Abstract

This study tries to introduce a model for Islamic micro finance which uses Wagh institute as its origin. In fact, by introducing the Wagh as an important and historic Islamic economics institution, the Fighi possibility for using Waqf in Islamic microfinance is analyzed. In addition, a model for Waqf-based Islamic microfinance is proposed which is in harmony with (and suitable for) Iranian Islamic banking system. In this model, the financing and resource allocation methods are explained separately. The findings of this study which are based upon theoretical analyses show that the concept of Wagh in Islamic economics has the capacity to be considered as an instrument for strengthening the Islamic micro finance initiatives.

Key words: Waqf, micro finance, Islamic microfinance, Islamic economics, Iranian Islamic banking system.