Abu Dhabi issues resolution to regulate endowment companies with Awqaf

Photo: Abu Dhabi Media Office

The Abu Dhabi Department of Economic Development (ADDED), together with The Endowments and Minors’ Funds Management Authority (Awqaf Abu Dhabi), has announced an important resolution that focuses on the creation and licensing of endowment institutions in Abu Dhabi. This new decision marks a significant step forward in improving endowment systems, supporting the long-term success of family-owned businesses, and promoting better ways of managing endowments.

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The resolution also strengthens Abu Dhabi’s role as a leader in endowment governance and boosts the contributions of non-profit organizations to the region’s economy. This step is part of Abu Dhabi’s goal to support sustainable development and social progress.

This is the first time such a resolution has been issued in the UAE. It introduces a comprehensive system that defines the role of endowments in helping achieve long-term social and economic development. The decision also fits perfectly with the UAE's 2025 Year of Community theme, “Hand in Hand,” which aims to support sustainable growth and social unity, in line with the vision of His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE.

The new rules build on existing laws about family-owned endowments and introduce a structured approach to managing them. It provides a clear framework for creating and running endowment companies, including details on their legal status, what they can do, and how they can get licensed.

With these new guidelines, companies and individuals will have clear legal steps to follow if they want to contribute to long-term social and economic progress. To make sure everything is done according to the rules and donor wishes, Awqaf Abu Dhabi will review all applications.

Under the new system, endowment companies will be allowed to manage private donations and also engage in commercial activities that help grow and sustain endowed assets. This will allow them to generate both financial returns and have a positive social impact. The resolution also includes measures to ensure these companies are properly managed, with strong oversight and accountability.

Rashed Abdulkarim Al Blooshi, the Undersecretary of ADDED, shared that endowments have always played an important role in the region’s development. He said that this new resolution will help these companies grow while focusing on sustainability, transparency, and meeting Abu Dhabi’s vision for economic growth and inclusiveness. He emphasized that working with Awqaf Abu Dhabi would ensure the success of the plan.

The resolution also outlines how endowment institutions will be managed in various fields such as manufacturing, healthcare, agriculture, culture, and innovation. It encourages collaboration between the public and private sectors to ensure resources are used efficiently and in line with sustainable development goals.

Fahad Abdulqader Al Qassim, Director General of Awqaf Abu Dhabi, talked about how the resolution will help balance investments in a way that ensures careful risk management. He pointed out that the resolution strengthens the relationship between Awqaf Abu Dhabi and ADDED and creates an environment where endowment investments can thrive.

The new system allows donors to create independent endowment companies that are recognized under corporate law. These companies will follow high standards of governance and best practices, ensuring that they adapt to changing economic conditions.

The resolution applies to different types of endowment institutions, including private family endowments, charitable endowments, and joint endowments. It also allows for the management of shares and equity stakes in businesses, as long as it’s mentioned in the company’s founding documents and follows the law.

Overall, this new resolution is designed to attract more investment into the endowment sector, which will further support Abu Dhabi’s social and economic development. It’s part of the UAE’s wider strategy to diversify its economy and make the emirate a key hub for philanthropy and responsible investments.

To further strengthen this sector, Awqaf Abu Dhabi launched Awqaf Capital in December 2024. This investment arm will focus on deploying funds across various types of investments, helping make Abu Dhabi a center for sustainable endowment management and global investment.

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