A waqf can be one of the most durable ways to separate an asset from ordinary personal ownership and dedicate its benefit to family members, charitable purposes or a combination of both. In the UAE, however, a waqf is not simply an informal declaration that property should be preserved for future generations. It is a regulated legal structure that must be created, documented, registered and administered in accordance with the applicable federal and local framework.

The principal federal legislation remains Federal Law No. 5 of 2018 on Waqf (Endowment). The law addresses who may create a waqf, what property may be endowed, how beneficiaries are identified, how the trustee is appointed and supervised, when the founder may reserve amendment or revocation powers, how proceeds are distributed and when the waqf can end.

Local legislation also matters. Dubai, for example, has its own Law No. 14 of 2017 Regulating Endowments and Gifts in the Emirate of Dubai, while Law No. 17 of 2022 governs the Endowment and Minors' Trust Foundation, now generally referred to as Awqaf Dubai. The competent authority and procedural requirements should therefore be confirmed for the emirate in which the waqf is being created or administered.

What is a waqf?

The federal law defines a waqf as the dedication of a benefit, or the dedication of a benefit together with the detention and preservation of the underlying endowed property. The founder is referred to as the Settlor or Waqif.

The federal definition expressly recognises that the settlor may be a natural person—Muslim or non-Muslim—or a legal person. The beneficiary may also be a natural or legal person, an initiative, a project or another permitted channel for distribution.

Conceptually, the structure separates the enduring asset from the benefits generated by it. The principal is preserved in accordance with the waqf deed, while rent, dividends, investment returns or other benefits are applied to the beneficiaries and purposes chosen by the founder.

Family, charitable and mixed purposes

A waqf can be used for family succession, philanthropy or both.

A family waqf may benefit the founder, descendants, relatives or other named or described persons. A charitable waqf dedicates its benefits to permitted charitable purposes. A joint or mixed structure may combine family and charitable elements.

The distinction is important because revocation, beneficiary succession, supervision and ultimate destination of the property may differ depending on the type of waqf and the wording of the certificate.

The waqf deed is the constitutional document of the structure

Article 9 of the federal law places the waqf certificate at the centre of the legal structure. The founder or legal representative must complete the procedures for obtaining the waqf certificate from the competent court and entering it in the relevant register.

The certificate should identify matters including:

  • the founder and the founder's legally valid intention to create the waqf;
  • the endowed property;
  • the beneficiaries and, where relevant, their successive generations or classes;
  • the permitted channels for distribution;
  • the founder's conditions;
  • the trustee;
  • the trustee's remuneration;
  • the authority to which financial reports and records are to be submitted; and
  • the duration of the waqf where it is temporary.

Article 9 gives the founder's valid conditions substantial legal importance. The founder's condition is treated as binding within the framework of the law and other applicable legislation, and ambiguity is interpreted by reference to the wording and context of the certificate.

The founder's most important legal work is done before registration. A well-drafted waqf certificate determines who benefits, who controls administration, which powers are reserved and what happens when circumstances change.

Registration is not merely administrative

Registration gives the waqf its formal legal effect. Federal Law No. 5 of 2018 recognises the waqf as having legal personality and financial and administrative autonomy after registration, together with the right to litigate in that capacity.

The UAE's new Civil Transactions Law, Federal Decree-Law No. 25 of 2025, effective from 1 June 2026, also expressly recognises endowments as legal persons. A legal person has an independent financial patrimony, legal capacity within the limits of its constitutive instrument and applicable law, a domicile and the right to sue and be sued.

This legal separation is central to the asset-protection and succession features of a waqf. Once properly constituted, the endowed property is no longer treated simply as an unrestricted personal asset of the founder or beneficiary.

The founder must have capacity and ownership

The law does not permit a person to create a waqf over property that he or she does not own or has no legal right to dispose of.

For an individual founder, the federal rules require legal capacity and ownership or lawful dispositive authority over the proposed endowed property. For a legal-person founder, the decision must be made by an authorised representative acting within the entity's powers.

These requirements should be tested carefully where the proposed asset is:

  • jointly owned real estate;
  • shares in a private company;
  • property subject to financing;
  • an asset held through a nominee;
  • an usufruct or other limited right;
  • an asset outside the UAE; or
  • property already subject to attachment, mortgage or another restriction.

