Saudi endowments authority sets reward for reporting unknown waqf, up to SAR 10 million

The General Authority for Awqaf has set a maximum reward for individuals who report unknown endowments at 5% of the endowment’s value, with a ceiling of 10 million riyals (SAR). This comes as part of new regulations aimed at reviving unknown and inactive endowments, providing a framework to address these assets, fulfill the intentions and conditions of donors, and support their sustainability and growth in Saudi Arabia.

According to the regulations, the authority can identify unknown or inactive endowments through public reports, by contacting government and judicial bodies for endowment data, or by receiving requests for intervention from various entities.

Definition of unknown and inactive endowments

The regulations define an unknown endowment as one whose disbursement has stopped and which meets criteria such as lacking a supervisor, concealment of its endowment status, or the supervisor being unaware of its location or documentation. An inactive endowment is one that has a supervisor but its income has been completely suspended for two consecutive years, or direct benefit from the endowed asset has ceased entirely for the same period, according to the donor’s conditions.

Interested parties may request a search for an unknown endowment or the application of its endowment deed if its location is unknown. They may also seek the authority’s assistance in reviving and developing an inactive endowment.

Conditions for accepting reports and reward disbursement

To accept a report on an unknown endowment, the regulations require that it not already be known to the authority, be supported by valid documents, be submitted via the authority’s website or another specified channel, and not have been previously reported unless the new report contributes to its resolution. There must also be no ongoing legal dispute regarding the endowment’s supervision, proof, or entitlement.

The reporter is eligible for a reward as determined by the Committee for Unknown Endowments after fulfilling the regulatory requirements, provided they are not the supervisor or a violator of the endowment. The committee will set the reward amount after the endowment is processed and evaluated, considering the adequacy of documentation, effort made, and benefit to the endowment.

If multiple individuals report the same endowment, priority goes to the earliest report unless a later report contributes to its resolution. The committee may also divide the reward among several contributors.

Addressing inactive endowments

Economic expert Ahmed Al-Shihri explained that the regulations give supervisors one year to address the status of inactive endowments under their care, during which reports about them will not be accepted. After this period, the authority will handle inactive endowments directly or delegate the task to other entities.

Al-Shihri noted that the regulations apply to unknown or inactive endowments or endowment wills, whether real estate, movable assets, or otherwise, and include certain reports submitted before the regulations took effect, as specified.

He added that a supervisor may, with court approval, finance the revival of an endowment by borrowing against its income, assets, or a third-party guarantee, with the authority’s assistance in securing funding if needed. It is also permissible to sell part of the endowment to restore the remainder if income is insufficient or other means are unavailable.