Analysis of Sukuk Al-Waqf Structure for Financing BOT-Based Development Programs

Abstract

There are a few studies that have documented Waqf Sukuk financing based on the principle of BOT. Most of these works, however, are descriptive. There is hardly any of them that has examined the extent of success of adopting this funding model, and the extent to which it has achieved the objectives of Waqf. The present study examines the effectiveness of the Waqf Sukuk in financing BOT-based development programs. The chapter also analyzes the extent to which the extant Sukuk Waqf structures conform to the objectives of Waqf. The chapter has been structured into seven sections, including the introduction. The second and third sections provide an overview of Waqf and an overview of Sukuk, respectively. The fourth section discusses the Waqf Sukuk financing based on BOT principle. Section five explained and analyzes the Cash Waqf linked Sukuk. The sixth section concludes the chapter, and the final section seven suggests way forward for a viable structure of Waqf Sukuk for financing Waqf projects. This section will review the related previous work to establish the research gap. To simplify the review, the literature is grouped into five main themes: The concept of Sukuk, concept of Waqf, concept of BOT, Sukuk al-Waqf Structure and the projects they fund and Sukuk al-Waqf Structure and BOT-based projects.