A waqf cannot be used to defeat existing creditors

The federal law places creditor protection directly into the validity rules.

A founder who owes a pre-existing debt that equals or exceeds the value of the proposed waqf, or whose remaining assets would be insufficient to satisfy that debt, cannot validly place the property into waqf without the creditor's approval in the circumstances described by the law.

The founder must also not create the waqf for the purpose of evading payment of debt, defeating a pre-emption right, circumventing inheritance rules or violating public order.

For legal advisers, this means solvency and creditor due diligence should form part of the establishment process rather than being treated as a later enforcement issue.

Death-bed and post-death waqf require additional care

The 2018 federal law contains protective rules designed to prevent a waqf from being used to bypass succession rights.

Where a founder is terminally ill, the law restricts a waqf benefiting persons other than heirs to the statutory one-third framework unless the heirs approve the excess. Article 9 likewise provides that a waqf established to take effect after the founder's death cannot exceed one-third of the founder's property at the relevant point, subject to the applicable rules.

Anyone using a waqf as part of estate planning should therefore coordinate it with wills, inheritance planning, family-company arrangements and any other lifetime transfers.

What property can be endowed?

The federal law uses a broad concept of endowed property, covering property, benefits and rights that are legally capable of being endowed.

However, the property must satisfy statutory requirements. The federal text addresses issues including ownership, legal usability, preservation of the asset and restrictions where property is mortgaged, attached or jointly owned.

In Dubai, the local law expressly recognises a broad range of endowed property including movable and immovable property, shares, stocks, bonds, securities, usufruct rights, tenancy rights and other personal, real and moral rights capable of being endowed under the legislation.

The right structuring method depends on the asset. Endowing a rental building is not the same legal process as endowing shares in a family company or an investment portfolio.

Real estate requires title and registry coordination

Where real estate is to be endowed, the waqf process must be coordinated with the relevant land-registration authority and any emirate-specific property rules.

Before establishment, advisers should verify the registered owner, existing mortgages and encumbrances, co-ownership restrictions, the ability to transfer or register the asset as waqf property, permitted use, development obligations, service charges and maintenance liabilities, and whether the proposed term is compatible with the property's legal status.

A waqf deed cannot cure a title defect. The property and waqf records should reflect the same legal structure.

Family company shares can be placed into waqf

Article 32 of the federal law expressly permits a family waqf to be established for the purpose of owning shares or stocks in a family company.

This can be a powerful succession tool because ownership of the family-company interest can be stabilised within the waqf while distributions are directed to family beneficiaries.

However, Article 32 requires the company's constitutional documents to be amended to reflect the ownership change. The director of the family company may also act as trustee, subject to the waqf-law requirements.

A beneficiary of a family-company waqf cannot simply demand physical partition or withdrawal of his or her interest beyond what the waqf certificate permits.

For a temporary family-company waqf, the law also allows beneficiaries or successors holding at least three-quarters of the waqf benefits to agree to extend the term for equivalent periods before expiry, unless the certificate provides otherwise.

The founder can retain significant rights—but only if drafted correctly

A common misconception is that a founder necessarily loses every form of influence once a waqf is created. The federal law permits meaningful founder control, but many powers must be expressly reserved.

The founder can appoint the trustee, determine the method of future trustee appointment and act as trustee personally.

For a family waqf, Article 11 also allows the founder during his or her lifetime to revoke the waqf, amend the certificate or replace the endowed property where that right has been reserved in the waqf certificate.

Any revocation or amendment must be formalised through the competent court and registered in accordance with the statutory requirements.

A permanent waqf cannot simply be revoked

The founder's reserved flexibility has a clear boundary. Article 11 provides that where the waqf is permanent, it may not be revoked.

This makes the choice between a permanent and temporary waqf commercially important. A founder seeking long-term family governance but also wishing to preserve an exit route should not use “permanent” language without understanding its consequences.

The deed should address whether the waqf is permanent or for a defined term, whether the founder reserves revocation rights where legally permitted, whether the founder may amend beneficiary classes, whether assets may be replaced, who can appoint and remove trustees, what happens after the founder's death, and which powers become irrevocable on a stated event.

The court can permit exceptional founder relief

Article 11 also contains an exceptional rule for a founder who falls into destitution and requires the endowed property. In the circumstances stated by the law, the founder may seek permission from the competent court to revoke the waqf or amend its conditions even where the relevant power had not originally been reserved.

