A THEORETICAL MODEL OF PRODUCTIVE WAQF IN SUPPORTING SUSTAINABLE DEVELOPMENT

Abstract

Sustainable development is a global agenda that emphasizes the balance between economic, social, and environmental dimensions. However, the conventional development paradigm, which focuses mainly on material growth, often neglects moral and spiritual values. In this context, Islamic economics offers a value-based approach that places holistic well-being (falāh) as its ultimate goal. One of the most promising Islamic economic instruments is productive waqf, which refers to the productive management of waqf assets to generate continuous economic and social benefits. This article aims to construct a theoretical model of productive waqf in supporting sustainable development. The study employs a qualitative-descriptive method through conceptual analysis of Islamic economic literature and sustainable development theory. The findings reveal that productive waqf aligns closely with the principles of the Sustainable Development Goals (SDGs), particularly in poverty alleviation, education improvement, economic equity, and environmental conservation. The proposed theoretical model places tawhid (divine unity), justice, and maslahah (public benefit) as its foundational values, with professional nazhir institutions managing waqf assets toward sustainable welfare in line with the maqashid al-shariah. Therefore, productive waqf can serve as a strategic instrument for realizing inclusive, equitable, and sustainability-oriented development.