Dubai Unveils Historic Family Business Endowment with Awqaf

Post by : Bianca Suleiman

The Endowment and Minors’ Trust Foundation, known as Awqaf Dubai, has proclaimed the debut of the emirate’s inaugural family endowment (Waqf Dhurri) aimed at supporting family businesses, a critical advancement towards ensuring the long-term viability of family-owned enterprises in the UAE.

This initiative is pivotal for Dubai’s aspirations to foster a contemporary and sustainable economic landscape capable of responding to global economic shifts while safeguarding family businesses across generations.

His Excellency Prof. Abdulsalam AlMadani, the Chairman of INDEX Holding, has officially registered the INDEX Holding group of companies as Dubai's first family business endowment. This unique initiative showcases a modern institutional perspective on the conventional concept of endowment (Waqf).

The innovative framework aims to secure family assets, promote business longevity, and amplify the economic and social contributions of family-owned businesses.

In alignment with this initiative, a family endowment has been established for the founder and his family, which encompasses the Abdulsalam AlMadani Global Education Center (AGEC), including its existing and forthcoming intellectual and industrial property rights, alongside the Abdulsalam AlMadani Humanitarian Care and Charity Foundation (DIHAD Sustainable Organisation) as charitable endowments.

Per the official deed, Prof. AlMadani will oversee the endowment throughout his lifetime. Post his tenure, management will persist under the family endowment system's rules, defining supervision, return distribution, and sustaining the endowment.

The endowment will maintain governance under the Endowment and Minors’ Trust Foundation in accordance with Dubai Law No. 17 of 2022, assuring effective oversight, transparency, and enduring sustainability.

His Excellency Ali Al Mutawa highlighted that the establishment of a family endowment signifies a crucial milestone in Dubai’s institutional framework for endowments. He remarked on the necessity of these family endowments in preserving businesses throughout generations while bolstering the stability and growth of national entities.

Al Mutawa further noted that this model strikes a harmonious balance between family asset governance and social impact. He reaffirmed Awqaf Dubai's commitment to innovating endowment solutions that adhere to global best practices and fortify Dubai’s status in this domain.

According to Prof. AlMadani, the initiative reconfigures the significance of family businesses within the national economy, establishing a framework that safeguards company values while equipping businesses for sustainable growth and future uncertainties.

He emphasized Dubai's emergence as a leading example in familial asset stewardship, merging governance with social accountability, thus nurturing an ecosystem where family enterprises can continue making substantial contributions to both the economy and humanitarian efforts.

Awqaf Dubai reports that the total value of registered family endowments in the emirate is projected to reach approximately AED 4.8 billion by the close of 2025, with 251 family endowments showcasing the rising recognition of this model in securing and preserving familial wealth.