Abu Dhabi has rolled out fresh regulations governing the establishment and licensing of endowment institutions, marking a significant shift in the emirate’s approach to philanthropic and family wealth management.
The Abu Dhabi Department of Economic Development (ADDED), working alongside the Endowments and Minors’ Funds Management Authority (Awqaf Abu Dhabi), announced these regulations on Monday, bringing structure to the endowment sector.
Key Features of the New Regulations
The framework addresses several crucial areas:
- Legal Framework: Clear guidelines on company formation and legal status
- Commercial Activities: Permission for endowment companies to manage private grants while conducting business operations
- Asset Management: Provisions for handling endowed shares and equity stakes in commercial ventures
- Oversight Systems: Implementation of monitoring mechanisms to strengthen accountability
Types of Endowment Institutions
The regulations recognise three primary categories:
- Private (family-owned) endowments
- Charitable endowments
- Joint endowments
Application Process and Compliance
All potential endowment institutions must secure approval from Awqaf Abu Dhabi. This process validates:
- Compliance with current regulations
- Alignment with donor intentions
- Adherence to broader endowment objectives
Strategic Investment Focus
The regulations encourage investments across various sectors:
- Manufacturing
- Education
- Trade
- Healthcare
- Agriculture
- Culture
- Innovation
Public-Private Collaboration
These regulations aim to foster partnerships between government and private entities, focusing on:
- Resource optimisation
- Sustainable development
- Strategic growth initiatives
What’s Next
The authorities will release additional guidelines and operational manuals for endowment institutions. These will provide detailed instructions on governance practices and transparency requirements.
The framework builds upon existing legislation regarding family-owned endowments, creating a more comprehensive structure for the sector’s growth and development.
This article reflects the latest updates as of February 2025. For the most current information, please consult official ADDED and Awqaf Abu Dhabi channels.
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