Implementing the United Nations Sustainable Development Goals through Waqf on Blockchain

This study is an attempt to reexamine the ‘social failure’ and the contemporary dynamics of development needs in the Muslim World. Recent developments have been showcasing unconventional tools emanating from the Islamic finance and banking sector in augmenting SDGS and 2030 Global Goals. For instance, HSBC Malaysia has issued the first SDG ‘sukuk,’ an Islamic bond, which will finance eligible projects and businesses in line with HSBC’s SDG Bond Framework supporting education; clean water and sanitation; affordable and clean energy; industry, innovation and infrastructure; sustainable cities and communities; and climate action. Islamic finance and banking industry has been becoming more receptive in addressing global challenges through offering hi-technology tools to better utilize waqf investments and awqaf models in a transparent way in order to result in financial inclusion and inclusive economic development. Given the global credibility and relevance of the UN SDGs, this study will foray potential roadmaps for international organizations towards achievement of social goals, which intersect with the Islamic principles. One of the potential ways is to apply traditional concept (Waqf) with modernity by using tools such as Blockchain technologies and other financial technologies. Blockchain is a fertile platform for humanitarian work including Waqf activities due to its ability to improve efficiency, reduce transaction costs, enable transparency, traceability and trust in transactions. We argue that blockchain powered waqf management can bolster Islamic moral economy which targets human-centered development by prioritizing social justice, equality, and inclusive development practices. This study draws attention on the urgent need to mobilize various actors, stakeholders and agencies to showcase that Islamic social finance and Awqaf are part of the inclusive humanitarian and development system. We will portray potential applications revolving around Muslim philanthropy. Muslim Philanthropy needs to embrace new dynamics and applications such as blockchain and better act as a catalyst in developing sustainable tools for inclusive development. All the 17 Sustainable Development Goals are well aligned with the basic principles and aspirations of Islamic philanthropy and UN organizations and other globally visible multilateral organizations need effective partnerships between Muslim philanthropic organizations. We argue that Muslim philanthropy, powered by blockchain mechanisms using Waqf, has the potential to play a vital role in institutionalizing the Muslim philanthropic activities, which in turn promote insurmountable support in meeting UN Global Goals.