Article 15 of the Saudi Minors' Property Guardianship Law
المادة 15 من نظام الولاية على أموال القاصرين
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 لذلك وكيفية توزيع العائد وتكوين الاحتياطيات.
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 15 explained in plain English
This article allows the Authority to invest part of the funds it manages, so that the funds of minors and those treated like them do not stay frozen without a return.
Its provisions are as follows:
- Prior permission: the Authority invests only after the permission of the Board of Directors.
- A percentage of the funds: the provision speaks of investing a "percentage" of the funds the Authority manages in its own name, not all of the funds, and it does not specify the size of this percentage.
- Who receives the return? The return on investment is distributed to those covered by this Law, that is, the profit goes back to the owners of the funds.
- Details are in the Regulations: the Implementing Regulations set the necessary controls for investment, how the return is distributed, and how reserves are formed.
This investment is subject to the general rule in Article 14, that all of the Authority's investments and financial dealings are in accordance with the provisions of Islamic Sharia.
Article 16 sets out the components of the Authority's funds, including all movable and immovable funds of those covered by the Law, and the income it earns from carrying out its activities.
The provision does not state how each beneficiary's share of the return is calculated or the percentage of reserves; it leaves these matters to the Implementing Regulations. Anyone wishing to inquire about the return on a particular minor's funds should in principle contact the Authority, and may consult a lawyer who specializes in personal status and estates if he has an objection.
Practical example
The Authority manages a sum that a girl in Riyadh inherited from her parents. With the permission of the Board of Directors, the Authority invests a percentage of the funds it manages, and the return is distributed to those covered by the Law, including this girl, according to the controls and method of distribution set by the Implementing Regulations.
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 15 of the Saudi Minors' Property Guardianship Law
Does the Guardianship Authority invest minors' funds?
After the Board of Directors' permission, it may invest a percentage of the funds it manages in its own name.
Who receives the profit from investing minors' funds?
The return is distributed to those covered by this Law.
Where can I find the controls for distributing the return?
They are set by the Implementing Regulations of the Law, including how the return is distributed and how reserves are formed.
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 14
The article provides that all of the Authority's investments and financial dealings are in accordance with the provisions of Islamic Sharia.
تكون جميع استثمارات الهيئة وتصرفاتها المالية وفقا لأحكام الشريعة الإسلامية.
- 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.