Transcript for:
Understanding Sharia Compliance Finance Solutions

yes first of all i would like to thank the audience for their presence and thank our distinguished speakers for accepting our invitation and for being with us today please allow me to thank to thank you new police for giving us this opportunity the opportunity through the webinar series to learn and to understand more about the potential of sharia compliance financial instruments and solutions in fact these uh webinar cities are an occasion for our honorable speakers to interact with the global community by sharing uh their knowledge experiences and their ideas finney police institute briefly is the first private islamic institute that is set to hence [Music] enhance collaborative and explorative research work in order to harness the islamic finance rule in achieving the sustainable development goals uh infineo police we strongly believe that awareness is key to unlock islamic finance potential to achieve these sdgs therefore we are we strive to engage the global community in an international dialogue by sharing insights and publishing reports on different critical industry challenges and of your opportunities of course so please allow me to share the screen so our webinar today is about promoting system new solutions towards better achievement of the sdgs and first of all i would like uh to introduce my uh honorable speakers dr hamid habib ahmed he's a professor and treasurer chair in islamic law and finance university business school he's a professor uh uh he has uttered more than 100 publications in international referred journals on various topics in islamic finance as he has also worked as consultants for various international organizations we are pleased to have dr atef shabrawi with us he holds a phd in modeling of risk in france he he's an expert in islamic finance sustainable development entrepreneurship and innovation and he wrote several books and researches on islamic finance business incubators etc we are all also delighted to have sheikha khadar amur idrisi he is an islamic finance leader and charia advisor uh he has over over than a decade in islamic finance consultancy industry and he bought a strong experience in delivering product development uh and transformation projects in finance in banking and microfinance the careful capital markets fine tech and crowdfunding projects etc and now he's leading the islamic social finance discipline in in fineopolis we are also uh honored to have dr muhammed he has a page in islamic finance from france and he joined the islamic development bank in 2010 and now he is on he's an acting director of the department of islamic financial sector development into since 2019 and we are very pleased to have mr hamid rasheed who is the founder of sintera the blockchain technology platform for islamic social finance he specializes in technology ap development technology commercializations and product project development and he has over 18 years of technology consulting experience he has master's degrees in ide and management and a certificate in organizational uh leadership so since in fact between 2006 and 2018 citric which is statistical economical economic and social research and training center for islamic centuries has determined priority sdgs for extreme relievence at the icy countries these graphics in front of us uh show the available statistics related to six of these sdgs which are first of all is digi one no poverty so despite the statistics show that despite the significant improvements the progress is insufficient to uh to end extreme poverty by 2030. is dg2 zero hunger also it's clear that the the slow progress with in in eradicating under nourishment urges solutions at all levels is digitally good health and well-being the slow pace of improvement of health sector in oic uh is uh improvable it is uh clear sdg4 quality education do i see countries need to take the necessary measures to improve uh education sector now we see in the statistic that uh the average is high for uh for participating rates in early child education in 2018 for sdg eight decent work and economic growth it seems that it's hard to achieve the target of seven percent gdp growth per annum as you can see as example the pace of unemployment is decreasing very slowly and finally is dg9 in that industry innovation and infrastructure during the period 2000 and 2018 manufacturing value added as a proportion of the gdp has increased just by 1.1 which is a slow pace of improvements so briefly this current economic situation of the ic countries in terms of high electricity rate lack of good health care high unemployment rates the spread of poverty and the low level of food production must encourage us to uh study the institution of which has played an instrument an instrumental role in addressing the social economic uh issues in the muslim societies now i would like to give the floor to uh uh dr habib to give us our his presentation but before i would like to uh uh to give the outline of our webinar today we're gonna start with dr ahmed he's going to talk about the role of uh to achieve the sdgs and then our honorable speaker atif shabba we will we will talk about as a social enterprise and then we're going to see the the specific effectiveness and the efficiency of fluff and sharia issues with dr mo and then we're gonna finish with the practical uh cases with first mister with dr he's going to talk about the experience of the ice db with the alcohol properties and investment fund and then doc mr hamid rashid is going to to talk about the blockchain technology and walk and tell us more about the the experience of finterra so dr have you ahmed please uh i give you the floor thank you very much let me just start by the sharing the screen uh to everyone uh the title of my uh talk today is wakfun sdg is an introduction uh actually my presentation uh will provide some outline of the basic concepts on walk and how they can be linked to sdgs and in some ways provide the context of the other presentations which will follow in the first part of the presentation i will briefly cover uh the sdgs uh and then in the later part uh look at how actually look at the concepts of work and how it can contribute to the promotion of sdgs sdgs can be looked in different ways one way to look at classifiers digis is to look at the economic social and environmental aspects which sdgs can contribute as we are aware as disease was launched in 2015 the same year the paris agreement was actually initiated and as we are aware paris agreement focuses on environment so there is some overlap in terms of the environmental issues both in the sdgs and the paris agreement now sdgs are very ambitious and they actually require a lot of investments and there was an initial study by uncted in the initial stages of sdgs and it estimated that the countries will face a funding gap of 2.5 trillion dollars per year and they would be need to fill this gap by the public private and the nonprofit sector the public sector of course being the government the private sector mainly the financial sector and non-profit uh includes the charitable sector and in an islamic society it would include zakar and walk now if you look at the broad investment types which sdgs would require we can categorize them into actually two or three broad categories of course the first would be to invest heavily on in the infrastructure both economic and social infrastructure and i highlighted social as education and health then of course there would be a need to provide social goods and services uh to uh help the bottom uh 40 of the population mainly and the other thing which is very important in sdgs is the qualitative overlay in terms of factoring in the environmental impact of whatever we do so there has to be investment in sustainability and resilience and given that we live in the fourth industrial revolution era technology would be playing a very important role uh if we look at the performance of idb or oic member countries and this is as you see before the covet we see the performance was not as great in compared to the other regions it is better than the african region but if we compare with other regions the oic average sdg score is basically the second highest among the regions and this is also apparent if you look at some of the again this report was published in 2019 prior to the covid so as you see the red the red lines show the countries which would face major challenges in achieving the sdgs by 2030 and we see that when it comes to zero hunger most of the oic countries will face problem to achieve that in terms of the status in 2019 and interestingly goal three is the second which relates to good health and well-being and uh this is very relevant to the current pandemic era we are living in so given this background we see that oic member countries they have not been performing well even prior to the crisis and after the crisis the i think achieving the sdgs will there be a huge setback and there are concerns that the pandemic can potentially create a poverty tsunami which will drive half a billion people into poverty so the challenges become more acute because of this uh covet so now moving on to work i know everybody is aware of work but i have this structure uh one of the things i want to do is to introduce you to the concept of work so that we can discuss it in light of the sdgs so as all of you are aware a donor donates an asset uh income generating asset through a work deed the determines not only how the asset is going to be used the management and governance terms and also it identifies the beneficiaries of and so this is a basic structure and if we understand this basic structure we can understand the issues which can arise in terms of achieving the sdgs using the work now i we can start by saying that the existing uh walk they were created actually historically sometimes some of them go back not hundreds of years but thousands of years uh so these have been created in the past one of the the sharia issue in uh in terms of workforce that the work deed actually is the king in terms of what the work can do and not do now because the terms and conditions were determined by the work did in the past it has defined the donors which were relevant in the past now in the contemporary times i think one of the key limitations of using existing work would be that the work did may not consider some of the uh sdg specific related uh objectives uh in in the work but given that a lot of work other than the religious work the social work they do include a lot of social poverty related objectives so indirectly if this work can be developed it will can contribute to the promotion of sdgs the other thing related to workforce the work asset the in the past the dominant asset was which underlay was land and real estate and that's why it