Global Sukuk have garnered the attention of current market. And this has been made possible through innovation and creative ideas where there is plethora of opportunities to grab various opportunities of entering into new markets. The Security Commission of Malaysia has released the framework for Socially Responsible Investment (SRI) sukuk on 28th, August 2014 that provide regulating of sustainable and responsible investment projects to achieve the aim of Shariah.

Basically, the SRI projects contain four parts such as Waqf properties/Assets, Renewable Energy and Energy Efficiency, natural resources and, of course, Community and Economic Development projects.

There are thousands of Waqf lands left unoccupied in many Muslim countries and the lack of financing was actually the hurdle for the Awqaf institutions in developing Awqaf assets and properties. And this is when Finterra came as a platform to make things easier.

As far as Finterra’s WAQF Chain is concerned, it aims to increase engagement and raise awareness and funds for Waqf development projects through the fundraising of Waqf projects. Using blockchain technology helps to make processes efficient, transparent and immutable. In fact, this is in keeping all the procedures and transactions in accordance with the Islamic principles.

The best part is that Finterra is looking forward to develop an ecosystem suitable for SRI investors in Malaysia. This is because more than half of the sukuk issued all across the globe are in Malaysian Ringgit currency.
Malaysia has been renowned as the World’s largest Sukuk issuer in 2016. As per MIFP (2016), the sukuk market of Malaysia, Gulf countries, Indonesia and Turkey expanded with total issuance of around USD 65.8 billion.
A lot of opportunities are provided by Finterra thatcan create an Islamic investment ecosystem which gathers investors to get return out of investment and have a social impact as well.

In the investment phase, Finterra will only be a platform provider. The people creating Awqaf projects to raise funds would be Waqf Administrations (trusts, foundations or private entities) who will work with licensed Fund Managers and Asset Managers in order to generate returns and manage assets respectively.

For instance, there is an Awqaf land available beside the beach in Penang. On top of that, financial support is needed to construct a Halal five-star hotel. In such circumstances, the Awqaf institution will take support from Finterra to raise fund for them via fundraising platform using SRI Ijarah sukuk. And when the hotel will be constructed, payments will be made on a monthly or yearly basis to pay back the capital plus profit to the investors. This example can be applied in a much later phase.

As and when the lease period is over, the Awqaf institution will fully own the project and there will be a monthly return coming out of it. And the earned profit will be channelized to the beneficiaries including poor people and orphans, etc. In this way, Finterra and the WAQF Chain platform can improve many lives eradicating poverty and strengthen economy of the country.

Finterra’s WAQF Chain focuses on enhancing engagement and raising awareness and funds for Waqf development through the fundraising of Waqf projects. Follow us on Twitter. Also check out other social media links such as:



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