ISFD and ICD Collaborate on Groundbreaking Cash Waqf Sukuk to Advance Islamic Social Finance

cash waqf

Jeddah, Kingdom of Saudi Arabia, 01 December 2023 – The Islamic Solidarity Fund for Development (ISFD) and the Islamic Corporation for the Development of the Private Sector (ICD) have partnered to launch a groundbreaking financial instrument: the Cash Waqf Sukuk (CWS). This innovative initiative represents a significant advancement in Islamic social finance, seamlessly blending traditional values with modern financial practices to address critical social challenges.

The CWS functions as an Islamic financial certificate, underpinned by a portfolio of Sharia-compliant investments. Unlike conventional Sukuk, the CWS offers investors the unique dual benefit of both principal recovery at maturity and the satisfaction of seeing their investment channeled towards poverty alleviation programs undertaken by the ISFD. This structure caters to investors seeking to align their financial objectives with their commitment to social responsibility and Islamic principles.

The launch of the CWS marks a pivotal moment in the evolution of Islamic social finance. It serves as a transformative reinterpretation of the age-old Waqf concept, traditionally known as charitable endowments, by leveraging modern financial tools to address contemporary social challenges. By participating in the CWS, individuals gain the opportunity to contribute to impactful projects that empower communities and foster sustainable development within the member countries of the Organization of Islamic Cooperation.