Islamic Social Finance Development SMART WAQF Engineering the

Islamic Social Finance Development SMART WAQF Engineering the Awqaf Industry World 1 st Awqaf Sukuk July 2011 Islamic Economy Award 2013 Turning unused charitable Resources into Awqaf Revenues Presented by: Husain Benyounis Secretary General – Awqaf New Zealand Established in Feb 2011 - Runs By Volunteers 19 – 22 November 2018 – Bangkok, Thailand

Biggest Charitable Waste Live Sheep Cost $95 For 50 kg live weight The Concept Source: http: //www. classicsheepskins. com/ & http: //coastalcowhides. co. nz/cowhide-rugs/ Cowhides $899 Live Cow Cost $840 For 440 kg live weight Min $200 million Estimated Revenues from 5 million Qurbani a year Biggest logistic Securing Livestock – Must own large farms

2013 -16 Research & Development Awqaf Sukuk Project Prospectus The Smart Model is based on IIFA Decision 140 (2004) IIFA Decision 181 (2009) AAOIFI Waqf Standard # 33 No Amended S-WAQF PCW SPV Qard Hasan is Given to Awqaf Sell Asset Return Cash Asset Bought Payment Success No Stop Yes Payment No Finish Yes Transfer ownership to Awqaf Organisation Replicate the model somewhere else New project carries its Sustainable Development Goals Awqaf Macro Level Yes Issuance of the Awqaf Sukuk % of the Revenues generated from the newly established Waqf/Project go to S-WAQF (PCW) Awqaf Micro Level Model Design Approved

Before Maturity @ the maturity of the Awqaf Sukuk Owners will be given 3 options S-WAQF Model Design PCW Option 3 Make PCW their Awqaf Sukuk Option 2 Re-TCW their Awqaf Sukuk New SPV Option 1 Claim back Their Awqaf Sukuk We do not recommend option 3 - Why? & What is the relationship with the Sukuk owner’s will - ? ﺍﻟﻮﺻﻴﺔ TWC – Temporary Cash Waqf (SPV) PCW – Permanent Cash Waqf

After Maturity What is the ongoing role of S-WAQF with the new established Awqaf? S-WAQF % of the Revenues generated from the newly established Waqf continue feeding S-WAQF Model Design Dissolved SPV PCW SPV SPV 1 2 3 X New Awqaf established via Smart Waqf 1 Waqf 2 Waqf 3 Waqf X Sustainable Development Goals (SDGs) SDG 1 SDG 2 SDG 3 SDG X The % Revenues from new Awqaf to the PCW entity is significant, Why? Assume Waqf 3 fails to pay the agreed % to PCW, this means the following Either WAQF 3 management are not preforming, or The SDGs demand are more than what Waqf 3 supplies S-WAQF acts as Auditor, Supervisor and Takaful Provider to new Awqaf

2015 - Capital Market Regulations Legal Obstacle http: //www. sc. com. my/waqf-assets-development-governance-and-the-role-of-islamic-capital-market-book (March 2015) We became aware of this regulations in June 2015, than we visited Malaysia in Sep, Oct & Nov 2015. Met with the Securities Commission & other Sukuk officials

2016 Shari’ah Verifying our Model ISRA Consultancy have been commissioned in March 2016 to verify that SMART WAQF is a) Shari’ah compliance & then b) Structure the World 1 st Awqaf Sukuk Shari’ah Complying

2016 Shari’ah Verified Report Shari’ah Complying Click to Download ISRA Consultancy latest updated Report (36 MB)

Model Industrial Validation The Workshops 1 st Workshop Kuala Lumpur August 2016

Model Industrial Validation The Workshops 2 nd Workshop Dubai October 2016

Model Industrial Validation The Workshops 3 rd Workshop Al Madinah December 2016

Model Industrial Validation The Workshops 4 th Workshop Edmonton, Canada February 2017

Model Industrial Validation The Workshops 5 th Workshop Kuala Lumpur October 2017

International Participations The Promotions Founding member of Awqaf International Organisation Dubai, October 2016

Waqf Working Group The Promotions Yogyakarta, Indonesia March 2017

Waqf Working Group The Promotions Surabaya, Indonesia Nov 2017

Launching Waqf Core Principles The Promotions Bali, Indonesia Oct 2018 IMF-World Bank Annual Meeting

2016 - Shari’ah Endorsement Shari’ah Endorsed

Identified the Issuer - 2018 Sukuk Issuance

Shari’ah Current Challenges IIFA Decisions 140 & AAIOFI Std # 33 – Allow “Cash Waqf” IIFA Decision 181 & AAIOFI Std # 33 – Allow “Temporary Waqf” What About “Temporary Cash Waqf” !!!! To better understand the “Awqaf NZ Social Financial Model” there is a need to know the Shari’ah differences between the following: 1) "Sadaqqah" & "Sadaqqah Jariyah" 2) "Qard Al Hasan" & "Temporary Cash Waqf" 3) “Awqaf Sukuk” & "Sukuk for Awqaf Development" Identifying & understanding the above Shari’ah differences will help us “Engineer” the Awqaf Industry In a way it has never seen before

Qurbani Uniqueness Industrial Challenges Qurbani is an industry with very unique in nature due to: 1) It is a seasonal international industry 2) It is based on “lunar” calendar (rotate) 3) It is limited by time constrain (Eid Al Ahda Days) 4) It is not allowed to sell any part of Qurbani for any reason 5) It requires specific livestock (type & age ) with no obvious defects 6) It is estimated by Awqaf NZ the Qurbani demand is around 5 million/year It is also recommended that - The Qurbani Halal processing is witnessed at all the time - The distribution and waste utilisations are electronically traceable all the time The designed Awqaf Farms & related projects should be based on the above

Awqaf Sukuk issuance is a very expensive proceedings & it requires: 1) Identifying the right Capital Market Authority 2) Identifying the right Shari’ah Consultancy Services Finance Challenges 3) Identifying the right rated “Obligor” and /or “Issuer” 4) Identifying the right “Arranger” with international offices After securing the above Sukuk issuance also takes lot of time to To get to the Initial Public Offering (IPO) Stage Most Significant challenge is explaining a new concept to a new targeted market , hence requires innovative marketing approach So lot of 3 rd Parties required to issue 1 st Awqaf Sukuk How to overcome the “cost”, “time”, “ 3 rd Parties” & “marketing” challenges?

Traditional Approach Strategic Alliance or Vertical Integration Overcome Challenges Source: https: //www. strategicmanagementinsight. com/topics/vertical-integration. html Would it be efficient to form a strategic Alliance with identified potential partners from all over the world or consider Vertical Integration?

Smart Approach Financial Technology (Fin. Tech) Overcome Challenges We are Exploring the Blockchain technology for the following reasons ü It is decentralised (no 3 rd Parties) ü It is significantly cheaper compared to Sukuk issuance ü It is easy to integrate our Smart Waqf into the Smart Contract ü It is transparent, efficient, traceable, immutable & real time settlement

Conclusions Awqaf Game Changer 1 IIFA Decisions 140 & 181 plus AAIOFI Waqf Std 33 Game Changers Awqaf Game Changer 2 Temporary Cash Waqf (TCW) Awqaf Game Changer 3 Securities Commission Malaysia (traditional Approach) Awqaf Game Changer 4 Fin. Tech specially “Blockchain” (Smart Approach) Awqaf Game Changer 5 Leadership

Islamic Social Finance Development Thank You info@awqafnz. org Turning unused charitable Resources into Awqaf Revenues 19 – 21 November 2018 – Bangkok, Thailand