An Overview of the Experience
Endowments (Awqaf) in Kuwait are considered “as old as the country itself.” Their beginnings can be traced back to the establishment of endowments for the Al-Mubarakiya School between 1911 and 1936. These endowments were primarily managed by the local community until 1946. After the export of the first oil shipment, which led to a rise in real estate values, a governmental department was established to oversee waqf properties. The first endowment department was founded on January 1, 1949, to manage these assets, including mosques. The first waqf law was issued in 1951 to provide legal protection for these assets. Later, these departments were transformed into government ministries in 1962, and Islamic affairs were added, eventually leading to the formation of the Ministry of Awqaf and Islamic Affairs in 1965.
A major milestone in Kuwait’s waqf sector was the establishment of the General Secretariat of Awqaf (GSA) by an Amiri decree on November 13, 1993. This marked the third phase of development—after 1949 and 1962—and is arguably the most significant, both locally and globally. The creation of this institution had a clear impact on the evolution of waqf, not only in Kuwait but also internationally. The GSA was recognized as the Distinguished Administrative Personality of the Year in 1996.
Management of Waqf Assets
Although Kuwait’s waqf experience dates back to 1911, official documentation and archiving of registered endowments at the Ministry of Justice began in 1977. The most pioneering period was between 1993 and 1999, during which 220 endowments were registered. This was followed by a period of consolidation from 2000 to 2005, which saw 330 endowments registered.
The GSA has played a significant role in investments both inside and outside Kuwait. Domestically, it contributed to the banking sector by investing in the Kuwait Finance House, both in its capital and through supporting investment activities. Internationally, it participated in Islamic banks such as Faisal Islamic Bank (Sudan), Al-Meezan Islamic Bank (Pakistan), Islami Bank Bangladesh, and Bahrain Islamic Bank, in addition to financing projects with the Islamic Development Bank. The goal was to utilize waqf capital, diversify investments across sectors, and implement policies focusing on priority-setting, asset allocation, and performance benchmarking.
One of Kuwait’s innovative contributions is the Waqf Funds model, an institutional framework introduced in 1997 to revive the tradition of waqf and expand new endowments for various purposes. The GSA launched ten developmental waqf funds in Kuwait, adhering to principles of governance and transparency, and successfully presented a cohesive social development model that inspired other countries.
Some of the funds established by the GSA include:
– The Holy Quran Fund
– The Scientific and Social Development Waqf Fund, which contributed 41% of the total value of projects, including the construction of 41 schools abroad (worth approximately $13.247 million) and the sponsorship of 86 postgraduate students in 18 countries specializing in waqf research.
– The Health Development Waqf Fund, covering 28% of the total value of projects (2017–2019), including facilities for autism patients and people with disabilities.
– The Da’wah and Relief Waqf Fund, which allocated 31% of total endowments during the same period, supporting 29 global relief projects worth approximately $16.725 million.
Other notable projects funded through waqf funds include:
– Autism centers
– Speech therapy centers for hearing-impaired children
– Student support programs
– Time endowment initiatives
– Vision centers
– Conflict resolution centers
– Water well projects
– Support for divorced women and widows
– Iftar programs for fasting individuals
– Year-round food distribution
– Clothing assistance for needy families
– Support for mosque imams and muezzins
In 2020, the total revenue generated from waqf investments reached 40 million Kuwaiti dinars (approx. $133 million USD), with 54% coming from real estate investments and 46% from financial investments. The market value of invested assets increased by 191%, with unrealized profits reaching approximately 834 million Kuwaiti dinars (approx. $2.769 billion USD).
Future Prospects
Waqf work in Kuwait transitioned into an institutionalized framework early on. While it initially relied on individuals and families, it quickly evolved into a structured system following the state’s development. The pioneering waqf decade (1993–1999) saw endowments shifting toward public benefit associations, such as:
– Al-Islah Society
– The Heritage Revival Society
– Direct Aid Society
– The Red Crescent Society
This shift enhanced the positive impact of the GSA’s work on Kuwaiti charitable organizations. Another trend observed was charities converting donations into sustainable waqf assets, a model later adopted by other Gulf countries seeking financial sustainability.
Although the GSA primarily manages its own assets and returns, it has also served as the coordinating body for global Islamic endowments since 1996. This dual role—domestic development and international leadership—has strengthened its internal operations, supported by government funding, favorable legislation, judicial oversight, and Sharia compliance within governance frameworks.
Kuwait’s experience in managing waqf assets has benefited from:
– Investment expertise
– Public trust in its operations
– Strong institutional reputation extending beyond Kuwait
The GSA has played a key role in advancing the global waqf sector through its projects, initiatives, and efforts in sharing successful models—including its own.
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