Abu Dhabi has introduced a fresh set of regulations for the establishment and operation of endowment companies in the emirate. This new framework, announced on February 17, 2025, is a collaborative effort between the Abu Dhabi Department of Economic Development (ADDED) and the Endowments and Minors’ Funds Management Authority (Awqaf Abu Dhabi). The regulations aim to strengthen governance and transparency in the sector while promoting sustainable development.
The newly issued regulations establish a comprehensive framework for the creation and operation of endowment companies, covering their legal status, permitted activities, and licensing requirements. This resolution aligns with and builds on existing laws governing family-owned endowments and introduces more structured governance for such entities.
Clear Path for Sustainable Growth and Social Impact
Under the new framework, endowment companies will have the opportunity to manage private grants alongside engaging in commercial activities that contribute to the sustainability of endowed assets. This dual approach will help maximize both financial returns and social impact. Additionally, the resolution introduces rigorous monitoring and supervisory mechanisms to ensure high standards of governance.
To ensure compliance with current regulations and respect for donor intentions, all applications for endowment companies must be approved by Awqaf Abu Dhabi. This process ensures that each entity aligns with broader objectives for the effective use of grants, while remaining transparent and accountable in their operations.
Types of Endowment Institutions Recognized
The resolution encompasses various forms of endowment institutions, including private (family-owned) endowments, charitable endowments, and joint endowments. It also allows for the management of endowed shares and equity stakes in commercial enterprises, provided that such provisions are explicitly stated in the articles of incorporation, and are in compliance with applicable laws.
The new resolution aims to stimulate investment in key strategic sectors, including manufacturing, education, healthcare, agriculture, culture, and innovation. By enabling greater collaboration between the public and private sectors, the resolution seeks to promote long-term, sustainable development in these areas.
Through this initiative, Abu Dhabi aims to create a more transparent, accountable, and dynamic endowment sector. The government is set to introduce more detailed guidelines and manuals to ensure that these institutions maintain the highest standards of governance for the benefit of all stakeholders.
For more information, you can refer to the official Abu Dhabi Department of Economic Development website and Awqaf Abu Dhabi’s official page.
