Towards a regulatory framework for the governance of endowment organizations in Saudi Arabia

This research study examines the significance of a regulatory framework for the governance of endowment organizations in the Kingdom of Saudi Arabia (KSA). It underscores the urgent need for such a framework in light of the growing interest in the role of endowments in the nation’s social and economic development, and the importance of leveraging government supervisory efforts to support the endowments sector. The study outlines the rationale for endowment governance and its benefits to endowment organizations and institutions by reducing systemic, operational, and institutional risks. Drawing on governance practices suited to the endowments sector, this study offers recommendations for a regulatory framework for endowment governance in the KSA, along with the core principles and provisions that should be included. It concludes by recommending the prompt issuance of a regulatory framework to complement existing advancements in organizing and enhancing the effectiveness of the endowments sector, while enabling its growth and alignment with KSA’s strategic vision.