The Applicability of Cash Waqf Linked Sukuk (CWLS) Through the Tafriqus Sufqah Al-Khatib Al-Sharbini Theory: An Approach to Sharia Compliance and Financial Innovation

This research examines the Cash Waqf Linked Sukuk (CWLS) within the framework of Islamic jurisprudence, focusing specifically on the Tafriq al- Sufqah theory as articulated by Al-Khatib Al-Sharbini. Drawing upon the guidance of DSN-MUI Fatwa No. 131/DSN-MUI/X/2019, the study investigates the Sharia compliance of CWLS a contemporary Islamic financial instrument that integrates the principles of waqf (charitable endowment) and sukuk (Islamic bonds) to support socio-economic development initiatives. The central aim is to evaluate the structural and operational dimensions of CWLS by disaggregating its composite elements in accordance with Tafriq al-Sufqah, a theory that emphasizes the separation of contracts to prevent ambiguity (gharar), gambling (maysir), and interest (riba). Through qualitative analysis of fatwa and relevant Islamic finance literature, this study explores the theoretical foundation of CWLS, assesses its adherence to Sharia principles, and analyzes its innovative integration of charitable giving and investment. The findings contribute to the growing body of Islamic finance scholarship by demonstrating how classical legal theories can be applied to contemporary financial products. Moreover, the study offers insights into the potential of CWLS as an ethical investment model and discusses the challenges involved in ensuring Sharia compliance in modern Islamic financial instruments.