Law No. (14) of 2017
Regulating
Endowments and Gifts in the Emirate of Dubai[1]
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We, Mohammed bin Rashid Al Maktoum, Ruler of
Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code
of the United Arab Emirates and its amendments;
Federal Law No. (10) of 1992 Issuing the Law of
Evidence Governing Civil Obligations and Commercial Transactions and its
amendments;
Federal Law No. (11) of 1992 Issuing the Civil
Procedures Code and its amendments;
Federal Law No. (28) of 2005 Concerning Family
Affairs;
Federal Law No. (2) of 2015 Concerning Commercial
Companies;
Law No. (6) of 1997 Concerning Contracts of
Government Departments in the Emirate of Dubai and its amendments;
Law No. (9) of 2007 Establishing the Awqaf and
Minors Affairs Foundation;
Law No. (2) of 2011 Concerning the Islamic Affairs
and Charitable Activities Department;
Law No. (21) of 2015 Concerning Judicial Fees of
the Dubai Courts;
Law No. (1) of 2016 Concerning the Financial
Regulations of the Government of Dubai;
Law No. (13) of 2016 Concerning the Judicial
Authorities in the Emirate of Dubai;
Law No. (17) of 2017 Establishing the Mohammed bin
Rashid Global Centre for Endowment Consultancy;
The Decree of 1971 Establishing the Jaafari
Charitable Endowments Administration Council in Dubai;
Decree No. (9) of 2015 Regulating the Raising of
Donations in the Emirate of Dubai; and
Executive Council Resolution No. (25) of 2013
Concerning Mosques and Religious Activities in the Emirate of Dubai,
Do hereby issue this Law.
This Law will be cited as "Law No. (14) of
2017 Regulating Endowments and Gifts in the Emirate of Dubai".
The following words and expressions, wherever
mentioned in this Law, will have the meaning indicated opposite each of them
unless the context implies otherwise:
|
UAE: |
The United Arab
Emirates. |
|
Emirate: |
The Emirate of Dubai. |
|
AMAF: |
The Awqaf and Minors
Affairs Foundation. |
|
MBRGCEC: |
The Mohammed bin Rashid
Global Centre for Endowment Consultancy. |
|
Competent Court: |
The Dubai Courts. |
|
Endowed Property: |
The property and things
that a Donor owns or over which he holds the right of disposition. These
include, but are not limited to, movable and immovable property; shares;
stocks; bonds; securities; usufruct rights; tenancy rights; and other
personal, real, and moral rights that may be endowed. |
|
Endowment: |
A scheme under which the
proceeds from Endowed Property are dedicated to Beneficiaries or to charity
while keeping the principal intact. |
|
Donor: |
A person who renders
Endowed Property inalienable through an Endowment with the intent to allocate
its proceeds to an individual, a category of individuals, an entity, an
initiative, or a project. |
|
Beneficiary: |
An individual, a
category of individuals, or an entity to whom the proceeds of an Endowment
are dedicated. |
|
Trustee: |
A natural or legal
person who is appointed to manage an Endowment. |
|
Endowment Deed: |
A document issued by the
Competent Court to validate an Endowment. |
|
Register: |
A register maintained by
the AMAF for registering Endowments based on Endowment Deeds. |
|
Dubai Endowment Sign: |
A sign awarded by the
MBRGCEC to individuals, public entities, and private entities that make
Endowment-related socially responsible contributions. |
|
Endowment Foundation: |
A non-profit foundation,
having legal personality, licensed by the AMAF, funded exclusively by
Endowment proceeds, and utilising these proceeds to fund its programmes,
initiatives, and activities. |
|
Gift: |
The movable or immovable
property which is donated in accordance with this Law and other applicable
legislation for the benefit of an individual, a category of individuals, an
entity, an initiative, or a project. |
This Law aims to:
1. implement the UAE
vision of consolidating the values of altruism, philanthropic giving, and performing
charitable deeds without expecting anything in return;
2. develop an
integrated legal framework that meets modern-day requirements and the need of
society for the regulation, management, operation, and preservation of
Endowments and Gifts;
3. create an
environment that encourages charitable work and social contribution to
education, health, culture, arts, the environment, sports, social solidarity,
and other relevant fields;
4. encourage
Endowments and Gifts through innovative initiatives that meet the needs of the
community, individuals, and various other categories;
5. determine the role
of concerned entities and the rules and procedures governing Endowments and
Gifts, their management and development, and the allocation of their proceeds
to individuals, categories of individuals, entities, initiatives, and projects
that are worthy of support;
6. diversify the
forms and channels of distribution of Endowment proceeds and Gifts through
traditional and innovative methods; and
7. develop a clear
system of governance for the Endowment Foundations established in the Emirate.
