Legislation Details
- Full Title: Federal Law on WAQF (Endowment)
- Law Type: Federal Law
- Law Number: [5] of 2018
- Issued Date: 03 May 2018
- Effective Date: 16 May 2018
- Official Gazette: No. 630
- Sector: Faith and Religion Affairs
- Status: Active
- Number of Articles: 83
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law regulates the establishment, management, and administration of Waqf (endowment) in the United Arab Emirates. The law defines the different forms of Waqf, the requirements for Settlors and Beneficiaries, and the procedures for creating, registering, and amending Waqf. It also outlines the roles and responsibilities of Trustees, the Competent Authority, and the courts in overseeing Waqf affairs. The law aims to provide a comprehensive legal framework for the establishment and governance of Waqf, which is an important institution in Islamic finance and philanthropy. It is relevant for individuals, companies, and religious/charitable organizations involved in creating or managing Waqf in the UAE. (Federal Law on WAQF (Endowment), 2018)
What is the scope and purpose of this law?
The provisions of this Federal Law apply to all kinds of Waqf (endowment) existing in the UAE at the time of the law's entry into force, as well as any new Waqf created after that. The law's purpose is to regulate the establishment, legal validity, and administration of Waqf in the country. (Federal Law on WAQF (Endowment), 2018, Art. 2)
What are the key definitions under this law?
The law provides the following key definitions:
- The State (UAE): The United Arab Emirates
- GAIAE: The General Authority of Islamic Affairs and Endowments
- The Competent Authority: The authority or local entity concerned with the management of endowment affairs in each emirate
- Waqf (Endowment): Dedication of a benefit or dedication of a benefit and detention and preservation of the endowed property
- Settlor (Waqif): The owner of the endowed property who has detained it
- Endowed Property: Everything that's valid to be the subject matter of Waqf, whether properties, benefits or rights
- Beneficiary: A person who is eligible to disburse Waqf proceeds
- Beneficiaries Layers: The beneficiary's children, descendants, heirs, and successors
- Settlor's Condition: The conditions established by the Settlor to specify the nature of Waqf and its disposition
- Waqf Certificate: A certificate issued by the competent court establishing Waqf or any amendment made thereto
- Register: The register established by the Competent Authority to record the Waqf Certificate
- Trustee: The Competent Authority or a natural/legal person assigned to supervise Waqf management
- Investment: Keeping money, developing and increasing it by legally allowed means
(Federal Law on WAQF (Endowment), 2018, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations and requirements: 1. The Settlor must be fully competent, own the property intended for Waqf, and not owe debts that exceed the value of the Waqf. (Federal Law on WAQF (Endowment), 2018, Art. 5) 2. The Beneficiary must accept the Waqf, unless it is an unspecified charity or a family Waqf. (Federal Law on WAQF (Endowment), 2018, Art. 6) 3. The endowed property must be legally valid for use, owned by the Settlor, and not perishable or subject to mortgage/foreclosure. (Federal Law on WAQF (Endowment), 2018, Art. 7) 4. The Trustee must comply with the Settlor's conditions and manage the Waqf affairs according to the law. (Federal Law on WAQF (Endowment), 2018, Arts. 14-15) 5. The Competent Authority must administer the Waqf if no Trustee is appointed. (Federal Law on WAQF (Endowment), 2018, Art. 22)
What licensing, registration, or approval requirements exist?
The law requires that Waqf be established by obtaining a Waqf Certificate from the competent court and registering it in the Register maintained by the Competent Authority. The Waqf Certificate must include details such as the Settlor's will, the endowed property, the beneficiaries, the Trustee, and any conditions set by the Settlor. (Federal Law on WAQF (Endowment), 2018, Art. 9)
What rights and protections does this law provide?
