The Department of Economic Development of Abu Dhabi, in collaboration with the Waqf Fund and the Management of Endowments of the Non-Completed (Waqf Abu Dhabi), has announced the issuance of a decision on the establishment and licensing of endowment companies in the Emirates. This supports the strengthening of family companies, ensuring their sustainability and developing endowment practices, which confirms the leading position of the state and the status of the emirate as a place conducive to the development of an endowment system and the organization of family companies for increasing non-profit institutions and organizations' (third sector) contribution to the gross domestic product. This is the first such decision in the UAE and is part of the efforts to regulate the endowment sector and enhance its role in supporting sustainable economic and social development within the framework of the 2025 announced year of the society under the slogan 'Hands to Hands', which reflects the vision of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the country, on promoting sustainable development based on knowledge and social interaction. The decision reflects the obligation of the government to ensure an integrated regulatory environment based on the priorities of sustainable development, and encourages participation from both the public and private sectors in endowment and charitable initiatives, as well as ways to protect family companies. It corresponds to Article 32 of the Federal Law No. 5 of 2018 on endowments, which presciently outlines the provisions concerning family endowment companies. Additionally, family endowment companies were included in Law No. 10 of 2021 on the management of family companies in the Emirates, and through the endowment organization structures this decision allows companies, institutions, and individuals to invest in long-term social and economic influence, ensuring adequate living conditions for the heirs of endowment holders. The decision defines the legal and organizational structure for the establishment and management of endowment companies, including accessible legal forms, allowed types of activities, and licensing. It requires approvals from the Fund and the Management of the Non-Completed Endowments (Waqf Abu Dhabi) for applications for establishment aimed at ensuring community involvement in the companies’ activities in compliance with the law, legislation, and the goals of endowment, considering the will and desires of the endowment holders. The decision allows endowment companies to manage private endowments, while also implementing complementary economic activities, while it is important that these activities contribute to the sustainability and development of waqfs, increasing their financial and social impact, and establishing effective mechanisms for monitoring and oversight of endowment companies.