This Law will apply to:
1. all Endowments
existing in the Emirate by the effective date of this Law and those established
thereafter by Muslims or non-Muslims; and
2. all Gifts granted
in the Emirate in accordance with this Law and other applicable legislation.
a. An Endowment will
be established by the expression of the legally valid intent of the Donor as
evidenced by an Endowment Deed recorded in the Register.
b. An Endowment Deed
must contain a statement of intent of the Donor to render the principal of the
Endowed Property inalienable and to distribute its proceeds among the
Beneficiaries he specifies and under the terms he prescribes. It must also
contain all information about the Donor, the Endowed Property, the Beneficiary,
the Trustee, and the term of the Endowment.
c. An Endowment Deed
will be legally binding on all persons, including the Donor and his universal
and particular successors.
d. An Endowment
established prior to the effective date of this Law may be proven by all means
of evidence.
e. Any Endowment
established contrary to the provisions of this Law will be deemed void and will
have no legal effect.
a. Endowments are
categorised according to type of Beneficiary as follows:
1.
Family Endowment:
an Endowment established for the benefit of the Donor himself, his offspring,
or any other persons he specifies by name or description whether or not they
are from amongst the Donor’s relatives;
2.
Charitable
Endowment: an Endowment whose proceeds are allocated to the public, a specific
entity, an initiative, or a project; and
3.
Joint Endowment: an
Endowment whose proceeds are allocated to the Donor’s offspring and to public
charity.
b. Endowments are
categorised according to their term as follows:
1.
Permanent
Endowment: an Endowment which is not limited in time; and
2.
Term Endowment: an
Endowment for which the Donor determines a specific period or a specific generation
of his offspring;
c. Endowments are
categorised according to scope as follows:
1.
Specific-purpose
Endowment: an Endowment established by the Donor for a specific purpose; and
2.
Public Charity
Endowment: an Endowment established by the Donor for multiple purposes or for
public charitable activities.
a. A Term Endowment
will be maintained for the duration specified by the Donor in the Endowment
Deed. This duration may not be less than one (1) year.
b. An Endowment will
be deemed a Permanent Endowment in the following cases:
1. where the Endowment Deed expressly states that the Endowment
will be maintained in perpetuity;
2. if it is a mosque Endowment;
3. if it is a cemetery Endowment; or
4. where the term of the Endowment is not specified in the
Endowment Deed.
a. To be deemed
valid, an Endowment must be accepted by its Beneficiary where he is specified
by name. Where the Beneficiary is a minor or a person placed under
interdiction, the Endowment will be accepted on his behalf by his guardian or
custodian.
b. Acceptance will
not be a prerequisite for the validity of an Endowment where the Beneficiary is
an unspecified entity or where such acceptance is inconceivable.
a. An Endowment will
be valid whether it takes effect upon its establishment or after the death of
the Donor. An Endowment may also be contingent upon a condition. However, and
where such a condition is illegal, the Endowment will be valid but the
condition will be void.
b. A condition
stipulated by the Donor is as binding as a legal provision to the extent that
it does not contradict the provisions of this Law. The intent of the Donor will
be interpreted based on the wording of the condition and the purposes of the
Donor.
a. Where the Donor so
stipulates in his Endowment Deed, he may revoke his Endowment during his
lifetime, and may modify the Endowment Deed or add, remove, or modify any
condition thereof. Where two (2) valid conditions conflict, they must be
reconciled where possible, failing which the more recent condition will
prevail.
b. Revocation of an
Endowment or modification of any of its conditions will be made pursuant to a
written document attested by the Competent Court and recorded in the Register.
For an Endowment to be valid, the Donor must meet
the following requirements:
1. He must be of full
capacity and not be prohibited from making donations.
