Regulations for Reviving Unidentified and Inactive Endowments

Chapter 1: General Provisions

Article 1: Definitions

The words and phrases contained in this Regulation shall have the meanings set forth opposite each of them in Article (One) of the Law of the General Authority for Awqaf, issued by Royal Decree No. (M/11) dated 26/‏2‏/1437. The following words and phrases, wherever they appear in the Regulation, shall have the meanings set forth opposite each of them:

  • Regulation: Regulation for the Revitalization of Unknown and Inactive Endowments.
  • Endowment: The dedication of an asset and the allocation of its benefit or revenue.
  • Unknown Endowment: Any endowment or “will to establish an endowment” whose designated expenditure has become inactive and to which any of the cases set forth in Article (Four) of the Regulation applies shall be deemed an unknown endowment or an endowment treated as unknown.
  • Inactive Endowment: Any endowment or “will to establish an endowment” that has a trustee and to which any of the cases set forth in Article (Five) of the Regulation applies shall be deemed an inactive endowment or an endowment treated as inactive.
  • Will to Establish an Endowment: The testator’s explicit stipulation in his will, effective after his death, that an asset is endowed, or any wording indicating such endowment through the dedication of an asset and the allocation of its benefit or revenue.
  • Endowment with Direct Benefit: An endowment in which the beneficiary has the right to benefit directly from the endowed asset.
  • Report: A report received by the Authority concerning an unknown or inactive endowment, in accordance with the mechanism specified in the Regulation.
  • Reporter: Any natural or legal person who submits a report in accordance with the requirements set forth in the Regulation.
  • Interested Party: Any natural or legal person having a direct relationship with the endowment.
  • Committee: The Unknown Endowments Committee of the Authority.
  • Reward: An incentive granted to a person who reports an unknown endowment or contributes to its resolution, in accordance with the Regulation.
  • Resolution: A set of procedures aimed at discovering an unknown or inactive endowment, establishing it, removing trespasses therefrom, and appointing a trustee over it.
  • Revitalization: A set of procedures aimed at reviving an unknown or inactive endowment in a manner that fulfills the founder’s condition.

Article 2: Objectives of the Regulation

  • The Regulation aims to achieve the following:

    • 1‏- Establishing a regulatory framework for addressing and revitalizing unidentified and inactive endowments in a manner that fulfills the objectives and conditions of the founders and contributes to the sustainability of endowments in the Kingdom.
    • 2‏- Encouraging the public to report unidentified and inactive endowments, thereby facilitating their identification and revitalization and contributing to the development and sustainability of endowments in the Kingdom.
    • 3‏- Establishing mechanisms that contribute to revitalizing and developing unidentified and inactive endowments in a manner that helps utilize them and achieve the objectives of their founders.

Article 3: Scope of Application of the Regulation

  • This Regulation shall apply to the following:

    • 1‏- An unknown or inactive endowment or “will establishing an endowment,” and the like, whether real property, movable property, or otherwise.
    • 2‏- A report submitted to the Authority in respect of which no decision rejecting it has been issued, or in respect of which a judicial judgment appointing a trustee over the endowment that is the subject of the report has been issued, before the Regulation enters into force.

Article 4: Cases of an Unspecified Endowment

  • Any endowment, or "testamentary bequest establishing an endowment," whose designated beneficiary has become inoperative and to which one of the following cases applies shall be deemed an endowment of unknown status, or equivalent thereto:

    • 1- There is no trustee for the endowment.
    • 2- The trustee or the person in possession of the endowment conceals the endowment deed.
    • 3- The trustee is unaware of the location of the endowment, of his trusteeship over the endowment, or of the endowment documents evidencing its endowment or ownership.

Article 5: Cases of Suspended Endowment

  • An endowment shall be deemed non-productive, or treated as non-productive, if it is an endowment or a “bequest creating an endowment” having an administrator and falls under either of the following two circumstances:

    • 1‏- The revenue of an endowed asset has become completely non-productive for two consecutive years.
    • 2‏- The benefit derived from an endowed asset having a direct benefit has become completely unavailable, in accordance with the founder’s condition, for two consecutive years.

Chapter 2: Identification of Unknown and Inactive Endowments and Conditions for Accepting Reports Thereon

Article 6: Sources for Identifying Unknown and Inactive Endowments

  • 1- The Authority identifies unknown and inactive endowments through the means granted to it under the relevant laws, including:

    • A- The Authority receiving reports from the public regarding an unknown or inactive endowment.
    • B- The Authority contacting government, judicial, and other entities to provide it with the data on endowments available to them.
    • C- The Authority receiving a request from a government entity or other entity to address an unknown or inactive endowment.
    • D- A person with an interest in an unknown endowment requesting that it be searched for, or requesting the implementation of the endowment deed in respect thereof if its location is unknown. The Authority shall register and examine the request and update its data based on its findings regarding the endowment.
    • E- A person with an interest in an inactive endowment requesting the Authority’s assistance in reviving and developing it.
  • 2- The Authority shall cooperate with government and other entities in finding ways to address unknown and inactive endowments.

  • 3- The Authority shall organize cultural and awareness-raising events concerning the importance of reporting unknown and inactive endowments and the contribution of such reporting to addressing and reviving them and ensuring their sustainability, in accordance with the applicable statutory procedures.

Article 6: Sources for Identifying Unidentified and Inactive Endowments

  • 1‏- The Authority identifies unknown and inactive endowments through the means granted to it under the relevant laws, including:

    • ‌A- Receiving reports from the public concerning an unknown or inactive endowment.
    • ‌B- The Authority contacting government, judicial, and other entities to provide it with the endowment data available to them.
    • ‌C- Receiving a request from a government entity or other entity to address an unknown or inactive endowment.
    • ‌D- Receiving a request from a person with an interest therein to search for an unknown endowment, or to apply the endowment deed in respect thereof if its location is unknown. The Authority shall record and examine the request and update its data according to its findings in this regard.
    • ‌E- Receiving a request from a person with an interest therein for the Authority’s assistance in reviving and developing an inactive endowment.
  • 2‏- The Authority shall cooperate with government and other entities in finding ways to address unknown and inactive endowments.

  • 3‏- The Authority shall organize cultural and awareness-raising events concerning the importance of reporting unknown and inactive endowments, the contribution of such reporting to addressing and reviving them, and ensuring their sustainability, in accordance with the applicable statutory procedures.

Article 7: Conditions for Accepting a Report of an Unknown Endowment

  • 1‏- The following conditions must be met for a report concerning an unknown endowment to be accepted:

    • ‌A- The reported endowment must fall within one of the cases and descriptions specified in Article (Four) of the Regulation.
    • ‌B- The reported endowment must be unknown to the Authority, except for cases deemed to constitute an unknown endowment pursuant to Paragraph (3) of Article (Four) of the Regulation.
    • ‌C- It must be supported by معتبر documents, in accordance with the provisions of the Law of Evidence.
    • ‌D- It must be submitted through the Authority’s website or any means specified by the Authority.
    • E- The Authority must not have previously been notified thereof, unless the subsequent report is effective in the processing thereof, as determined by the Authority.
    • F- There must be no pending action relating to the endowment that is the subject of the report, concerning its trusteeship, proof of the endowment, or entitlement.
  • 2‏- The Authority shall have discretion to determine the period during which the unknown endowment has been without trusteeship, or the period of its inactivity that affects its classification as an unknown endowment.

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