The Road to the SDGs

PURPOSE X Cash Waqf Sukuk (CWS) is an Islamic finance product that aims to pool capital from sukuk subscribers (benefactors) both high-net-worth individuals and members of the public. X CWS aims to be the source of funding for several poverty alleviation programmes developed under the auspices of ISFD. X CWS achieves this by providing a regular stream of income over a 10-year period towards the implementation of these initiatives in IsDB MCs. X The Ihsan Waqf Investment Fund (IWIF) is a resource mobilisation instrument that aims to pool capital from philanthropists (benefactors) into a fund to be managed externally over a period of 10 years as well. METHOD X A unique feature of CWS is that the profit generated from investing the sukuk proceeds is directly channelled towards poverty alleviation programmes rather than paid to the benefactors. It is a form of social impact sukuk whose sole objective is to look for interested benefactors who would like to provide waqf (endowment) in the form of cash. X The tenure of CWS is 10 years, after which subscribers/benefactors may redeem the sukuk, who have also the option to make their contribution permanent. X IWIF is a resource mobilisation instrument that aims to pool capital from benefactors through an externally managed fund to be used over a period of 10 years, that is also based on the temporary cash waqf principle. It is designed to pool temporary cash waqf from benefactors, with the proceeds/profits from the invested capital used to support IsDB poverty fighting programmes. X Upon maturity, the capital is either returned to its owners or kept on permanently, depending on each benefactor’s decision regarding the portion corresponding to their initial investment. ACHIEVEMENTS X Each of the IWIF funds is expected to generate a return of 6–10% annually I sDB has developed its Cash Waqf Sukuk and Ihsan Waqf Investment Fund as innovative financing mechanisms that aim to mobilise resources for MCs in a Shariah-compliant manner based on the temporary cash waqf principle Cash Waqf Sukuk Cash Waqf Sukuk and Ihsan Waqf Investment Fund demonstrate IsDB’s proactiveness in utilising Islamic finance instruments to achieve development targets [ 164 ] SDGs