By: Googan Feasibility Studies Team
The Regulation on Establishing or Funding Awqaf through Fundraising was issued by General Authority for Awqaf Board Resolution No. (6/1/47/T) dated 23/03/1447H, published in the Umm Al-Qura Gazette on 25/04/1447H (17/10/2025), and took effect on publication under Article 12. It applies to fundraising to establish new awqaf, or to fund existing awqaf for their sustainability, development, operation or repair (Article 2).
A key attachment to the licence application, under Article 3(3), is a feasibility study for establishing the waqf or funding the existing waqf. This article reviews what the Regulation requires and how to build a waqf feasibility study that supports both the application and the waqf's long-term sustainability.
Who is the competent authority and who may apply?
The Regulation defines the licence as the permission issued by the Authority to raise donations to establish a waqf or fund an existing one; the Authority is the General Authority for Awqaf. The applicant is a legal entity. Where the purpose is funding an existing waqf, the application must be submitted by that waqf (Article 4/4). Other applicant conditions include:
- Not having been issued a fundraising licence within at least the previous 6 months.
- Having no other fundraising application under review by the Authority.
- Meeting the integrity conditions in Article 4 relating to the board chair, members and executives.
Article 5 also requires waqf beneficiaries to be charitable or public-benefit purposes inside the Kingdom, consistent with Islamic Sharia and applicable regulations, and within the purposes of the applicant's statutes or the founder's conditions.
Licence application attachments under Article 3
- The licence application form, including applicant details, the purpose of fundraising and its conditions and beneficiaries, the target amount, the fundraising period, the waqf establishment period, the operating and administrative expense ratio, and the proposed waqf deed wording for a new waqf.
- When funding an existing waqf: the waqf deed and any proposed amendments, the waqf registration certificate with the Authority, and the property title deed for a real-estate waqf.
- A feasibility study for establishing the waqf or funding the existing waqf.
- A report on expected construction costs from an accredited engineering consultant where construction is involved.
- A full presentation of the applicant, its organisation, governance, structure, control functions, policies and procedures.
- Financial statements for the last three years, if any, audited by an accredited auditor, and a financial report on previous fundraising if a prior permit was issued.
- Any additional requirements requested by the Authority.
What should a waqf project feasibility study answer?
The Regulation does not detail the study content, but the application form itself contains figures that need support. From professional practice, we believe a complete waqf project feasibility study covers:
- Estimating the target amount from investment costs, linked to the engineering consultant's report or the approved property value.
- A realistic timeline for fundraising and implementation, bearing in mind the licence is granted for no more than one year.
- Estimating the operating and administrative expense ratio of the campaign, including the auditor and consulting office fees required under Article 8.
- A market study for the waqf asset, its expected revenues and operating and maintenance costs, since the purpose of a waqf is sustained spending on its beneficiaries.
- Risk and scenario analysis, such as not reaching the target amount or rising costs, and their effect on achieving the purpose.
If the purpose is purchasing a waqf property
Article 3(8) requires the owner's written consent to sell to the applicant, and two valuations by accredited valuers, issued within 6 months, using two or more approved valuation methods. If the difference between them does not exceed 10%, their average is the approved value; otherwise a third valuer's report is required. The study's figures should be based on this approved value.
Statutory timeframes
- Within 30 working days of submission, the Authority issues a reasoned rejection if procedures or data are incomplete or conditions are not met (Article 6).
- The Authority decides within a maximum of 30 working days of a complete application, with an additional period of up to 30 working days after notifying the applicant (Article 7/1).
- The licence is granted for no more than one year, and an extension may be requested by a reasoned request at least 15 working days before expiry (Article 7/3 and 4).
Post-licence obligations the study must account for
Article 8 requires the licensee to open a single dedicated bank account, engage an auditor and, where real-estate construction is involved, a consulting office, submit periodic spending statements, and keep records and documents for at least 10 years. Article 9 governs the handling of any surplus, and the Authority issues a completion certificate once spending is complete under Article 11.
What does the NCNP guide say?
The 2023 User Guide for Fundraising Licences lists a project feasibility study under the awqaf marketing campaign licence service, and sets the expected campaign start-to-end period at 6 months. As this guide was issued before the Regulation was published, the Regulation text and the competent authority's instructions prevail in case of any difference.
Note: This article is for general awareness and is not legal advice. Official guides and procedures may be updated, so please check the latest version with the competent authority. The decision to grant or refuse a licence rests solely with the competent authority, and Googan does not promise any licence, return or donation amount.
How Googan can help
Googan Business Services Company has worked in feasibility studies for the Saudi market with experience dating back to 1996, has had an investment presence in the Kingdom since 2013, holds ISO 9001:2015 certification, commercial registration no. 7036270002, and is based in Al-Masif, Riyadh. We prepare waqf feasibility studies that cover Article 3 requirements and link the application figures to their sources, and non-profit associations receive a special discount of up to 25%, stated in the quotation.
For more, see the Feasibility Studies Guide for Charities and Awqaf in our Knowledge Center, and our article Feasibility study for a non-profit association's investment project.
Planning to establish or fund a waqf through fundraising? Contact us on WhatsApp to request a quotation.
Frequently asked questions
Which authority licenses fundraising to establish a waqf?
The General Authority for Awqaf. The Regulation defines the licence as the Authority's permission to raise donations to establish or fund a waqf. The application is submitted to it by a legal entity, and where the purpose is funding an existing waqf, by that waqf. The licence decision rests with the Authority alone.
What does a feasibility study for establishing or funding a waqf include?
Article 3 requires the study to be attached without detailing its content. From professional practice, the study should support the application form figures: target amount, fundraising and implementation periods, and operating and administrative expense ratio, along with a market study of the waqf asset, its revenues, operating costs and risk analysis.
How many property valuations are needed to raise donations to buy a waqf property?
The Regulation requires two valuations by accredited valuers, issued within six months, using two or more approved methods. If the difference does not exceed 10%, the average is adopted; otherwise a third valuer's report is required, together with the owner's written consent to sell.
How long does the decision take and how long is the licence valid?
The Authority decides within a maximum of 30 working days of a complete application, with an additional period of up to 30 working days after notifying the applicant. The licence is granted for no more than one year and may be extended by a reasoned request at least fifteen working days before expiry.
What happens to surplus donations after spending on the waqf purposes?
Article 9 requires the licensee, within thirty working days, to submit a request to the General Authority for Awqaf stating the surplus amount and its proposals. The Authority may approve or amend, allocate the surplus to additional expenses of the same purpose, or transfer it to a similar account or to the closest beneficiaries for those purposes.