This is a judicial exception, not an automatic founder right. The founder should not structure a waqf on the assumption that the court will later release assets whenever personal liquidity is needed.

Every waqf needs a trustee

Article 12 requires each waqf to have a trustee. The founder may appoint the trustee directly or specify the method by which a trustee will be appointed. The founder may also serve as trustee.

The trustee can be one or more persons, subject to the requirements of the law and any local regulations.

Where succession planning is important, the certificate should not stop at naming the first trustee. It should establish a workable method for appointing a successor trustee, filling a vacancy, handling temporary incapacity, appointing multiple trustees, resolving deadlock, removing a trustee, determining remuneration, and transferring records and control to the successor.

The trustee owes preservation and management duties

Article 15 sets out core trustee obligations. The trustee must comply with valid founder conditions, preserve the endowed property against loss or damage, maintain and administer the waqf for its intended purpose, distribute benefits to beneficiaries and exercise due diligence in developing and investing the property.

The law places preservation ahead of distribution. Repair and preservation expenses are to be addressed before proceeds are distributed to beneficiaries.

The trustee is also restricted from disposing of endowed property unless the disposal is necessary for the waqf's preservation or interest and the required written approval is obtained from the competent authority.

Investment should preserve the waqf, not merely maximise current income

A trustee's investment mandate is not equivalent to managing an ordinary personal portfolio. The objective is to preserve and develop the endowed property while serving the founder's lawful purpose and beneficiary interests.

The federal framework permits reserves to be set aside from net waqf proceeds for construction, maintenance and investment in specified circumstances. Article 23 regulates reserves for development and maintenance and provides mechanisms where a charitable waqf cannot otherwise fund necessary preservation works.

For a substantial investment waqf, the deed and governance policy should therefore address risk tolerance, asset diversification, liquidity, capital preservation, permitted investment parameters, related-party investment, valuation, investment manager appointment, reserves, distribution policy and conflict-of-interest controls.

Beneficiaries are entitled to proceeds, not automatic ownership of the principal

The core waqf concept is that beneficiaries receive the benefits of the endowed property according to the certificate rather than treating the principal as property available for individual partition.

Article 25 of the federal law requires waqf proceeds to be spent on the beneficiaries designated by the founder in accordance with the nature of the property and the waqf certificate, under the supervision and control of the competent authority.

Dubai's local law states the principle particularly clearly: a beneficiary's entitlement is limited to the proceeds of the endowed property and does not extend to the principal.

This distinction is especially important in a family waqf. A beneficiary may receive rent or dividends while having no unilateral right to sell the building or demand distribution of the underlying shares.

Beneficiary drafting should anticipate several generations

A family waqf should avoid defining only the first generation if the commercial objective is long-term succession.

The certificate should consider children and future children, grandchildren and later generations, spouses, beneficiaries who die before distribution, minors, beneficiaries lacking capacity, education or medical distributions, needs-based versus equal distributions, what happens if one family line becomes extinct, and the ultimate charitable destination if no family beneficiaries remain.

Ambiguous beneficiary language is one of the clearest ways to turn a succession tool into a later family dispute.

The founder's condition is powerful but not unlimited

The law respects lawful founder conditions, but an illegal condition does not become enforceable merely because it appears in the certificate.

Article 9 provides the founder's conditions with strong binding force within the statutory framework, while Article 10 addresses invalid conditions that conflict with law, the nature of waqf or beneficiary interests.

A founder should therefore avoid conditions designed to defeat creditors, circumvent mandatory inheritance protections, require illegal conduct, make effective administration impossible, destroy the economic value of the endowed asset, or create conflicts that cannot be reconciled with the waqf's purpose.

Trustee removal is a governance safeguard

Article 20 gives the founder the right to remove a trustee whom the founder appointed. The competent court can also remove a trustee or appoint another trustee where the circumstances require judicial intervention.

This is important because a waqf can last for many years. Even a trusted family member may later become incapable, conflicted, negligent or unable to work with the beneficiary group.

The deed should establish objective governance triggers, including incapacity, serious breach of duty, failure to provide accounts, conflict of interest, criminal dishonesty, loss of professional licence where relevant, persistent deadlock and failure to protect or maintain the endowed property.

Trustee succession after the founder's death

The federal law contains a specific mechanism where the founder had appointed himself as trustee and dies without appointing a successor.

