Fahad Al Qassim, Director General of Awqaf Abu Dhabi, announced the launch of a specialized investment company, Awqaf Capital, during Abu Dhabi Finance Week (ADFW). The company aims to maximize the revenues and utilization of endowments, expanding the sector to include health, educational, and social projects. Operations are set to commence in the first quarter of 2025.
Awqaf Capital will serve as the investment arm of Awqaf Abu Dhabi, managing endowments—both cash and assets—and conducting investments within the UAE and internationally to enhance their profitability and sustainability for beneficiaries, according to Al Qassim.
Since its establishment in May last year, Awqaf Abu Dhabi has been overseeing the emirate’s endowed assets and monetary funds previously managed by the federal General Authority of Islamic Affairs and Endowments. Al Qassim highlighted that these endowments often lack robust governance and expertise, limiting their potential revenue and impact. For instance, endowed properties should be evaluated by experts to determine their market value based on factors like age, profit earned, and optimal use.
Al Qassim cited an example of waqf villas that were previously rented for AED 200,000 but are now leased for AED 800,000, reflecting a fourfold increase in value. He emphasized that endowments extend beyond traditional Islamic projects, such as building mosques or charitable centers, to include broader charitable initiatives benefiting society, health, and academia.
In May, Awqaf Abu Dhabi launched a AED 1-billion healthcare investment fund, aiming to optimize revenues and benefit beneficiaries over five years. Profits from this fund will be allocated to healthcare projects, including patient treatment and hospital construction if necessary.
While Awqaf Abu Dhabi is already investing in registered endowments, the establishment of Awqaf Capital aims to manage these investments more effectively. Al Qassim stressed the importance of cautious management of endowed funds, particularly for minors, to ensure their sustainability during financial crises. He recommended investing in defensive sectors like education, health, food, and infrastructure, which remain essential regardless of economic conditions.
Additionally, Awqaf Abu Dhabi plans to launch a family endowments branch to manage assets designated as endowments for heirs. This initiative aims to address the issue of inherited fortunes being lost between generations, providing strict governance to protect these assets.
Al Qassim noted that family endowments, known as ‘family foundations’ in the West, are a new market for the authority. The goal is to ensure that endowments, whether religious or not, are both charitable and sustainably profitable, benefiting society as a whole.
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