2. He must be the
owner of the property to be endowed or have the right of legal disposition over
it.
3. He must not be
liable for a debt incurred prior to establishing the Endowment, where the
settlement of the debt consumes the Donor’s entire property or where the
Donor’s property in excess of the Endowment will not cover that debt, unless the
Endowment is permitted by the creditor.
4. Neither the
conditions stipulated by the Donor nor the purpose of the Endowment may aim at
evading the repayment of a debt; at impeding the exercise of a right of
pre-emption; at circumventing inheritance provisions; or at violating
applicable legislation, public order, or public morals.
Endowed Property must:
1. be usable without
being consumed;
2. be legally usable;
3. be owned by the
Donor or be under his right of legal disposition, and the Donor must not be
prohibited from disposing thereof; and
4. be free from
encumbrances.
A Beneficiary must:
1. be specified by
the Donor. Where no person is specified by the Donor, the poor will be deemed
as Beneficiary. A Donor may, during his lifetime, specify another Beneficiary.
Where the Beneficiary passes away without specifying a Beneficiary, the
proceeds of the Endowment will continue to be disbursed to the poor;
2. have a legitimate
interest in the Endowment;
3. exist or be likely
to exist in the future. The Donor may during his lifetime reallocate
entitlement to Endowment proceeds from a Beneficiary to another;
4. be legally
eligible for being identified as a Beneficiary of an Endowment; and
5. not have any
interest that conflicts with public interest.
Where the proceeds of an Endowment exceed the
needs of the Beneficiary, the Donor may, during his lifetime, specify a second Beneficiary.
Upon the death of the Donor, any proceeds in excess of the Beneficiary’s needs
will be paid under the Trustee's supervision to a second Beneficiary, in which
case the heirs of the Beneficiary and heirs of the Donor will take priority if
this achieves the purpose of the Endowment prescribed by the Donor.
Where an Endowment is established in compliance
with all the conditions stipulated in this Law, it will be deemed valid and
will have full legal effect, in which case the Endowed Property may not be
disposed of throughout the term of the Endowment in any manner that involves
transfer of ownership or restriction of the use of the proceeds of the
Endowment, such as sale, pledge, or donation.
a. An Endowment will
take effect from the date on which it is recorded in the Register. An Endowment
may be recorded in the Register only after the Endowment Deed is issued.
b. Recording an
Endowment in the Register will have the following effects:
1.
The Endowment will
have legal personality, financial and administrative autonomy, and the right to
sue and be sued in its own name.
2.
Ownership and
possession of the Endowed Property will be vested in the Endowment.
3.
The conditions of
the Endowment will come into force.
4.
The Endowment will
become binding on all persons.
a.
Each Endowment must have a Trustee.
b.
The Trustee will be appointed by the Donor. Alternatively,
the method of appointment of the Trustee will be determined in the Endowment
Deed.
c.
A Donor may act as a Trustee. The Trustee may also be one or
more natural or legal persons.
d.
Where no Trustee is appointed by the Donor and no method of
appointment is determined in the Endowment Deed, the AMAF will assume
trusteeship of the Endowment.
a. A Trustee must:
1.
be of full
capacity;
2.
be of good
character and repute and not have been convicted of any felony or other crime
affecting honour or trustworthiness, unless he has been rehabilitated;
3.
have the ability to
manage the Endowment in accordance with the Donor’s conditions; and
4.
satisfy any other
conditions determined by the Donor.
b. The conditions stipulated in paragraph (a) of this Article will
apply to a legal person to the extent applicable considering the status of that
person.
A Trustee must:
1. satisfy the
conditions stipulated by the Donor in terms of time and place;
2. preserve the
Endowed Property from dilapidation or damage, and ensure that the repair and
preservation of Endowed Property takes precedence over disbursing its proceeds among
the Beneficiaries.
