The new US$750 million Framework Agreement triples the size of the previous agreement signed in 2023, reflecting the successful and expanding scope of collaboration between ITFC and Côte d’Ivoire.
The Islamic Development Bank Institute (IsDBI) (https://IsDBInstitute.org) and Labuan Financial Services Authority of Malaysia (Labuan FSA) signed a Memorandum of Understanding (MoU) to explore collaboration on the potential implementation of the Awqaf Free Zones concept within the Labuan International Business and Financial Centre (Labuan IBFC).
Dr. Sami Al-Suwailem, Acting Director General of IsDB Institute, and Mr. Affendi Rashdi, Director General of Labuan FSA, signed the MoU on 16 June 2026 on the side lines 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. Sami Al-Suwailem, Acting Director General of IsDB Institute, 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.”
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