was mainly the wealthy who could contribute to work now unfortunately in most of the muslim countries the assets have not been maintained or developed which results in low productivity and low income the other issue with work is the management and governance traditionally worked for managed by individuals family members and at the later stage the government came in partly because of mismanagement by individuals or misuse by individuals so i think in terms of the development and the impact of work in contemporary times this management issue becomes a very important aspect because when work is mismanaged it has limited social impact and in some cases actually has been lost also due to corruption so looking uh forward in terms of the existing work we can see that the way to increase the impact of workforce sdgs would be first to invest in walk to increase uh their productive capacity and also the returns and this can be done in different ways and it can be done by the islamic financial sector financial institutions uh akov properties investment fund which is a body of idb created in 2001 is one of them and dr muhammad actually will go into details of how this operates and of course we can tap into the capital markets we have examples of singapore for example raising funds from capital markets to invest in work and the very uh famous example is the zamzam tower in makkah which was financed by using uh uh and uh and now recently we also have a contemporary these crowdfunding platforms uh which can be used to actually uh rehabilitate and develop the existing warps and a good example for this is my workout which is based in malaysia where six islamic banks came together and created this platform and the objective is to raise funds to to invest in existing work so that their productive capacities can be increased and actually it has been very successful i saw on their web page one project which was there to raise 369 000 ringgit and they ended up collecting 878 000 ringgit which was 230 percent more than what they were expecting so it shows that this new technology can actually be used for uh promoting the work and as i mentioned the other key issue is improving the governance and management during contemporary times we really need to manage the work professionally and also provide advisory services related to inheritance and legacy management in the west these services are available for example trust services which deal with these things and i think one of the things which islamic finance industry can provide is to come up with these services for management and advisory services moving on to the new work each generation of muslims have actually contributed to the work i think it's in our times we also have as generations actually to contribute to this social capital uh which contributes to the societies and nowadays if you see most of the trend is that most of the work is in form of cash land and real estate has is very expensive and the other benefit of using cash of course is that everyone can contribute once the work gets the cash it is converted into some income generating assets and these assets basically become a part of the offer there are different instruments which i use for example work certificates as i mentioned sukuk and also digital platforms not only to invest in existing work but also to invest in new work and again in malaysia there have been some very good examples including the wakfin johor baru which has created a platform issuing work certificates and use the proceeds of the work to establish hospitals and clinics for the poor the good thing about cash work is that now not only the rich but also the average person can contribute to the work because you can contribute 10 pounds to 20 dollars for example and perform this uh this uh worship of satiriya because as we are aware of kajarya is something which is very important for a lot of muslims it is something which we take with us when we die and this cash work when these new instruments gives opportunities to everyone to contribute to the creation of works so moving forward in terms of sdgs i think as i mentioned in the beginning there are three key areas where the focus needs to be in some ways attention needs to be paid one is of course the social infrastructure the social infrastructure the corpus of work the capital of walk itself can be uh basically the social infrastructure so we are thinking in terms of creating hospitals for the poor for example educational institutions and now with the technology for example even online systems which can benefit uh the poorer sections of the population so all of this can be done by contract people have you ahmed i would like to remind you that you have four minutes left okay i'll finish information thank you so much thank you uh the second uh the second uh area is of course to provide social goods and services uh goods uh of course uh we can think of uh mainly in terms of capacity building of the poor so that they can basically have earning capabilities learn new skills and the services would of course include financial services so the issue about uh work to use for example cashflow to use for financial inclusion of in terms of fintech services for example so that average person can have financial services uh this is an area where also what can contribute and the other thing of course as i mentioned which is very important given the environmental crisis actually after covet crisis everybody has forgotten the environmental crisis but we have to remember that the covet is partly a result of the environmental problems which we humans had created so whatever we do i think sustainability and resilience would should be an important part and workflow i think has a very important part in terms of risk mitigation and one of the implications of the future of work would be that the work assets which are generating income there must be esg compliant and this is uh i think something new we have never thought of to be esg compliant the rock facets so this is a dune dimension and the other area of course is to think of areas where we can think of a sustainable development and this can be even work for forest for example we have nowadays forest as a new asset class for example where people are investing in forests and i think these are some of the areas where what can contribute now in conclusion i would like to say that kovid is going to cause a huge setback to achieving sdgs and as i had indicated their concerns the dependent pandemic can potentially push half a billion people into poverty the poor sections of the population are affected uh disproportionately by the covet 19 and this will make achieving sdgs especially sdg-1 sdg2 no no poverty and zero hunger and also sdg3 which is good health and well-being very very difficult even before the pandemic achieved achievement of the sdgs for yc member countries was a struggle and they were lagging behind with the pandemic i think it will create more challenges so moving forward i think work really is one of the sectors which can help contribute to alleviate these these problems and if done properly which would require innovation using technology it can actually be helpful in moving towards achieving the sdgs not only in trying to solve the short run problems but also the longer term problems thank you thank you doctor for your precious precious presentations now we would move forward to dr uh artificial browy to give us his presentations thank you yeah good morning everyone good morning uh is it clear in front of you the screen which i share it yes it is okay uh first of all let me uh thank you uh first uh fina police for the invitation and uh all the our friends and professor habib and professor hamid and sheikh abdullah as well as jahan for the presence and the enrich i thank professor habib for his enrich presentation in fact my uh my favorite subject was the sdgs and and as far as i see we are hosting a lot of experts so i i shifted to that presentation which i will make it quickly uh i i put the title reflection on social enterprise and walk as i'm i'm trying now to promote the idea and the link where we have really extensive research going through the idea of social enterprise and social business i i always like to be back to uh our adam smith and his famous uh book which he was hidden little moral sentiments which was a basement of social enterprise and the direction of purpose and businesses i just mentioned that it was written in 1755 so it was about more than 250 years now and uh it has seven ports and i i the point which i have to mention that the port number three and part number five where in fact adam smith came in a time where the industrial revolution are making booming and everyone thinking about making money out of the business and he just mentioned that okay we have to stop and perhaps thinking about the purpose so the first issue is uh what we mentioned that the the foundation of our judgment concerning our own sentiments and conduct and uh sense of duty i mean when we do things we have a sense of duty and the number i guess six were the character of virtue so we are early in the time of industrial revolution people talking about the purpose of the virtue and the duty i'm very happy to use this slide which i mean that the trip we had uh since adam smith where we have really uh kind of if you take the the slide from left to right you will find that the founder of the industrial revolution where some people like taking the advantage of raw material and you know the invention of uh of uh uh all the machinery and the industrial revolution where people were willing to do business for for getting money then little by little we have henry ford who are coming to do business for the the technology and industry and the kind of purpose which is not straightforward making money later on we have um the famous microsoft founder bill gates who are coming to invent what we call a tech brunner and sudden of all in years of 19 end of 1995 until 2000 2005 we have the wave of having people who are doing business for purpose so in fact the purpose of doing business is not a new but it is evolving uh concept and we have very famous people like anita powell anita powell the lady in the picture is a founder of body shop and she was uh with muhammad yunus and the founder of virgin some of the uh inspires of the social enterprise just to situate where we talk about social enterprise because it would be very interesting for people who are not really familiar with uh social enterprise that we have if you look for the the slide from extreme right we have money first so if we segregate the objective and the business type the categories of business we can find here i'm i'm not sure you see the uh cursor we have on the right side people who are willing to do traditional business and traditional business normally to