An Overview of the Experience
The United Arab Emirates (UAE) is a federal Arab state consisting of seven independent emirates, located in Southwest Asia, with an area of 83,600 km². The endowment (Waqf) system in the UAE has gone through two main phases:
- The Phase of Legislation and Codification: In 1983, a federal law concerning Waqf was issued.
- The Phase of Financial and Administrative Regulations: This included a draft law in 1984 establishing the General Authority for Charitable Endowments, a ministerial decision in 1993 regarding the financial and administrative system for endowments, and another decision in the same year forming the Higher Committee for Endowments. In 1997, a law was issued to regulate Waqf procedures, and a draft decision proposed the establishment of the General Authority for Endowments.
A key milestone was the establishment of the General Authority of Islamic Affairs and Endowments under Federal Decree No. (29) of 1999. This body oversees Waqf affairs, aiming to develop and invest endowment resources in accordance with Sharia principles.
Of particular interest is the local Waqf system, managed by individual emirates such as Abu Dhabi, Dubai, Sharjah, and Ajman. In 2006, the UAE issued Federal Law No. (34), amending some provisions of the 1999 law and establishing the General Authority for Islamic Affairs and Endowments.
Focusing on Dubai’s Experience
Dubai’s approach stands out by separating Waqf management from Islamic affairs and adopting an investment-oriented strategy for endowment properties. The Dubai Awqaf and Minors Affairs Foundation is a notable example, achieving remarkable results in a short time, supported by government backing, excellence programs, governance principles, and governmental oversight.
Government Support
The foundation enjoys exemptions from all fees and taxes, including customs duties, on its charitable projects. Additionally, unclaimed inheritances are transferred to the foundation by law, allowing it to manage them in line with its policies and Sharia guidelines.
Management of Waqf Assets
Like other Islamic (particularly Gulf) countries, UAE’s Waqf assets include real estate and financial endowments. Dubai has successfully organized and invested its Waqf assets comprehensively.
– By 2020, the total registered Waqf assets in Dubai reached 7.1 billion AED (~1.93 billion USD), comprising 717 endowments from 442 donors.
– 2.3 billion AED (~630 million USD) under the foundation’s supervision.
– 4.8 billion AED (~1.3 billion USD) managed by third parties.
– Real Estate Assets: 683 properties worth 5.9 billion AED (~1.6 billion USD).
– Financial Assets & Shares: 34 financial endowments worth 1.2 billion AED (~330 million USD).
Types of Waqf:
– Charitable Waqf (622 endowments): 3.5 billion AED (~950 million USD).
– Family Waqf (64 endowments): 2.1 billion AED (~570 million USD).
– Mixed Waqf (31 endowments): 1.5 billion AED (~410 million USD).
Allocation of Waqf Funds:
– 445 for mosques.
– 157 for charity and piety.
– 59 for donors’ families.
– 26 for orphans.
The rest support education, people of determination, water provision, health, pilgrims, and mosque construction.
Investment Strategy
– 70% invested within the UAE.
– 30% in Gulf countries.
– Diversified portfolios covering real estate, stocks, and other assets.
Financing Model for Dormant Waqf Properties:
– 30% from Waqf management.
– 70% from banking sources (as per donor conditions).
Financial Growth (2017–2019):
– Waqf allocations reached 170.58 million AED (~46.4 million USD).
– Focus on investment criteria: Liquidity, Return, Risk.
Future Prospects
While Dubai’s experience is part of a broader UAE framework (including Abu Dhabi, Sharjah, and Ajman’s Waqf funds), Dubai’s model stands out due to:
– Governance integration with institutional strategy.
– Participation in Dubai Government Excellence Program.
– Continuous regulatory improvements.
Private Sector Involvement:
Corporate social responsibility (CSR), volunteering, and non-profit sector development have strengthened Waqf initiatives. Entities like the International Humanitarian City and the Community Development Authority complement official Waqf efforts.
Conclusion
Dubai’s experience reflects the broader UAE model, leveraging:
– Digital transformation in Waqf registration.
– Governance and government oversight.
– Economic growth-friendly legislation.
This has enabled the Waqf system to thrive alongside the UAE’s economic development.
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