Towards A Modern Waqf Management Model: Optimizing the Utilization of Waqf Potential in Islamic Countries

Waqf is one of the Islamic social finance instruments with immense potential to support the economic development of the ummah through sustainable long-term assets. The concept of perpetual waqf (mu’abbad) emphasizes the principle of asset perpetuity to provide continuous benefits to society, particularly in the sectors of education, agriculture, healthcare, and social welfare. In various Islamic countries, including Indonesia, waqf has significantly contributed to poverty alleviation and the improvement of social well-being. However, its implementation in Indonesia still faces challenges, such as suboptimal management, limited public awareness, and insufficient adoption of technology.This study employs a literature review method to explore the potential of waqf in Indonesia and other Islamic countries while examining modern waqf management models implemented in developed countries such as Egypt, Turkey, and Jordan. The findings indicate that professionalized management, technological integration, and public education are crucial for maximizing waqf’s contribution as a modern economic instrument. Additionally, to optimize the benefits of waqf as a perpetual economic instrument, several modern waqf management models are proposed, including istibdal (asset substitution), investment (istismar), transforming direct waqf into productive waqf, leasing of waqf assets, waqf-based financing, and the Benefit, Opportunity, Cost, and Risk (BOCR) analysis.