Evaluation of the Social and Economic Performance of Productive Waqf Institutions

Abstract

The concept of productive waqf has emerged as an essential instrument for economic empowerment and social welfare in Islamic societies. However, the effectiveness of these institutions in fulfilling their dual purpose of social and economic development remains a topic of discussion. This study aims to evaluate the social and economic performance of productive waqf institutions, focusing on how they contribute to community welfare and financial sustainability. The objectives are to assess the efficiency of waqf management, identify the social impact on beneficiaries, and evaluate the economic outcomes for stakeholders. This research adopts a mixed-methods approach, combining qualitative and quantitative analyses. Data was collected through surveys, interviews, and financial reports from selected waqf institutions. The study applied performance evaluation indicators such as social impact measurement, financial return analysis, and stakeholder satisfaction metrics. The findings reveal that productive waqf institutions have the potential to significantly enhance social welfare, providing essential services such as education, healthcare, and financial support. However, economic performance varies widely across institutions due to differences in management practices, resource allocation, and investment strategies. Institutions with strong governance and strategic financial planning were more successful in achieving sustainable growth and social impact. The study concludes that while productive waqf institutions play a crucial role in socio-economic development, there is a need for standardized governance frameworks to enhance both their social and economic performance. Enhancing managerial capacity and improving transparency can further strengthen their role in community development.