Integrating Islamic Fintech and Smart Contracts for Enhancing Governance in Waqf Asset Management Wan Amir Azlan Wan Haniff

Abstract Book of the 8th World Conference on Social Sciences

Year: 2025

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Integrating Islamic Fintech and Smart Contracts for Enhancing Governance in Waqf Asset Management Wan Amir Azlan Wan Haniff

Aiman Hafiz Abd Rashid, Wan Amir Azlan Wan Haniff , Rahmawati Mohd Yusoff, Asma Hakimah Ab Halim, Ruzian Markom

 

ABSTRACT:

The article investigates the challenges and prospects of the ruling of Waqf Crowdfunding (Waqf-CF) scheme adoption in Malaysia as Shariah-compliant fintech successors deployed to mobilize Islamic endowment. However, the implementation of Waqf-CF is hindered by a number of challenges, such as the uncertainty of the legal aspects and fragmented governance, along with technology limitations and Shariah compliance issues. Using a qualitative approach, insights were gathered from seven experts 7 experts in finance, academia, and business to inform and guide our work. The results suggest that poor coordination of regulation between federal and state governments, varied modes of governance, and a lack of fintech literacy in waqf bodies are the barriers to successful implementation. In this regard, the paper examines the Waqf-CF models currently being used, including the Crowdfunding-Waqf Model and the Hasanah Platform, by highlighting the pros and cons of each. Based on these, the authors present a sophisticated hybrid model combining blockchain-based smart contracts, AI-led risk profiling, and real-time Shariah auditing for increased trust, transparency, and scalability. Finally, the paper calls for the need of a national regulatory framework and better institutional support to drive Waqf Crowdfunding as an ethical and sustainable funding option that is in line with Maqasid al-Shariah and the  nation’s vision to be a global Islamic financial hub.

Keywords: sustainability, transparency, fintech, governance, risk, challenges, impact