The initiative strengthens Abu Dhabi's leadership in the endowment sector, driving sustainable economic and social development in line with the UAE’s Year of Community 2025 under the theme "Hand in Hand".

• The new regulations underscore the Abu Dhabi government’s commitment to transparency and governance, fostering investment and growth within the endowment sector.
• The resolution provides a secure institutional framework for family businesses, ensuring the sustainability and intergenerational growth of assets.
• The regulations support investment in key sectors such as industry, education, trade, healthcare, agriculture, culture and innovation.

The Abu Dhabi Department of Economic Development (ADDED), in collaboration with The Endowments and Minors’ Funds Management Authority (Awqaf Abu Dhabi), has issued a resolution on the establishment and licensing of endowment institutions in Abu Dhabi.

The resolution represents a transformative step in enhancing endowment structures, supporting the sustainability of family-owned businesses, advancing best practices in endowment management. It reinforces Abu Dhabi’s leadership in endowment governance and enhances contributions of non-profit organisations and associations’ (Third sector) role to the gross domestic product (GDP)

A first of its kind in the UAE, the resolution introduces a comprehensive regulatory framework that formalises the endowment sector’s role in sustainable socio-economic development. It aligns with the UAE’s Year of Community 2025, under the theme “Hand in Hand”, reflecting the vision of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the UAE, to promote sustainable growth, knowledge-based economy, and social solidarity.

The resolution aligns with and builds upon existing laws, which addresses family-owned endowments, and introduced structured governance for such entities. It provides a framework for the creation and administration of endowment companies, covering aspects such as legal status, permitted activities, and licensing requirements.

By establishing clear legal and regulatory guidelines, the resolution enables companies, institutions, and individuals to contribute to long-term social and economic progress. All applications must be approved by Awqaf Abu Dhabi to ensure compliance with current regulations, donor intentions, and the broader objectives of the grant.

Under the new framework, endowment companies will have the ability to manage private grants while engaging in commercial activities that support the sustainability and expansion of endowed assets, maximising both financial returns and social impact. The resolution also introduces robust monitoring and supervisory mechanisms to enhance governance and accountability within the sector.

His Excellency Rashed Abdulkarim Al Blooshi, Undersecretary of ADDED, said: “Endowments have been playing a vital role in the socio-economic development for many decades. Issuing this resolution to establish and license endowment companies in Abu Dhabi aims to provide the suitable frameworks to enable them to grow and thrive. This is in line with the emirate’s vision, which places human development, sustainability, and economic inclusion at the core of its strategic plans to accelerate economic growth and diversification, and further enhance knowledge based, innovation driven economy”.

H.E. Al Blooshi added: “Our cooperation with Awqaf Abu Dhabi is to ensure achieving the objectives of this step with a focus on sound management of endowments companies, sustainability, and adherence to highest standards of governance and transparency. Providing a suitable ecosystem to establish endowments companies pave the way for enhancing their role and contribution in different economic sectors while focusing on achieving the social development’s objectives of these unique investments”.

With detailed guidelines and manuals to be added later for the endowment institutions, the resolution provides a regulatory framework that ensures the highest standards of governance and transparency for the benefit of the founder and its beneficiaries and encourages investments in multiple strategic areas such as manufacturing, education, trade, healthcare, agriculture, culture, and innovation. It also promotes cooperation between the public and private sectors to achieve sustainable development’s goals and efficient usage of resources.

His Excellency Fahad Abdulqader Al Qassim, Director General of Awqaf Abu Dhabi, highlighted the resolution’s role in balancing sustainable investment and prudent risk management across various asset classes. He said: “This resolution reflects the strategic partnership between Awqaf Abu Dhabi and ADDED, establishing a regulatory framework that fosters endowment investments and maximises their social and economic impact. It reinforces the sustainability of family-owned businesses and ensures the continuity of donors’ philanthropic legacies for generations to come. This embodies the UAE leadership’s vision of securing a dignified quality of life and promoting solidarity, in alignment with the UAE’s Year of Community 2025.

“The introduction of endowment companies represents an innovative evolution in endowment governance, allowing for greater flexibility and adaptability in response to changing economic conditions. The resolution provides donors with the ability to establish independent, legally recognised entities under corporate law, adhering to the highest governance standards and best practices.”

The resolution encompasses various types 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 such provisions are explicitly included in the articles of incorporation and are in accordance with applicable laws.

Additionally, the resolution aims to attract further investment into the endowment sector, strengthening its contribution to Abu Dhabi’s sustainable economic and social development agenda. It supports the UAE’s broader economic diversification strategy, reinforcing the emirate’s position as a leading hub for philanthropy and responsible investment.

Leveraging Abu Dhabi’s strategic position as a global investment gateway, Awqaf Abu Dhabi launched Awqaf Capital, its dedicated investment arm, in December 2024. This initiative is set to deploy capital across diverse asset classes, further cementing Abu Dhabi’s role as a centre for sustainable endowment management and international investment.

For further details on Regulatory Resolution No. (46) of 2024, please visit www.adawqaf.gov.ae or follow Awqaf Abu Dhabi on social media: Instagram (@adawqaf), Facebook (@adawqaf), and X (formerly Twitter) (@adawqaf).

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