Regulation on the Establishment of Waqf Investment Portfolios
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Issued by the General Authority for Awqaf (GAA); the issuance number and date are not stated in this source.
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Law · Approved version 2 · Knowledge version effective from 2026-10-19
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The Regulation on the Establishment of Waqf Investment Portfolios
Issued by the General Authority for Awqaf (GAA); the issuance number and date are not stated in this source.
Notice: Article 35 of the GAA Waqf Investment Products Regulation, approved by GAA Board Decision No. 47/1/21/T dated 1447/11/26 AH, provides that it replaces the Regulation on the Establishment of Waqf Investment Portfolios and the Instructions for Approval to Establish Waqf Investment Funds. It comes into force 90 days after its publication in the Official Gazette, and existing products have 12 months to comply.
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Article 1: Definitions
Unless the context requires otherwise, the terms and expressions listed below shall, wherever mentioned in this Regulation, have the meanings indicated next to each of them below:
The Authority (GAA): The General Authority for Awqaf.
The Regulation: The Regulation on the Establishment of Waqf Investment Portfolios.
The Endower (Waqif): The person who establishes the waqf whether a natural or legal person.
Capital Market Institution: A person licensed by the Capital Market Authority (CMA) to conduct securities business.
The Trustee (Nazir): The natural or legal person entrusted with overseeing the waqf investment portfolio.
Waqf Investment Portfolio: A financial vehicle without independent legal character, in which endowed funds are pooled for investment purposes, and disbursed according to the Endower’s stipulations.
Private Waqf Investment Portfolio: A financial vehicle without independent legal character, in which endowed funds are pooled for investment purposes, and disbursed according to the Endower’s stipulations and the management agreement.
Investment Account: An accounting record created by the licensed person for his client funds deposited in an account opened by the licensed person to finance the client’s securities dealings, which reflects all transactions made on that account.
Management Agreement: An agreement between the Endower or Trustee and a Capital Market institution licensed by the CMA to manage the Private Waqf Investment Portfolio, in accordance with this Regulation and other relevant laws, regulations, and the CMA rules and executive regulations.
Portfolio Manager: Capital Market institution licensed by the CMA and appointed to manage the Private Waqf Investment Portfolio in accordance with the Management Agreement.
Article 2: Scope of the Regulation
This Regulation applies to:
1.Existing Waqf Investment Portfolios and future Waqf Investment Portfolios that are established after this Regulation comes into effect.
2.The creator of the Waqf Investment Portfolio, whether a natural or legal person.
Article 3: Purpose of the Regulation
This Regulation aims to regulate the establishment, management, and related actions concerning Waqf Investment Portfolios.
Article 4: Regulatory and Supervisory Framework
1.Without prejudice to the powers of the CMA, the General Authority for Awqaf shall supervise Waqf Investment Portfolios in accordance with its mandates and authorities under its Law, this Regulation, and relevant laws, regulations, and instructions.
2.In matters not addressed in this Regulation, the rules governing Investment Accounts shall apply to the waqf investment portfolio, including accounts managed at the discretion of Capital Market Institution as stipulated in CMA Law and executive regulations.
Article 5: Establishment of the Waqf Investment Portfolio
A Waqf Investment Portfolio may not be established or managed unless it is registered with the Authority as follows:
1.The applicant must primarily submit a waqf investment portfolio registration request to the Authority, which must include:
For a Waqf Investment Portfolio:
1.Endower’s conditions.
2.Information on the Endower(s) and Trustee(s).
3.Mechanisms for returns distribution, disbursement procedures, and reinvestment.
For a Private Waqf Investment Portfolio:
1.The requirements listed in section (A).
2.Investment strategy, policies, and nature of investments and assets invested in by the private waqf investment portfolio.
3.The level of risks to which the Private Waqf Investment Portfolio is exposed, considering the waqf nature, spending, and interests.
4.Mechanisms for returns distribution and reinvestment.
5.Applicable fees.
6.Any additional requirements as determined by the Authority.
2.The Authority will review the request and issues a decision within ten (10) business days, either approval, conditional approval, or rejection, with reasons provided.
3.The applicant must submit the final version of the Management Agreement to the Authority after the portfolio’s opening and within ten (10) business days of the agreement date.
Article 6: Powers of the Endower (Waqif) or Trustee (Nazir)
Without prejudice to relevant laws, regulations, or instructions, the Endower or Trustee has the authority to appoint and dismiss the Portfolio Manager of the Private Waqf Investment Portfolio.
Article 7: Management Agreement
Without prejudice to the requirements set by the CMA Law and its executive regulations, the Management Agreement governing the Private Waqf Investment Portfolio must define at a minimum:
1.Investment strategy, policies, and nature of the investments and assets invested in.
2.The level of risks to which the Private Waqf Investment Portfolio is exposed, considering the waqf nature, spending, and interests.
3.Mechanisms for returns distribution and reinvestment.
4.Applicable fees.
5.The applicant must submit the final version of the Management Agreement to the Authority after the portfolio is opened.
In all cases, the Management Agreement must not include any provisions that violate the relevant instructions or laws and regulations.
Article 8: Disclosure
1.The Endower or Trustee must provide the Authority with any information requested by the Authority regarding the waqf investment portfolio, its operations, performance, assets, or other matters, within a maximum of ten (10) business days from the request date.
2.The Endower or Trustee must notify the Authority of any materialistic changes within no more than five (5) business days of occurrence.
3.Without prejudice to relevant laws, regulations, and instructions, the Endower or Trustee must submit an account statement of the portfolio annually or upon request.
Article 9: Materialistic Changes to the Portfolio
The Endower or Trustee must immediately notify the Authority of any materialistic change to the portfolio without prejudice to the laws and regulations or instructions applicable to the portfolio. Examples include, but are not limited to:
1.Materialistic change to the Management Agreement.
2.Contracting with another Capital Market Institution.
3.Termination of the Waqf Investment Portfolio or the Private Waqf Investment Portfolio, or conversion of all or part of its assets to other assets, with justification and clarification on the fate of the assets after termination.
Article 10: Termination of the Portfolio
Prior approval from the Authority must be obtained before liquidating or terminating the portfolio, with justification and clarification on the fate of the assets, to be submitted within no more than ten (10) business days.
Article 11: Actions in Cases of Violation or Harm to the Waqf Investment Portfolio
In the event of any action, including violations of this Regulation, that may harm the Waqf Investment Portfolio, the Authority, at its discretion and in coordination with the CMA, may take necessary actions in accordance with the General Authority for Awqaf Law, CoM Resolution No. 286 dated 1442/05/21 H, and all applicable laws, regulations, and instructions.
Article 12: Exemptions
The Authority may grant partial exemptions from the application of any provisions of this Regulation, within its jurisdiction, based on a submitted request with justification or as the Authority deems necessary to serve the best interests of the waqf.
Article 13: Entry into Force
The provisions of this Regulation shall take effect from the date of its publication.