Awqaf Properties Investment Fund (APIF) - Islamic Development Bank (ISDB)

Donor: 
Any donor
International Finance Institutions
Geographical focus: 
Global
Africa
East Asia and the Pacific
Middle-East
South Asia
Thematic focus: 
Tourism in general
Education in Tourism
Tourism and Culture
Social inclusion and Poverty reduction in Tourism
Sustainability of natural resources in Tourism
Intro text: 
The Awqaf Properties Investment Fund (APIF) was established in 2001. APIF is established as a U.S. Dollar denominated trust fund managed by the Islamic Development Bank in accordance with the Islamic concept of Mudarabah and the Regulations of APIF. The ISDB undertakes the role of Mudarib acting as Manager and Trustee of APIF.

Official website

http://www.isdb.org/

Geographic focus

APIF provides financing for the development of Awqaf properties both in member countries and Islamic communities in non-member countries of ISDB.

Who can apply?

The beneficiaries supported by Awqaf are not limited to a finite list. Financing requests may be sent direct to the AMD and should indicate the purpose of financing, amount requested, proposed mode of financing, and required duration.

Objectives and activities

Objective: The objective of APIF is to develop and invest in accordance with the principles of Islamic Shariah, in Awqaf real estate properties that are socially, economically, and financially viable, in member countries of ISDB and Islamic communities in non-member countries.

Activities: poverty alleviation programmes, disaster relief, free health services, imparting religious and contemporary education, heritage, culture, and environment.

Type and level of funding

Types of funding:

  • Installment Sale: A mode of financing whereby ISDB purchases machinery and equipment, then sells them to the beneficiary at higher price, repayment being in installments;
  • Ijara Muntahia Bitamleek: A lease that concludes with the legal title in leased asset passing to lessee;
  • Istisna'a: A medium-term mode of financing. It is a contract for manufacturing whereby the manufacturer (sellers) agrees to provide the buyer with goods identified by description after they have been manufactured/constructed in conformity with that description within a pre-determined time-frame and price;
  • Musharaka Mutanaqisa (or Diminishing /Declining Participation): An "equity sharing" Islamic financing technique used for financing projects;
  • Equity;
  • Mudaraba: A Form of partnership where one party provides the funds and the other provides the expertise and management.

To augment the resources of APIF, the ISDB has a US$ 50 million line of financing for APIF to be utilized for the financing of APIFs projects.