SDGs Policy Implications References 7 Urban Sustainability and the Role of Islamic Wealth in Mega-OIC Cities: Implications for SDGs Introduction Defining Sustainability of Megacities in OIC Countries Mega-OIC Cities Demographic Pressure in Mega-OIC Cities Defining Urban Sustainability in Megacities The Main Dimensions of Urban Sustainability Issues in Mega-OIC Cities Access to Adequate Safe and Affordable Housing Access to Safe, Affordable, Accessible, and Sustainable Transport Systems Sustainability Issues in Mega-OIC Cities and Current Policy Interventions The Funding Gap The Role of Islamic Ethical Wealth Toward Megacities Development: Review of Best Practices Islamic Ethical Wealth in the Development of Cities: A Brief Historical Perspective Comparative Analysis of the Historical Urban Development of Cities in Islamic and Other Developing Countries The Positive Impact of Islamic Ethical Wealth on the Urban Development Path of the Mega-OIC Cities in the Post-industrial Era The Role of Islamic Ethical Wealth in the Use of Resources in Megacities The Role of Islamic Ethical Wealth Relating to New Developments The Role of Islamic Ethical Wealth Relating to Transport The Role of Islamic Ethical Wealth in Increasing Resource Efficiency in Megacities Practical Considerations of the Findings for the Realization of the SDG Agenda Conclusion References 8 Structural Mechanisms for Islamic Ethical Wealth for SDGs Introduction Eco-Vision of Islam Evolution of Economic Tools Shari’ah Rules for Wealth Management What Is Prohibited/Discouraged? What Is Encouraged/Recommended? Wealth Redistribution Basic Human Needs and Shari’ah Mapping SDGs with Islamic Teachings SDGs 1–3: Poverty, Hunger and Well-Being SDGs 4–6: Quality Education, Gender Equality, Clean Water and Sanitation SDGs 10–13: Reducing Inequality, Sustainable Cities and Communities, Responsible Consumption and Production, Climate Action SDGs 15–17: Life on Land, Peace, Justice and Strong Institutions, Partnerships for the Goals Conclusion References 9 Baitul Maal wat Tamwil as Integrated Islamic Microfinance Institution to Support SDGs Introduction Baitul Maal wat Tamwil Models of Integrated Islamic Microfinance Integrated Islamic Microfinance IIMFI-1 Model IIMFI-2 Model IIMFI-3 Model IIMFI-4 Model IIMFI-5 Model IIMFI-6 Model Discussion Integrated Islamic Microfinance to Support SDGs The Way Forward References 10 How Islamic Social Finance Contribute to the Sustainable Development Goals: An Impactful Story of Al-Khidmat Foundation Pakistan Introduction Ethical and Social Finance and Sustainable Development in Islamic Finance Objectives of the Study Research Methodology Case Study Research Design Philanthropic Institution Which Practicing Islamic Social and Moral Finance in Pakistan Orphan Care Program (Sustainable Development Goals Number, 1 & 2) Health Facilities (Sustainable Development Goals Number 3) Education (Sustainable Development Goals Number 4) Clean Water (Sustainable Development Goals Number 6) Community Services (Sustainable Development Goals Number 11) Disaster Management COVID-19 Outbreak Conclusion References Part II How Islamic Ethical Wealth May Strategically and Technically Support SDGs’ Schemes? 11 Why Does Business Zakat Contribute Insignificantly to Achieving “SDG-1: Ending Poverty” in Nigeria? Evidence from Recordkeeping Practices Introduction Literature Review A Brief Background to the Case Study Determination of Business Zakat Review of Empirical Studies on Business Recordkeeping Practices in Africa Methodology Research Findings Inventories Receivables Cash Receipts and Payments Payables Valuation of Inventories Zakat Base Employment of Bookkeepers/Accountants The Potential of Generating Business Zakat Revenue Discussion of Findings Conclusion and Recommendations References 12 The Role of Islamic Ethical Wealth in Strategically and Technically Supporting ‘No Poverty’-SDGs 1 Introduction Review of Related Literature on Islamic Ethical Wealth and SDGs SDG on Poverty Analysis of No-Poverty: Islamic Ethical Wealth vs SDG Conclusion Suggestions and the Way Forward References 13 How Islamic Ethical Wealth May Strategically and Technically Support ‘Zero Hunger’ Scheme? Introduction Islamic Ethical Wealth Management The Concept of Responsible Consumption and Production Hunger: The Case of Indonesia Toward Zero Hunger by Utilizing Islamic Ethical Wealth Zero Hunger Programs Conclusion References 14 Islamic Ethical Wealth and Its Strategic Solutions to ‘Zero Hunger’ Scheme Introduction Concept of Islamic Ethical Wealth Overview of Hunger and Food Security Issue in the World Food Security from Islamic Perspective Islamic Ethical Wealth Strategies and Technics for Food Security and Zero Hunger—Role of Islamic Finance and Islamic Social Finance Islamic