The social and ethical values of Islamic finance found the very definition of this new industry and build its viable and competitive advantage as compared to other forms of doing finance. However, after a substantial development in the Islamic finance industry globally in the last two or three decades, the ethical based finance industry is being blamed for not having fulfilled its social promise of economic inclusion and solidarity that constitutes its unique tenets and foundations.
Thus, the development of an Islamic social finance sector in line with SDGs relies heavily on the development and the institutionalization of the Zakat and reestablishment of trust between Zakat payers, Waqf donors, end beneficiaries and all the stakeholders. However, these latter are suffering from structural dysfunction due to the lack of the institutional foundations that enable them to execute properly their duties.
At FINEOPOLIS & ALMAALI, we work to empower Waqf and Zakat Sectors and institutions by working closely with aid agencies and governmental bodies with a development mandate. Our services include:
- establishing appropriate institutional framework at the regulatory level: adoption of standards, adapted and suitable regulation, effective supervision ;
- Empowering institutional capabilities at the operators’ level: technical expertise, Capacity building, policies and procedures, adoption of technology and digital capacity, etc.
- Advising on awareness and communication: creating content and awareness initiatives.
Zakat, as a financial obligation for Muslims, is the first and most important tool to be considered for addressing a part of the SDG financing gap that currently sits at USD 2.5 trillion, especially because of the surprising alignment between SDGs and Sharia Objectives of Zakat when it comes to economic and social development issues.
To date, there is no precise or accurate study that estimates the global financial value of Zakat. Several researches have been conducted and have given different estimates which vary between $76 billion and $560 billion annually of global Zakat worth.
We are committed to help communities, countries, and organizations to institutionalize their Zakat funds. We have an expert team with the right knowledge and expertise, who is ready to provide our clients with continually improving services.
As Waqf is intended to generate benefits in perpetuity for all generations to come, operating the fund on commercial terms allows it to be invested and managed in a manner that ensures preservation of capital. Prioritizing economic efficiency can help strengthen the position of Waqf to carry out its social equity objectives effectively. However, when the Waqf is investing in a responsibly and in line with its very objectives, the impact the Waqf is creating is even much bigger.
In fact, If Waqf properly developed, managed and utilized, we can harness its potential as a highly effective platform for sustainable economic growth that creates sustainable and perpetual benefits for all, especially for our future generations.
FINEOPOLIS & ALMAALI experts are aware of the importance of helping our clients harnessing the potential of Waqf in achieving sustainable development goals, by providing their expertise to help structure, restructure and fund Waqf projects.
Our field of action, in terms of Zakat and Waqf, include:
- Strategic/Institutional capacity diagnoses, to identify the strengths and needs in order to design, implement and track results of contextualized interventions.
- Policies and procedures, by helping organizations with compliance and providing a structure to overcome challenges.
- Shariah governance.is a crucial issue in strengthening the performance of zakat and Waqf institutions.
- Branding marketing and communication
- Capacity building through the transfer of knowledge and skills
- Product development through improving existing products or even delivering new ones.
- Certification in order to ensure the management quality and make the organizations gain more funds.
- Information technology (IT), by making operations of these organizations more easy, quick and efficient.
- Digital transformation and change management.