DUBAI: The Mohammed bin Rashid Global Centre for Endowment Consultancy (MBRGCEC) today announced the launch of Sukuk Al Waqf, an innovative Shariah-compliant charitable endowment initiative that offers individuals and companies the opportunity to support humanitarian projects.
Launched in partnership with the Awqaf and Minors Affairs Foundation in Dubai and the National Bonds Corporation of UAE (National Bonds), the new initiative is aligned with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to enhance the role played by endowments in advancing social development.
H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said the Sukuk Al Waqf initiative further raises the UAE’s status as a leader and pioneer in the humanitarian sector.
Sheikh Hamdan said, "This initiative reflects Dubai’s commitment to constantly explore unique and innovative new initiatives to support the development of the humanitarian sector and promote charitable contributions. The Sukuk Al Waqf initiative will play an instrumental part in promoting social solidarity and a spirit of compassion and generosity in the community, in addition to promoting corporate social responsibility."
With an initial contribution of AED100 million from endowment funds and bonds, the initiative is based on the permanent endowment of donated funds, according to a mechanism that allows endowers to support charitable and humanitarian goals, while ensuring the complete preservation of assets.
The proceeds of the endowment will be transferred semi-annually to the MBRGCEC and will be spent on humanitarian projects managed by the Awqaf and Minors Affairs Foundation all over the UAE.
The initiative features Shariah-compliant endowment bonds of two types; permanent and temporary. The temporary bonds belong to three categories depending on their terms - one year, three years and five years.
The bonds that can be issued for both individuals and institutions feature expected returns as high as 3.5 percent. They also offer full protection of the original capital, whether it is for a permanent endowment on which there is no zakat, or a temporary endowment, which is not subject to zakat during the endowment period. Companies whose contributions are worth AED1 million or more will be awarded the Sukuk Al Waqf Sign.
Individuals can buy bonds starting from AED1,000, while companies can buy bonds starting from AED10,000. The funds of the Sukuk Al Waqf endowment bonds will be used for charitable contributions according to the choice of the donor in areas as diverse as social affairs, health, education and general charity.