Waqf (Endowment)
Synonyms: Islamic Endowment، Endowment، Habous، Awqaf
Last updated: 2026-09-25
Short Definition
A waqf (Islamic endowment) is the permanent dedication of an asset, such as a property, so that it can no longer be sold, gifted or inherited, while its use or income goes to a charitable purpose or to named beneficiaries such as the founder's descendants.
Overview
Legal Basis
Civil Transactions Law issued by Royal Decree No. (M/191) dated 29/11/1444H: Article 26 lists waqf as an original right in rem and Article 698 refers its rules to the laws specific to it. General Authority for Awqaf Law issued by Royal Decree No. (M/11) dated 26/2/1437H: Article 1 defines public, private (ahli) and joint waqf, and Articles 4 and 5 give the Authority supervision over all waqfs, registration of every waqf after documentation, and trusteeship of waqfs whose founder named no nazir. The Law of Procedure before Sharia Courts (Article 33) assigns proof of waqf and the appointment and authorisation of nazirs to the personal status courts. The Real Estate Registration Law issued by Royal Decree No. (M/91) dated 19/9/1443H (Article 13) requires a waqf to be recorded in the Real Estate Registry.
Practical Example
Abdullah owns a residential building in Riyadh with a market value of SAR 5,000,000 and net annual income of about SAR 350,000. He decides to create a joint waqf: half the income for his descendants and half for providing drinking water and supporting students, naming his eldest son as nazir alongside a three-member board and requiring 10% of annual income to be set aside for maintenance. He documents the waqf through the Najiz platform and registers it with the General Authority for Awqaf. No Real Estate Transaction Tax is due (5% would have been SAR 250,000) because the transfer is without consideration to a registered waqf. When he dies the building is not part of his estate, and the nazir keeps leasing the flats and distributing the income under the conditions; if the heirs later wanted to sell it, this would only be possible through an exchange (istibdal) approved by the court on proof of benefit.
Common Mistakes
- ✗Assuming every waqf is charitable, although Saudi law recognises family (ahli) waqfs for children and relatives as well as joint waqfs.
- ✗Thinking the General Authority for Awqaf runs every waqf, when normally the founder's nazir manages it and the Authority only supervises unless no nazir exists.
- ✗Drafting the founder's conditions in vague terms that do not specify beneficiaries, the nazir, investment and distribution, leading to disputes among beneficiaries for decades.
- ✗Relying on intention or an informal paper instead of documenting the waqf through the Ministry of Justice and registering it with the Authority and, where applicable, the Real Estate Registry.
- ✗Endowing a property during a terminal illness or by will while ignoring that it then takes the legal treatment of a bequest and its Sharia limits.
International Differences
Waqf is a long-established Islamic institution applied in different forms. The UAE has federal and emirate-level awqaf bodies that regulate both charitable and family waqfs. Egypt abolished family (ahli) waqf in 1952, keeping charitable waqf under the Ministry of Awqaf. In Turkey, the General Directorate of Foundations manages historic Ottoman waqfs, while modern foundations are set up under the Civil Code. In Western systems the nearest equivalent is the charitable trust, but a waqf is distinctive in being perpetual and removing the asset from private ownership. Saudi Arabia stands out for fully accepting family and joint waqfs and for having an independent regulator that registers every waqf.
