Saudi Waqf Sector Reforms Boost Community Impact

Recent talks and regulatory reforms are reshaping Saudi Arabia's endowment (waqf) sector, aiming to strengthen charitable work and community development across the Kingdom. Dialogues during 2025 and 2026 have focused on governance, impact measurement, fundraising rules and international cooperation, while a new cooperation framework mobilizes awqaf, zakah and sadaqah for sustainable development, resilience and inclusion, with particular emphasis on health and climate-related programs.

A set of reforms that entered into force in late 2025 introduced clear rules for establishing or funding endowments through fundraising, standards for identifying the beneficial owners of endowments, and comprehensive governance principles covering transparency and controls against money laundering and terrorism financing. The General Authority for Awqaf has also been granted explicit authority to invest funds from waqf properties deposited with it, helping fulfil endowers' conditions and expand economic and social impact.

Growing investment funds

Licensed waqf investment funds reached net assets exceeding SAR 1 billion in 2024, with continued expansion highlighted through 2025 and 2026. An earlier minimum capital requirement of SAR 10 million for endowment investment funds has been abolished as a policy shift to encourage more funds and broaden participation. Licensing rules now generally require investment value of no less than 75% of total assets and the distribution of at least 50% of annual net distributable profit to designated beneficiaries.

In 2026, Saudi delegates noted that about 16% of waqf cash investment funds — around SAR 1.1 billion — are directed to the health sector, supporting underserved communities and climate adaptation efforts. A consultation workshop in Riyadh on the Awqaf Excellence Index in 2025 brought together the Authority and national partners to strengthen the sector's role in Vision 2030 community goals.

For residents and organisations wishing to establish an endowment, the waqf deed must be registered with the competent court in the region where the waqf is located, ensuring legal recognition and oversight.

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