This document proposes an Integrated Zakat and Waqf Model for Refugees (IZWMR) to improve livelihoods for global refugees. It builds upon a previous cash waqf refugee microfinance fund model by adding a zakat element. The proposed IZWMR scheme would use funds from institutional and individual donors to provide basic needs support, entrepreneurship training, and microenterprise startup capital for refugees, including those unable to work, through a zakat fund. It would also use returns from investing a cash waqf fund to subsidize financing from Islamic microfinance and financial institutions for refugee businesses. The goal is to empower refugees economically and help integrate them while sustaining the program through charitable donations. The

1. Integrated Zakat and Waqf Model for
Refugees (IZWMR), Proposal to Improve
Livelihood of Global Refugees
IMAM WAHYUDI INDRAWAN; SEBASTIAN HERMAN
International Islamic University Malaysia
3rd AIFC, July 4, 2018 in Makassar

2. Introduction
4.92.7
1.1
Refugees by Origin, from Muslim
countries (millions)
Syria
Afghanistan
Somalia
What scheme to utilize those instruments
and solve the issue?
Islamic Economic system has instruments
that potentially solve this problem
Refugees problem is a global issue, no
exception to Muslim world

3. Objective of the Paper
Many studies have
discussed and elaborated
waqf to solve various socio-
economic problems.
One notable example is by
Kachkar (2017), a
conceptual paper that
proposed cash waqf to deal
with refugees issue.
However, Kachkar’s cash
waqf refugee microfinance
fund (CWRMF) is only for
those who have marketable
and talented skills
This paper aims to provide
extended proposed model
from cash waqf based
microfinance model
developed by Kachkar
(2017)
Envisioned in providing
access for betterment of
livelihood for refugees.
The proposed model, called
Integrated Zakat and Waqf
Model for Refugees
(IZWMR) add zakat
element as extension from
previous model.

4. Zakat for Refugees
The categories of eligible recipients for zakat are mentioned in the Quran:
“Alms are only for the poor and the needy, and those who collect them
[zakat], those whose hearts are to be reconciled, captives, debtors, in the
cause of Allah, and wayfarers...” (Quran 9:60).
Refugees can fall within the categories of poor and needy. Refugees who
have incurred loans can also fall within the category of debtors.
Senior Scholars’ Council of Morocco = Zakat can be distributed to eligible
recipients in its locality and it is also permissible to send to another locale,
especially when that other locale has greater need.

5. Cash Waqf and Previous Models
•Integrated Cash Waqf Micro Enterprises Investment (ICWME-I).
•Source of financing for micro enterprises.
Asmy (2014)
•Integrated Waqf-based Islamic Microfinance Model (IWIMM)
•Waqf scheme to provide capital and takaful coverage for microfinance
Haneef (2015a)
•Integrated Waqf-based Islamic Microfinance (IsMF)
•For poverty reduction in Bangladesh. Surveying 381 respondents.
•The study found that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and
human resource development, IsMF and human resource development and, waqf resources and project financing.
Haneef (2015b)
•Cash Waqf Refugee Microfinance Fund (CWRMF)
•proposed a conceptual model of cash waqf which can be used to extend microfinance for refugees.
Kachkar (2017)

6. Kachkar’s (2017) Proposal

7. Features
Source of fund = institutional donors (principal) and
individual donors (reserve fund)
Cash waqf fund = principal fund = temporary cash waqf
(financing for refugees) + perpetual cash waqf (investment)
Takaful Unit = financial guarantee
Reserve Fund = operational cost
Critical Evaluation
This model will only
help refugees with
entrepreneurship
skill
How about the
unskilled refugees?
How about refugees
with disability
Kachkar’s (2017) Model

8. Proposed Scheme (IZWMR)

9. Proposed Scheme (IZWMR)
Started
•Institutional and individual donors give money to charity pooling fund
•Institutional donors’ fund  Charity pooling fund,
•Individual donors’ fund  Charity pooling fund and Reserve fund as in Kachkar (2017) model.
Charity pooling
fund consists
•ZIS
•Cash Waqf
1.ZIS Fund
•To fulfill basic needs for the refugess and maintain their livelihood, especially for disability refugees and senior citizens who cannot build-up business due their inability.
•To finance entrepreneurship training for refugees.
•To provide basic capital for entrepreneurship training program alumni  hibah or qard al-hasan.
•Two groups of asnaf, the faqir wa miskin (the poor) and the ibnu sabil (somebody who do not have livelihood and deprived on way home).
After Training
•The refugees will be provided with basic capital to set-up microenterprise.
•Mainly to serve the needs of refugee community, thus make them better-off and gradually independent from external aids.

10. Proposed Scheme (IZWMR)
Expansion
•Microenterprise  Request financing from Islamic Microfinancial Institution (IMFI).
•Medium enterprise  can request financing from Islamic Financial Institution (IFI), such as commerical bank.
Cash Waqf
Role
•he cash waqf fund by the manager will be channelled to investment, either real investment or low risk sharia compliant financial instruments, to generate returns.
•The returns will build-up the reserve fund of the program
•More importantly, the returns will subsidize the profit-margin on IMFI and IFI financing.
•No subsidy for big company  exceed certain value of asset
Marketplace
•Within refugees’ community, or
•Doing business with host citizens
•This will enhance economic growth of the host country, and help limit the social tension between local citizens and refugees.
Profit
•Once the refugees’ enterprises gain profit, they have moral obligation to give some charity, either zakat or waqf to the IZWMR program manager to finance and sustain the
program as well as help other refugees as well.

11. • Host countries,
• International
community
• Refugees
• Related to the
integration features
• Empowered
refugees help other
refugees
• From Bottom to the
Top
• Zakat and Waqf
• Islamic
Commercial and
Social Finance
Integration
Empowerment
with social
mobility
CooperationSustainability

12. Refugees
issue is still a
global issue,
including in
Muslim World
Kachkar’s (2017)
is a good effort
to raise
awareness and
try to solve the
problem with
Islamic way
IZWMR is a
proposal for
betterment of
Kachkar’s
model
A more
technical paper
for the scheme
applicability is
needed to
realize the
scheme into
real world.

13. May Allah gives his
blessings to all of us
THANK YOU