The law provides the following key rights and protections: 1. Registered Waqf acquires legal personality, financial and administrative autonomy, and the right of legal recourse. (Federal Law on WAQF (Endowment), 2018, Art. 10) 2. The endowed property's ownership and possession is transferred to the Settlor, and it cannot be disposed of during the Waqf term. (Federal Law on WAQF (Endowment), 2018, Art. 10) 3. The beneficiaries' rights as stipulated in the Waqf Certificate are protected. (Federal Law on WAQF (Endowment), 2018, Art. 10) 4. The Settlor's conditions are effective, unless they are illegal, against the origin of Waqf, or against the beneficiaries' interests. (Federal Law on WAQF (Endowment), 2018, Art. 10)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for the governance and enforcement of this law are: 1. The Competent Authority: The authority or local entity concerned with the management of endowment affairs in each emirate. (Federal Law on WAQF (Endowment), 2018, Art. 1) 2. The GAIAE (General Authority of Islamic Affairs and Endowments): The federal authority responsible for Islamic affairs and endowments. (Federal Law on WAQF (Endowment), 2018, Art. 1) 3. The competent court: The court responsible for issuing the Waqf Certificate and overseeing Waqf-related disputes. (Federal Law on WAQF (Endowment), 2018, Arts. 9, 35)
What are the penalties for non-compliance?
The law specifies the following penalties for non-compliance: 1. Imprisonment and/or a fine of not less than AED 100,000 and not more than AED 1,000,000 for misappropriation of the endowed property or its proceeds. (Federal Law on WAQF (Endowment), 2018, Art. 29) 2. Imprisonment and/or a fine of not less than AED 50,000 and not more than AED 500,000 for encroachment on the endowed property. (Federal Law on WAQF (Endowment), 2018, Art. 28) 3. Deportation for non-UAE nationals convicted of the above offenses. (Federal Law on WAQF (Endowment), 2018, Arts. 28-29)
What exemptions or exceptions apply?
The law does not specify any exemptions or exceptions to its provisions.
How are disputes resolved under this law?
The law provides the following dispute resolution mechanisms: 1. Arbitration and conciliation: Disputes related to Waqf may be resolved through arbitration or conciliation. (Federal Law on WAQF (Endowment), 2018, Art. 34) 2. Role of the competent court: The competent court has jurisdiction to hear and adjudicate Waqf-related disputes. (Federal Law on WAQF (Endowment), 2018, Art. 35)
What are the key deadlines and time limits?
The law does not specify any key deadlines or time limits, except for the following: 1. If the Waqf is established after the Settlor's death, its value shall not exceed one-third of the Settlor's property at the time of establishing Waqf. (Federal Law on WAQF (Endowment), 2018, Art. 9)
How does this law interact with other UAE legislation?
The law references the following related UAE legislation: 1. Federal Law (1) of 1972 on the Competences of Ministries and the Powers of Ministers 2. Federal Law No. (5) of 1985 promulgating the Civil Transactions Law 3. Federal Law No. (3) of 1987 promulgating the Penal Code 4. Federal Law No. (10) of 1992 promulgating the Law of Evidence in Civil and Commercial Transactions 5. Federal Law No. (11) of 1992 promulgating the Civil Procedure Code 6. Federal Law No. (35) of 1992 promulgating the Criminal Procedure Law 7. Federal Law No. (29) of 1999 Establishing the General Authority of Islamic Affairs and Endowments (GAIAE) 8. Federal Law No. (28) of 2005 on Personal Status 9. Federal Law No. (2) of 2015 on Commercial Companies 10. Federal Law No. (20) of 2016 on Mortgaging of Movable Assets as Security for Debts (Federal Law on WAQF (Endowment), 2018, Preamble)
When did this law come into effect?
This Federal Law on WAQF (Endowment) came into effect on 16 May 2018, the date it was published in the Official Gazette No. 630. (Federal Law on WAQF (Endowment), 2018, Art. 40)
Source Documents
This article analyses Federal Law on WAQF (Endowment) for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.