3. manage and
preserve the Endowment, and distribute its proceeds among the Beneficiaries as
stipulated in the Endowment Deed, this Law, and the resolutions issued by the
AMAF;
4. exercise due
diligence in developing and investing the Endowed Property, whether by himself
or through contracting any other experts and specialists;
5. not dispose of the
Endowed Property in any manner that involves transfer of ownership or pledging
it as debt collateral, unless this is required for the preservation of the
Endowed Property and only after obtaining the Donor’s or the Competent Court’s
approval, otherwise the disposition will be deemed null and void;
6. invest, manage, or
use the Endowed Property for its intended purposes;
7. not lease out or
utilise the Endowed Property at lower rates than those of similar property;
8. prepare the annual
budget of the Endowment, prepare its final accounts by the end of each
financial year, and prepare and maintain its accounting records and financial
documents; and submit the required reports on the financial position of the
Endowment to the Donor, to the person he names in the Endowment Deed, or to the
AMAF, as the case may be, in accordance with the Endowment Deed and the
procedures adopted by the AMAF in this respect;
9. deposit Endowment
proceeds in the name of the Endowment in an account with any of the banks
licensed in the UAE;
10. expend Endowment
proceeds through its proper channels as per the Donor’s conditions and public
interest exigencies;
11. settle any
liabilities incurred by the Endowment including the repayment of debts and
other outstanding amounts, subject to serving the interest of the Endowment;
and
12. undertake the
legal dispositions stipulated by the Donor in the Endowment Deed, provided that
such stipulation is valid.
a. A Trustee will
manage the Endowment in the manner he deems appropriate. However, his
management must not conflict with the Donor’s conditions, the provisions of
this Law, and the rules and procedures prescribed by the AMAF.
b. Unless he is a
volunteer, a Donor will be entitled to the Trustee remuneration determined by
the Donor. Where such remuneration is not determined by the Donor, it will be
determined by the AMAF in accordance with the rules it adopts in this respect.
A Trustee will be entrusted with the management of
the Endowment, and will represent it before third parties. A Trustee’s claim
regarding any disbursement made in relation to the management of the Endowment
or the Beneficiary will be accepted only if supported by evidence, except where
it is customary that no such evidence is required. The Trustee will also be
liable for any gross omission, breach, or negligence in respect of the
Endowment or its proceeds.
a. A Trustee may
invest the Endowed Property for the benefit of the Endowment until the
commencement of construction works.
b. A Trustee may
obtain loans to develop or repair the Endowed Property. However, he may not pledge
the Endowed Property as debt collateral.
c. Where the proceeds
of the Endowment are not sufficient to repair damaged Endowed Property and where
no surplus proceeds are generated from another Endowment, the Trustee may,
subject to approval of the Donor or the Competent Court, sell part of the
Endowed Property to pay for repairing the other parts.
d. A person who
demolishes Endowed Property in whole or in part must restore the Endowed
Property to its original state, failing which he will be liable for the value
of the property and for damages. A person who causes damage to Endowed Property
in whole or in part will be liable for restitution in kind or in value.
e. A Donor may
stipulate a change or substitution of an Endowed Property.
f. Endowed Property
consisting of moveable property may be replaced where no party is financially
supporting it and it is at risk of loss, or is no longer usable, and fails to
deliver the benefits for which it is endowed. Where such Endowed Property is
sold, the sale proceeds will be used to purchase a similar property where
possible.
g. Endowed Property
consisting of real property which is dilapidated and no longer usable may be
sold and replaced by another property provided that the sale proceeds are used
to purchase a similar property.
h. A Trustee may,
upon the Donor’s or the Competent Court’s permission, purchase new property
with the sale proceeds of the replaced property, invest such proceeds in any
legal manner, and expend the returns on such investment through the original disbursement
channels of the Endowment.
A Trustee may not assign his trusteeship or
delegate his trusteeship powers to third parties unless he is so authorised by
the Donor or the AMAF.
A Donor may remove a Trustee he has appointed. The
Competent Court may remove a Trustee appointed by the Donor where, upon
considering his actions or Endowment-related claims, he is proven to have
breached his obligations.
A Donor or the AMAF, as the case may be, may take
any of the following measures against a Trustee:
1. suspend him and
appoint a replacement Trustee where he repeatedly delays in submitting
Endowment annual budgets, final accounts, and the documents supporting the
collection and disbursement of Endowment proceeds;
2. where he receives
trusteeship remuneration, deprive him of this remuneration in whole or in part
in case of negligence or omission;
3. remove him where
he is proven to have committed a breach against the Endowed Property or to have
committed any omission or negligence in respect of his Endowment trusteeship;
4. have recourse
against him for any damages where he causes loss or damage to the Endowed
Property; and
5. refer him to the
competent judicial authorities where he commits any act that may compromise the
Endowed Property or its proceeds in any manner whatsoever.
