Blended Finance in Islamic Social Investment: Mitigating Credit Risk through Waqf #

This has been discussed in length by many researchers in Islamic Finance.

There is a concept called blended finance where they converge Islamic Social finance for the betterment of socially responsible investment.

Example: Ethis is involved in investing on properties in Indonesia, so any investor that is involved in investing will face credit risk, so by integrating blended finance, they can mitigate the credit risk through the waqf fund.

So the proceeds of the waqf can be used to cover the risks involved.