Article 21 gives the founder's successors a defined period to appoint a new trustee and amend the waqf certificate. If they fail to do so, or there are no successors, the competent authority can appoint a replacement in accordance with the statutory process.

Good drafting should avoid reliance on that default mechanism by naming a successor process from the beginning.

Accounts, reporting and oversight matter

A substantial waqf should be administered with the same level of discipline expected of a professionally managed asset-holding structure.

The certificate should specify the reporting authority and the trustee should maintain adequate records of income, expenditure, investments, maintenance, distributions, reserves and major transactions.

The current federal institutional framework is supported by Federal Law No. 2 of 2024 Regarding the General Authority of Islamic Affairs, Endowments, and Zakat. The Authority's stated objectives include promoting the role of endowments in economic and social development and enhancing governance of endowment management. The law also recognises that an emirate's endowments may be incorporated into the federal Authority upon request of the emirate and Cabinet approval.

In practice, however, the relevant competent authority must still be identified by emirate because local entities may have direct supervisory responsibilities.

Dubai has a detailed local governance regime

Dubai is a useful example of the local layer.

Law No. 14 of 2017 applies to endowments established in the emirate by Muslims and non-Muslims. It requires an Endowment Deed to be recorded in the Register and gives a valid registered endowment legal personality, financial and administrative autonomy and the capacity to sue and be sued.

The Dubai law also expressly permits family, charitable and joint endowments; temporary and permanent structures; the donor to act as trustee; revocation or amendment where that power is reserved in the deed; the donor to reallocate beneficiaries during life in the circumstances permitted by the law; and legal-person trustees.

Law No. 17 of 2022 then gives Awqaf Dubai broad supervisory and administrative functions. These include registration, trusteeship where no trustee is available, supervision of trustees, governance of endowment foundations, administration and maintenance, investment and substitution of property, and distribution of proceeds.

Sale or substitution of endowed property is exceptional

The general principle of waqf is preservation of the endowed asset. Sale, mortgage and other dispositions that undermine that preservation are restricted.

However, the law recognises that rigid preservation of an unusable asset can defeat the waqf's purpose. The federal law and local frameworks therefore contain mechanisms for sale, replacement or investment where necessary to preserve value and benefit.

Dubai's 2022 legislation, for example, allows Awqaf Dubai in specified circumstances to sell or replace an endowed asset that ceases to be usable, lacks financial support or becomes exposed to destruction, with the replacement asset or investment continuing to serve the original endowment channels.

This is commonly known as substitution or replacement of waqf property. It should be treated as a preservation tool, not as ordinary portfolio trading.

Can proceeds be redirected if the original purpose no longer works?

The federal law permits limited flexibility where strict adherence to the original channel is no longer workable or where charitable surplus exists.

Article 25 provides that surplus charitable-waqf proceeds may, in qualifying circumstances, be used for other charitable channels if this serves charitable purposes, subject to the required founder or court approval.

The law also contains mechanisms for circumstances where the founder failed to specify a distribution channel or the beneficiary can no longer be identified.

The governing principle is preservation of the founder's lawful intention as far as reasonably possible rather than allowing the waqf to fail merely because circumstances changed.

When does a waqf terminate?

Article 30 of the federal law lists the principal termination events.

  • the term stated in the waqf certificate expires;
  • the stated waqf purpose has been achieved;
  • the beneficiaries of a family waqf cease to exist;
  • the founder validly revokes a non-permanent waqf where the revocation right was reserved;
  • the property breaks down or can no longer be maintained, sold, replaced or beneficially used in a way that provides appropriate proceeds; or
  • the waqf is declared invalid by a final court judgment.

What happens to the property after termination?

Under Article 30, where the waqf ends, the endowed property generally returns to the founder if the founder is alive or to the founder's successors if the founder has died.

If there are no successors, the structure becomes charitable and the competent authority manages it and applies its income accordingly.

The law also protects bona fide third-party rights acquired before a final judgment ending or invalidating the waqf.

Dubai's local law follows a similar overall structure: expiry can occur because the term ends, the purpose is achieved, beneficiaries cease to exist, the donor revokes where legally permitted, the asset becomes unusable and is not replaced, or the endowment is invalidated by final judgment.

Termination planning should be drafted at creation

Waiting until termination to decide what should happen is a poor governance strategy.