make money and a profit and they do have their own sustainability because they do money they generate money and if they don't generate money they stop doing business because most of the trade the laws of uh controlling the businesses in the countries are engaging that if the company is not making money for two successful years uh financially they are broken so on the extreme left we have uh what we call it impact first so people who are willing to do for uh the extreme one is a charity so the charity is people willing to serve a cause advocacy whatever poverty alleviation education health and that kind of we call it dependence so if you call it in term of financial stability the spectrum of entrepreneurship has that kind of i i put here the conscious business which was a new concept created by anita powell conscious business is kind of business with social enterprise where we have more intention to empower people who are working in the enterprise as well as having the purpose this kind so here i can situate this purpose conscious enterprise exactly as a uh tr as a trust or as a wife and this is a per perhaps the first layer where we can merge that that we are not seeking profit we are having impact and we have a mission and perhaps we are not hundred percent we can be charity but not too uh unsustainable so if you like to situate the point um exactly what is uh the entrepreneurship social entrepreneurship about is or entrepreneurship in general it's about people opportunity and resources in fact if we have everywhere in the world dr habib mentioned little now the impact of covet 19 which is a drastic impact in our life impact of covet 19 games also a kind of opportunity so any kind of activity which might be ending by creating a value either this value for helping a cause like poverty alleviation like education or this kind of value will be to make money to develop software to develop housing it has an end of day kind of uh of opportunity so every kind of thing we talk about it if you can imagine you you have a walk definitively you have an opportunity which you can call it a problem so the opportunity here is a problem to solve in social entrepreneurship and the opportunity to grab in term of business opportunity like today condition i i have seen today three days back uh mark zumberger put in his uh twitter that uh from 15th of june we can use what's up to transfer money in brazil on in brazil only so this kind of opportunity today we will have people who are using the what's up to sell already and they will have the payment on whatsapp this is opportunity resources that we have to have resources if we don't have resources we don't have business because how can we run it and the people who are having behind the idea if you look for the social enterprise spectrum i keep repeating this because it's a little important in terms of from right hand we have good activities less focus and traditional charitables in the right extreme right we have people who are willing to make this kind of you know conscious uh company and some impact so if we start from the left extreme right hand sorry will be people who are less charitable making a little uh focus on money or i'm sorry i will start from the number one so it's easier so we have entrepreneurial non-profit so those people are getting a kind of tax exemption in some country and they call it social enterprise and they do business for a cause education health whatever and they are exhausted in the countries where we recognize social enterprise i have to they call your attention that social enterprise is not recognized worldwide in all countries like for example in bahrain we work at uh i was a head of committee of social enterprise committee for three years they were struggling to change the law of commerce to add a chapter and social enterprise i stopped in 2014 or 15 when i i left this committee i mean it is not uh common but it's still uh not for profit in our countries and in many asian and muslim countries are all examples from taxes so the non-for is entrepreneurial really enjoying the status of little uh ngo so when we go for for profit here we have kind of you know relation when we start to talk about uh socially responsible business when business having an idea like a conscious to help the community when we go deep in we have give one get one this is why trade fair trade and businesses who are using the image of being more friendly and we have conscious business which i mentioned anita powell was trying to make a body shop as the first conscious business in the world so if you have if you would like to to talk to talk about the areas of social enterprise enter social enterprise are mainly working in education and health and in employment and in poverty alleviation and many many problem solving and perhaps and sports and culture and perhaps the most vast application of social entrepreneurship i mean our professor habibu talked about sdgs you will find that 17 goals of sdgs are you know marrying all the sectors of the of our life from environment culture to justice to gender to poverty and those are the areas where we can start a social enterprise if you look for this to right hand uh the financial return which is very important you will i will keep telling this financial return because i take the angle of finance you will find here when we have an impact investment and when we think about the impact return and the financial return we go for impact investments this is a social enterprise where we have a really not food profit but a sustainable business model and that's the business model i wish we talked about it in a walk if however here when we don't think about the return we have this financial return less and less with purely you know standard investment which is a conventional bank and if we look for the i mean uh structure from grants to making a conventional business we do have different uh model for for the time i will uh jump to the next language little complicated uh in fact in front of us what we call it impact investment backed investment the investment which has a purpose which has a mission uh so we have the whole ecosystem we have three columns here if you start from the left we have the impact only so in fact only people thinking about the charity they would like to spend money for a codes and they don't think about return and opposite to that the blue one is a finance first where people think about making money as a this is traditional business so when people think about making money they can making money aggressively or they can make it gently and considering what they call it social corporate responsibility or doing with fair trade on this so we can still have that kind of traditional but if we go the impact first uh but first here we talk about i i i superposed in fact the walk fear because i do consider personally that what regains the areas between impact only to impact first perhaps it doesn't work who doesn't uh reach the point to be a finance first but it covers different areas if you you go from the revenue generating social enterprise we have two types of impact either when we have a pure impact as a social we don't have a return we don't think about return but when we have kind of revenue we have a different model well profit is start to talk about profit unfortunately this is an arabic this is a translation of the three of the the first slide when you have the demand and an offer from the extreme right here you have the organization who are looking for impact and this is a donation and from the left you have organization who are looking for the business i go quickly for the time so we have different way to measure the social enterprise impact and we have very famous what we call it social return on investment is sroi in fact if you look for the traditional business and traditional business we look definitely to our return on investment roi and this is the only way the only way to evaluate the impact of the business is to make money so how much money you make and what is the return or uh irr or ior and those are the indexes are using to measure the impact however in social enterprise which is exactly the work uh if you call we have a value we have them backed and the issue which is a very uh strong uh repeated that when we have a value we have to keep doing the value this is a major issue i project in front of you here some of the changes of the business model canva and particularly business model for social enterprise i work in a social enterprise since about 15 years and i'm very fan of updating the mobile perhaps some of people who are accommodated to see the business model canvas of conventional banking will see this is different canvas because of the major you know if you look for the left from left to right in a business in a conventional business we have a client and we have a kind of business opportunity and a social enterprise might be like a walk we have a problem we have kind of we have education problem in our village we have uh poverty we have whatever you call it we have a sanitation problem so we have a problem and we have a solution and perhaps yeah i'm so sorry i'm so sorry to interrupt you we can't have enough from your presentation i just want to remind you that you have no more than two minutes for your presentation okay so i will go in fact i was willing to show this uh new model of business model canvas due to that two points which from one side that we have a business model which is different for convention so if you talk about what we have differently a kind of different thinking so as you know and professor habib made the issue for me and visited sample because he introduced it if i can link quickly work from social enterprise we see social enterprises design it as application of human capital to produce social capital the same function by the way seven purpose for wax where we are thinking about wealth as non-uh profit organization so the similarity of the perhaps the single difference that the donative way or the native purpose of what perhaps needs to be married with that kind of entrepreneurial social enterprise if you see here quickly i try to summarize the major points i will keep the last table you see the last column where financial references and traditionalized money value and social enterprise perhaps in what we have value plus plus which is kind of return but we don't activate it so the current model of similar if you read what i put it i will end by the last one saying that okay social price and what are extremely similar on several aspects like the purpose the mission the ways of dealing with the social issue however social enterprise business model are drastically different than the conventional business but very next to the work the issue is we need more research to should be elaborated to go for that kind of elaborating uh