The Commitment of Waqf Institutions to Apply the Governance Principles and the Factors Affecting Them in Saudi Arabia

Abstract

The study aims to analyze the reality of the governance of waqf (Endowments) institutions in Saudi Arabia. It includes defining the governance principles of waqf institutions in KSA, measuring the extent to which the waqf institutions adhere to those principles in addition this study helps determining the predictive factors affecting the levels of commitment to the principles of governance in waqf institutions in KSA. The study relied on mixed research method (qualitative and quantitative). The interviews were conducted with nine experts and specialists in governance and Endowments, and questionnaire was also built, where quantitative data was collected from an intentional sample and collecting responses from 307 people from endowers (waqif), waqf managers, and specialists in waqf institutions, then the data were tested using SPSS and Smart-PLS. The study concluded the formulation of five principles of governance in the waqf institutions: the availability of an effective framework related to governance, the protection of the rights of the endower and the beneficiaries from waqf, the definition of the powers and responsibilities of the guardian council, the level of transparency and disclosure, and the protection of the rights of stakeholders. The results showed that all axes and paragraphs had a general arithmetic average greater than 4.00 and an approval rate higher than 80%, indicating the importance of these axes to adhere to the principles of governance in waqf institutions in KSA. ​It also revealed predictive factors affecting levels of commitment to applying the governance principles, as the results showed the presence of demographic variables influencing statistically significant differences in the total commitment to the principles of governance. These factors are represented in the age of the waqf, the bodies supervising the waqf institutions, the number of members of the council guardian, and the periods of convening of the council of guardian; While the variables: the size of the endowment, the type of endowment, according to its banks or according to its origin, have no significant effect.