Malaysia: UDA to work with Bank Muamalat in developing RM1b wakaf land
PETALING JAYA (Nov 12, 2013): UDA Holdings Bhd will work with Bank Muamalat (M) Bhd to develop 40.47ha of wakaf land with a gross development value of RM1 billion.
The land, ready for development, is spread throughout the country and owned by the respective state Islamic Religious Councils.
Bank Muamalat will provide the end financing for UDA to develop the land.
UDA Holdings group managing director Ahmad Abu Bakar said implementation of development projects on the wakaf land will be based on the concept of Ijarah or leasing.
"Through this concept of Ijarah, ownership of the land to be developed remains with the state Islamic Religious Councils, and only its usage will be transferred," he told reporters after the signing of a memorandum of understanding for the development of the wakaf land between Bank Muamalat and UDA Holdings, here today.
"UDA's model and springboard for the development of wakaf land on a commercial basis using the Ijarah concept, is based on the success in developing the 3.94ha belonging to the Penang State Islamic Religious Council," Ahmad said.
He said the development of wakaf land is still being fine tuned and UDA had also received letters of offer to develop such land in Selangor.
To realise the development of wakaf land, UDA acting as the developer, will underwrite the development costs, while also being responsible for marketing the projects.
"Development of the wakaf land will help add value as well as generate optimum returns," Ahmad said.