Exploring transformational leadership dimensions through the ‘Rahmah’ practices: a qualitative study among leaders in waqf institutions in Malaysia

Purpose This study aims to examine the role of transformational leadership in the governance of waqf institutions through the lens of RAHMAH practices introduced by the Malaysian government. As key entities that manage the wealth of the ummah and support communities in need, waqf institutions must adopt effective leadership models to remain relevant in a rapidly changing and competitive global environment. The study explores how transformational leadership principles can enhance governance and sustainability in these institutions. Design/methodology/approach A qualitative research design was used, involving semi-structured interviews with five leaders from waqf institutions across Peninsular Malaysia. The data were managed and analysed using ATLAS.ti 23, applying rigorous and systematic qualitative analysis procedures to ensure the reliability and depth of the findings. Findings The findings reveal that the ideal application of transformational leadership in waqf institutions aligns with the principles of RAHMAH practices. Effective leaders demonstrate friendliness, foster organisational peace and harmony, and show empathy, understanding and respect. These attributes strengthen institutional governance and promote a compassionate leadership culture. Originality/value This study enriches the existing literature on Islamic transformational leadership by integrating it with empirical insights into RAHMAH practices within waqf institutions. It offers practical implications for leaders, policymakers and practitioners in the Islamic social finance sector through evidence-based recommendations and actionable strategies to improve leadership effectiveness, governance and organisational performance.