The deed should specify the duration, events of early termination, whether and when the founder may revoke, successive beneficiaries, the ultimate charitable destination, who determines that the original purpose has become impossible, how assets are valued, who pays liabilities and administration costs, how third-party contracts are closed, and how the remaining property is transferred or re-endowed.

A waqf should not be confused with a trust

The UAE also has a separate federal trust regime, now governed by Federal Decree-Law No. 31 of 2023 Concerning Trust. A trust can also separate assets, appoint trustees and benefit family members or charitable purposes, but it is legally distinct from a waqf.

The choice between a waqf, trust, foundation, family company or combination of structures should depend on the client's purpose, religion or personal preference, location of assets, succession objectives, governance model, tax position and desired degree of founder control.

A lawyer should not treat these structures as interchangeable simply because all can be used in wealth and succession planning.

Common waqf drafting mistakes

Failing to reserve founder powers

A founder who expects to amend beneficiaries, replace property or revoke a family waqf later should not assume those powers exist automatically. The certificate should reserve them where the law requires express reservation.

Calling a waqf permanent while expecting an exit

The federal law prevents revocation of a permanent waqf. The duration must match the commercial objective.

Using vague beneficiary language

Family succession needs clear rules across generations, not merely a list of today's beneficiaries.

Appointing a trustee without a succession mechanism

A long-lived waqf needs a replacement and removal process.

Ignoring company-law documents

If shares are endowed, the company's constitutional documents and ownership records must be coordinated with the waqf.

Ignoring creditors

A waqf cannot be used safely as a last-minute transfer after financial distress has already arisen.

Over-distributing income

Maintenance and preservation requirements can take priority over beneficiary distributions. A distribution policy should leave sufficient liquidity to protect the principal.

Failing to plan for asset substitution

A real-estate waqf can lose economic purpose if a building becomes obsolete and the deed provides no practical governance for replacement.

A practical waqf establishment checklist

  1. Define the objective. Family succession, charity, asset preservation, business continuity or a combination.
  2. Choose the legal type. Determine whether the structure is family, charitable, joint, temporary or permanent.
  3. Identify the competent emirate and authority. Confirm local procedures before drafting.
  4. Check founder capacity and solvency. Review ownership, creditors and succession constraints.
  5. Audit the assets. Confirm title, mortgages, co-ownership and transfer restrictions.
  6. Design beneficiary classes. Include future generations and fallback beneficiaries.
  7. Reserve founder powers expressly. Address amendment, revocation, replacement and trustee appointment where legally permitted.
  8. Build trustee succession. Provide removal, replacement, incapacity and deadlock mechanisms.
  9. Set an investment and reserve policy. Protect capital and fund maintenance before distributions.
  10. Coordinate company documents. Amend corporate records where company shares are endowed.
  11. Complete court certification and registration. Ensure the formal waqf and asset records match.
  12. Establish reporting and governance. Accounts, valuations, beneficiary statements and regulatory reports should begin immediately after establishment.
  13. Plan termination now. Define what happens if the term ends, beneficiaries disappear or the original purpose becomes impossible.

Key takeaway

A UAE waqf can combine long-term asset preservation with family succession and philanthropy, but its strength depends heavily on the quality of the deed and governance framework.

Federal Law No. 5 of 2018 gives the founder substantial ability to define beneficiaries, appoint the trustee, establish conditions and—where properly reserved and legally permitted—amend or revoke a family waqf. At the same time, the law protects creditors, restricts attempts to circumvent inheritance rules, imposes trustee duties and preserves the principal for the stated waqf purpose.

The most effective structures are created with the full life cycle in mind: establishment, registration, asset management, distributions, trustee succession, founder incapacity or death, beneficiary changes, property replacement and eventual termination.

HZ Legal can assist individuals, families, family businesses, charitable founders and institutional stakeholders with UAE waqf establishment, deed drafting, family-company waqf structures, beneficiary planning, trustee governance, amendments, disputes, asset substitution and termination.

Official and authoritative sources

This article provides general information only and does not constitute legal, Sharia, tax or estate-planning advice. Waqf requirements can depend on the emirate, asset type, family circumstances, founder capacity, creditor position, inheritance considerations, local registration procedures and the exact drafting of the waqf certificate. Specific advice should be obtained before establishing, amending, funding or terminating a waqf.