Abu Dhabi Introduces New Law to Streamline Wealth and Philanthropy Management

A new law in Abu Dhabi has been introduced to facilitate the creation and management of endowments, allowing individuals and families to consolidate their wealth while contributing to charitable initiatives. This structured approach aims to empower more people and organizations to engage in philanthropy under a unified framework.

A Comprehensive Framework for Endowment Companies

The new resolution provides individuals and organizations with a clear process to establish and license endowment institutions. Fahad Abdulqader Al Qassim, Director General of the Endowments and Minors' Funds Management Authority, explained that this initiative permits the consolidation of diverse assets, including real estate, shares, and private businesses, within a single entity. By streamlining asset management, the law enables more effective strategic planning and resource allocation.

Governance and Compliance Standards

The new regulations mandate a structured governance model for endowment companies. A board of trustees must be appointed to oversee operations and ensure compliance with the founder’s directives. Transparency is a key element, with entities required to submit annual reports detailing financial activities and adherence to regulatory standards. Regular oversight by the Endowments Authority reinforces accountability and legal compliance.

A Boost for Philanthropy and Community Engagement

This legislative reform is expected to encourage a surge in philanthropic activities across Abu Dhabi. By simplifying the establishment of endowments, the initiative aims to encourage more individuals and businesses to invest in social causes. "We believe that as the process becomes easier, more people will step forward to make a difference in their communities," Al Qassim noted.

Preserving Family Wealth and Legacy

Beyond philanthropy, the law presents an opportunity for families to manage their wealth strategically while preserving their legacy. Families can consolidate various assets under a single entity, ensuring long-term financial stability while aligning their investments with their philanthropic goals. This flexible framework allows them to dedicate portions of their wealth to charitable causes, family support, or educational initiatives.

For example, a family owning multiple properties and business shares can now integrate these assets under an endowment, facilitating structured financial planning while supporting community initiatives. "We have real cases where families are dedicating specific buildings or a portion of their income to fund scholarships and future projects," Al Qassim added.

A Step Towards Long-Term Social Impact

With these reforms, Abu Dhabi is positioning itself as a leader in structured wealth and philanthropic management. The resolution not only strengthens family financial security but also fosters a culture of social responsibility. By making endowments more accessible, the law encourages a collective effort to drive sustainable community development and long-term positive change.

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