The Road to the SDGs

PURPOSE X In its efforts to align with best practice in endowment management, IsDB commissioned a study to ensure the long- term financial sustainability of the Waqf Fund. X The recommendations are to: – Optimise returns by enhancing the proposed investment policy statement – Reinforce transparency with an improved reporting mechanism – Optimise spending through prudent spending policy and guidelines – Establish responsibility and single- point accountability by revamping the governance structure – Optimise resource allocation by revisiting the business model – Ensure financial sustainability through a robust financial projection model and strengthening the budgeting process – Drive change management through workshops with required stakeholders. X The key programmes and initiatives of the Waqf Fund include: – Islamic Development Bank Institute (IsDBI) – Adahi project for the utilisation of Hajj sacrificial meat – Special assistance to Muslim communities in non-MCs – STI – Scholarship Programme. X An effectively managed Waqf Fund would result in scaling up the above programmes and enable IsDB to use the Fund as a new source of concessional finance for the benefit of MCs such as the following from IsDB’s 2020 work programme: – Smart Economy Initiatives: Aiming at knowledge-driven economic transformation – Capacity Building Programmes: An initiative for future knowledge leaders – Knowledge Creation Programmes: Developing the requisite enabling environment for Islamic finance – Knowledge Dissemination Programmes: Enhancing IsDBI’s visibility as a knowledge leader in Islamic finance. METHOD X A comprehensive report, the ‘Technical Study and Recommendations on the Way Forward’, was carried out over several months, comprising analysis and discussions with various stakeholders regarding all aspects detrimental to the Waqf Fund’s financial sustainability. An external consultant was hired for this I n 2017, IsDB's Management commanded a report that conducted a comprehensive assessment of the status of IsDB Waqf Fund, leading to improvements in the Fund's sustainability Reform package for the Waqf Fund Several positive outcomes have been achieved as a result of IsDB’s investment in a formal study of its Waqf Fund, including the enhancement of the Fund’s long-term sustainability [ 194 ] SDGs