Awqaf Beneficiary Standards Strengthen Endowment Governance

The General Authority for Awqaf has issued Beneficiary Standards for endowments, aiming to raise transparency and governance across the waqf sector in Saudi Arabia. The new framework is designed to clarify who benefits from endowments and to support national and international compliance obligations.

These Beneficiary Standards form part of the authority’s regulatory role and link directly to its strategic plans for endowments. The move also supports Saudi Arabia’s broader goals related to financial integrity, social development, and stronger oversight of non-profit financial activities.

The standards seek to improve clarity within waqf operations by guiding trustees on how to identify real beneficiaries of each endowment. They require accurate, adequate, and timely information on beneficiaries in the Kingdom. This information is intended to support compliance with both local legislation and international regulatory expectations.

Another core purpose of the Beneficiary Standards is to reduce risks of misuse of endowment funds. The authority states that the framework is designed to help prevent money laundering and terrorist financing through waqf structures. Strengthened documentation and clearer identification processes are central elements of this risk-based approach.

The General Authority for Awqaf explains that the Beneficiary Standards reinforce its efforts to regulate, preserve, and develop endowments. By setting clear requirements, the authority aims to ensure donors’ intentions are respected and that endowment proceeds are channelled towards the purposes for which they were originally established.

The authority notes that the Beneficiary Standards support integration of the endowment system with relevant national frameworks and align with recommendations of the Financial Action Task Force. This alignment is expected to protect endowments, support their financial sustainability, and increase their developmental and social impact within Saudi Arabia’s sustainable development plans.

With inputs from SPA