The AMAF will assume trusteeship of an Endowment
where the Donor does not appoint a Trustee, or where the Endowment trusteeship
falls vacant. In return for management of the Endowment, the AMAF will charge a
percentage of the annual proceeds of the Endowment as determined by the Board
of Directors.
Where a Donor who assumes trusteeship during his
lifetime passes away, his heirs must appoint a replacement Trustee and record
such appointment in the Register within thirty (30) days from the Donor’s
death, failing which the AMAF will assume the Endowment trusteeship.
a. A Trustee must,
within the time frame determined by the AMAF, submit to the AMAF periodic
reports, accompanied with supporting documents, on the state of the Endowment,
the proceeds that have been distributed among the Beneficiaries, the proceeds
deposited in the Endowment bank account, the amounts expended in preserving and
maintaining the Endowment, and any other information required by the AMAF.
b. A predecessor
Trustee of an Endowment must present to the successor Trustee a final report on
all matters related to the Endowment in which he details the information
determined by the AMAF. He must also surrender to the successor Trustee all the
funds, property, and documents of the Endowment within thirty (30) days from
the end of his trusteeship. The predecessor Trustee will remain responsible for
the preservation of the Endowed Property until it is surrendered to the
successor Trustee.
Without prejudice to any stricter penalty
stipulated in any other legislation, a Trustee who is proven to have
misappropriated or caused damage to Endowed Property or its proceeds, or have
breached his obligations and responsibilities stipulated in this Law, in the
Endowment Deed, or in the resolutions of the AMAF will be punished by
imprisonment for not less than one (1) year and/or a fine of not less than
fifty thousand Dirhams (AED 50,000.00). He must also return what he has
misappropriated where applicable.
The AMAF will identify the Family Endowments which
are recorded in its registers and whose Beneficiaries are unspecified. The
details of these Endowments will be published in two (2) widely-circulated
daily newspapers, and will be posted at the AMAF premises and at police
stations in whose jurisdiction Endowed Property is located for sixty (60) days.
Affected persons may claim their dues from the Endowment proceeds within two
(2) years from the date of publication. Any unclaimed share will constitute a separate
Endowed Property whose proceeds will be dedicated to charity. The AMAF must
return the principal of the Endowment, excluding proceeds for the previous
period of time, to its owners or to their heirs whenever they present their
claims.
a. Endowment proceeds
must, depending on the type of Endowed Property, be expended on the Beneficiary
that the Donor identifies and in the manner prescribed in the Endowment Deed or
in this Law.
b. Entitlement of a
Beneficiary will be limited to the proceeds of the Endowed Property, and will
not include the principal.
c. Subject to the Donor’s
approval if he is alive, or the AMAF’s approval where the Donor is deceased,
Charitable Endowment proceeds may be expended through channels that are not
mentioned in the Endowment Deed if this achieves public interest.
d. Where a Donor's
parent, offspring, spouse, or relative up to the fourth degree is stricken by
poverty, proceeds of a Charitable Endowment will be disbursed to that needy
person to meet his basic needs within the limits determined by the AMAF.
e. A Trustee may,
upon the Donor’s approval if he is alive or upon the AMAF’s approval if he is deceased,
expend part of a Charitable Endowment proceeds or part of the charitable share
in a Joint Endowment, or use Endowment assets for public disaster relief.
f. Endowment proceeds
will be dedicated to public charity in the following cases:
1. where the Donor does
not specify a particular disbursement channel for the Endowment proceeds;
2. where the Endowment
proceeds disbursement channels cannot be identified;
3. where the
Beneficiary is unknown or ceased to exist; or
4. where an Endowment
is rejected by the Beneficiary.
g. Where the
Endowment Deed of a Joint Endowment does not stipulate distribution of shares,
proceeds will be equally divided between Beneficiaries and public charity;
h. Proceeds of Family
Endowments will be equally divided amongst male and female Beneficiaries,
unless the Donor stipulates otherwise in the Endowment Deed.
