It is an endowment investment fund whose units are endowed and may not be traded or refunded.
What is an endowment investment fund?
What is meant by beneficiaries?
One or more non-profit entities in the Kingdom, such as charities and other non-profit organizations.
How to apply for a license to establish an endowment investment fund?
The application is submitted by licensed market institutions through the website of the General Authority for Awqaf for study and approval; a certificate of approval of the fund is then issued and sent to the registered email, and in case of rejection, the reasons for rejection shall be mentioned therein.
What requirements should be provided when applying?
You must attach the following:
- Agreement between a licensed market institution and the beneficiaries
- Fund terms and conditions
How are the endowment incomes disbursed?
The fund’s incomes are disbursed through the allocation of a percentage of it (endowment income) to the endowment expenditure determined in the fund’s terms and conditions via the beneficiaries.
Are there any financial returns for the Donors?
All returns are disbursed to the beneficiaries in accordance with the specified disbursement areas.
If the beneficiary is dismissed, what will be the fate of the endowment units?
The General Authority for Awqaf may, at its sole discretion, convert them to other non-profit entities in a way that does not conflict with the Donor Conditions.
What are the statutory references governing the work of the endowment investment funds?
The instructions of the endowment investment funds issued by the General Authority for Awqaf, and the list of investment funds issued by the Capital Market Authority.
Can more than one beneficiary establish a single endowment fund?
Yes, one or more non-profit entities may establish a single endowment fund.