Investment endowment funds to spur capital, returns for associations: Official

Deputy Governor of the General Authority for Awqaf (GAA), Abdulrahman bin Mohammed Al-Aqil, said that joint investment endowment funds model is new for associations. It is poised to boost capital and returns generated from these funds to contribute to activating the role of associations and endowment entities in achieving development goals.

Endowment funds are witnessing a steady growth of 22% in their assets. This is one of the motivating factors for the public due to the existence of sufficient awareness to contribute to this growth, Al-Aqil told Argaam.

He also unveiled prospective additional plans with several associations. This is besides the launch of five more diversified funds in 2023 and the activation of endowment investment portfolios, for which the regulations have been approved.

Al-Aqil also said that the authority signed an agreement with Kafala program related to guarantees and financing. Further, it added a portfolio with the same party in order to increase the ability of endowment entities and non-governmental organizations (NGOs) to obtain funding from financial institutions.

Financial technology (fintech) is one of the main catalysts to finding an integrated system to stimulate the endowment sector. This shall facilitate procedures for obtaining financing, according to the official.

He indicated that local associations cover diverse sectors, including health, Quran memorization, environment and water, housing, advocacy and more.

GAA signed today, Dec. 27, a partnership agreement with the Council of NGOs to support and establish investment endowment funds worth over SAR 186 million in a bid for financial inclusion, according to Argaam's data.