i. Where a Family
Endowment follows a family hierarchy, and one of the Beneficiaries passes away
or forfeits his share of the Endowment, the conditions, if any, prescribed by
the Donor must be honoured in respect of that Beneficiary's share, otherwise it
will devolve on his offspring. In the absence of offspring, his share will
devolve on another person within the same family hierarchy level. In the
absence of such person, his share will devolve on the next lower family hierarchy
level. Where a child is born at the higher family hierarchy level, that
Beneficiary's share will devolve on the new-born Beneficiary effective from the
date of birth. Where no progeny is left for the Donor, proceeds of the Endowed
Property will revert to the AMAF for use in public charity.
j. Unless the
Endowment Deed stipulates otherwise, a Family Endowment which follows no family
hierarchy will expire where no Beneficiary is left.
k. Unless the Endowment
Deed stipulates otherwise, Endowed Property proceeds will devolve on heirs of
the Beneficiary upon his death. Upon extinction of the Beneficiary’s offspring,
Endowed Property will revert to the Donor himself or devolve on his heirs upon
his death. Where none manifests, Endowed Property will revert to the AMAF for
use in public charity.
A Beneficiary will forfeit his share in the
Endowment proceeds if he is convicted by a definitive court judgement of wilful
murder of the Donor, the person from whom he receives Endowment proceeds, any
other Beneficiary, or any other person whose death will lead to an increase in
the share of the Beneficiary or will expedite his entitlement to the proceeds.
Forfeiture by the Beneficiary of his share of the proceeds will not prejudice
the rights of those murderer’s offspring who did not take part in the murder if
they are entitled to such Endowment proceeds.
A claim relating to Endowment proceeds will not be
heard where the entitlement is not acknowledged and where the Beneficiary fails
to provide a valid excuse if the affected party fails to file his claim within
two (2) years of becoming aware of his entitlement or non-entitlement.
a. Endowed Property
may not be divided or apportioned among Beneficiaries. Beneficiaries may neither
dispose of nor pledge Endowed Property. A judgement may not be enforced against
it. No third party may create any principal or accessory real right or interest
over it. Any such disposition will be null and void unless authorised by law.
b. Endowed Property
will not be included in the bankruptcy estate of a Donor or Beneficiary, and
may not be subject to attachment for the purpose of repayment of the debts of
either of them.
c. Endowed Property
may not be encroached upon or confiscated. It may be expropriated only as
stipulated by law. It may not be taken possession of, and its proceeds may not
be claimed except where Beneficiaries and the Donor’s progeny ceases to exist,
in which case Endowed Property will revert to the AMAF for use in public
charity.
a. Debts owed to a
Charitable Endowment and to the charitable share in a Joint Endowment will be
deemed as privileged as public debts, will have priority over debtors’
property, and will be collected in the same manner in which public funds are
collected.
b. Charitable
Endowments and the charitable share in a Joint Endowment will be exempt from
all taxes and fees, including court fees.
c. In implementing
the provisions of penal legislation, a Charitable Endowment and the charitable
share in a Joint Endowment will be deemed Public Funds, and the paper-based and
electronic documents, records, and registers thereof will be deemed official
documents. A Trustee and those working for an Endowment will be deemed civil
servants.
Subject to the provisions of this Law, an
Endowment expires in any of the following cases:
1. where the
Endowment term specified in the Endowment Deed expires;
2. where the purpose
for which the Endowment is established as per the Endowment Deed is achieved;
3. where
Beneficiaries cease to exist;
4. where the Donor
revokes the Endowment;
5. where the Endowed
Property is dilapidated and is not replaced; or
6. where the
Endowment is invalid as proven by a definitive court judgement.
a. Expiry of an
Endowment will not prejudice any rights over the Endowment acquired in good
faith by third parties prior to its expiry.
b. Where an Endowment
expires, the Endowed Property will revert to the Donor if he is alive, or
devolve on his heirs upon his death. Where the Donor’s offspring cease to
exist, and neither he nor his heirs have any heirs, the Endowed Property will
revert to the AMAF for use in public charity.
