1. WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia
“Beyond Charity: Harnessing Waqf for Economic Prosperity”
5 JUNE 2014
LE MERIDIEN JAKARTA,
INDONESIA

2. 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

3. WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia
Mr. Mohamed Azam bin Abdul Aziz
Director, Finance & Asset Development,
Singapore Islamic Religious Authority

4. Traditional and Contemporary Financing and Investment in Waqf Assets
WIEF-IDB AWQAF ROUNDTABLE
5th June 2014

5. Financing & Investment of Waqf Assets
Traditional modes of financing
New ideas & innovation in financing
Transparency & Strategic Practices for higher returns

6. Profile of Wakaf Properties vested in Muis
Total no. of properties
Land Area
406, 910 sqft
Nett Lettable Area
447, 233 sqft
Valuation
S$635million
157 1
Commercial
Bldg 10 30
Shophouse 2
Commercial
Units
Residential
Institution
114

7. Modes of Financing Utilised
Limited funding available
Baitulmal’s cash is tied-up for long periods (not sustainable)
Baitulmal Financing/ Investment
More suited for minor upgrading works
Limited application
More passive – lower risk
Tenant Financing
Shariah Compliant Bonds/ Sukuk
Suitable for bigger projects
Relatively higher risk

8. A lesson from the Mosque Building Fund23
mosques
Built through
Mosque
Building
Fund
The Power of :
Democratization of Philanthropy
Crowdfunding / Collaborative Funding / Collective Giving

9. 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

10. Application of the financing model The Red House Project

11. Red House Project S$65mil 20,000sqft 42,000sqft S$20mil
Create more floor areas for wakaf to generate revenue. Unlocking value of land.
20,000sqft
42,000sqft
6 shophouses
6 shophouses + 42 residential units
Initial value Future value.
S$65mil
S$20mil

12. Financing the Red House Project
Warees
Investment Pte Ltd
Wakaf Sheriffa Zain
Individual Contributors
Individual Contributors
Wakaf ILMU
WRH Pte Ltd
Institutional Contributors
5 Mosques
1 Madrasah
1 Wakaf (reinvesting proceeds from its ‘sale’ of 99 year lease)

13. 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

14. Wakaf Revitalisation Scheme
4.Community-
centric
and embrace
sustainability
3.Optimise
space
productivity
for income
accretion
1.Proactive
portfolio
management
5.Prudent
investment
management
2.Innovative
asset creation
concepts

15. WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia
Engr. Syed Muhammed Asim Raza
Senior Project Specialist
Islamic Financial Services Department
Islamic Development Bank

24. WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia
Session End

25. Thank You, See you in Dubai!
10th World Islamic Economic Forum
October 2014
Madinat Jumeirah Conference Centre, Dubai
Thank You,
See you in Dubai!