Post by : Badri Ariffin

Dubai’s Endowment and Minors’ Trust Foundation (Awqaf Dubai) has successfully launched the first family endowment (Waqf Dhurri) aimed at family businesses, marking a transformative milestone for the sustainability of family-owned enterprises in the UAE.

This initiative complements Dubai’s ambition to foster a modern and resilient economic framework, capable of adapting to global shifts while safeguarding family businesses for future generations.

His Excellency Prof. Abdulsalam AlMadani, Chairman of INDEX Holding, has officially registered the first family business endowment in the emirate, establishing a pioneering approach to the conventional concept of endowment (Waqf).

This innovative model aims to fortify family asset protection, ensure the longevity of businesses, and amplify the economic contributions of family firms.

As part of this groundbreaking initiative, a family endowment has been established, which includes the Abdulsalam AlMadani Global Education Center (AGEC) and the Abdulsalam AlMadani Humanitarian Care and Charity Foundation (DIHAD Sustainable Organisation) designated as charitable endowments.

Under the established deed, Prof. AlMadani will oversee the endowment during his lifetime, after which governance will transition to a family endowment framework, incorporating guidelines for supervisory appointments, return distributions, and sustainability practices.

The endowment will be governed by the Endowment and Minors’ Trust Foundation according to Dubai Law No. 17 of 2022, ensuring accountability, transparency, and enduring viability.

His Excellency Ali Al Mutawa emphasized that this registration signifies a pivotal development in Dubai’s endowment system. He remarked that family endowments play a crucial role in perpetuating businesses through generations and bolstering the growth of domestic enterprises.

Al Mutawa added that this model strikes a harmonious balance between financial sustainability and social impact. He reaffirmed Awqaf Dubai’s dedication to pioneering innovative endowment solutions aligning with global standards, thereby reinforcing Dubai’s leadership in the domain.

Prof. AlMadani noted that this initiative reshapes the contribution of family businesses to the economy, establishing a protective framework that preserves corporate values while positioning businesses for long-term aspirations and challenges ahead.

He remarked that Dubai is setting a benchmark in family asset management by integrating governance with social accountability, fostering an environment where family businesses can continue to enhance both economic and humanitarian landscapes.

According to Awqaf Dubai, the cumulative value of family endowments in the emirate is projected to reach AED 4.8 billion by 2025, spanning 251 endowments, signifying the model’s escalating acceptance and its vital role in preserving and nurturing family wealth.

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