sustainable business model for us i i personally since few years i'm looking in the literature and everyone is working in a wax and in efficiency and management i don't see a lot of drastic changes of business model the development of institutions should go uh towards entrepreneurial uh uh either than for not for profit i guess professor habib mentioned that sustainability people don't think that sustainability is is not straightforward the financial viability and this is very important because a lot of people mix between when we go when we talk about sustainability they think about environment and that we here we use it as a financial viability i thank you for your time i'm sorry uh if i take more than i should be happy to ask your question thank you uh doctor assaf shabrowi just to remind that the question will be at the at the end of all uh presentations um please allow me to ask doctor have you ahmed to make me the host for for this session so i can prepare um questions and answers uh now we will move to uh more present at ramos presentation talking about the efficiency and effectiveness of walk the floor is yours doctor shaykh khadra more would you please make me the host and thank you so much uh 15 minutes for you to have father please i did already thank you so much okay my presentation is with you if you can show it because i am using my phone and it's a little bit difficult to show my presentation um actually uh today i want to talk about the uh makassar and in sharia we have two type of macazee we have the general mat cases uh and a lot of scholars they they they wrote about that and we have the uh acid of each defect or each chapter or each area in fair rough has its own math asset today i want to mention a few ideas about that the first one that the wharf is sustainable in nature we we can see the inherent of sustainability of wealth in two levels we know that elect is absolute oscillator level one it's absolutely absolutely which means that the capital preservation there is a capital preservation in one the level two the sevilla summer we have capital gains uh by uh looking for uh the utmost the benefits from uh from the from the assets of and this lead us uh by looking over makassar lead us to to to uh to see the pillar of the walk the pillar of the wharf uh first is the productive wealth uh portfolio i will talk about that in details in point number two and we have also a capable motely of life it should be the manager of what we should be capable to to manage that work to to to make profit from that that's what investment not just it should be we can trust him no not only that and this is clearly in in sharia okay and uh yeah uh i am in uh uh the second slide yeah this one yeah yeah now also the work it should have a social impact okay a lot of uh where when we see a lot of reports talking about rough from sharia of the point of view they talk about the outcomes of the of the wealth and the sharia i'm not looking for for only uh the outcome sharia are looking for the impact of that one uh for that we see a lot of hadith from prophet muhammed when he talked about what he he he give more big if that's what benefit benefits or have impacts for more people or for the society number four of the pillar of the work that increasing the trust and confidence of the community what also it's not just to make him what no it's it's a it's a it's to have a relationship with the community the community have relationship together uh with the social impact with the the the the benefits of the society this is very important in one okay uh number two uh the the let's say the number two uh we should look for qualitative wealth not quantitative quantitative wealth because allah said which means sharia are looking for productive and effective endowment assets whose benefits uh as much as uh more people or or environment or society if we see now a lot a lot of islamic endowments we find there is some some some assets useless assets some assets we cannot rent it tentable not sensible assets uh low in value and this it will cost us a time it will cost us um a lot of effort it cov financial and the personal efforts without getting more and more and more benefits uh that's why we for example in singapore uh some some plato in singapore allows uh two uh implementation of uh one what institution instead for example two three one why to reduce the cost and acquire a higher uh higher value assets this is very important because we we we need to give a people a society not only the academic level all the society that the work we want the work not just for what but we want the work to achieve the the need of um the need of society in the need of of of uh the impact of in society not just to making anyone because uh for example there is a lot of of uh what manager in saudi uh they talk about uh land kilometers of land it's useless and they they they they they do their best to to to make it for example uh to check the cost of network towards to to make it benefits the cost it's more than the benefits uh the number three if we see uh number three go to the slide number three uh if we if we look there is two type of workf in sharia we have uh we have uh utilitarian wife like uh like uh mosque like the free hospitals like rude uh a lot of work like that in in in in islamic different side different type of wealth and we have investment wealth for the first one the utility and what and also the universities a lot of school and universities what they made they they they make concept of sustainability by supporting the same endowment with for example if we uh check for example what he did he's the first one in in who who built a group of schools and the group of in same name group and nyadami and madarasanami it's famous group of schools and a group of universities this school and universities he not just build the school and universities he make other endowments supporting this endowment he making downwards for uh for for example for the senior student he make endowment for other endowments for teachers he make endowments for papers he make endowment for chairs he making a lot of endowment that support the main endowment to be more sustainable this number three number four um there is misunderstanding the the the the state's contribution in what uh in in islamic countries uh previously the the the the state the government what they did they support to build especially in in healthcare education and services sector what they did they they encourage the government spend and they encourage wealthy people to spend to have sustainable education system sustainable health care system through the work not the society only the society they did that like a lot of researchers they said that that the government they didn't do anything no it's mainly the government if we check for example the king dean mahmoud he made a lot of himself and encouraged wealthy people and the there is uh the the one one uh writer he wrote about his alpha he he said i cannot write one book from his if i want to mention all he is his wife i need the books for to to just to mention the name of his uh we have also salah had been a yogi salah had been a ub he's the first one who built uh schools for in if we go to to a number four also the creativity and innovation in life this point is very very important because sharia ordered the endowment and absolutely desired it but without restriction without any limits without any prohibitions if we compare that with for example with the selen selam uh restriction there is a restriction in stellar for example in weight time and also in delivery of capital this indicates that endowment is bad based uh based on creativity innovation achievement of god sustainability because when we see some scholar talking about what they're talking about if it is just a kind of worship now a what it's not just a kind of worship uh we say in arabic we know why we we know that the reason behind of of this abadda the reason of this is to benefit the society which means uh it's not like other a bed that we cannot change or we cannot this is this point also very important okay um three last sides please doctor the three last slides in three minutes please okay yeah sure to keep time for other speakers okay uh we have also uh uh i want to correct uh one concept it's very uh important that the sustainability uh of in warf that the sustainability of everything it's holding for what not absolutely it's it's depend of the type of work we are talking about because some scholars they talk about casual okay uh it's risky maybe we make it in or we cannot uh it cannot be sustainable but if we look uh prophet muhammed talked about halibut and he said that don't take zakat from halal because he he make his horse as a wife and also uh other thing as well okay if we look for the horse a horse maybe he will live only one or two or three years uh or no more it's clearly that it's work as it is if it's horse this swag may be it will be sustainable for three four years some some other things it will be sustainable for 10 15 years some other things it will be sustainable maybe 400 years this is very important that the sustainability it should be uh taking in account the the the the the type of what we are talking about uh the last point i want to talk about it it's the uh the issue of expanding the concept of endowment it's not expanding but uh it's it's it's to understand that we can have other type we can call it rough or we can call it sadaqa all we know uh habit prophet muhammad he said in a matter of adam if son of adam die his work will will be cut off from his him expect from three things prophet muhammed he talked about the three pillars in this hadith as as as a sustainable uh the first thing we have the financial capital the the second area we have the uh when it's sale it's it's tell us about the intellectual capital that's also intellectual capital is part of the of the what uh system the third area is the applied knowledge muhammad talk about just the knowledge but knowledge can be benefited from which means this knowledge we can apply it we can benefit from the society can benefit from from it this we should give a violence from the umma from the people from the that not only we need money for what we need contribution of the assets for what we need the contribution of intellectual capital winning the contribution of applied knowledge and we have a lot of hadith uh helping us for that okay thank you very much this is generally what i want to talk about thank you so much for your presentation uh now we go to see the first practical uh uh level of the walk with the dr muhammad ali shati he's going to share his screen and to talk about the ice db experience before starting i would like to thank finney police for organizing this event and sister jihan and brother semi for inviting me to give some