Investment Policy
A low-risk waqf investment framework that protects capital and sustains returns.
1) Objective and Scope
- Control investment decisions to balance capital safety and sustainable periodic returns.
- This policy applies to all listed opportunities and projects.
- Participation is limited to legally eligible waqf entities.
2) Permitted Investments
- Acquisition of existing real-estate assets with operational feasibility.
- Development of existing waqf real-estate assets to improve efficiency and return.
- Creation of new waqf projects that end as fixed assets.
- Operation, leasing, and management that preserve waqf benefit.
3) Non-Permitted Investments
- Stocks, funds, speculative trades, and high-risk instruments.
- Non-real-estate activities or structures that do not end as fixed assets.
- Any financial or contractual arrangement that breaches Sharia or regulatory controls.
- Any investment before full Sharia, legal, and financial approval is completed.
4) Governing Principles
- Capital preservation: a constant priority over short-term return.
- Risk prudence: selecting opportunities with stable cash flows and low risk.
- Financial and legal segregation: each project has its own account, file, and audit trail.
- Transparency: periodic reports on performance, compliance, and risk.
5) Evaluation and Approval Criteria
Sharia and Legal
- Valid structure and Sharia compliance.
- Complete ownership, licenses, and legal obligations.
Financial
- Net return estimation after operating cost and reserves.
- Sensitivity analysis for market and operating changes.
Operational and Engineering
- Feasibility of execution and operation on a realistic timeline.
- Clear maintenance, management, and sustainability plan.
Risk
- Identification of material risks and mitigation plans.
- Risk impact assessment on capital, return, and liquidity.
6) Governance and Authorities
- Sharia Committee: approve Sharia compliance of contracts and structures.
- Investment and Risk Committee: approve feasibility and offering decisions.
- Audit and Compliance Committee: review procedural and financial compliance.
- External Auditor: independent reporting at project level.
7) Risk Management
- Prudent diversification across compliant real-estate opportunities.
- Operational and financial limits for each project according to its nature.
- Operating reserve to absorb temporary volatility.
- Periodic review of risk map and mitigation actions.
8) Return Distribution
- Net return is calculated after operation, maintenance, and reserves.
- Returns are distributed according to documented participation ratios.
- Part of surpluses may be reinvested by approved governance decision.
9) Disclosure and Reporting
- Periodic performance reports: revenues, expenses, net return, and distribution.
- Compliance, risk, and operational progress reports on an approved schedule.
- Official communication channel for inquiries and follow-up.
10) Regulatory Commitment (Sultanate of Oman)
- Obtain required written approvals before any material action.
- Maintain statutory records and periodic updates for each project.
- Execute collections and payments through approved bank accounts.
- Comply with founders' conditions and governing waqf documents.
11) Review and Update
- This policy is reviewed periodically or when material regulatory or operational changes arise.
- Updated versions are approved by competent authorities before publication.
Note: This is an operational/administrative document and remains subject to final legal review before formal enforcement.