Emirates: A new resolution has been issued in Abu Dhabi on the establishment and licensing of endowment institutions in the emirate on Monday, the Abu Dhabi Department of Economic Development (ADDED) announced in collaboration with the Endowments and Minors’ Funds Management Authority (Awqaf Abu Dhabi).

The resolution provides a framework for the creation and administration of endowment companies, covering aspects such as legal status, permitted activities, and licensing requirements.

The resolution aligns with and builds upon existing laws, which address family-owned endowments, and introduced structured governance for such entities.

Under the new framework, endowment companies will have the ability to manage private grants while engaging in commercial activities that support the sustainability and expansion of endowed assets, maximising both financial returns and social impact.

The resolution also introduces robust monitoring and supervisory mechanisms to enhance governance and accountability within the sector.

All applications must be approved by Awqaf Abu Dhabi to ensure compliance with current regulations, donor intentions and the broader objectives of the grant.

The resolution encompasses various types of endowment institutions, including private (family-owned) endowments, charitable endowments, and joint endowments. It also allows for the management of endowed shares and equity stakes in commercial enterprises, provided such provisions are explicitly included in the articles of incorporation and are in accordance with applicable laws.

More detailed guidelines and manuals will be added later for endowment institutions. The resolution ensures the highest standards of governance and transparency for the benefit of the founder and its beneficiaries and encourages investments in multiple strategic areas such as manufacturing, education, trade, healthcare, agriculture, culture and innovation.