background on what the islamic development bank is doing i know for sure that most of our panelists and also the attendees they know about the idb so i don't want to dwell on it but i will go directly to the presentation just to save time and also give the opportunity to other speaker and to the audience later on for the question and answer so uh to start with the background on alpha i think the brothers and the panelists already did it but let me just try to summarize in a few points first one is the verse just uh explain it so i need i don't need to to go and explain more but as a walk from our perspective at least from idb side we we know that it's a perpetual endowment and it's also known as hobbs uh hubs i think this word is used mainly in north africa algeria tunisia and morocco in morocco in particular i know they have the ministry of abbas so it's more or less we are talking about the same terminology uh also creating a walk involved setting aside certain assets and preserving them so the benefit continuously flow to the beneficiary the idea is about the sustainability or the continuity with the alpha and this is why this concept is very important and it should be given its right weight when we are talking about the innovative things that the islamic industry or the islamic ummah presented to the world and as you know maybe is anchored in the islamic let's say terminology since long time and subhanallah from the west countries they took the concept they evolved in hansen and make it something which is uh working um very good for them i can give few examples for example as you know the major big compass or a university in the world like harvard and mit they have multi billions of al-qaf or endowment as they call it so again subhanallah we start with the good concept later on some other people they took it and they enhanced it while we have it in our own own heritage uh also as as sheikh presented we always talk about the the real estate or real estate endowment while also we have this cash endowment which is now more and more getting its right weight and i think brother hamid in the presentation which will be after me he will be explaining more especially with the link about the blockchain the crowdfunding and how we can marry these concepts together inshaallah uh so uh the idea of the alpha property investment fund uh it was uh start it started as a fund in 2001. it was established in 2001 the main idea uh when we started this fund was to to provide fun financing for the development of idol walk fluent and we come back to the the the sheikh when he was explaining that today we are we have a lot of idle and all over the muslim countries and unfortunately the nazar or the the trustee who is handling this uh this this land they don't have the financial capacity to develop them so we are with the very weird situation where we have prime prime location uh plot of lands in the middle of the big cities but on the same time you have the the the the walk and you have the shorthand workout and you cannot even use them so the idea of the the fund established with this idea to be like the financial power or the financial catalyst to help this this this this uh let's say uh to develop them but again we are not the helping the direct use or the end beneficiary we are not for example as a fund we are not supporting building mosques we are not supporting uh relief activities actually we come in the middle we are we are what we call the second degree development so the idea simply as i will explain now in the this scheme is for the ngos or the beneficiary organization they will come to us and they will say whether we have cash or we have a land and we need the support of the property investment fund to to have or to own a real estate so from our side we will be providing them with the financing and the income generated from the real estate will serve two purposes it will serve it will serve to repay the loan coming from the walk or from the fund and on the same time at the same time the the remaining part of the revenues would go to the beneficiary until the full repayment of the of the loan after that the the all the revenues from this real estate will go directly to the beneficiary for all their activities and to link it with the sdgs we we are talking today that the fund is covering at least six of the sdgs directly and indirectly almost all the sdgs we are talking about uh sdg number one as usual number three 4 8 10 and 17 hour and at the end of the presentation i will give you some success stories or some example where you will see how we are really impacting these sdgs so the relevance of the the this one to the infrastructure uh social infrastructure development again as i said the at the end the the ultimate objective post completion of the the the project is to help this wife being self-sustainable and to support their activities also the private management and incentive structure to support the poor through this this fund alhamdulillah so far apief projects have successfully supported the ngos active in different areas and supporting infrastructure services and the main particularity of this fund is that the only it is the only fund within the idb group within the islamic development bank which can support muslim countries and muslim communities in non-muslim countries and uh i will show you later on the geographical spread or diversification of our projects to understand and to have more idea where we we have we are supporting today so sorry so as a financial resources today we have to to to to us uh sides of resources we have the capital of the fund itself which is 84 million us dollar and we have also in addition to this 84 million and an additional 100 million as a line of financing from idb so the asset under uh management that we are managing uh for this our promotion is 180 million and just in february 2020 we got the approval from the board of executive director for the idb to increase the capital of the fund from 100 million like the capital per se not the line of financing the capital from 100 to 500 which shows also the big demand that we are receiving today from ngos and charitable organization and also the the the huge market that we can tap in and unfortunately today we are the only fund which can support this kind of activities but definitely now with the eruption of the new uh technological uh technology uh platforms and so on this will be a support and we don't mind actually we we believe that 10 funds like ours will not be sufficient to cover all the demand which is in the market today so as i said when we started we started with the with the capital of 50 million with 10 institutional investor and today we are talking about for uh 84 million uh 14 institutional investor today in the capital of the fund we have the islamic development bank which is also putting some money we have the proper theft authority from saudi arabia the oak authority from kuwait some also just we got joined by the biggest one of the biggest ngos in the world and maybe uh many of you knows uh it's uh called direct ed from kuwait abdul rahman smith this is this ngo has activities in more than 30 countries in africa plus yemen so alhamdulillah we are opening up our capital and we are seeing more and more people interested by what we are doing i would skip this this slide because it's just showing when we receive a request or an application for a project what is the cycle that we are following so this is just for people when they will apply for any kind of finance from our side we follow the best practices in terms of checking filtering projects just to make sure that we are our impact will be direct and to the right people inshaallah again our our type of project that we are focusing today is residential building commercial building mixed use development recently also we opened up a little bit to uh universities so we can finance universities we can finance hospitals and we can finance also uh hotels when they are when when they are dry hotels like in mecca medina some other countries when there are dry hotels and they are supporting the and beneficiary we can do that and also we are covering three aspects we can go for new construction we can go for extension of exact existing buildings renovation rehabilitation of existing buildings and also the the last that we introduced recently is the purchase and conversion of his existing buildings as akov the the terms that for our our financing are minimum project uh project size is 5 million and maximum is 15 million this is our contribution so for some projects we we have some projects total size around 90 million us dollar because the beneficiary or the the the counterparty is putting a lot of money or very prime prime location uh land so it differs the first from beneficiary to another the minimum contribution from beneficiary is 25 percent of the total project cost financing tenor is between five to 15 years and of course we look always at acceptable uh irr and yes dser because at the end of the at the end of the day we are project finance so we look at the cash flow of the projects to be able to have our our money back our loan back and then what is the remaining will go to to the activities of the beneficiary so far after uh almost 19 years handler we financed or we approved project 55 projects in 29 member country and non-member country of idb for a total value of projects or of more one of more than 1.1 billion u.s dollar geographical geographical spread we as you see we have projects in americas we have in in africa of course gcc europe asia other minor countries so more or less we are open to any kind of geographical location alhamdulillah dr three minutes left for you please no no for the the the diversification we are in health outcome registers activities education relief and charities on the impact maybe our doctor at for was explaining where the alkaf can can be parked i would say we are almost everywhere because as a fund we are an impact investment fund but we are also looking for returns and the return is ultimately for the beneficiary themselves so we run a quick quick analysis and we discovered that after the full repayment of our loan and on average the this beneficiary will getting will be getting uh on average one million for their own activities uh some very quick success stories so this first project is in bangladesh it was for the financial assistance to enhance technical and educational capabilities of youth alhamdulillah will go directly to the impact more than 12 000 students sponsored for i.t scholarship more than 7 000 successful job placement uh second project this is a new project that we approved last year and it will be inshallah uh developed in the coming maybe one to two years the third one is another one in bangladesh the impact is improved higher education in bangladesh