RIYADH: In 2024, the net assets of Saudi Arabia’s licensed endowment investment funds hit a record SR1 billion ($266.67 million), a 29.3% rise over the year before. The General Authority for Endowments claims that this increase comes after the 2023 record, which broke the half-billion riyal threshold. The licensing of five additional firms was credited with the asset growth, increasing the total to 34 endowment investment funds—27 of which are public and seven of which are private.
In the Kingdom, endowment funds are essential for promoting sustainable development since they offer the funding for long-term initiatives that tackle pressing societal issues. These reserves are created by investments in which the principal is kept constant while the profits are allocated to a range of development and charity projects. This strategy guarantees a steady flow of funding for social welfare and other essential areas like infrastructure, healthcare, and education.
Endowment funds in Saudi Arabia are Shariah-compliant and created to support the Kingdom’s economic growth objectives. They are employed to fund public welfare projects, such as the construction of educational facilities, the provision of healthcare assistance, and the financing of infrastructure projects that enhance communities throughout the Kingdom.
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