Regulation Organizing Nazara (Beholding) Activities · Article 1: Definitions

For the purposes of this Regulation, the following terms and expressions shall have the meanings assigned thereto below, wherever found herein, unless the context otherwise requires:

Authority: General Authority for Awqaf

Concerned Authority: The authority responsible for documenting the Waqf, appointing the beholder, and issuing approvals for dispositions relating to Waqf assets, in accordance with the laws, regulation, and decisions in force in the Kingdom.

Regulation: Regulation Organizing the Activities of Beholding

Endower: A natural or legal person who establishes the Waqf.

Waqf: The restriction of disposition of a valuable asset and the allocation of its proceeds to a charitable and/or a family purpose.

Beneficiary: A natural or legal person entitled to benefit from the proceeds of the Waqf in accordance with the condition of the Endower.

Beholder: A natural or legal person who assumes beholding the Waqf.

Waqf Instrument: A document issued by the competent authority that includes the condition of the Endower.

Condition of the Endower: The conditions set by the Endower regarding the Waqf, its proceeds, its allocation, its beholder, or its beneficiaries.

Beholding: The right to supervise and manage the affairs of the Waqf, protect its assets and proceeds, safeguard its interests, represent it, and implement the conditions of the Endower.

Administration: The acts carried out by the beholder, or those entrusted by the beholder to others—whether natural or legal persons in managing the affairs of the Waqf, its preservation, leasing, development, and maintenance.

Register of Beholders: A register in which the Authority records beholders who meet the criteria set out in this Regulation.

Large Awqaf: Awqaf whose total value of endowed assets amounts to SAR 200 million or more.

Medium-Sized Awqaf: Awqaf whose total value of endowed assets amounts to SAR 50 million up to less than SAR 200 million.

Small Awqaf: Awqaf whose total value of endowed assets is less than SAR 50 million.

Awqaf of Direct Utilization: Awqaf in which the beneficiary derives benefit directly from the endowed asset itself, such as direct-service Awqaf, medical equipment, consultation service canters, and similar assets.

Endowed Asset: Any valuable property the disposition of its asset is restricted and whose benefit is allocated.

Conflict of Interests: A situation in which a private interest conflicts with the interest of the Waqf in a manner that affects the beholder’s ability to perform his functional and professional duties objectively, with integrity and impartiality, in a way that achieves the interest of the Waqf, whether the conflict is direct or indirect.

Violation: Any breach or non-compliance committed by the beholder or the administration with any provision of this Regulation or the relevant laws, regulation, rules, instructions, and directives.

Waqf Proceeds: Revenues generated from the operation, investment, and development of the endowed asset.

Borrowing for the Waqf: The Waqf obtaining the necessary financing to implement the condition of the Endower or for the construction and development of the Waqf.

Substitution of the Endowed Asset: The replacement of the endowed asset due to a legitimate reason, by transferring its value to another asset in realization of the interest of the Waqf.