MUSCAT: The Ministry of Awqaf and Religious Affairs (MoARA), the Sultan Qaboos Higher Centre for Culture and Science, and Bank Nizwa has launched the Ishraq Waqf Investment Fund last week, a move to enhance the waqf (endowment) sector in Oman. This new investment initiative aims to promote sustainable development by channelling Islamic finance into projects aligned with charitable and social welfare goals, marking an advancement for Oman’s financial landscape.

In an interview with Observer, Khalid al Kayed, CEO of Bank Nizwa, outlined the fund’s objectives and its potential to enrich Oman’s Islamic finance ecosystem. “This is a unique partnership with the main players in the Islamic finance industry in Oman,” he shared. “With the support of the Ministry of Awqaf and Religious Affairs(MoARA), the Sultan Qaboos Higher Centre for Culture and Science, and Bank Nizwa, we are launching the Ishraq Endowment Fund to create meaningful, sustainable impact.”

The fund is structured to cater to a range of investors by offering three distinct Shariah-compliant models. These include a perpetual endowment for those wishing to contribute funds permanently for charitable purposes, a temporary endowment allowing specific time-based contributions, and a revenue-focused investment model. “We are introducing an innovative structure, not seen in other markets, by combining permanent, temporary, and transitional endowment models,” Al Kayed noted. “This approach allows flexibility, making the fund accessible to a broader audience."

With an initial capital of RO 10 million, the Ishraq Waqf Investment Fund is managed by the Oman National Investments Development Company (Tanmia). It invites individuals, companies, and waqf institutions to invest in a way that aligns with Islamic values, making it possible for participants to contribute directly to projects that support community welfare and social development.

The Ishraq Endowment Fund is one part of Bank Nizwa’s broader strategic vision, which aims to strengthen the Islamic finance sector in Oman. Al Kayed explained that the bank’s goal extends beyond traditional banking services. “Our strategy extends beyond just banking. It’s about creating sustainable synergy across various sectors in Oman, including partnerships with public and private entities,” he emphasised, adding that this collaborative approach enables the bank to play a key role in building the Islamic finance ecosystem in the Sultanate of Oman.

In addition to advancing waqf investments, the bank is also focusing on expanding its client base in corporate and retail markets, with a particular emphasis on digitalisation and sustainability. Al Kayed also expressed a vision for regional expansion. “It’s time to cross the borders of Oman and start doing business outside,” he noted, suggesting that the bank’s future may include new international ventures.

The Ishraq Waqf Investment Fund represents a substantial milestone for Islamic finance in Oman, supporting both the national development goals of Oman’s Vision 2040 and the growth of the waqf sector. Through this initiative, Bank Nizwa and its partners are leading a shift in the landscape of Islamic finance, offering innovative tools that blend investment with community impact.