In its first report of the Waqf (endowment) economies, Asharqia Chamber calls for organizational and legislative structure for the waqf sector in the Kingdom.
Within the framework of an integrated work system to promote the culture of Waqf in the business sector and coordination with the relevant authorities to develop the waqf sector in the Kingdom of Saudi Arabia, Asharqia Chamber represented by Awqaf Committee launched the first report of the Waqf economies. It included a diagnosis of the current developmental situation of the waqf sector and the prospect of its future through providing five axes, which gave a comprehensive picture of the reality of waqf in order to assists the decision makers, system administrators, strategic planners, researchers, as well as a guide for the efforts of workers in the waqf sector.
The most prominent finding of the report on the status of public waqf under the supervision of government agencies in the Kingdom is the weakness of size compared to the size of the Saudi economy. In fact, the contribution rate of non-profit sector to GDP was only 0.3% compared to the global average of 6%, according to Vision 2030. Regarding the waqf, the Kingdom's vision of 2030 aims to increase the contribution of the non-profit sector to 5% by the year 2030.
It is noteworthy that the Endowments Committee in Asharqia Chamber depended -in preparing the report-on the field survey and the analytical study of Waqf documents. They also depended on the participation of a working group emanating from the Committee in a number of workshops and specialized conferences.
Based on these data, the report called for updating the regulations and enacting flexible legislation to suit current needs. Most notably is that the Ministry of Finance and the Saudi Arabian Monetary Agency (SAMA) authorized the establishment of waqf banks, facilitated the opening of bank accounts for waqf entities, and issued executive regulations for the operations of waqf entities in financial institutions. While the Ministry of Commerce and Investment called for the completion of the project of issuing the system of waqf and non-profit companies.
On this regard, the Committee called for the construction of a statistical system for waqf in the Kingdom and the publication of periodic statistical reports on the sector in its various units and components. This could be done in cooperation with the specialized expert houses and with all concerned governmental agencies (Ministry of Finance, Capital Market Authority, SAMA, General Authority for Statistics).
In addition, the Endowments Committee in the Chamber recommended issuing periodic financial reports for the endowments, which are subject to the management and supervision of the Public Authority for Endowments. So that they will be audited and reviewed by certified accounting and legal offices and made available to the public. The committee also recommended seeking the enactment of legislation and implementing regulations for the endowment sector in order to enhance the confidence of individuals in the supervisory agencies of the endowments.
The Committee appealed to the General Authority for Statistics to "develop indicators and statistics for the non-profit sector, including the Awqaf sector." While the Ministry of Labor and Social Affairs called for the issuance of a map of developmental needs based on periodic field survey studies for each of the regions of the Kingdom, which would be as a compass directed to the disbursement of the endowments sector.
Moreover, the committee called on the Ministry of Justice to develop cadres working in expert sections of the courts in cooperation with the Saudi Authority for Accredited Valuers.
In order to develop waqf awareness, the Committee noted the need to include topics related to charitable and voluntary work in general and to endowment activity in particular in the curricula at various educational levels. This would help in nurturing generations of close association and awareness of charity and development work. In addition, the committee recommended creating tracks in the programs of higher studies specialized in the field of endowments in the faculties of Sharia, economics, law, political science and administration. They argued in encouraging faculty members and graduate students to enrich the knowledge field in the non-profit sector in general and the endowment sector in particular, from all aspects of legal, economic, cultural, social, financial, and administrative, and keep abreast of the latest global practices in the area of cessation of the regional and global environment.
They pointed to the significance of mosques and imams in devoting speeches and periodic lessons about the waqf , its virtues, its provisions, and its positive impact on society.
The report included monitoring the areas of the waqf sector in the Kingdom, including social, health, educational, cultural, advocacy, and relief sectors, as well as positive practices and practices that need to be developed. At the end, it concluded by looking at the future of endowments in the Kingdom of Saudi Arabia.
