The Special Economic Zone though established a CSR Department since 2015 was envisioning a fund to be set up which would be managed independently by shareholders compromising of Investors from within the zone unifying and working closely to support the local communities across a broad range of CSR initiatives that would be cutting edge and bench marked against the national objectives to support communities.
In October 2018, SEZAD’s vision was finally made reality with the launch of Tawasul ( hyperlink )fund, compromising of 8 of the founding members and investors from within the Zone.
Tawasul’s vision is to improve the daily lives of the local communities of Al Wusta region while empowering them to play a more active role in society through corporate social responsibility on a sustainable level.
The main objective of Tawasul Fund is to bridge the gap between the public, the private and charity organizations within Al Wusta region that will enable the fund to support social projects which have the potential to maximize the contribution to the welfare of local communities.
Tawasul Fund’s Founding Members:
Proposed Organizational Structure:
The Fund’s General Organization & Legal Framework
- Objective of the Fund: to provide financial support for projects that promote sustainable socio-economic development for the local communities in the Special Economic Zone and Al Wusta governorate.
- Activities: The Fund implements its activities in accordance with the terms of its Articles of Association which have already been approved by the Ministry of Social Development as per the law.
- Funding Source: The Fund is financed through funds contributed by the establishing companies and income generated by the Fund.
- Management Structure: The Board of Directors shall appoint a CEO to run the operations of the Fund who shall be ultimately accountable to the Board. The executive management team of the Fund, led by the CEO, shall be responsible for drafting the Fund’s internal policy for approval by the Board of Directors.
- Membership: The Fund shall continue to operate in spite of changes to the initial composition of the founding members:
- New companies can be accepted into the fund as founding members provided that they comply with the membership conditions specified in the Fund’s internal policy and procedures;
- Any of the initial founding members may withdraw its membership by sending a written notice to the other founding members. Withdrawal shall only take effect after obtaining written approval from the Ministry of Social Development; and
- Existing members may suspend or terminate the membership of another company provided that they obtain approval from the Ministry of Social Development. In case the company being suspended is in compliance with its obligations approved in the current session of board meetings, suspension will take effect in the following session.
- Financial Year: begins on January 1st and ends on December 31st of each year except for the first financial year which begins on the date of registration and ends on December 31st of the following year.
Board of Directors’ Guidelines
- Board Members: The Board shall be comprised of 7 members; including the CEOs of each of the 7 establishing companies or their official representatives.
- Chairmanship: Chairmanship of the Board shall be agreed upon in accordance with the internal policy of the Fund (TBD).
- Frequency of Meetings & Quorum: to be agreed upon in accordance with the internal policy of the Fund (TBD).
- Voting rights: all board members shall have equal voting rights.
- Role & Powers of the Board:
- Appoint a CEO to manage the strategy and operations of the fund and be accountable to the Board;
- Unanimously issue approvals of any decision related to the projects implemented by the Fund (or any modifications thereto) in accordance with its scope of work;
- Approve the internal policy of the Fund drafted by the executive management;
- Appoint members of the Audit Committee in the first meeting (who shall serve their positions for two years);
- Members of the Board shall disclose any potential conflicts of interest related the Fund’s scope or internal policy where applicable;
- Determine ways in which funds are to be used to achieve the objectives of the Fund, including making decisions on the use of savings as a reserve fund for future expenditures.
Main Proposed Stakeholders
Tawasul Fund’s Primary Objectives & Scope of Work
- Bridge the gap between corporations and the community.
- Work closely with SEZAD stakeholders to implement sustainable social development projects.
- Promote entrepreneurship and create an entrepreneurial culture within the Al Wusta governorate.
- Implement training and education programs for employment purposes.
- Vocational training (e.g. Train the Trainer programs) in the Wusta and surrounding regions.
- Develop health and environment initiatives.
- Support associations, including youth foundations and sport clubs.
- Funding of scholarships
- Encourage volunteerism
- Community awareness programs
Tawasul Fund’s General Provisions to its Key Stakeholders
- Support and fund social development projects and encourage vocational institutions, public or private, operating in the social field.
- Develop skill based individuals’ capacities and human resources in order to enable them to rely on themselves.
- Encourage and support public and private entities, to establish joint programs in the field of social development.
- Coordinate with institutions to prepare skill based programs and train individuals from Al Wusta region to be orientated into the workforce.
- Support and finance social research to determine the social welfare services and the development projects needed to assist local communities.
- Participate in providing training for individuals in the welfare system through funding training and rehabilitation programs within Al Wusta region.
- Determine the social services and the institutions required within communities which are not covered by the local Governorate and ministry.
- Advertise and promote projects through different mass media and encourage sponsors to finance these campaigns.