Conditions for invalidating a waqf (endowment) in Saudi Arabia and the role of the Waqf Authority

Endowment: A well-established legal framework for sustainable charitable work

The General Authority for Endowments in the Kingdom of Saudi Arabia affirmed the established legal and Sharia principles governing endowments, clarifying that an endowment is a legally binding and permanent act by its very nature, and cannot be nullified or revoked except by a final judicial ruling issued in exceptional and precisely defined cases. This clarification aims to enhance confidence in the endowment sector and reinforce the principle of legal certainty for donors, beneficiaries, and trustees alike.

The historical and legal context of endowments

The waqf system is a cornerstone of Islamic civilization, a form of ongoing charity whose reward continues even after the endower's death. Historically, waqfs have played a pivotal role in funding public and community services, from building mosques, schools, and universities to establishing hospitals (bimaristans) and providing shelter for the poor and travelers. The waqf is based on the principle of "preserving the principal and dedicating its benefits," meaning that the endowed asset is kept from being owned or disposed of, and its proceeds and benefits are allocated to the charitable purposes specified by the endower.

Cases of invalidating endowments: Strict judicial controls

The authority clarified that the fundamental principle of an endowment is permanence and stability, but the judiciary may rule it invalid in specific cases that violate its essential pillars and conditions. Among the most prominent of these cases are:

• Lack of ownership by the endower: If it is proven that the endower did not own the endowed property in a valid and documented manner at the time of establishing the endowment, then the endowment is considered invalid because it was issued by someone who did not own it.
• Lack of legal capacity or free will: The endowment is invalid if it is issued by a person who does not have full legal capacity, or if it is proven that the endower was forced to establish the endowment under duress, which negates the principle of choice and free will that is the basis of legitimate actions.
• A conditional endowment (waqf bequest): If the endower makes the establishment of the endowment conditional upon his death, it takes the rulings of a bequest. In this case, the endowment may not exceed one-third of the total estate except with the consent and approval of all the legal heirs, in order to protect their rights as guaranteed by Islamic law.

The importance of endowments in the Kingdom's Vision 2030

The endowments sector holds strategic importance within the framework of the Kingdom's Vision 2030, which aims to develop the non-profit sector and increase its contribution to the GDP. The General Authority for Endowments works to regulate, develop, and enhance the sector's developmental role through endowment governance, improving management efficiency, and encouraging the establishment of new endowments that serve national development priorities in areas such as education, health, housing, and scientific research. Emphasizing legal protection for endowments enhances the sector's attractiveness as a sustainable development tool and encourages individuals and institutions to contribute to achieving the desired social and economic impact.