The MBRGCEC may award the Dubai Endowment Sign to
individuals and to public and private entities that have initiatives, projects,
or sustainable Endowment-related contributions. This sign will be awarded in
accordance with the relevant rules and standards adopted by the MBRGCEC.
a. An entity that is
awarded the Dubai Endowment Sign may use the sign in all its promotional
material to inform the public about its social responsibility endeavours.
b. The Dubai
Endowment Sign will secure its holder priority in Government procurement. Government
entities in the Emirate must consider the Dubai Endowment Sign as an additional
qualifying criteria in the selection of contractors, provided that such
privilege does not conflict with the price and quality prerequisites.
a. An entity that is
awarded the Dubai Endowment Sign must submit to the MBRGCEC an annual report on
the activities based on which it was awarded the sign. This report must contain
all the information required by the MBRGCEC.
b. An entity that is
awarded the Dubai Endowment Sign must cease using the sign where the sign is
withdrawn by the MBRGCEC in accordance with the relevant rules adopted by the MBRGCEC,
otherwise the competent licensing entity may revoke the licence of any non-compliant
entity.
a. In coordination
with the MBRGCEC, the AMAF will license Endowment Foundations.
b. An Endowment
Foundation will have legal personality, and the financial and administrative
autonomy required for the achievement of its objectives.
In coordination with the MBRGCEC, the AMAF will
develop the following regulations:
1. licensing
regulations for Endowment Foundations, including the substantive and procedural
rules required for the licensing of these foundations; and
2. a governance
system for Endowment Foundations which determines the terms of reference,
management, and obligations of these foundations, as well as the measures that
must be taken against any foundation that violates the terms and obligations
stipulated in its licence.
The AMAF will supervise and audit Endowment
Foundations, and will take the necessary action against any violating
foundations, in accordance with the relevant regulations it adopts in this
respect.
The above-mentioned Federal Law No. (5) of 1985
will apply to all matters related to Gifts and their validity requirements,
effects on donor and donee, revocation, and expiry.
Donated property will be allocated in accordance
with the conditions stipulated by the donor, if any, or as determined by the
AMAF in coordination with the MBRGCEC.
The Endowment provisions of this Law will apply to
Gifts to the extent that these provisions do not conflict with the nature of
these Gifts, and with the provisions of the above-mentioned Federal Law No. (5)
of 1985.
Notwithstanding the provisions of this Law:
1. Mosque Endowments
will be registered in the name of the Islamic Affairs and Charitable Activities
Department that will assume their management and trusteeships.
2. The Jaafari
Charitable Endowments Administration Council in Dubai will assume the
management and trusteeship of the Endowments of the Jaafari sect, their places
of worship, and Husseini Obsequies.
Where this Law is silent, the legislation in force
in the UAE will apply, otherwise, the verified rules of the following schools
of Islamic jurisprudence will apply in this order: the Maliki, Hanbali,
Shaafi’i, Hanafi, then the principles of justice and equity.
The provisions of this Law do not prejudice the
provisions of the above-mentioned Decree No. (9) of 2015 on all matters related
to the raising of donations in the Emirate.
Trustees of the Endowments established prior to
the effective date of this Law must comply with its provisions within one (1)
year from its effective date. This includes to:
1. obtain Endowment
Deeds and record them in the Register; and
2. provide all
information related to Endowments as required by the AMAF.
All Government entities in the Emirate must:
1. provide the AMAF
and the MBRGCEC with the necessary support to enable them to implement the
provisions of this Law; and
2. amend the private
ownership registers of Endowed Property to render them in compliance with the
provisions of this Law.
The provisions of this Law will not preclude
implementation of the Endowment provisions applicable within the Dubai
International Financial Centre or the DIFC Courts jurisdiction in respect of
the Endowments that are registered with it.
The Board of Directors of the AMAF will issue the resolutions
required for the implementation of this Law. These resolutions will be
published in the Official Gazette of the Government of Dubai.
Any provision in any other legislation will be
repealed to the extent that it contradicts the provisions of this Law.
This Law will be published in the Official Gazette
and will come into force on the day on which it is published.
Mohammed
bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 October 2017
Corresponding to 28 Muharram 1439 A.H.
©2018 The Supreme
Legislation Committee in the Emirate of Dubai
[1]Every effort
has been made to produce an accurate and complete English version of this
legislation. However, for the purpose of its interpretation and application,
reference must be made to the original Arabic text. In case of conflict, the
Arabic text will prevail.