Official Gazette publishes regulations for reviving unknown and inactive endowments

The Official Gazette has published the decision by the Board of Directors of the General Authority for Awqaf to approve the regulations for reviving unknown and inactive endowments. The regulations aim to establish a framework for addressing and reviving such endowments, ensuring the fulfillment of founders' intentions and conditions, and contributing to the sustainability of endowments in the Kingdom.

The regulations encourage the public to report unknown and inactive endowments, which will help uncover and revive them, thereby supporting the growth and sustainability of endowments in Saudi Arabia.

Details of the regulations are as follows:

Chapter One: General Provisions

Article 1: Definitions

The terms and expressions used in these regulations have the meanings set out in Article 1 of the General Authority for Awqaf Law, issued by Royal Decree No. (M/11) dated 26/2/1437H. The following terms, wherever mentioned in these regulations, shall have the meanings indicated:

Regulations: The Regulations for Reviving Unknown and Inactive Endowments.

Endowment: The dedication of an asset and the allocation of its benefit or revenue for a specific purpose.

Unknown endowment: Any endowment or 'will to endow' whose disbursement has been suspended and which falls under the cases specified in Article 4 of these regulations.

Inactive endowment: Any endowment or 'will to endow' that has a supervisor but falls under the cases specified in Article 5 of these regulations.

Will to endow: A will in which the testator explicitly states, after their death, the intention to dedicate an asset and allocate its benefit or revenue for a specific purpose.

Direct benefit endowment: An endowment where the beneficiary has the right to directly benefit from the asset itself.

Report: Information received by the Authority regarding an unknown or inactive endowment, according to the mechanisms specified in the regulations.

Reporter: Any natural or legal person who submits a report in accordance with the requirements of the regulations.

Interested party: Any natural or legal person with a direct relationship to the endowment.

Committee: The Committee for Unknown Endowments at the Authority.

Reward: An incentive granted to those who report an unknown endowment or contribute to its resolution, as per the regulations.

Resolution: A set of procedures aimed at identifying, verifying, protecting, and appointing a supervisor for an unknown or inactive endowment.

Revival: A set of procedures aimed at restoring an unknown or inactive endowment in accordance with the founder's conditions.

Article 2: Objectives of the Regulations

The regulations aim to:

1- Establish a regulatory framework for addressing and reviving unknown and inactive endowments, ensuring the fulfillment of founders' intentions and conditions, and promoting the sustainability of endowments in the Kingdom.

2- Encourage the public to report unknown and inactive endowments, leading to their identification and revival, and supporting the growth and sustainability of endowments in the Kingdom.

3- Develop mechanisms to revive and develop unknown and inactive endowments, helping to maximize their benefits and achieve the founders' objectives.

Article 3: Scope of Application

The regulations apply to:

1- Any unknown or inactive endowment or 'will to endow', whether real estate, movable property, or otherwise.

2- Reports submitted to the Authority that have not been rejected or for which no court ruling has been issued to appoint a supervisor for the endowment in question before the regulations take effect.

Article 4: Cases of Unknown Endowments

An endowment or 'will to endow' is considered unknown if its disbursement has been suspended and it falls under any of the following cases:

1- No supervisor exists for the endowment.

2- The supervisor or the person in possession of the endowment conceals its endowment status.

3- The supervisor is unaware of the endowment's location, their role as supervisor, or the documents proving the endowment or ownership.

Article 5: Cases of Inactive Endowments

An endowment or 'will to endow' with a supervisor is considered inactive if it falls under either of the following cases:

1- The revenue from the endowed asset has been completely suspended for two consecutive years.

2- The benefit from a directly beneficial endowed asset has been completely suspended, according to the founder's conditions, for two consecutive years.

