Islamic Social Finance and Poverty Alleviation: An Interdisciplinary Policy Analysis of Zakat, Waqf, and Microfinance Integration

Abstract

This study examines the role of Islamic social finance in poverty alleviation
through an interdisciplinary policy analysis focusing on the integration of
zakat, waqf, and Islamic microfinance. Despite significant potential, Islamic
social finance instruments often operate in fragmented institutional
frameworks, limiting their socio-economic impact. This research employs
qualitative normative and conceptual analysis based on recent scholarly
publications (2020–2025) and contemporary policy reports. The findings
indicate that integrating zakat as a redistributive mechanism, waqf as a
sustainable asset base, and Islamic microfinance as an empowerment tool
can significantly enhance poverty reduction strategies in Muslim-majority
countries. The study proposes an integrative governance model emphasizing
institutional coordination, digital infrastructure, and regulatory
harmonization. This research contributes to interdisciplinary Islamic policy
studies by presenting Islamic social finance as a structured poverty alleviation
ecosystem rather than isolated charitable instruments.