Article 21 of the Saudi Endowments Authority Law
المادة 21 من نظام الهيئة العامة للأوقاف
The 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.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
1- تعامل الهيئة من حيث الرسوم معاملة الهيئات والمؤسسات العامة.
2- يستثنى الوقف الخيري، والحصة الخيرية في الوقف المشترك، المسجلان لدى الهيئة، من أحكام نظام التكاليف القضائية.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 21 explained in plain English
This article contains two provisions relating to fees and costs:
Paragraph 1: the Authority's fees. The Authority is treated, as regards fees, like public bodies and institutions. The article does not detail what this treatment means, so one refers to the provisions governing the fees of public entities.
Paragraph 2: judicial costs. Two things are exempted from the provisions of the Judicial Costs Law, provided they are registered with the Authority:
- A charitable endowment.
- The charitable share of a joint endowment; a joint endowment under Article 1 is one whose condition combines more than one type of endowment.
Important notes:
- The requirement of registration with the Authority is essential; the text limits the exemption to the charitable endowment and the charitable share "registered with the Authority."
- In a joint endowment, the text is limited to the charitable share of it and does not mention the other share.
- The text does not mention the private (family) endowment among the exemptions.
Amendment: paragraph 2 was added to this article by Royal Decree No. (M/72) dated 1/6/1444 AH; before that the article was limited to the fees provision.
To know the effect of this exemption on a particular case concerning an endowment, it is advisable to consult a lawyer specializing in endowment cases.
Practical example
The supervisor of a charitable endowment in Riyadh, registered with the Authority, needed to file a case to recover overdue rent on the endowment's property. Under paragraph 2, the provisions of the Judicial Costs Law do not apply to this endowment because it is a charitable endowment registered with the Authority. If it were not registered with it, this exemption by its text would not cover it.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 21 of the Saudi Endowments Authority Law
Is a charitable endowment exempt from judicial costs?
A charitable endowment is exempted from the provisions of the Judicial Costs Law if it is registered with the Authority.
Does the exemption cover the whole joint endowment?
The text exempts the charitable share of a joint endowment registered with the Authority and does not mention the other share.
When was the exemption of endowments from judicial costs added?
Paragraph 2 was added by Royal Decree No. (M/72) dated 1/6/1444 AH.
Amendment history
Royal Decree No. M/72 — 1/6/1444 AH
Official amendment text (Arabic)
- إضافة فقرة تحمل الرقم (2) إلى هذه المادة وذلك بموجب المرسوم الملكي رقم (م/72) وتاريخ 1444/6/1هـ، لتكون بالنص الآتي:
" المادة الحادية والعشرون:
1- تعامل الهيئة من حيث الرسوم معاملة الهيئات والمؤسسات العامة.
2- يستثنى الوقف الخيري، والحصة الخيرية في الوقف المشترك، المسجلان لدى الهيئة، من أحكام نظام التكاليف القضائية".
Original text before the amendments (Arabic)
تعامل الهيئة من حيث الرسوم معاملة الهيئات والمؤسسات العامة.
More articles on Authority Finances and Endowment Accounts
- Article 13
The 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.
تهدف لجنة الرقابة والمراجعة الداخلية إلى حماية أموال الهيئة وممتلكاتها، وضمان سلامة أنظمة الرقابة الداخلية وفاعليتها، ودقة البيانات المالية والسجلات المحاسبية و
- Article 14
The 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.
تحصل الهيئة على مقابل أتعاب نظير إدارتها للأوقاف التي لها ناظرٌ غيرها وعُهد إليها إدارتها، ويحدد المجلس هذا المقابل بعد الاتفاق مع الواقف أو الناظر، على ألا تزي
- Article 16
The 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.
1- تحتفظ الهيئة بحسابات خاصة للأوقاف التي تكون ناظرة عليها أو مديرة لها؛ تكون مستقلة عن حساباتها، وبميزانية خاصة بها. 2 - تحتفظ الهيئة بحسابات خاصة بأوقاف الحرم
- Article 17
The 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.
السنة المالية للهيئة هي السنة المالية للدولة، واستثناءً من ذلك تبدأ السنة المالية الأولى من تاريخ نفاذ هذا النظام.
- Article 18
The 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.
1- تضع الهيئة نظاماً ماليًّا محاسبيًّا للأوقاف التي تكون ناظرة عليها أو مديرة لها؛ يتوافق مع طبيعتها، ويضمن حفظ أموال الأوقاف واستثماراتها، وفقاً لما يقرره هذا
- Article 19
The 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.
1 - تكون للهيئة ميزانية مستقلة تصدر سنويًّا، وتتكون إيراداتها من المصادر الآتية: أ - نسبة يحددها المجلس لا تتجاوز (10٪) من صافي الدخل السنوي للأوقاف التي تكون ا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.