Dr. al-Ghafis chairs second meeting of ‘Awqaf’ board of directors to explore investment funds

The General Authority of Endowment (Awqaf) conducted on Sunday its second meeting of the board of directors led by H.E. Minister of Labor and Social Development Dr. Ali bin Nasser al-Ghafis.

The board members discussed a number of topics including initiatives related to investing in endowment products and service centers, which will be launched later by the authority.

At the beginning of meeting, Dr. al-Ghafis thanks Custodian of the Two Holy Mosques and Crown Prince for his unswerving support, hoping the authority will fulfill the aspirations of leadership in developing the third sector and enhancing its development role for the society.

As the chairman of the Awqaf board of directors, al-Ghafis emphasized the directors’ keenness to achieve the aspirations of leadership in enhancing the role of Awqaf in achieving development with seeking to design initiatives and various programs that leave impact on development of the endowment sector and enhance its contribution to GDP.

al-Ghafis added the Awqaf authority works on enhancing partnerships with related sectors, which will contribute to moving forward the wheel of development as the blessing country facilitates setup of endowments with continuous and unlimited support from Custodian of the Two Holy Mosques and Crown Prince.

The board of directors unveiled its project ‘Investment Funds for Endowment’ that the authority has prepared in cooperation with the Capital Market Authority (CMA) as it is one of the main motive to attract and increase the contribution of society to the endowment sector through diversifying its investments and allocating funds to push forward various development projects, as well as achieving financial sustainability of the non-profit sector and its organizations.

The participants agreed that these initiatives will leave larger impact on financing of small and medium-sized endowment projects, whereas the creation of funds will support, develop and increase the effectiveness of the endowment sector and its contribution to achieving growth.

Such efforts would place the endowment sector as one of the main sectors that achieves the goals of Saudi Vision 2030 and National Transformation 2020, while endowment undertakings play an important role in sustaining finances of the non-profit, MLSD said.

According to the objectives of investment funds, their payments will be allocated in the first phase to non-government organizations that operate under the law on NGO and charitable entities in order to support these entities, enhance their financial resources and achieve their development objectives.

The Awqaf authority will establish specialized endowment funds that support various development projects in cooperation of the government and private sectors, as well as allocating their return of investment to fund other development, education, health and housing projects according to the certain regulations and rules set by the authority.

The authority said the investment funds for endowment comes as part of the development integration program.

Meanwhile, the board of directors agreed on opening services centers for endowment in various regions of the Kingdom that will serve endowment owners, guardians, philanthropies along with businessmen/businesswomen and society members who are willing to set up endowment entities.

These centers will play a vital and important role in spreading awareness of endowments and offering consultation and information in the field through a specialized unit that is tasked to respond to inquiries of people on endowment ownership procedures, as well as provide guidelines for financial certificates (Sukuk) and further information about the authority’s services, products and work mechanisms.

Additionally, the board of directors agreed to set up a unit for endowment guardians and businessmen/businesswomen who have an interest in Awqaf in order to offer advanced services that facilitate procedures of upholding and registering endowments in partnership with related entities.

The unit will design training and rehabilitation programs for the guardians, organize activities in the field of endowment and provide lists of centers and specialized offices approved by the authority.

As per the endorsed plan, the authority is expected to establish a number of centers in various regions of the Kingdom which take into account to the size of endowments, economy and population in each region, a move that develops endowment projects and facilitates procedures for all parties of the endowment sector.

Mr. Emad Al-Karashi, governor of the general authority of endowment, extended his thanks to the chairman and the board members for approving these initiatives, which is considered as a starting step for the authority to offer better services and programs.

Such schemes leave positive impact on the short and long run and develop the sector, which is only achieved through enhancing and activating partnerships in various sectors, Al-Karashi added.

The governor pointed out the authority is working to offer an array of initiatives that will be announced soon, adding these initiatives will develop a group of services that the authority provides to its beneficiaries and partners.

It will focus on the needs and priorities of the endowment sector, in particular NGO, in order to make the sector more effective and organized with the aim of developing various fields of development, Al-Karashi said as well.