In force Last amended 1/6/1444 AH
Saudi Endowments Authority Law
نظام الهيئة العامة للأوقاف
Establishes the General Authority of Endowments, an independent public body that regulates, preserves and develops public, private and joint endowments and supervises endowment administrators, and sets out its board, committees and finances.
- Articles
- 25
- In force
- 25
- Amended
- 2
- Issued
- 26/2/1437 AH
Issued by: مرسوم ملكي رقم (م/11) بتاريخ 26 / 2 / 1437
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Endowments Authority Law by topic
The General Authority for Endowments and Its Aims4 articlesRegistering and Inventorying Endowments1 articleThe Authority's Administration of Endowments5 articlesSupervision of Endowment Administrators2 articlesInvesting Endowment Funds3 articlesBoard of the Endowments Authority3 articlesGovernor of the Endowments Authority2 articlesAdvisory Committee and Oversight Committee3 articlesAuthority Finances and Endowment Accounts8 articlesAuthority Staff and Conflicts of Interest2 articles
Articles of the Saudi Endowments Authority Law
- Article 1The article sets the meanings of the terms used in the Law of the General Authority of Endowments, such as the types of endowment, the endower, their condition, the supervisor, supervision and management.
- Article 2The article gives the General Authority of Endowments an independent legal personality with financial and administrative independence, links it to the Prime Minister, and sets its head office in Riyadh with the option to open branches.
- Article 3The article sets the Authority's objectives: to regulate, preserve, develop and grow endowments in a way that fulfills the endowers' conditions and strengthens their development and solidarity role, in line with the objectives of Sharia and the laws.
- Article 4The article gives the Authority supervision over all public, private and joint endowments under Article 5, paragraph 5, and over the work of supervisors appointed by endowers, without violating their conditions or entering into supervision.
- Article 5The article lists the Authority's tasks: registering and inventorying endowments, supervision and management, oversight of supervisors, approving endowments funded by donations, collecting income, and developing endowment work.
- Article 6The article sets the composition of the Authority's board of directors: a chairman appointed by order of the Prime Minister and fifteen members, the grade requirements for representatives, the term of some members, and how remuneration is set.
- Article 7The article makes the Board the Authority's highest authority and lists its powers over laws, strategies, regulations, budgets, disposal of endowment assets, investment, loans and accepting funds, with delegation permitted.
- Article 8The article regulates Board meetings: at least every two months, the quorum, voting and the casting vote, the venue, minutes, attendance of advisers, the ban on voting by proxy, confidentiality and the Secretary General.
- Article 9The article provides for appointing a Governor of the Authority and relieving him by decision of the Board, makes him responsible for managing its affairs, and lists his powers including representing it before the courts, with delegation permitted.
- Article 10The article allows the Governor to have one or more deputies, appointed by decision of the Board on the Governor's nomination, who work under the powers the Chairman gives them within the law.
- Article 11The article creates a permanent advisory committee by decision of the Board, made up of people outside the Board and the Authority's staff, to give Sharia, legal, financial and other advice, and sets its composition, term and regulations.
- Article 12The article creates a permanent internal control and audit committee by decision of the Board, made up of people outside the Board and the Authority's staff, and sets its composition, term and the regulations it prepares.
- Article 13The article sets the objectives of the internal control and audit committee: protecting the Authority's funds, sound control, accurate financial data and verifying compliance with the laws, and refers the details to the control and audit regulations.
- Article 14The article allows the Authority a fee for managing endowments that have another supervisor, set by the Board after agreement with the endower or supervisor, at no more than 10% of the endowments' net annual income.
- Article 15The article allows the Authority, subject to the endower's condition and without harming beneficiaries, to invest the assets and surplus of endowments it supervises, and to set aside up to 25% of net revenue and 20% of surpluses on conditions.
- Article 16The article requires the Authority to keep separate accounts and a separate budget for endowments it supervises or manages, separate accounts for the endowments of the Two Holy Mosques, and to deposit endowment funds in separate accounts at the Saudi Arabian Monetary Agency or licensed banks.
- Article 17The article makes the Authority's financial year the State's financial year, with the exception that its first financial year starts from the date the law takes effect.
- Article 18The article requires the Authority to set a financial and accounting system for endowments it supervises or manages, and a guidance system for others to help supervisors, and refers financial matters to the Authority's financial regulations.
- Article 19The article sets the sources of the Authority's independent budget, including up to 10% of the net income of endowments it supervises, management fees and the annual government grant, and how its funds are deposited and spent.
- Article 20The article requires the Board to appoint one or more licensed auditors to audit the accounts of the endowments and the Authority, with joint liability, reporting to the Board and a copy to the General Auditing Bureau.
- Article 21The article treats the Authority like public bodies and institutions as regards fees, and exempts charitable endowments and the charitable share of a joint endowment registered with the Authority from the Judicial Costs Law.Amended M/72
- Article 22The article requires the Board to issue employment regulations setting the conditions for appointing the Authority's staff and their rights, duties, discipline and termination, and subjects all its staff to the Labor Law and the Social Insurance Law.
- Article 23The article binds the Authority in all its dealings and investments to the endowers' conditions, so long as they do not conflict with the rules of Islamic Sharia and the laws in force.
- Article 24The article bars Board members, staff and their relatives up to the fourth degree from any interest in the Authority's projects or from dealing in the funds of its endowments, and makes any violating act void.
- Article 25The law replaces the Supreme Council of Endowments Law and takes effect 90 days after publication, applies to the Authority's endowments as an exception to Article 223 of the Law of Sharia Procedure, and repeals conflicting provisions.