Chapter Two: Identifying Unknown and Inactive Endowments and Conditions for Accepting Reports

Article 6: Sources for Identifying Unknown and Inactive Endowments

1- The Authority identifies unknown and inactive endowments through means granted by relevant regulations, including:

a. Receiving reports from the public about unknown or inactive endowments.

b. Requesting data from government and judicial bodies and others regarding endowments in their possession.

c. Receiving requests from government entities or others to address unknown or inactive endowments.

d. Requests from interested parties to search for an unknown endowment or to apply the endowment deed if its location is unknown. The Authority registers, studies, and updates its records accordingly.

e. Requests from interested parties for assistance in reviving and developing an inactive endowment.

2- The Authority cooperates with government bodies and others to find solutions for unknown and inactive endowments.

3- The Authority organizes cultural and awareness events to highlight the importance of reporting unknown and inactive endowments and how this contributes to their resolution, revival, and sustainability, in accordance with regulatory procedures.

Article 7: Conditions for Accepting Reports on Unknown Endowments

1- The following conditions must be met to accept a report on an unknown endowment:

a. The endowment in question must fall under one of the cases and descriptions specified in Article 4 of the regulations.

b. The endowment must not already be known to the Authority, except for cases considered equivalent to unknown endowments as per paragraph (3) of Article 4.

c. The report must be supported by valid documents, in accordance with the Evidence Law.

d. The report must be submitted via the Authority's website or any other means specified by the Authority.

e. The Authority must not have previously received a report on the same endowment, unless the subsequent report contributes to its resolution as determined by the Authority.

f. There must be no ongoing legal case regarding the endowment's supervision, proof, or entitlement.

2- The Authority has the discretion to determine the period during which an unknown endowment lacks supervision or is inactive to be considered unknown.

Article 8: Conditions for Accepting Reports on Inactive Endowments

The supervisor must exercise due diligence in reviving the endowment to minimize inactivity. The following conditions must be met to accept a report on an inactive endowment:

1- The endowment in question must fall under one of the cases and descriptions specified in Article 5 of the regulations.

2- The report must be supported by valid documents, in accordance with legal means of proof.

3- The report must reveal the inactivity of the endowment in question.

4- The supervisor must not have provided an acceptable statement, in accordance with paragraph (2) of Article 20 of the regulations.

5- The report must be submitted via the Authority's website or any other means specified by the Authority.

6- The Authority must not have previously received a report on the same endowment, unless the subsequent report contributes to its resolution as determined by the Authority.

Article 9: Obligations of the Reporter of Unknown or Inactive Endowments

The reporter must:

1- Disclose their personal information to the Authority.

2- Provide details of the endowment; if it is real estate, specify its location as much as possible and attach supporting evidence.

3- Pledge the accuracy of the information and data provided to the Authority.

4- Cooperate with the Authority by providing any additional information that comes to their knowledge or is requested by the Authority.

5- Pledge that they are not aware of any ongoing legal case regarding the supervision, proof, or entitlement of the endowment in question. The Authority may revoke the reporter's right to a reward for an unknown endowment if it is proven that a case existed before the report was filed.

Article 10: Rights of the Reporter of Unknown or Inactive Endowments

1- The Authority must maintain the confidentiality of the reporter's information and not disclose it.

2- The Authority must notify the reporter of the acceptance or rejection of the report within five days of the decision.

3- The reporter is entitled to a reward for reporting an unknown endowment, as determined by the committee.


Chapter Three: Provisions for Addressing Unknown Endowments

Article 11: Initiating the Resolution of Unknown Endowments and Delegation

1- The Authority shall initiate the resolution of unknown endowments by taking necessary measures according to the endowment's status, including:

a. Verifying the endowment status.

b. Removing encroachments on the endowment.

c. Appointing a supervisor if none exists, in accordance with the founder's conditions.

d. Handing over the endowment to the supervisor free of encumbrances, as per established procedures.

e. Collecting compensation if the endowment has been expropriated.

2- The Authority may delegate the reporter or others to carry out temporary measures to resolve the unknown endowment.

Article 12: Registration of Unknown Endowments

1- The Authority shall establish a register for unknown endowments that have supporting documents but cannot complete regulatory procedures under current regulations.

2- The Authority may prepare a report documenting available evidence, such as witness testimony, for endowments that have lost their ownership or endowment deeds, to complete the resolution procedures.

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