Islamic endowments are a significant component of Islamic social finance, which has attracted attention of development partners as a tool for harnessing resources to address poverty, promote economic inclusion, and foster social development.

JEDDAH —

The Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IsDB) Group has jointly launched a set of principles that will facilitate effective management of Islamic endowments to help harness potentials of the sub-sector toward resources mobilization for development activities.

The “Core Principles for Effective Waqf Operations and Supervision and Cash Waqf-Linked Sukuk” was launched through a partnership between IRTI, Bank Indonesia and Indonesia Waqf Board. The event was held on 14 October 2018 in Bali, Indonesia, on the sidelines of the Annual Meetings of World Bank and International Monetary Fund (IMF).

Islamic endowments (awqaf, singular: waqf) are a significant component of Islamic social finance, which has attracted attention of development partners as a tool for harnessing resources to address poverty, promote economic inclusion, and foster social development.

“I am delighted to note that the launching of these core principles is another milestone for IRTI in its strides towards facilitating the development of Islamic social finance. This is a sector with huge prospects especially for IsDB member countries, and IRTI would be happy to continue to work with our partners to optimally harness the potentials of the sector,” said IRTI Director General, Dr. Humayon Dar.

This is the second joint initiative between IRTI and Bank Indonesia, following the successful launch of the Core Principles on Zakat Management back in 2016.

Dr. Dar added that such a collaboration is an excellent example of success of global partnerships for development of Islamic finance, and he congratulated all the stakeholders involved in this collaborative effort.

The launching was attended by Indonesian Finance Minister, Dr. Sri Mulyani Indrawati, and Governor of Bank Indonesia, Dr. Perry Warjiyo, while the IsDB President was represented by IsDB Vice President for Partnerships, Dr. Mohamed Jouini.

Following the launching, a high-level discussion was held on the theme “Mainstreaming Islamic Finance into Global Initiatives: Another Formidable Pillar in Promoting SDGs”. Speakers included World Bank Senior Vice President, Dr. Mahmoud Mohieldin; IFSB Secretary General, Dr. Bello Lawal Danbatta; and Assistant Secretary General / Director of Bureau of External Relations and Advocacy of UNDP; Ms Ulrika Modeer.

Islamic social finance could help governments and communities to meet a range of development needs. Zakat (Islamic charity), with its defined set of beneficiaries and rapid disbursement system, could be vital for crisis response. Awqaf are well suited for building resilience through institutions and infrastructure, and could be a dependable source for funding the Sustainable Development Goals (SDGs).

The Islamic Research and Training Institute (IRTI) is a Member of the Islamic Development Bank (IsDB) Group responsible for enabling the development and sustenance of a dynamic and comprehensive Islamic financial services industry, which supports socio-economic development of member countries and Muslim communities worldwide. — SG