Article 15 of the Saudi Endowments Authority Law

This article gives the Authority investment powers over endowments of which it is the supervisor, but it limits them from the outset with two general restrictions: compliance with the endower's condition and not harming the beneficiaries of the endowment.

The three powers:

1. Investing the endowments' assets and their surplus revenue, on condition that the necessary studies are first carried out to confirm the investment is feasible.
2. Setting aside up to 25% of the endowment's net annual revenue, to invest it for the benefit of the endowment itself.
3. Setting aside up to 20% of the annual surpluses of the revenue of an endowment or group of endowments, to invest it in growing another endowment or endowments of which the Authority is also supervisor, on condition that the amount set aside is returned to the original endowment's account within five years at most from the date it was set aside.

The difference between the two percentages is important: the first (25%) is calculated on net revenue and stays for the benefit of the same endowment, while the second (20%) is calculated on surpluses only and is used temporarily for another endowment, then returns to the original endowment.

These powers are specific to endowments of which the Authority is supervisor, and by their text they do not cover endowments that have another supervisor and are managed by the Authority, whose management fee Article 14 addresses. It is followed by Article 16, which requires the Authority to keep separate accounts for these endowments.

A beneficiary of an endowment who believes the set-aside harmed him or violated the endower's condition would do best to consult a lawyer specializing in endowment cases.