Framework of affordable cooperative housing through an innovative waqf-based source of finance in Karachi

Abstract

Purpose The purpose of this research is to introduce an innovative framework called the waqf cooperative housing framework (WCHF), with an objective to create a synergistic equilibrium between waqf and cooperative housing schemes. To tackle problems related to the dearth of financing, this research postulates an innovative waqf-based source of finance that involves generating revenue from common areas (waqf area) within the vicinity of the condominium. Design/methodology/approach Primary data were collected through interviews and the data were analysed using the NVIVO software. The interviewees comprised managers from property development sectors, public sector officials, university lecturers in Islamic finance, CEOs, top management officials from Islamic financial institutions, community leaders and shariah scholars. Findings A framework was proposed based on the result of the interviews. It was found that innovative models such as WCHF can resolve the issue of affordable housing in Karachi such as decreasing the financial burden on the public exchequer, bringing positive change to the lives of the poor, fulfilling the property developer’s corporate social responsibility, fulfilling the religious duty of the general public and condominium owners towards their fellow beings as well as creating new employment opportunities for people who are working in the financial sector (waqf management companies/trustees) and the construction sector. Research limitations/implications Even though this study has introduced an innovative and practical solution to the financing of affordable housing, it also encountered some limitations. First, it is conducted in Karachi city involving six group of respondents; thus, the findings cannot be generalised with other contexts. Similar research needs to be conducted in different contexts. Originality/value To date, this is among the first studies, to the best of the authors’ knowledge, to investigate cooperative affordable housing with the help of innovative Islamic finance tools in the context of Pakistan. Furthermore, insufficient attention has been given to the enabling and hindering factors behind the acceptance of a framework that seeks to initiate a cooperative scheme based on an innovative waqf financing tool that generates revenue from common areas around a condominium.

The integration of Islamic social and commercial finance (IISCF): Systematic literature review, bibliometric analysis, conceptual framework, and future research opportunities

“…The zakat integration model has also been developed to finance social projects [ 24 ], business [ 31 ], and fulfil obligations from investing in financial markets [ 79 ]. The proposed model topic includes the sub-topics of socio-economic development [ 33 , 80 , 81 , 108 , 22 , 15 ], financial inclusion [ 84 , 104 , 20 , 110 ], education [ 5 , 74 , 7 ], public housing [ 67 , 58 , 71 ], public goods [ 10 , 11 ], personal financing [ 70 ], institution performance [ 94 , 90 ], and sustainability financing [ 113 ]. In line with technological advancements, a sub-topic on the integration model with financial technology support has emerged in the last three years [ 78 , 80 , 94 , 81 , 110 , 90 , 15 ].…”

“…Regarding the model for integration with non-banking financial institutions, waqf properties/assets can be developed through integration with the Islamic capital market [ 72 , 66 , 65 , 71 ] and the cooperative waqf model [ 68 , 55 , 58 ]. A real estate investment trust structure has been used to develop waqf projects in Singapore and can fulfil the integration model [ 72 ], while in Malaysia, Islamic Real Estate Investment Trusts (I-REITs) are recommended as an effective tool for ensuring diversity for the public to provide waqf to finance waqf development activities [ 73 ].…”

“…In Indonesia, waqf assets can be generated through several models of collaboration with financial and non-financial institutions, namely cash waqf and self-managed models, Islamic bank financing and self-managed models, a sukuk and external partnership model, cash waqf and an external partnership, and cash waqf and co-financing with external partnership [ 3 ]. Furthermore, the cooperative waqf integration model can aid in providing public housing in Pakistan [ 58 ]. In addition, concerning the problem of unaffordable public housing in Malaysia, it is possible to adopt a model called al-Hikr (long-term lease structure) for waqf and state lands in the country [ 67 ].…”

Redefining Boundaries: The Case for Enterprise-Structured Waqf Over Corporate Waqf

“…Given its significance, waqf has attracted significant scholarly attention, leading to a rich tapestry of classical and contemporary research. The research includes a range of topics, from waqf's legal perspectives (Oberauer, 2013;Joseph, 2014;Abdullah, 2018Abdullah, , 2020 and institutional aspects (Shatzmiller, 2001;Hennigan, 2004;Komilov, 2023), governance issues (Awaludin et al, 2018;Aziz & Ali, 2018;Kamaruddin & Hanefah, 2021), development roles (Ibrahim et al, 2019;Lamido & Haneef, 2021;Medias et al, 2021), to innovative applications in a modern context (Majid, 2021;Hassan et al, 2023;Khan et al, 2023).…”

Mosque capital accounting practices: A local wisdom perspective of Indonesia

“…According to Halim (2013), mosque finance includes how to raise funds, sources of funding, and management and accountability of mosque funds in the context of mosque organizations. The primary purpose of worship or religious organizations such as mosques is to provide services and carry out activities that are needed or that have become routine worship rituals in religious organizations to serve the people or followers of their religion (Khan et al, 2023). Although the main goal is to serve the people, religious organizations still have financial goals.…”