Financing of Agriculture for Food Security and Zero Hunger Concept of Islamic Social Finance—Its Governance and Role for Promoting Zero Hunger Islamic Social Financing Initiatives to Promote Zero Hunger Recommendation—Islamic Food Banking and Its Operations Guidelines Regulatory Authority Incorporation Operation Technology Governance Shariah Governance Conclusions References 15 Structures of Healthcare Waqf in Indonesia to Support SDGs Healthcare Waqf Social Healthcare Waqf Productive Healthcare Waqf Integrated Social-Productive Healthcare Waqf-1 Integrated Social-Productive Healthcare Waqf-2 Models of Healthcare Waqf in Indonesia Social Healthcare Waqf Productive Healthcare Waqf Integrated Social-Productive Healthcare Waqf-1 Integrated Social-Productive Healthcare Waqf-2 Healthcare Waqf to Support SDGs Good Health and Well-Being Water and Sanitation The Way Forward References 16 How Islamic Ethical Wealth Manages the Risks That Threaten ‘Good Health and Wellbeing’ Mission? Introduction The Present State of Human Wellbeing Islamic Ethical Wealth Meaning of Ethics in Islam Ethical Dimension of Muslim Economic Transaction Riba Gharar Maysir Haram Items Objectives Methods and Analysis Islamic Ethical Wealth and Holistic Health and Wellbeing Model Islamic Ethical Wealth Five Human Dimensions The Physical Body Biochemical Body Intellectual Body Emotional Body Spiritual Body Elimination of Risk Factors Traditional Reasons Drugs Dominance Other Drugs Sedentary Lifestyle Stress and Negative Emotions The Violations of Allah’s Natural Laws Holistic Health and Wellbeing: The Islamic Perspective Classification of Prophetic Medicine Maqaasid Shariah (Objectives of the Islamic Law) Conclusion Implications for Practice and Policy References 17 The Role of Waqf in the Youth Empowerment to Attain the Quality Education in Kano for Sustainable Development Goals Introduction The Concept of Waqf Kinds of Waqf The Concept of Sustainable Development Quality Education for Sustainable Development Waqf as a Mechanism for Sustainable Development The Importance of Education in Islam The Role of Muslim Communities to the Attainment of Quality Education for Sustainable Development Methodology The Role of Waqf in Attaining Quality Education in Kano Steps for Achieving Quality Education in Kano Conclusion References 18 How Islamic Ethical Wealth May Strategically and Technically Support “Reduced Inequality” Mission? Introduction The Concept of Islamic Wealth Management Definition and Concept The Role of Islamic Wealth Management in Reducing Inequality The Role of Zakat and Waqf in Inequality Elimination Introduction The Role of Zakat in Eliminating Inequality The Role of Waqf in Eliminating Inequality Conclusion and Recommendation References Part III How is the Strategic Mechanism of ‘Zakat’ to Support SDGs? 19 Zakat on Wealth and Asset: Lessons for SDGs Introduction Overview on the Role of Zakat Toward Socioeconomic Development Concept of Zakat The Socioeconomic and Religious Role of Zakat Toward Development The UN Sustainable Development Goals (SDGs) People Prosperity Planet Peace and Partnerships Developing Zakat-SDGs Framework Analysis of the Zakat-SDGs Framework Dimensions of SGDs Related to Zakat Dimensions of Zakat Not Included in SDGs Conclusion and the Way Forward References 20 Bridging Zakat Impacts Toward Maqasid Shariah and Sustainable Development Goals (SDGs), Influence of Corporatization and Experiences on COVID-19 Introduction Literature Review Governance of Malaysian Zakat Institutions (ZIs) Zakat Impacts Linkage Between Zakat Impacts, Maqasid Shariah, and SDGs Methodology Data Collection Research Design—Zakat Impacts, Maqasid Shariah, and SDGs Results Findings on Zakat Impacts on Maqasid Shariah and SDGs Comparison of Zakat Impacts Between Corporatized and Non-corporatized ZIs Zakat Impacts on COVID-19 and Its Relationships with Maqasid Shariah and SDGs Conclusion References 21 How Far Corporate Zakat May Contribute to Sustainable Development Goals? Introduction Importance of Zakat Corporate Zakat Zakat and Sustainable Development Goals NGOs Which Active in the Zakat and SDGs in Pakistan Al-Khidmat Foundation Transparent Hand Shaukat Khanum Cancer Hospital Edhi Foundation Chhipa Welfare Association Ehsas The Rising Sun The Citizen Foundation Care Pakistan The Sindh Institute of Urology and Transplantation Conclusion Recommendations References 22 Global Zakat Cooperation Chain to SDGs: How Shall Mechanisms and Master Plan Be? Introduction Digitized Zakat Mechanism Literature Review Digitized Zakat Fund Mechanism and Crowdfunding Conclusion References Part IV How Potential of ‘Awqaf’ in Supporting SDGs? 23 Not Yet Fully Understood Divine Status of Waqf and Its Social Welfare Role Coexistance of the Quran and Charity What Is the Outcome