Conditions for removing a waqf supervisor and protecting waqf assets in Saudi Arabia

Introduction: Protecting endowment assets and respecting the will of the endower

In a strategic move aimed at enhancing governance and transparency in the non-profit sector, the General Authority for Endowments in Saudi Arabia has settled the debate surrounding the requirements for overseeing endowment assets. The Authority categorically affirmed that the appointment of a “supervisor” (endowment administrator) by the endower is a legally and religiously binding requirement for all parties. It emphasized that the dismissal of a supervisor appointed by the endower is strictly prohibited except in specific and exceptional circumstances related to clear violations of regulations or Islamic law.

General context and historical background of endowments in the Kingdom

Historically, Islamic endowments (waqf) have been among the most important pillars contributing to social and economic development throughout the ages. In the Kingdom of Saudi Arabia, the endowment sector has received significant attention since the founding of the state, with the establishment of the General Authority for Endowments as the regulatory body for this vital sector. These modern regulations complement the established jurisprudential principle that "the conditions stipulated by the endower are like the text of Islamic law," which ensures the precise implementation of the donor's wishes. With the launch of Saudi Vision 2030, developing the non-profit sector and endowments has become a strategic objective to increase its contribution to the GDP and transform it from a welfare-based approach to one of sustainable and institutional development.

Details of the decision and regulations for isolation procedures

The General Authority for Endowments clarified that neither the competent authorities nor any other parties may contravene the original stipulation of the endower by dismissing the appointed trustee. However, based on the principle of protecting the public interest, the Authority has made an exception to this procedure in cases where the trustee is proven to have committed clear violations. These violations include any actions that cause serious harm to the endowment entity, violate the endower's fundamental conditions, or infringe upon the rights of the beneficiaries. The Authority emphasized that dismissal procedures, in cases of proven harm, are not arbitrary but are subject to strict legislative and judicial provisions and regulations that ensure the preservation of the endowment's interests and protect it from any manipulation or mismanagement.

The importance of the event and its expected impact (locally, regionally and internationally)

This organizational clarification is of great importance and has multi-dimensional implications:

• At the local level, this decision contributes to strengthening the confidence of businesspeople and philanthropists in the Saudi endowment system. When donors are assured that their wishes and those they choose to manage their endowments will be legally protected, this will encourage the establishment of more endowments, injecting billions of riyals into development projects that serve the community and alleviate the burden on the government sector.
• At the regional level, Saudi Arabia, through this measure, is setting a pioneering legislative model to be emulated in the Gulf states and the Arab world. The institutionalization of endowments and the regulation of their governance establish new standards for managing endowment assets in the region.
• At the international level, this development reflects the Kingdom's commitment to implementing the highest standards of governance and transparency in its third sector. This institutional maturity makes the Saudi endowment environment attractive for international partnerships with global non-profit organizations and highlights the Kingdom's role as a leading soft power in organized humanitarian and development work.

Summary: The balance between will and control

In conclusion, the General Authority for Endowments indicated that the adoption of these regulations primarily aims to establish a precise and systematic balance between respecting the original wishes of the donors and ensuring the sound operational management of endowments. Strict adherence to these regulations will directly contribute to enhancing governance efficiency and strengthening institutional oversight of all endowment assets, thereby guaranteeing their sustainability and growth for the benefit of future generations.