AFFORDABLE HOUSING USING WAQF LAND AND SUKUK IJARAH

Abstract

The purpose of this paper is to create an alternative solution for the problem of affordable housing using the instrument of waqf. The major problem in developing waqf land is to raise insufficient funds. This paper focuses on integrating the sukuk ijarah structure in developing waqf land for the purpose of building affordable housing for the poor, thus creating a suitable waqf-sukuk ijarah model for the application. The methodology of this paper is that in order to gain the data, the paper is conducted via a review of literatures, books and paper reports. The findings reveal that the proposed model is a unique method of owning residential property through waqf and sukuk ijarah. The proposed model will 1) provide an affordable housing method for needy people, at the same time, Baitulmal institutions can reduce and eliminate the issue of poverty in society, 2) solve the issue of idle waqf land, and 3) do not require the buyers to get credit from the banks.