The Abu Dhabi Department of Economic Development (ADDED), in partnership with The Endowments and Minors’ Funds Management Authority (Awqaf Abu Dhabi), has introduced a resolution governing establishing and licensing endowment institutions in the emirate. This initiative aims to formalise the role of endowments in sustainable socio-economic development, aligning with the UAE’s ‘Year of Community 2025’ under the theme ‘Hand in Hand’.
The resolution provides a regulatory framework for creating and managing endowment companies, detailing legal status, permitted activities, and licensing requirements. It enables entities and individuals to contribute to long-term social and economic progress, with all applications requiring approval from Awqaf Abu Dhabi to ensure compliance with regulations and donor intentions.
Under this framework, endowment companies can manage private grants and engage in commercial activities to sustain and grow endowed assets, thereby maximising financial returns and social impact. The resolution also establishes monitoring mechanisms to enhance governance and accountability within the sector.
In December 2024, Awqaf Abu Dhabi launched Awqaf Capital, its dedicated investment arm, to deploy capital across diverse asset classes. This move seeks to transform endowment and wealth management into catalysts for social well-being, economic prosperity, and environmental sustainability.
The resolution encompasses various types of endowment institutions, including private (family-owned) endowments, charitable endowments, and joint endowments. It also permits the management of endowed shares and equity stakes in commercial enterprises, provided such provisions are explicitly included in the articles of incorporation and comply with applicable laws.
