RIYADH: Saudi Arabia’s General Authority of Awqaf has signed an agreement with the Council of Non-governmental Organizations to launch five investment endowment funds worth SR186 million ($49.4 million) during the first quarter of 2023, according to the Saudi Press Agency. The funds aim to achieve financial sustainability for NGOs and further enhance their developmental role. The total assets of investment endowment funds increased by 22 percent during the second quarter of this year when compared to the same period last year. Meanwhile, the average performance of the funds since incorporation reached 12.9 percent compared to their benchmark of 5.45 percent. The five funds are the Holy Quran Memorization Associations Fund, the Orphan Associations Fund, the Eastern Region Associations Fund, the Autism Associations Fund, and the Health Associations Fund. Representatives of the associations have also signed agreements to manage the funds with Al Rajhi Financial Group, which was represented by CEO Walid bin Hamad. Under the agreement, the partners will work hand in hand in mobilizing resources for specialized and regional endowment investment funds and backing them to achieve financial sustainability. They will also cooperate to boost the contribution of the funds to the development of the non-profit sector and create capabilities to further activate their role in society. Awqaf and the Capital Market Authority are in talks over the work of the endowment funds and the challenges they face, such as not diversifying their investments and only investing in the real estate sector which increases risks, Al-Eqtisadiah reported citing Deputy Governor Abdul Rahman Al-Aqil. The management and operation of these investment endowment funds have been entrusted to specialized financial companies with high competence in managing funds. The CMA will also help by providing control tools related to the performance of these funds, Al-Aqil disclosed. Awqaf works with its partners to achieve financial sustainability for civil endowment and non-profit entities. In order to do so, the authority provides financial capabilities and strengthening companies with relevant authorities to develop, empower civil associations, promote endowment work, and achieve its national goals. Established as a public authority, Awqaf aims to enhance the role of endowments in economic, social development, and social solidarity.