Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has launched an ‘Endowment Sukuk' initiative to allow individuals and companies to contribute their proceeds towards various health, educational and humanitarian projects.

According to authorities, the initiative will start at Dh100 million.

Taking to Twitter, the Dubai Crown Prince, noted that the Endowment Sukuk will support the contributions made by companies in charity projects.

“Dubai is a pioneer in launching innovative initiatives not only in the economic and development sectors, but also in the humanitarian field,” tweeted Sheikh Hamdan.

The initiative is based on the permanent endowment of donated funds and bonds in accordance with a mechanism to allow endowers to support charitable and humanitarian goals of the community. It will also facilitate the preservation of assets.

Later, the proceeds of the endowment will be transferred semi-annually to the Mohammed Bin Rashid Global Centre for Endowment Consultancy (MBRGCEC). Furthermore, the funds will be used for humanitarian projects under the management of Awqaf and Minors Affairs Foundation across the UAE.

There are two types of Shariah-compliant endowment bonds featured on the initiative - Permanent and temporary. In addition, temporary bonds will be in three categories depending on their terms - one year, three years and five years.

Both individuals and institutions can issue the bonds with expected returns as high as 3.5 percent. At the same time, full protection of the original capital, whether permanent or temporary will also be ensured. Sukuk Al Waqf Sign will be awarded to companies whose contributions are worth Dh1 million or more.

Individuals can buy bonds starting from Dh1,000, while companies can buy bonds starting from Dh10,000. Funds collected from Sukuk Al Waqf endowment bonds will be used for charitable efforts in accordance with the choice of the donor in various areas including education, health social affairs, and general charity. 

SOURCE : Khaleej Times

LINK: https://www.khaleejtimes.com/uae/dubai-sheikh-hamdan-announces-launch-of-endowment-sukuk-project