Waqf: A Proposed Model for Islamic Finance

This paper develops a Waqf based financing model in order to facilitate the corporate entities to finance their investments fulfilling the tenets of Halal. The basic objective of this research is to provide financing avenues to unprivileged class of the society, the majority of which cannot fulfill the collateral and other requirements of the banks. We have developed a Waqf based model which would be helpful in achieving the objective of this study. Initially the fund will finance the corporate entities then after the growth of this fund; it will start financing the unprivileged class of the society at a low cost and partnership. When the unprivileged class of the society would get financing they would start their businesses that would ultimately reduce the poverty level, create more employment, increase economic activities and would finally results in the increase in GDP and other social benefits.Keywords: Waqf, Riba, Musharakah, Mudarabah, Murahaba, Ijara