Smart Contract to Securitize WAQF Principle: Elevating Islamic Socio-Economic Instruments through Decentralized Trust, Transparency, and Compliance with Contemporary Standards

Abstract

This paper examines the use of smart contracts to securitize the WAQF principle, a core Islamic socio-economic instrument, by leveraging blockchain technology to enhance trust, transparency, and Shariah compliance. The purpose of the research is to investigate how smart contracts can automate and enforce WAQF management while ensuring adherence to Islamic principles. The study employs an experimental methodology, designing and implementing a smart contract framework for WAQF securitization. The framework is tested for its effectiveness in decentralizing asset management, improving transparency, and automating compliance processes. Findings indicate that smart contracts can significantly enhance WAQF governance by providing immutable records, facilitating transparent transactions, and ensuring Shariah-compliant automation. The originality of this paper lies in its innovative approach, integrating smart contracts with Islamic finance to propose a modernized, secure, and efficient model for managing WAQF assets, offering practical insights into the fusion of blockchain and Islamic socio-economic systems.