Dubai launches Sukuk Al Waqf charity campaign to fund humanitarian projects

The Sharia-compliant initiative, starting with a contribution of $27m, will finance health and education schemes

Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has announced a new humanitarian campaign. AFP

Dubai has launched a Sharia-compliant charitable project with a starting contribution of Dh100 million ($27.2m) to help fund health, education and humanitarian projects.

The humanitarian initiative, Sukuk Al Waqf, was launched by the Mohammed bin Rashid Global Centre for Endowment Consultancy and is open to contributions from companies and individuals.

“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,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Executive Council.

“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.”

The initial contribution will come from endowment funds and bonds, a statement said.

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”, it said.

The proceeds of the endowment will be transferred semi-annually to the MBRGCEC and will be spent on humanitarian projects across the UAE that are managed by the Awqaf and Minors Affairs Foundation.

The initiative features permanent and temporary Sharia-compliant endowment bonds that belong to three categories depending on their terms — one year, three years and five years.

Bonds that can be issued for both individuals and institutions feature expected returns of up to 3.5 per cent, the statement said.

“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,” it added.

People can buy bonds starting at Dh1,000, while companies can buy bonds starting at Dh10,000. The funds of the Sukuk Al Waqf endowment bonds will be used for charitable contributions according to the choice of the donor in areas including social affairs, health, education and general charity.

Strict measures are in place for fund-raising in the Emirates, meaning the public can only donate to charities licensed by the government.

The UAE said in October it was developing legislation to govern how charitable donations are made and the way non-profit organisations operate.

Dubai’s charitable initiatives, worth Dh3 billion ($816m) helped more than 98 million people in 2020, a government report said.

The report added that 1,267 social responsibility initiatives were carried out in 2020 to provide education and humanitarian relief, raise health awareness, combat diseases, empower communities and provide aid to alleviate the suffering of underprivileged communities regardless of race or religion.