The Effectiveness of Educational Endowments in Rationalizing Public Spending: A Case Study of the United Arab Emirates

HRMARS - This study aims to analyze the efficiency of educational endowments and their role in rationalizing public spending, through an examination of the United Arab Emirates' experience as a contemporary model for repurposing endowments within a modern financial management system. The study stems from the central problem that the increasing reliance on direct government spending to finance education is no longer sufficient to guarantee financial sustainability and quality outcomes, given the growing pressures on public budgets and rising education costs. The study employs a descriptive-analytical approach, addressing the conceptual framework of educational endowments, analyzing their efficiency from a financial management perspective, and demonstrating their role in alleviating the burden on the public budget. It also reviews the legislative and regulatory framework governing educational endowments in the UAE, analyzes the Emirati model of endowment management. The study concludes that educational endowments represent a strategic financial tool capable of transforming educational funding from a short-term expenditure model to a long-term investment model that achieves financial sustainability and enhances value for money. The results also showed that the efficiency of educational endowments is closely linked to the level of governance, professional management, clear educational objectives, and the existence of effective impact measurement mechanisms. The study confirmed that the UAE experience has successfully integrated educational endowments into the country's development policies through flexible legislative frameworks, disciplined institutional management, and balanced investment strategies. Conversely, the study highlighted several challenges, such as weak professional management in some models, inadequate impact measurement, investment risks, and the effect of public trust on endowment sustainability. The study concludes that developing educational endowments requires strengthening institutional and digital transformation, expanding partnerships with the private sector, and linking endowment returns to clear educational indicators, thereby enhancing their role in rationalizing public spending and supporting sustainable development.