Harnessing value-based financing for achieving SDGs: Social innovation model for Arab municipalities

Abstract

It is inconceivable to achieve Sustainable Development Goals (SDGs) at the national level without accomplishing them locally. In the Arab region, municipalities face challenges to meet a widening gap between expenses and revenues. Securing a locally based sustainable financing model is of paramount importance. Wāqf is a value-based funding model that can offer new opportunities for sustainable financing to achieve SDGs locally. It agrees with Islamic law with the intent to promote social cohesion. The paper examines whether Wāqf, as a financing modality, is a Social Innovation (SI) model and its potential to finance development at the local level. The research method applied in this paper is qualitative. The authors compiled over 50 published articles, books, and reports covering the Wāqf and SI. The paper attempts to establish and explain linkages between Wāqf and both SI and SDGs. Content analysis using qualitative data analysis software is the research technique the researchers applied. The paper argues that Wāqf is an SI model. It can fund municipal initiatives that contribute to achieving SDGs. Results reveal linkages between Wāqf and SI and show that they contribute to sustainable development in human settlements. Besides, they both play a decisive role in fostering social equity, economic development, and environmental sustainability. Wāqf is a value-based financing model that satisfies the conditions and attributes of SI. Wāqf is an instrumental tool for financing development and supporting the attainment of SDGs in cities and municipalities. To harness the potential of Wāqf as an enabler for SDGs, organizational and business model innovation are needed to ensure transparency, accountability, and organizational learning.