Article 14 of the Saudi Minors' Property Guardianship Law
المادة 14 من نظام الولاية على أموال القاصرين
The article provides that all of the Authority's investments and financial dealings are in accordance with the provisions of Islamic Sharia.
Official text (Arabic)
This article has not been amended since the law was issued.
تكون جميع استثمارات الهيئة وتصرفاتها المالية وفقا لأحكام الشريعة الإسلامية.
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 14 explained in plain English
This article sets a general rule governing everything the Authority does with funds: all of its investments and financial dealings are in accordance with the provisions of Islamic Sharia.
In practice this means:
- The rule covers investment, such as the investment of a percentage of the funds that Article 15 allows after the Board of Directors' permission.
- It also covers all other financial dealings, such as sale, purchase, lease, settlement and others that the Authority carries out in the funds of those covered by the Law.
- The provision is general in using the word "all", so it excludes no type of investment or dealing.
This rule reassures families whose minor children's or absent relatives' funds the Authority manages that their funds are invested only in ways consistent with the provisions of Sharia.
The article does not specify the permitted types of investment or their percentages; that is left to what the Board of Directors decides and what the Implementing Regulations specify. Before it, Article 13 sets limits on exchanging and selling a waqf, which may happen only after the approval of the competent court.
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 14 of the Saudi Minors' Property Guardianship Law
Does the Guardianship Authority invest minors' funds in accordance with Sharia?
Yes. The article provides that all of the Authority's investments and financial dealings are in accordance with the provisions of Islamic Sharia.
Does the article specify the permitted types of investment?
No. The article sets only the general rule and does not specify the types of investment or their percentages.
More articles on Investing Minors' Property
- Article 7
The article requires the board of directors to form four permanent committees from among its members: the Sharia, Investment, Endowment Projects, and Audit Committees, and specifies each one's competence.
يكوّن المجلس من بين أعضائه اللجان الدائمة الآتية التي تمارس الاختصاصات المبينة أمامها : اللجنة الشرعية : لإبداء الرأي الشرعي في أعمال الهيئة. لجنة الاستثمار : ل
- Article 15
The article allows the Authority, after the Board of Directors' permission, to invest a percentage of the funds it manages in its own name and distribute the return to those covered by the Law, leaving the controls to the Implementing Regulations.
للهيئة بعد إذن مجلس الإدارة أن تقوم باستثمار نسبة من الأموال التي تديرها باسمها يوزع عائدها على المشمولين بهذا النظام. وتحدد اللائحة التنفيذية الضوابط اللازمة ل
- Article 16
The article lists the components of the Authority's funds: the funds of those covered by the Law and what passes to it, the income of its activities, the State's contributions, and the aid, gifts and donations the Board of Directors accepts.
تتكون أموال الهيئة من: 1 - جميع أموال المشمولين بهذا النظام المنقولة وغير المنقولة والأموال التي تؤول إليها من أي جهة أخرى. 2 - الدخل الذي تحققه من ممارسة نشاطا
- Article 18
The article allows the Authority to manage funds shared between those covered by the Law and others, with the partners' consent or by court decision, for a percentage of no less than 5% of the net return on the others' share, and allows management to be handed to the covered person's relatives.
تتولى الهيئة إدارة الأموال المشتركة بين المشمولين بهذا النظام وغيرهم بناء على موافقة الشركاء على الشيوع من غير المشمولين بهذا النظام أو بناء على قرار من المحكمة
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.