Shariah Research and Industry Workshop on the Cash Waqf Sukuk Structure for Awqaf New Zealand ​

Awqāf New Zealand (NZ) is undertaking an initiative to issue ṣukūk (Islamic bonds) to raise funds globally for acquiring New Zealand farmlands and farming equipment. The project aims to ensure a steady supply of halal food and optimise the use of sacrificed animal by-products for charitable purposes.

Key objectives and features of the project include:

1. Raising Funds: Issuing ṣukūk to acquire farmland and farming apparatus to secure halal livestock and food supply.
2. Utilising Animal By-products: Generating revenue from wool, skin and bones to support beneficiaries and ensure all animal parts are used effectively.
3. Social Focus: Structuring ṣukūk for social purposes, focusing on sustainable social outcomes without profit distribution but with a return of capital and a liquidity feature for trading.
4. Smart Waqf: Establishing an international Smart Waqf to maintain a contractual relationship with the New Zealand waqf farm, distributing revenues globally to promote awqāf.
5. Temporary and Permanent Cash Waqf Ṣukūk: Utilising various Sharīʿah contracts (waqf, qarḍ, ḍamān, sale and purchase, wakālah, ujrah and takāful) to structure the ṣukūk.

The project addresses Sharīʿah compliance issues, legal concerns (land ownership, overseas equity, taxation), business risks and governance. It emphasises the importance of having a robust financial model and expert farm management.

The initiative follows a workshop in Kuala Lumpur in August 2016, with plans for further discussions and regional validations in various countries, aiming for approval from the ISRA Council of Scholars in November 2016.