From Classical Awqaf to the Digital Awqaf Economy: Institutional Evolution, Economic Impact, and Innovative Models for Sustainable Development

Abstract

Awqaf (Islamic endowments) historically functioned as decentralized institutions financing education, healthcare, infrastructure, and social welfare across the Muslim world. Grounded in the principles of perpetuity and inalienability, they transformed private wealth into sustainable public goods, as highlighted by Monzer Kahf and Murat Çizakça, while also facing institutional rigidity concerns raised by Timur Kuran.This paper examines the evolution of Awqaf from classical asset-based models to innovative structures such as cash waqf, waqf sukuk, corporate waqf, and intellectual property waqf. It proposes the Integrated Digital Awqaf Ecosystem (IDAE) Framework to explain how digitalization enhances governance, transparency, financial integration, and socio-economic impact. The study concludes that digitally integrated Awqaf can become strategic pillars of sustainable development in contemporary Muslim economies.