The Socio-Economic Impacts of Waqf Investment Funds as a Model for Sustainable Financing in Saudi Arabia

Faiza Elmahgop (), Faizah Alsulami, Mwahib Gasmelsied Ahmed Mohammed, Sufian Abdel-Gadir and Tomader Elhassan
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Faiza Elmahgop: Department of Finance & Investment, University of Tabuk, Tabuk 74512, Saudi Arabia
Faizah Alsulami: Department of Accounting, University of Tabuk, P.O. Box 741, Tabuk 71491, Saudi Arabia
Mwahib Gasmelsied Ahmed Mohammed: Department of Finance & Investment, University of Tabuk, Tabuk 71491, Saudi Arabia
Sufian Abdel-Gadir: Department of Public Law, Sultan Qaboos University, P.O. Box 50, Muscat 123, Oman
Tomader Elhassan: Department of Administrative Sciences and Humanities, Jouf University, Qurayyat 77451, Saudi Arabia

Sustainability, 2025, vol. 17, issue 9, 1-31

Abstract: Waqf investment funds represent an innovative approach to sustainable finance, integrating Islamic investment principles with contemporary social and economic goals. The research explores how Waqf investment funds affect socio-economic factors in Saudi Arabia through their influence on personal income, healthcare systems, and education while analyzing financial sustainability. The study assessed primary socio-economic indicators through beneficiary survey data, expert interviews, and secondary sources. The study used chi-square tests, exploratory factor analysis (EFA), and regression analysis to evaluate the long-term impact of the funds on social welfare and economic stability. The results highlight several significant achievements, the most important of which is that personal income benefited most from enhanced purchasing power. At the same time, healthcare outcomes improved significantly due to support for chronic disease treatments. Support for student housing and living services positively impacted the education sector by providing learning stability and access to educational opportunities. Financial sustainability reached its peak through improved financial security measures. The full potential of Waqf investment funds remains restricted because they face continuous issues with investment diversification, governance effectiveness, and entrepreneurial support. The results show that Waqf investment funds work as a welfare tool while also serving as a strategic tool for sustainable development in line with Saudi Vision 2030 and the United Nations Sustainable Development Goals.

Keywords: Waqf investment funds; financial sustainability; income; health; education; KSA (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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