Kuala Lumpur, June (پاکستان پوائنٹ نیوز 16 يونيو 2026ء) Acting Director General of IsDB Institute Dr. Sami Al-Suwailem and Director General of Labuan FSA Affendi Rashdi signed the MoU today on the sidelines of the IsDB Group Annual Meetings in Baku, Azerbaijan.
The MoU marks an important milestone in advancing innovative, Shari'ah-compliant development solutions that leverage the potential of Awqaf (Islamic endowments) to support sustainable economic growth and social development across IsDB Member Countries.
The Awqaf Free Zones is an innovative concept developed by the IsDB Institute to integrate the principles of Waqf with the legal, regulatory, and economic framework of free zones. The concept aims to establish dedicated jurisdictions that facilitate the mobilization of Awqaf assets through modern governance structures, innovative financial mechanisms, and enabling regulatory environments while preserving the perpetual and charitable nature of waqf.
Through this collaboration, IsDB Institute and Labuan FSA will explore the feasibility of adapting the AFZ concept to the Labuan IBFC ecosystem. The cooperation will include the exchange of knowledge and technical expertise, assessment of legal and regulatory requirements, identification of potential implementation models, and the exploration of future pilot initiatives.
Speaking on the occasion, Dr. Al-Suwailem stated: "The Awqaf Free Zone represents a new paradigm for unlocking the developmental potential of Waqf by combining centuries-old Islamic philanthropic principles with contemporary financial and regulatory innovation. Our collaboration with Labuan FSA reflects our shared commitment to developing practical and scalable solutions that contribute to sustainable development of Member Countries and strengthen Islamic finance globally."
The signing of the MoU builds on the substantial progress achieved by the IsDB Institute in developing the Awqaf Free Zones concept. The institute has completed comprehensive studies on the legal and regulatory framework, including a legal report, a model law, and a model regulation, laying the foundation for future implementation in interested jurisdictions. These studies are further complemented by governance, operational, and financial feasibility studies designed to support the practical establishment of Awqaf Free Zones.
The collaboration with Labuan FSA represents the first institutional step toward assessing the implementation of the Awqaf Free Zones concept within an established international financial centre. Subject to the outcome of the feasibility assessment and subsequent technical discussions, the initiative has the potential to demonstrate how Waqf can be integrated into modern financial ecosystems while supporting the Sustainable Development Goals (SDGs) and enhancing the contribution of Islamic finance to inclusive economic development.
