The Endowment and Minors’ Trust Foundation in Dubai (Awqaf Dubai) has made a significant announcement: the establishment of the first family endowment, known as Waqf Dhurri, specifically tailored for family businesses in the emirate. This landmark initiative exemplifies Dubai’s commitment to fostering a sustainable economic ecosystem, recognizing the essential role family-owned enterprises play in stimulating long-term economic growth.

Supporting Family-Owned Businesses

This progressive measure aligns seamlessly with Dubai’s vision of constructing an economic framework that is responsive to global trends. By offering innovative mechanisms that ensure the longevity of familial enterprises, the initiative empowers these businesses to be pivotal partners in the economic landscape. It aims to mitigate challenges faced by family businesses while enhancing their contributions to the overall economy.

His Excellency Prof. Abdulsalam AlMadani, Chairman of INDEX Holding, took the lead in registering the ‘INDEX Holding’ group as the inaugural family endowment in Dubai. This initiative marks a noteworthy shift, moving the concept of endowment (Waqf) from its traditional context to a more modern institutional approach. This new model prioritizes asset protection, focusing on sustainability while maximizing both economic and societal impacts of these investments.

Comprehensive Management and Governance

The initiative encompasses a designated family endowment tailored for the founder and his family, in addition to the Abdulsalam AlMadani Global Education Center (AGEC) and its related assets, as well as the Abdulsalam AlMadani Humanitarian Care and Charity Foundation. These are established as charitable endowments to support broader social initiatives.

As per the stipulations of the deed, the endower will oversee the endowment during his lifetime. After his passing, management will transition in accordance with the family endowment system, which governs the appointment of overseers, the allocation of returns, and the core conditions of the endowment, ensuring its sustainability and alignment with its goals. Awqaf Dubai will maintain supervision over the endowment, adhering to Law No. (17) of 2022, which ensures sound governance and operational viability, further strengthening the regulatory landscape for institutional endowments in the region.

A Vision for Future Generations

His Excellency Ali Al Mutawa, Secretary-General of Awqaf Dubai, emphasized the importance of this registration, describing it as a crucial advancement in the framework of institutional endowments. He remarked that family endowments play a vital role in preserving businesses across generations, thus contributing to the stability and prosperity of national businesses.

The endowment model presents a comprehensive governance framework for family assets, striking a balance between financial longevity and social responsibility. This provides families and entrepreneurs with versatile tools for efficient and sustainable wealth transition. Al Mutawa highlighted the organization’s commitment to innovating endowment solutions that align with global best practices to enhance Dubai’s prominence in this sector, supporting comprehensive societal progress.

In a related note, His Excellency AlMadani remarked, “This initiative not only redefines the stature of family enterprises within the national economy but also establishes an all-encompassing system that ensures the enduring value and vision upon which these companies thrive.” The initiative is designed to protect companies and prepare them for future challenges while maintaining their core values.

By the end of 2025, the cumulative value of family endowments registered with Awqaf Dubai is projected to reach around AED4.8 billion across 251 different family endowments. This impressive statistic underscores the growing popularity and essential role of this model in securing the sustainability of family assets, reinforcing Dubai’s evolving economic landscape.