and financial assistance to more than 250 students 30 university staff already obtained phds the fourth one is uh the particularity of this project that we are establishing a walk in in kenya supporting somalia because you know somalia is a country where there is the war we cannot have activities there so the idea the innovative idea that we have done is to establish a walk in another country supporting another country and we did the same also from turkey to palestine so established a walk from turkey supporting activities in palestine let me just finish with this very short video sister jihan it's one minute uh and we conclude i will conclude with that thank you thank you would you please share with us the audio without you are not here no no we're not here sorry uh what i can do maybe i will i will share the video in the top yes end it up in options options you will find although or share audio something like that what is it i'm not seeing it sorry for that never mind i will send to you maybe if you can send it to the to the audience after the presentation so this is my last slide uh just as a matter of new initiative that the bank is working on we are also exploring blockchain and crowdfunding platform just to open up also for the new technology we are establishing a new fund for saudi arabia with the uh one billion saudi arab as a new fund and we are exploring other activities whether regional or at local uh local level just to empower more than business thank you so much thank you for your interest in uh presentation now we're gonna finish with dr hamid rasheed and the finterra experience isn't it doctor yes let me just share my screen sure i hope everyone can see that screen yes it's clear okay assalamualaikum and good evening it's about 11 30 p.m here in kuala lumpur so it's been a great day now it's a pleasure to speak to everyone i know a lot of the guys uh on the call today uh so thank you so much um i'll be sharing with you finterra's experience on developing a blockchain finterra is a company is a fintech company registered here in kuala lumpur malaysia also registered in singapore hong kong and abu dhabi and we started off this fintech venture back in fourth quarter of 2017 and it is based on a research that was done in 2017 looking at very specifically or half and how to democratize or carve globally so the findings of that paper were presented in a conference uh with bank riot here in malaysia in march of 2018 uh and there were delegates from regulators all over the world uh and and uh in that conference this paper was presented that if there is a global public blockchain uh built for or calf uh you know it could open up the liquidity that is locked uh in the orchard of lands and assets globally uh so theoretically it is a very good notion but practically it had never been done uh so um we were given a venture capital fund uh from hong kong uh ventures uh to develop this technology and to start piloting it so currently we are piloting in about five countries and multiple projects are running on this technology so let me share with you uh what this blockchain is all about now i guess the credibility of the speaker brings some context to what i will share with you because blockchain as a technology is very new and a lot of people don't understand and that's why we ran this little uh survey so maybe sister you could share the results of the survey now the first thing is that uh you know my background is not from islamic finance or islamic social finance or from sharia i come very uh you know from a background of technology i have about 18 years of experience in software technology development and commercialization thank you for sharing that and and i have worked for hewlett-packard hp and i was tasked to run the hp labs developing new technology and commercializing in southeast asia malaysia and singapore was that i was attached to petronas national the oil and gas of malaysia but very specifically in technology division looking into satellite communication uh and and then i went off uh into a more startup uh you know environment i worked for unb communication inc in dallas texas uh looking into future technology especially communication mobile app complication for secure communication and then for the last three years i established finterra looking into blockchain and how blockchain could be used for or could be used in islamic social finance space so i i have a bachelor's and a post graduate in information systems from australia and a master's in in information technology and management now what quickly i'm going to cover with you uh you know within this 15 minutes time is the blockchain technology because from the survey it clearly shows that everyone knows or heard uh have heard about blockchain but only a little bit uh you're not very well versed on what this technology is all about uh what the benefit of this technology you know are and who out there especially enterprise are using this technology and how does it apply to say islamic social finance or islamic finance then i will take you into a little bit of you know my research and my uh you know take on islamic social finance and why so specifically why why and then we go into the system itself on the blockchain and what are the advantages of it because if you really look at it global right uh in a global survey um akav and waf are very unautomated and undigitized so if you look at say compare it to zakat is very well institutionalized and all of zakat's systems today are actually software systems and you know they are automated so whether it is zakat calculator or it is zakat payments uh or zakat you know uh complete uh accumulation of funds or fund management of zakar and the zakat disbursements are completely automated in processes uh and all of these processes are either a software or maybe a cloud-based system so why has what been left out for so long and what would it take for us to get work digitized automated and bring it to a grassroot level so that the community on an individual level could actually touch and participate into work so this you know blockchain has become an enigma for most people around the world they have heard everything about it but they don't understand it and kind of they've heard the wrong things about it so just like the dot-com days you know where internet became uh so popular back in 1899 and then the year 2000 uh y2k and the first i guess interaction or the touch that you had with the internet was basically for three things right number one we had internet for chatting so we were actually just chatting online and meeting people and then we were just going and browsing pictures uh you know and sharing pictures uh and and the third was that we were sending emails so that was the all the useful for internet but if you compare it today without internet you know kind of our lives are disrupted uh we have internet on our mobile we have internet wi-fi at home on our laptops and we live off internet so blockchain is the basically the second uh you know uh internet uh world and and this is the evolution of internet that's coming into a new technology called blockchain most people have experienced blockchain or or heard or or equate blockchain to bitcoin right and and and why bitcoin because few years ago bitcoin price basically went from few cents all the way to 20 000 us dollar per bitcoin and there were a lot of schemes running a lot of people made money and a lot of people lost money and uh this is where our first you know uh awareness of blockchain came because we heard that blockchain could power cryptocurrencies but let me clear something cryptocurrencies and blockchain are two separate things blockchain is the operating platform just like microsoft windows operates the your your machine your pc and microsoft office is an application that runs on uh windows so bitcoin is only a application of cryptocurrencies are only a application that run on blockchain and they are not synonymous with each other okay so blockchain is just the operating system you can build a lot of different applications on the blockchain and bitcoin or cryptocurrencies are just one of the applications of the blockchain and and so there are many projects that could be built just like the blockchain that has been built on the blockchain but it does not have any cryptocurrency or any crypto element of it okay now what exactly is this blockchain now everyone knows it so if i say network database security i.t security uh you know you understand what i'm talking about right but when i talk about blockchain you cannot visualize what actually is within the blockchain and what makes blockchain operate so blockchain is nothing more than i t but different aspects of iit have been put together into a single technology called blockchain to operate and it gives it more power compared to what we have developed so far whether it's cloud computing or is data centers or any other thing so those pieces are the first thing is the network part that blockchain is a decentralized network compared to our standard networks that we have today in our banking or many telcos so in banks you know that sometimes you go to the branch and they say the system is down because it is centralized your data is within the hq of the bank when you go to a branch and if the network is down they're not able to pull your account details from the hq so what blockchain did was blockchain decentralized the network by making each branch or each server as a node of its own so your data is replicated into every single node so whenever one node goes down doesn't mean the total network goes down okay so that's a very key thing of a blockchain that it is totally decentralized and it is shared publicly so why it is shared publicly is that every transaction that is registered on the blockchain is published on uh you know publicly published and anyone having a hash of that transaction is able to view the transaction so imagine that all your banking transactions are cryptographically hashed right and only if you have the private key you are able to open uh your transaction history or details and if you share your private key with anyone else and they insert that they are able to see your transactions as well so total data is secure because it is cryptographically written and loaded into the internet into this decentralized network and only available to people who have the private key so this publicly shared data is extremely valuable especially for inter-agency uh data you know sharing of course it is very very secure because it is using cryptography for the first time in securing data versus using a firewall or using uh you know anti-virus and things like that to secure the data it is using cryptography it can the data can be trusted 100 because the source of data once the source of data writes into the blockchain it cryptographically