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!