Possibility of adopting B.O.T and its impact in capital investment of waqf in Kuwait 9arabic)

Abstract

This research aims to explore the possibility of applying Build-Operate-Transfer (B.O.T) contracts in asset management and investment in Kuwaiti charitable institutions, by describing these contracts as a form of modern investment. The problem of the research lies in the need to apply modern formulas to finance Waqf assets and invest them in Kuwaiti charitable institutions, especially the faltering ones, such as Waqf lands for which there is not sufficient money or sufficient expertise to invest and reconstruct them. The research followed a qualitative methodology to answer the research questions and achieve its objectives. Data was collected through semi-structured interviews with experts in Kuwaiti charitable institutions. The research reached a set of important results, the most prominent of which is that most of Waqf’s funds used to develop and invest its assets were in the field of real estate, amounting to two-thirds of the investments. There are positive effects of implementing build-operate-transfer (B.O.T) contracts in Kuwaiti charitable institutions, including investing in unexploited assets, improving the efficiency of the regulatory system, increasing the efficiency of human resources through continuous communication with the labor market and expertise in the field, and activating the principle of governance. The results also showed major challenges facing Kuwaiti charitable organizations in implementing Build, Operate-Transfer (B.O.T) contracts, including challenges of providing expertise to manage and implement contracts, challenges of providing systems and laws to manage and implement contracts, challenges of choosing a franchise company, challenges of providing oversight and operation capabilities, challenges of managing, the project after receipt, the challenges of disputes with the franchise company, and the challenges of preserving assets. The research recommended enhancing investments in real estate, especially in the field of real estate development, given the low risks associated with this investment, as well as enhancing investment in Islamic financing formulas, such as Murabaha, Ijara, Mazara, Salam, and others, while establishing the necessary foundations and systems for managing and implementing Build, Operate-Transfer (B.O.T) contracts. And seeking the assistance of specialized consulting offices to develop appropriate legal and legislative frameworks to transform the activity of charitable work institutions into a money-generating investment activity, as well as qualifying current human resources to be able to manage investment projects in accordance with Build, Operate-Transfer (B.O.T) contracts, implementing and following them up, applying governance principles, and adopting selection criteria. Franchising companies, and forming investment committees in charitable institutions that include experts to manage, implement, follow up, and supervise investment projects. The research adds new contributions to the field of Waqf with practical application to the State of Kuwait and helps achieve social responsibility and the objectives of Sharia.