uh you know uh writes it and only the owner of the private key has access to it so if i receive a private key and i open that data i can trust that data 100 because if the private key came from the source and it works to open the data then the data is credible so like that blockchain has so much fundamental uh paradigm shift in it uh that it makes it so unique compared to what we have in terms of cloud uh the the current security the current uh infrastructure that we are maintaining in enterprises now over time what we have realized that in blockchain um you know the maturity level of the technology has been been been growing but because the technology is just mainstream only four or five years old it is still not proven so a lot of large enterprise accounts are adopting blockchain for the first time trying it out and only realizing what the strengths and weaknesses of it is but maybe the key thing with blockchain globally has been the regulatory and the legal compliances in every country i guess looking at 2020 most countries whether it is bahrain saudi arabia singapore malaysia uh have certain regulatory frameworks already coming out from central banks and securities commission but compare it to in 2017 there was no such thing there were a lot of scams there a lot of schemes running on blockchain and cryptocurrencies and the regulators simply couldn't do anything because there were no regulations to stop now if you look at what the projections are right so pricewaterhouse is putting these numbers out they're saying that in the next 10 years 3.1 trillion dollar worth of industry will be powered by blockchain now when i say powered by blockchain blockchain is not a technology that the end user like me and you actually feel it and see it and touch it just like mobile apps mobile apps you go to the play store or or your you know your your apple store you actually select a app you download it you install it and you play around with it but things like database database is powering every single application that is running today whether is on the internet or on your mobile but have you ever touched database have you ever seen what the database is doing no because it's a back-end technology so blockchain is a back-end technology it is always powering the applications that are running in the front end whether on your web or on your pc or mobile but you don't get to touch it is similar to you know a database so look at it that how many industries are getting affected by blockchain and public sector is one of the big areas you know that that's getting impacted and of course financial industry as well if you look at the total capitalization the market capitalization of the crypto asset that are out there today and these numbers are old when crypto assets were at the peak uh bitcoin was a 20 000 us dollar uh per bitcoin crypto asset value today out there in the cloud is 550 billion us dollars in crypto uh you know uh capitalization so if you compare it to to the the capital reserve of the different nations crypto assets today are equated at 20th position globally 550 billion and can you see who is 21st saudi arabia capitalization is only at 448 billion today and malaysia of course is way below and on position 25. so can you see the value of uh or dollar value that has already gone into crypto asset and how uh capitalized is the crypto asset industry so now we should think of how this technology is disrupting and going to disrupt us right now disruption is one thing that we can talk about and internet disrupted us mobile apps and and whatsapp wechat all of this disrupted us but think of paradigm shift so paradigm shift happens is when we are not making marginal marginal gains in in efficiency and others but we are taking a very big leap so blockchain is a technology that has taken a gigantic leap and has changed the paradigm of ict itself imagine applying this technology in an industry like islamic social finance so when i say islamic social finance or islamic social economy right islamic banking is only 15 or 20 year old invention previous to that right 100 200 years ago or 500 years ago we did not have anything called islamic bank we had islamic economics and his islamic economies we have these three plus two elements we had sadaqah we had zakah we had one we had wasa and we had takafu now sadaka of course right you understand the principles of sadhaka zakat and but these are what when i refer to islamic social finance or economies this is what i'm referring to and we'll today focus very specifically on akof and walk now it is easy please please mr hemi we don't have uh too much time if you can please uh summarize the rest of your presentation please sure so there is a differentiation that the general community do not understand in terms of the legal principles and also the financial principles behind sadhaka zakat and walk so i've given in this table and the slides will be shared please please have a look and give your feedback now when this blockchain and a a islamic economics concept of a work or calf is merged together right something very beautiful comes out of it so what happens is there is digitization and automation of these processes the workboard management itself right so today if you look at our half and walk boards they do they are not automated and they are not digitized so that's one thing that happens the financial audit management happens that audit is enforced on the funds coming into our cafe fund management is another thing because today a lot of funds are coming but we have totally no transparency on what is the earning on or half whether it is a gross profit or gross loss and what is the capitalization whether it gets capitalized or it is depleting capital so fund management comes in the crypto token issuance is another thing so crypto token is where we could actually uh tokenize the waff asset into micro level and offer it to the community so this is where crowd sale or crowd sourcing or crowdfunding comes in right and then other things like building and construction could come in there asset management also comes and of course the couple and insurance comes in so this model was designed in 2017 through advisory board uh in finterra there was sharia there is uh experts on what like dr uh professor doctor said khalid rashid dr omar rozani from islamic law and dr kamil from islamic economics so that model is this right and kind of i'll conclude it in another uh two or three slides so this is what the model is and the model has three segments that the system focuses on segment one looks into the collection of the fund the fund itself where it follows regulatory compliance of central banks and securities commission globally where the donors get registered they go through a kyc process they have online payment gateways integrated that they can put you know the funds uh and and the whole thing has very easy accounting and it's a mobile application uh and and there's a front part to end part of it the second part is where they is the walk administration and also the fund management now what administration is that woof boards and orkaf could come into the platform and create the need for fund so it could be a cash off raise or it could be a development fund actually paying out certain dividend so this would be instruments like madara musharraka jara whatever instrument could be created into a smart contract on the blockchain published and then the donors actually purchased that so fiat funds goes over to the off for the development right and the smart contract remained with the donor as a proof of participation and fund management is that once the funds are collected fund they are parked with fund managers to exercise for revenue and uh margins that actually pay out the dividend and and the upkeep of those assets and the last part right of the the system is the disbursement of the proceeds as well as impact reporting disbursements is when there is a gross margin or a gross profit coming out from the buck funds they have to be dispersed to certain uh islamic charities so the disbursement itself right could be dispersed through e-wallets and using a blockchain technology and then the ngos that are inheriting this fund uh report back into the platform and that is the impact reporting and these reports then go back all the way to the donors so they can see what their funds have achieved so this is the total technology this is the screen of mywalf.com that we launched uh with central bank uh here in malaysia uh and and this is uh you know mywalk.com this is the the landing page and this is what the system looks like uh as a dashboard so if you log into the system create an account you will be able to see your wallet how much balance do you have in your wallet you are able to top up your balance you will be able to see your erc20 uh smart contracts what's the value of that if you have any referral bonuses you're also able to see your total contribution into sadhaka your total contribution into and if there is any return on the va that you have got you can see your profits that are paid back to you through the platform and then you can catch them up now the benefit of this of course is transparency traceability right and eradication of corruption that we have been hearing a lot in this industry and giving the orcaf a venue to crowdfund uh for the development of their assets now these are some of the pilot projects that we have ran or are currently running i would just like to point out three projects out of that that are very very unique one of them is uh in india in the state of up uh we have started collecting cash off buying this uh uh you know electric auto rickshaws given to poor families uh that need income and they operate this rickshaws and pay back uh right and these auto rickshaws become the and they pay back the you know the depleted fund of cash work they pay that so we are running this ngo out of india and and we are buying this auto riches and giving up this is the latest one called my physique this is a corporate work and surprisingly is a company uh you know mobile company out of australia that they are going for listing in nasdaq they have given 100k dollars worth of their shares as corporate work as before listing upon listing the the shares will be liquidated and the fund will be used to finance multiple charities in the region okay and the other two projects uh that i'm very proud of is this forestry project and dairy uh farm project in malaysia where it is built on rough land given by the the akov and uh uh financiers came in with cash work and other instruments finance the development and they get a dividend of between uh eight to twelve percent per annum so these projects i'm very proud of them uh that are operating here in malaysia i i hope the sharing of this uh gave you an insight of you know a powerful technology