WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia “Beyond Charity: Harnessing Waqf for Economic Prosperity” 5 JUNE 2014 LE MERIDIEN JAKARTA, INDONESIA WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Traditional and Contemporary Financing and Investment in Waqf Assets Role Players: Mr. Mohamed Azam bin Abdul Aziz, Director, Finance & Asset Development, Singapore Islamic Religious Authority, Engr. Syed Muhammed Asim Raza, Senior Project Specialist, Islamic Financial Services Department, Islamic Development Bank, Moderator: Mr. Tanri Abeng, Founder & Chairman, Executive Centre for Global Leadership, Indonesia WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Mr. Mohamed Azam bin Abdul Aziz Director, Finance & Asset Development, Singapore Islamic Religious Authority Traditional and Contemporary Financing and Investment in Waqf Assets WIEF-IDB AWQAF ROUNDTABLE 5th June 2014 Financing & Investment of Waqf Assets • Traditional modes of financing • New ideas & innovation in financing • Transparency & Strategic Practices for higher returns Profile of Wakaf Properties vested in Muis Total no. of properties Land Area 406, 910 sqft Nett Lettable Area 447, 233 sqft 157 Valuation S$635million 1 Commercial Bldg Institution 2 10 Shophouse Commercial Units 114 30 Residential Modes of Financing Utilised Limited funding available Baitulmal Financing/ Investment Baitulmal’s cash is tied-up for long periods (not sustainable) More suited for minor upgrading works Tenant Financing Limited application More passive – lower risk Shariah Compliant Bonds/ Sukuk Suitable for bigger projects Relatively higher risk A lesson from the Mosque Building Fund 23 mosques Built through Mosque Building Fund The Power of : Democratization of Philanthropy Crowdfunding / Collaborative Funding / Collective Giving Wakaf Ilmu – a ‘Cash’ Wakaf An Inclusive, Collective Wakaf: No minimum sum Open ended Managed by Muis: Governance and Oversight framework of a statutory board Beneficiary: Full-time and Part-time Islamic Education Trust Deed: Flexibility to invest beyond holding properties Application of the financing model The Red House Project Red House Project Create more floor areas for wakaf to generate revenue. Unlocking value of land. 20,000sqft 6 shophouses Initial value. 42,000sqft 6 shophouses + 42 residential units Future value. S$20mil S$65mil Individual Contributors Individual Contributors Institutional Contributors Wakaf ILMU Financing the Red House Project 5 Mosques 1 Madrasah 1 Wakaf (reinvesting proceeds from its ‘sale’ of 99 year lease) Warees Investment Pte Ltd Wakaf Sheriffa Zain WRH Pte Ltd Governance & Good Management • Financing & Investment Structures and Mechanisms can be developed (relatively easy) • Financing, Support & Success dependent on Trust/Confidence, a Good Plan and Solid Management – Transparency & Good Governance – Proactive Mgmt, Strategic Planning & Reviews – Critical success factor Wakaf Revitalisation Scheme 1.Proactive portfolio management 3.Optimise space productivity 2.Innovative asset creation concepts for income accretion 4.Communitycentric and embrace sustainability 5.Prudent investment management WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Engr. Syed Muhammed Asim Raza Senior Project Specialist Islamic Financial Services Department Islamic Development Bank WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Session End 10th World Islamic Economic Forum 28 - 30 October 2014 Madinat Jumeirah Conference Centre, Dubai Thank You, See you in Dubai!