Saudi Arabia is positioning its centuries-old waqf (Islamic endowment) system as an innovative financing model to support sustainable development and global social investment. During the United Nations High-Level Political Forum on Sustainable Development in New York, the Kingdom highlighted how Saudi waqf development can help bridge funding gaps for development initiatives while contributing to the achievement of the UN Sustainable Development Goals (SDGs). The initiative reflects Saudi Arabia’s broader efforts to modernize traditional charitable institutions and integrate them into long-term economic and social development strategies.
For the first time, the contribution of waqf institutions was formally included in Saudi Arabia’s Voluntary National Review presented at the forum. Officials emphasized that reforms in governance, transparency, and digital transformation have strengthened the country’s endowment sector, enabling it to play a larger role in financing education, healthcare, research, community development, and social welfare projects.
Saudi Waqf Development Supports Sustainable Growth
Saudi Arabia’s General Authority for Awqaf showcased its efforts to transform traditional charitable endowments into professionally managed institutions capable of generating sustainable financial returns. Rather than relying solely on donations, modern waqf models focus on investing endowment assets to create continuous funding streams for public benefit.
A key initiative presented at the forum was the development of the Waqf Excellence Index, created in partnership with the United Nations Development Programme (UNDP). The framework aims to establish international standards for governance, transparency, operational efficiency, and impact measurement across endowment institutions, making waqf management more accountable and globally scalable.
Officials noted that strengthening governance and adopting international best practices have increased confidence in Saudi Arabia’s endowment sector. These reforms are expected to encourage greater participation from philanthropists, institutions, and private investors seeking sustainable approaches to financing development initiatives.
Modern Endowments Expand Social Investment
The modernization of waqf institutions aligns closely with Saudi Vision 2030, which emphasizes economic diversification, private-sector participation, and sustainable social development. By improving regulatory frameworks and introducing advanced management practices, Saudi Arabia aims to maximize the long-term impact of charitable assets while supporting national development priorities.
Industry experts increasingly recognize endowment-based financing as a complementary funding source alongside government budgets and private investment. Properly managed waqf assets can provide stable financial support for universities, hospitals, scientific research, environmental initiatives, entrepreneurship programs, and community infrastructure.
The continued progress of Saudi waqf development demonstrates how traditional philanthropic models can evolve to address modern economic and social challenges. By combining Islamic financial principles with professional investment management, the Kingdom is creating a framework that supports both financial sustainability and long-term public benefit.
Strengthening Global Development Partnerships
Saudi Arabia’s presentation at the United Nations reflects its ambition to share successful endowment practices with the international community. As governments worldwide seek innovative financing mechanisms to address growing development needs, the waqf model offers an alternative approach that emphasizes long-term asset preservation and continuous social impact.
The Kingdom also highlighted the importance of international collaboration in strengthening endowment governance and promoting knowledge exchange among countries interested in adopting similar financing models. Partnerships with multilateral organizations are expected to further enhance transparency, efficiency, and measurable development outcomes.
As sustainable financing becomes increasingly important to achieving global development goals, Saudi Arabia’s expanding endowment sector is positioned to play a greater international role. The continued advancement of Saudi waqf development highlights how modern governance, strategic investment, and philanthropy can work together to create lasting economic and social value while supporting inclusive and sustainable development worldwide.
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