UDA launches subsidiary to focus on development of wakaf land

KUALA LUMPUR: UDA Holdings Bhd has launched subsidiary UDA Waqf Sdn Bhd to develop wakaf land in Malaysia as part of the company's effort to ensure growth and diversification of wakaf assets.
Wakaf is a voluntary charitable endowment in the form of cash, property or land, for syariah-compliant causes.
UDA group managing director Ahmad Abu Bakar said there are over 10,120ha of wakaf land in Malaysia that are yet to be developed, with potential to be converted into commercial as well as residential projects.
"Many of the wakaf land are undeveloped and in strategic locations like in the middle of the city or in abandoned mining areas. UDA has identified several (parcels) land in Selangor, Kedah, Perak, Kelantan, Johor and Sabah," he told a press conference after the signing ceremony here yesterday.
Ahmad said UDA Waqf plans to develop 4ha of wakaf land this year alone, and plans to develop 121ha with a gross development value of RM1 billion over the next few years. It will develop wakaf land through joint ventures with State Islamic Religious Councils (SIRC).
An agreement was also sealed between UDA Waqf and Bank Muamalat Malaysia Bhd to jointly develop wakaf land based on the musyarakah (collaboration) concept where both parties would share profits, loss as well as risks involved. Bank Muamalat has allocated RM100 million for wakaf projects this year, of which most would be channeled to UDA Waqf.
UDA had previously collaborated with the Penang State Religious Council in 2013 to develop 3.75ha of Taman Waqf Setee Aisah in Penang. The success of the venture encouraged UDA to intensify its efforts to help other SIRCs develop their waqaf land.
"We believe that moving forward, (following the success of) the maiden project, we've been talking to all the SIRCs in the country and they're keen. So are we," said Ahmad.
The development will be based on the ijarah (leasing) concept where the respective state's SIRC will lease the property to the buyer at a certain leasing rate and terms agreed upon during the lease period. Ownership of the property will remain with SIRC and only the rights to occupy will be assigned.
The development of wakaf land will improve the socio-economics of Muslims by providing opportunities for them to participate in the economic activities resulting from the wakaf development process. It is also part of UDA's corporate social responsibility initiative to provide returns as well as increase property ownership among Muslims.