of All the Above-Quoted Verses? Family Waqf was branded as non charitable, ignoring its social welfare potential Cash Waqf and its Soial Welfare Potentiality Crossing the Hurdle of Perpetuity If It Detracts the Social Welfare Role of Family Waqf or Cash Waqf Waqf Has Still Enough Potential to Play a Role in Social Welfare Initiatives 24 Analysis of Global Ethical Wealth Based on Maqasid al-Shari’ah: The Case of Waqf Introduction Review of the Related Works on Waqf The Concept and Role of Waqf The Concept and Theory of Al-Maqasid Basic Concepts Classification of Maqasid al-Shari’ah Contemporary Studies on Maqasid al-Shari’ah Al-Maqasid and al-Waqf Analysis of the Role of Waqf in Achieving al-Maqasid Al-Maqasid al-Daruriyyah Al-Maqasid al-Hajiyyah Al-Maqasid al-Tahsiniyaah Conclusion References 25 Forms of Waqf Funds and SDGs Introduction Convergence of Waqf with SDGs Role of Waqf Funds Forms in SDGs Realization Pure Investment Waqf Funds Specialized Waqf Funds Qard Hassan Waqf Funds Conclusion References 26 Contributions of Waqf Investments in Achieving SDGs Introduction Sustainable Development Goals (SDGs) and Their Investment Areas UNCTAD SDGs Investment Areas Guido Schmidt-Traub SDG Investment Areas Analysis and Consolidation of SDG Related Investment Areas Waqf-SDGs Investment Areas Investment Area 1: Health Investment Area 2: Education Investment Area 3: Social Protection Investment Area 4: Food Security and Sustainable Agriculture Investment Area 5: Infrastructure Investment Area 6: Ecosystem Services and Biodiversity Investment Area 7: Data for the SDGs Investment Area 8: Emergency Response and Humanitarian Work Challenges of Waqf Investments and Some Suggestions Conclusion and Way Forward References 27 Corporate Waqf for Healthcare in Malaysia for B40 and M40 Introduction Potential of Waqf in Developing the Socio-Economy of Nation Waqf and Healthcare Sector Importance of Healthcare in Islam Challenges of B40 and M40 in Accessing Good Healthcare System in Malaysia The Proposal for E-Wallet Corporate Waqf for Healthcare Conclusion References 28 How Corporate Awqaf Can Support SDGs? Introduction Literature Review Understanding Waqf and Its Objectives in Shariah The Concept of Corporate Waqf The Significance of Corporate Waqf in the Development of Waqf Property Research Methodology Exploring the Roles of Corporate Waqf in Supporting SDGs: The Experiences of Selected Corporate Waqf Institutions in Malaysia and Singapore Waqaf An-Nur Corporation (WANCorp) Perbadanan Wakaf Selangor (PWS) Warees Investments Pte Ltd (Warees) Discussion Conclusion References 29 Cash Awqaf: How It May Contribute to SDGs? Introduction Background of Waqf and Maqasid al-Shari’ah Waqf and Maqasid al-Shari’ah Contribution of Waqf Towards Preservation of Kulliyat al-Khams Waqf and Its Relation to SDGs The Main Concept of Cash Waqf Jurisprudential Boundary of Cash Waqf Timeline of Cash Waqf Primary Restriction Validating Cash Endowment Types of Cash Waqf Implementation Suggested by the Jurists The Forms of Cash Waqf in Contemporary Practice Cash Waqf and Its Roles in Supporting SDGs Cash Waqf and Poverty Alleviation Cash Waqf and Quality Education Conclusion References Part V How Sukuk Structure May Support SDGs? 30 Analysis of Sukuk Al-Waqf Structure for Financing BOT-Based Development Programs Introduction Overview of Waqf Overview of Sukuk Sukuk Al-Musharakah: Majlis Ugama Islam Singapura (MUIS) Musharakah Sukuk Structure for 11 Beach Road Musharakah Sukuk Structure for Bencoolen Street Sukuk Al-Ijarah Lebuhraya Kemuning-Shah Alam (LKSA) Waqf Sukuk Structure and BOT-Based Projects Sukuk Al-Intifa’a: ZamZam Tower Cash Waqf Linked Sukuk Structure Conclusion The Way Forward for New Waqf Sukuk Structure References 31 Sukuk and SDG-9 “Industry, Innovation and Infrastructure” in Sub-Saharan Africa: Achievements, Challenges and Opportunities Introduction SDG-9 “Industry, Innovation and Infrastructure” An Overview The Nature and Extent of Industry, Innovation and Infrastructure in SSA Industry in SSA Innovation in SSA Infrastructure in SSA Sukuk and SDG-9 Achievements, Challenges and Opportunities Achievements Sukuk as Instruments of Financing SDG-9 Case Study of Sukuk Issuances in Nigeria Challenges Legislative and Tax Framework Lack of Uniform Interpretation in Structuring of Sukuk Across Jurisdictions Liquidity Management Skills, Technical Capacities Gap and Limited Islamic Finance and Shariah Experts Opportunities Conclusion and Recommendations References 32 How Green Sukuk Structure Contributes to SDGs? Introduction Green Sukuk and the Projects They Fund Green sukuk and SDGs Sustainable Development Goals Green sukuk Structure and Its Contributions to SDGs Identifying and Analyzing the Issues Conclusion and The Way Forward References Index