like blockchain being used for a social you know enterprise-like walk and how much benefit it brings through the automation and digitization and transparency thank you very much thank you very very much for your precious presentation [Music] now would like to move to questions i've seen our honorable speakers already answering to the two questions in chat could you please give us just um a summary idea about the questions and the answers so everyone can benefit from from the answers of these questions please dr muhammad if you can because i i've seen you uh responding to uh many questions uh actually i got a few questions about how to apply for uh for the financing from the akov property investment fund so i invited the people just to submit their request on our uh email apif at isdb.org also just to stress on the fact that we can finance projects in member countries of igbo cheese 57 muslim countries and non-member countries where we have muslim communities so i'm seeing some some question from tanzania projects in tanzania maybe in uk also so definitely we have today we are exploring a project in tanzania we have a few projects in uk so we are open inshallah if there is any uh follow-up question after the this event they want to send us would be more than happy inshallah to respond and to ask the team just to look at all the the question and try to respond on a very fast track mode inshallah thank you so much thank you so much uh there was also a question uh about the performance of sbgs in yc countries uh how how can they be linked to islamic banking products rather than non-substantial amounts coming from zacchaeus and al-qaeda maybe dr artef shabrawi he already answered would like would like to hear from him his answer yeah okay i i i try to answer i guess that dr habib will also can add some points i mentioned that uh you in in 2018 had done a kind of deep analysis of the what they call it uh tap source of funds for the sdgs and i was uh i'm very proud to be part of the team who developed a relation between sdgs and islamic finance where they identify kind of 14 ideas and 14 projects and umdb bahrain was organizing a big event for the islamic war to uh to have to celebrate in 2018 it didn't happen due to some issues but really actually the link between sdgs and islamic banking and islamic finance is extremely uh strong one of the big banks like baraka group and bahrain already signed an agreement with 600 million u.s dollar for financing kind of fifty thousand green businesses uh samick barca group one of the bigger uh banking group who already established a department with sustainable finance within the bank and they have a vice president for sustainable finance dr ali and and some some of banks are taking seriously the the uh the issue to go for uh sdgs as opportunity because of that kind of until today people are bankers are not seeing sdgs as an opportunity because we have in mind that question of uh infrastructure finance focalizing uh the interest however sdgs has many opportunities for small and medium enterprises for uh education for health for a lot of sectors who are really profitable and high return on investment so perhaps with the events like today with the activity of professor habib and all the team here a lot of people get more tied about what is the interest and opportunities within the uh sdgs and inviting islamic bankers and semi-banking and semi-financial institutions to understand really the dimension of uh the the dimension of the offered opportunities over to you jan thank you thank you so much for your answer if i'm yesterday i can add maybe just to what uh dr arthur just said also at idb level we have a special invoice for sdgs and for each and every transaction now that idb is financing we need to look at the link with the sdgs so definitely the link between all activities of banks islamic banking in particular is becoming more and more looking at these sdgs and how we can fill the gap that doctor at just explained at the beginning and the the dr this 2.5 trillion on yearly basis as a gap between the what is the demand and what all the mgbs are putting on the table the the the gap is huge and actually it's increasing not decreasing especially now with the crisis it will be more and more uh burden on all the the activities and definitely if islamic banks do not play their role on this they will be kept behind and they will not follow the general trend on this thank you so much can i add something to please thank you yes sure please yeah i think we have to distinguish between islamic finance and islamic banking islamic banking is the largest of course sector in islamic finance i think there is as i mentioned in my presentation the two key ways in which uh financial sector can help sdgs one is to finance the infrastructure the infrastructure are huge uh capital investments and i think the capital markets so cook are the right instruments to use of course when you talk about the cook islamic financial institutions they also invest but it's not only banks but you have pension funds insurance companies other non-bank financial institutions who can also help in in the infrastructure fund as for uh banks islamic banks i think uh the key way they can contribute is mainly poverty related issues and i think financial inclusion is the best instrument as we are aware financial inclusion is a huge problem all over the world and especially in the developing countries and there is a direct link between financial services and uh growth and i think uh that's one of the ways in which islamic banks can contribute but i think the one of the conceptual problems which uh islamic finance in general has is that we define sharia compliance in a very narrow way as legal compliance if you have to think about sdgs we have to expand the definition of sharia compliance to a broader definition which includes mukashit and also factor in esg which is environment social and governance related uh screening with sharia governance i think what idb is doing in terms of looking at sdgs in each project that's the way to go and actually a lot of conventional banks are doing that but i think islamic banks have to come forward and also add this additional broader makassar esg related screening along with narrow sharia screening thank you so much for your answers i think we still have another question [Music] excuse me yes somebody was was talking about sukuk he said we didn't hear about sukhoi as part of the islamic social finance i i believe i responded on that uh of course sukuk is uh a investment instrument or death instrument in islamic finance but when you speak islamic social finance then they have been a lot of sukup uh issued uh for social finance like what link support so i i believe idb uh has worked on fusoku which are our work link as well as here in malaysia uh through the the okaf so they could be instruments that are favoring the social economics or social uh finance but they are islamic investment instruments and also i think i uh i mentioned about uh some cases where sukuk was used to raise funds to invest in us walk when singapore of course is a good example movies there uh some time back they raised funds using a musharrakas cook and invested in development of work properties zamzam tower in makkah also used sukho kalintafa to raise funds and the building is in just in front of the haram uh yes and the other i think that relates to what uh brother ahmed here mentioned in terms of uh i think in indonesia there is uh this digital sukuk which is issued by blossom finance to raise funds for micro financing and that relates to the i think blockchain based structures which you have mentioned maybe if i can add here thank you actually i think what dr habib and dr ham just explained is exactly what idv is trying to do but also we are trying to explore new ideas in the way instead of going for a project-based sukuk we are looking for a fund based to cook or a program based to cook in the sense that we want to enlarge the scope instead of being for example like the example that dr habib just mentioned the zamzam tower or the other example we now we are all this stakeholder in islamic finance we are working together and trying to restore how we can take this kind of initiate initiative to the next level we're working on some kind of big initiative marrying all these aspects together so definitely innovation in this area is still going on we need to have and to to have all the good winnings from everyone uh and try to work together and come up with something which will have a long lasting impact thank you so much thank you so much we have another uh another questions a question from for finterra from uh uh mr booker he's he's asking about the first projects uh in india uh have they raised more cryptos or more fiat currencies would you please answer mr hamid rashid yes when we started the finterra project we started it in consultation with multiple regulators in malaysia singapore india was part of it so the the central uh uh board of delhi india was part of this and central bank of bahrain and few others now we were given very specific instructions uh back in 2018 that because the regulations around crypto whether to raise funds against crypto the ico or sto and also issuance of the token as well as a conversion of tokens back into fiat is not regulated okay or there's no regulation so not to participate into that so what we did the blockchain was created so that there are no crypto issuance out of it for the fiat funds it is purely based on smart contract so it is a digital asset but digital asset is a mimic of a islamic instrument so example what link support digitized into a digital asset and that is issued so it is not issuing a token token the difference is that you are able to take your cryptocurrency on an exchange secondary exchange and able to trade it for other cryptos and for fiat but in case of finterra when we issue a ruffling support for a specific project you buy that digital asset your fair fund goes to the project owners okay and that digital asset that you're holding becomes like a certificate digital certificate and if there is a payout then of course that smart contract gives you the payout and all that so actually they is we do not accept any cryptocurrencies neither do we issue any cryptocurrencies thank you so much would you like to add something dear speakers uh we're sorry to keep you late i think we it's time to uh finish our webinar today we are pleased and honored to have you today i would like to thank you all for your precious uh presentations and uh precious time uh thank you for being with us uh i would like also to thank the audience for their presence and for their um interaction uh by questions uh looking forward to see you insha allah in the upcoming webinars uh thank you so much thank you for your time foreign