A Conceptual Framework: Enhancing Shariah Compliance via Adopting Enterprise Waqf Model as Endowment for Urban Regeneration Development

The dynamic performance of Islamic Finance Industry in Malaysia, achieved through shariah compliant concept, has fostered growth in various industries. Subsequently, waqf and halal industry have also shown an enormous increase over the years. Both waqf and urban regeneration have similar aims to improve the welfare of the society. However, both methods work on with different mechanism. Waqf is a source of funding for social and economic development. Urban regeneration serves as an instrument used to redevelop blighted areas into creating a quality city living, dynamic, smart and vigorous cities. However, it was found that investors (property developers) and local authorities are cautious and less motivated to be actively involved in urban regeneration. This is attributed to funding issues and perceptions on profit generation, higher costs, and possible risks on development in such areas. Realization on the rise in issues regarding urban regeneration as well as the fact that Malaysia has reached the final phase of 2020 to achieve sustainable socio-economic development, an exploration of waqf in urban regeneration development is pivotal. Thus, the main objective of this paper is to develop a conceptual framework by adopting waqf model as endowment in urban regeneration development. A qualitative research method is chosen for this study. Previous literatures have been reviewed, thoroughly analyzed and presented in this paper. The findings revealed that the enterprise-waqf model is able to provide a better solution to create win-win situation among waqf donors, waqf institutions and stakeholders of urban regeneration.