Decision to organize the establishment and license of “endowment companies”

The Department of Economic Development in Abu Dhabi, in cooperation with the Endowments Authority and the Management of Palaces Funds (Abu Dhabi Endowments), announced the issuance of a decision on the establishment and licensing of endowment companies in the Emirate of Abu Dhabi, which supports efforts to protect and sustain family companies and develop endowment practices, which confirms the leadership of the state and status The emirate as a sponsoring destination for the development of endowment systems and the organization of family companies to increase the contribution of non -profit institutions and bodies (the third sector) to the gross domestic product.

The first decision of its kind in the UAE comes within the framework of the efforts to organize the endowment sector and enhance its role in supporting sustainable economic and social development, in conjunction with the declaration of the community 2025, under the slogan “Hand in Hand”, which embodies the vision of His Highness Sheikh Mohammed bin Zayed Al Nahyan, The President of the State, may God protect him, which is based on promoting sustainable development and economy based on knowledge and social solidarity.

The decision reflects the government’s commitment to providing an integrated regulatory framework that adopts international priorities for sustainable development, and is encouraged to enhance the participation of the public and private sectors in endowment and charitable initiatives, and the methods of protecting family companies. The decision is consistent with Article 32 of Federal Law No. (5) of 2018, regarding the endowment, It has been devoted to the suspension of family companies, in addition to the inclusion of the endowment family company within Law No. 10 of 2021, regarding the governance of family companies in the Emirate of Abu Dhabi, and through the organization of endowment structures, this decision enables companies, institutions and individuals to contribute to issues with a long -term social and economic impact, Providing decent livelihoods to the offspring of those who stand.

The decision determines the legal and organizational framework for the establishment and management of the endowment companies, including the available legal forms, permitted activities, and licensing requirements. The decision requires obtaining the approval of the Endowments Authority and the Management of Palaces «Abu Dhabi Endowments» on the establishment requests, to ensure corporate activities are compatible with the laws and legislation in valid legislation and goals Endowment, taking into account the will and desires of the stands.

The decision allows endowment companies to manage private endowments, in addition to practicing complementary economic activities, with the importance of these activities contribute to the sustainability and development of endowments and maximizing their financial and social impacts, and also establishes effective mechanisms for control and supervision of endowment companies.