Liquidity Risk Management Strategies in Optimizing Cash Waqf Mobilization and Utilization

Abstract

This study aims to identify liquidity risks in the management of cash waqf and formulate effective risk management strategies to optimize the mobilization and utilization of waqf funds within the framework of Islamic wealth management. Using a Systematic Literature Review (SLR) method supported by the Parsif.al tool, this research analyzed 131 peer-reviewed articles published between 2016 and 2025 from the Semantic Scholar database. The PICO framework and a rigorous quality assessment process guided the analysis. The findings reveal that liquidity risks in cash waqf management stem from mismatches between short-term obligations and long-term investments, volatility in cash inflows, and the absence of liquidity reserves. To mitigate these risks, waqf institutions have adopted strategies such as investment diversification, establishing liquidity buffers, scheduling benefit disbursements, and applying principles of good governance. The effectiveness of these strategies is influenced by structural issues, including the lack of unified national regulation, weak transparency, and limited managerial capacity among nazhir (waqf managers). As policy recommendations, the study advocates for strengthening national regulatory frameworks, implementing minimum liquidity ratios, digitalizing reporting systems, and professionalizing waqf managers. These measures are expected to foster a more sustainable, productive, and resilient cash waqf ecosystem capable of addressing contemporary socio-economic challenges.