New rules unveiled on Saudi family funds

Ahmed Al-Suwailem, the CEO of the NCNPS. (Supplied)

Nasser Al Gharbi, Chairman of the Board of Directors of the Economic Families Association. (Supplied)

• The new regulations would help to “facilitate procedures and achieve important gains”
• A previous requirement for the presence of a supervisor in financial transactions has been abolished‎

RIYADH: An updated package of rules relating to Saudi family funds was on Friday launched by the National Center for Non-Profit Sector.
In a statement, officials said the new regulations would help to “facilitate procedures and achieve important gains.”
Under the rules, families will now be allowed to set up more than one fund, and center-approved donations from non-family members will also be permitted.
In addition, a previous requirement for the presence of a supervisor in financial transactions has been abolished‎.
Ahmed Al-Suwailem, the center’s CEO, said: “The updates reflect the important role that family funds play in strengthening ties of kinship, and spreading the spirit of harmony and solidarity among members of the same family.
“The updates come within the framework of the efforts of the NCNPS to enable sustainable financial targets, and to ensure the governance of procedures in the activities of family funds,” he added.
Nasser Al-Gharbi, chairman of the Economic Families Association’s board of directors, said: “These funds contribute to strengthening the role of the non-profit sector — the third sector — and enhance the collective work, and contribute to the social responsibility, of these family funds.”