RIYADH: Saudi Arabia’s endowment investment funds have experienced significant growth, with the number of licensed funds increasing by 13 in 2023, reaching a total of 24, as reported by the General Authority of Awqaf. In a newly released report, the authority revealed that this expansion has pushed the net assets of endowment investment funds in the Kingdom beyond the SR500 million ($133 million) milestone for the current year. This aligns with the government’s strategic objectives to advance the financial sector and streamline the licensing processes for various products. Furthermore, this growth is expected to encourage individuals and entities to further expand their involvement in various areas of endowment investment across the Kingdom. Endowment funds feature precise mechanisms that enable them to contribute to sustainable development and implement best practices by participating in various projects that cater to society’s needs. Moreover, by presenting work programs that prioritize achieving the highest return, endowed amounts will effectively address social and developmental needs. Among the most prominent fund managers, Al Rajhi oversees 10 funds, including the Holy Quran Memorization Associations Fund, the Orphan Associations Fund, the Eastern Region Associations Fund, the Autism Associations Fund, and the Health Associations Fund. Alinma Investment also manages 10 funds, including the Wareef Endowment Fund and Bir Ariyadh Endowment Fund. In December, the authority signed an agreement with the Council of Non-governmental Organizations to launch five investment endowment funds worth SR186 million during the first quarter of 2023, as reported by the Saudi Press Agency. These funds aim to achieve financial sustainability for non-governmental organizations and enhance their developmental role. At that time, the SPA reported that Awqaf and the Capital Market Authority were in discussions about the operation of endowment funds and the challenges they face, including limited diversification of investments, often focused solely on the real estate sector, which increases risks. Established as a public authority, Awqaf seeks to enhance the role of endowments in economic and social development, as well as social solidarity.