The Transformation of Islamic Social Finance in Turkiye

This research examines the evolution of Islamic social finance in Turkey, focusing on zakat and waqf, from both historical and contemporary perspectives. Historically, Islamic social financial management in Turkiye has developed since the Ottoman Empire, with waqf institutions playing a crucial role in social and economic empowerment. Following the establishment of the secular republic, waqf management was placed under government regulation through institutions such as Vakıflar Genel Müdürlüğü (VGM), which oversees the administration and distribution of waqf assets. Despite operating within a secular framework, Islamic principles continue to underpin the management of zakat and waqf in Turkiye. Furthermore, the potential of zakat and waqf in Turkiye is substantial, given that the majority of the population is Muslim and charitable giving is deeply embedded in the culture. This study finds that, if managed optimally, zakat and waqf can serve as effective instruments for poverty alleviation and reducing social inequality. Both government agencies and private institutions, including NGOs, have played a significant role in advancing Islamic social finance. With proper governance and strategic implementation, Islamic social finance has the potential to enhance public welfare and serve as a model for other Muslim-majority countries seeking to develop philanthropy-based economic empowerment.