ABSTRACT
COVID-19 is considered by some as a ‘black swan event’, which is a pandemic that is unpredictable, unprepared for, and totally spontaneous. The impact of COVID-19 on the sudden increase of poverty is uncontainable. In this pandemic, Islamic social finance tools and institutions have been considered as a way to provide relief to populations in poverty. Prior to the pandemic, sadaqat was physically given by many, especially during the holy month of Ramadhan while going or coming from mosque or via mosque donations funds. Takaful has also been used as a tool of Islamic social finance. Social guarantee schemes provided to the poor and needy helps eliminate poverty, and in the pandemic, assistance via these schemes has been extended. Different modes of innovative financing are provided to the needy and poor via Islamic microfinance institutions. During this pandemic, the poor and needy can escape from poverty through Islamic microfinance institutions.
