Waqf system has played a significant socioeconomic role throughout history of Islamic civilization. It was the fact that essential services were all provided.This has certainly had many important implications and effects to the overall economy. By providing essential services to society at zero cost to the state, the waqf system can significantly contribute towards the ultimate goals of every modern economy; a massive reduction in government expenditure. This, in turn, causes a reduction in budget deficit, lowers the need for government borrowing, and leads to a reduction in interest rates and thereby, cuts out a major impediment for private investment and growth.