Introduction
A building for education. Shares set aside to support a family across generations. A fund for people in need. Each begins with a decision to dedicate an asset to a purpose. But what happens decades later, when the Settlor (the “Founder”) is no longer around? Who protects the property, keeps the accounts, and ensures the income is still used for the purpose the Founder intended?Federal Law No. 5 of 2018 on Waqf (the "Law") provides the UAE's framework for endowments. Cabinet Decision No. 141 of 2026 (the "Decision"), issued on 24 July 2026, introduces the Executive Regulation of the Law and provides detailed rules governing the administration and management of waqf assets. For Founders, trustees, family businesses and endowment institutions, the key issue is how an asset can remain faithful to its original purpose while being managed responsibly over time.
1. Can a waqf ever be sold, gifted, inherited or revoked?
Not if it is perpetual, and perpetual is the default. Under Article 2 of the Decision, a perpetual waqf cannot be sold, gifted, inherited or revoked by the Founder or anyone else.A waqf is perpetual if its certificate says so, if the certificate does not say it is temporary, or if the Founder intended it to be permanent. Mosques, cemeteries, educational institutions, religious and Quran memorisation centres, healthcare centres and elderly care homes are also treated as perpetual.
The practical point is that silence means permanence. A Founder who wants a time limit must state it in the certificate. The replacement of waqf property is a separate matter, covered below.
2. Can a Founder establish a waqf for a limited period instead?
Yes. Under Article 3 of the Decision, a charitable waqf may run for between one and 50 years, with the Competent Authority approving the term. A family waqf cannot extend beyond two classes: the beneficiaries and their children. The Founder does not count as a class.For Founders, the certificate is decisive. A temporary waqf must be stated as temporary, with its duration set out clearly. Otherwise, as explained above, it is treated as perpetual.
3. What must trustees record, report and hand over?
Picture a waqf that has produced income for years, but whose records are incomplete. The property still exists, yet no one can show how the income was received, spent and distributed.Article 6 of the Decision targets that risk. Trustees must keep accounting records and financial documents for at least ten years, covering revenues, expenses and the technical condition of the waqf. Every six months they must give a bank statement to the entity named in the certificate and to the Competent Authority. If no entity is named, or there is no certificate, it goes to the competent authority alone.
Trustees must also monitor those administering family waqf and report violations to the competent court. They cannot delegate their duties without the Founder’s or the court’s permission, and must notify the Authority within 30 days.
Article 7 covers a trustee’s departure. The outgoing trustee must hand over a final report, financial information, existing contracts and powers of attorney.
These rules create an auditable history, so a change of trustee does not leave successors or beneficiaries unable to understand the waqf’s finances. Article 29 of the Law provides for penalties for wasting waqf property or its revenues, including imprisonment for at least one year and/or a fine of at least AED 50,000.
4. Can waqf assets be developed, invested, sold or replaced?
Yes, but within limits. Preserving a waqf does not always mean leaving the asset untouched, since a building may need repair or an investment may need replacing. The question is how to tell responsible management from a prohibited transaction.Article 9 covers maintenance and investment works. It requires an attested written agreement, financial reporting and a separate bank account for the funds allocated to the works, with the waqf’s interests taken into account.
Article 10 covers investment, sale and substitution. These need the Founder’s or the Competent Court’s permission, and must meet the Article’s conditions. A technical report and an attested contract are required. The price must not be below fair market value, and the property cannot be delivered before the full price is received. Proceeds must go towards replacement waqf assets. If none is acquired within one year of the funds being deposited, the court may order the trustee to buy one.
5. Can the Founder’s conditions or the waqf’s purposes be changed?
Not freely. Under Article 10, changing a waqf’s disbursement channels or conditions needs either the Founder’s express permission in the certificate, or court authorisation where it serves an overriding interest of the waqf. Special rules apply in some cases, such as replacing a mosque that can no longer serve its purpose.A commercially attractive offer does not justify a transaction in waqf property. Permissions, reports and documentation come first.
6. What happens when proceeds cannot be distributed to an identified beneficiary?
A waqf must do more than preserve property. Its income must reach the purposes the Founder designated. Article 11 directs proceeds to those channels, such as religious affairs, education, healthcare, orphans and the poor, or social welfare.Where no beneficiary is known, the Competent Authority directs the waqf to general charitable purposes, but only after a set process. The names of the Founder and the waqf must be published for two consecutive days in a widely circulated Arabic daily, and republished once after 15 days. If nobody comes forward within 30 days of the last notice, the proceeds go to general charitable purposes.
Trustees should keep beneficiary records and document every distribution.
7. What obligations apply to institutions that manage waqf proceeds?
Some waqf are administered through non-profit institutions that use the proceeds to fund programmes and initiatives. Under Article 12, they operate under the Competent Authority’s permit and oversight. They must have approved premises, submit audited annual financial reports and obtain approval for their bank accounts. A second branch needs prior approval, as does spending or investing proceeds outside the UAE. Personnel need annual permits, and the institution’s name must end with “Endowment Institution”.Licensing, reporting, banking and cross-border spending belong in the institution’s compliance programme, not in separate administrative files.
8. What should founders, trustees and institutions do now?
Founders: Check that the certificate records the purpose, duration, beneficiaries and trustee arrangements clearly.Trustees: Confirm you still meet the eligibility conditions. Review record-keeping and reporting, keep beneficiary information current, and obtain the required permissions before any transaction in waqf assets.
Institutions: Review permits, audited reporting, approved bank accounts and any spending or investment outside the UAE.
A structured review now can prevent disputes and regulatory problems later.
Conclusion:
A waqf is a commitment meant to outlast the person who made it. Keeping it requires clear documentation, accountable trustees, reliable records, controlled transactions and institutional oversight. Cabinet Decision No. 141 of 2026 sets out detailed rules for each of these, from perpetual classification to remuneration, reporting, asset transactions and the distribution of proceeds.The enduring value of a waqf lies not only in the asset that remains, but in the purpose it continues to serve.
Note: This legal update / newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.