ANALYSING THE RELATIONSHIP BETWEEN GOVERNANCE PRINCIPLES AND ENDOWMENT INSTITUTION ORGANISATIONAL STRUCTURE: EVIDENCE FROM SAUDI ARABIA’S ENDOWMENT SECTOR

Mohamed Sharif Bashir; Zohoor Abdallah Mahmoud  Hussin; Mahmoud Mohamed Ali Mahmoud Edris

doi:10.33102/mjsl.vol14no2.1462

Authors

Mohamed Sharif Bashir Applied College, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia https://orcid.org/0000-0001-5110-8503
Zohoor Abdallah Mahmoud Hussin Applied College, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia
Mahmoud Mohamed Ali Mahmoud Edris Faculty of Syariah and Law, Universiti Sains Islam Malaysia (USIM) Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia / Academic Advisor, Faculty of Shariah and Law, University of Dongola, P.O. Box 47, Dongola, Northern State, Sudan

DOI:

https://doi.org/10.33102/mjsl.vol14no2.1462

Keywords:

Endowment governance, waqf regulations, governance principles, organizational structure , endowment institution

Abstract

This study examines the relationship between the principles of governance—represented by transparency, oversight, accountability and commitment—and the organisational structure of endowment institutions in Saudi Arabia, with particular emphasis on how these principles contribute to enhancing organisational effectiveness. The descriptive and analytical approach was employed to achieve the research aims and answer the research questions, as it is best suited to the nature of this exploratory and analytical study of current governance practices and procedures in Saudi endowment (waqf) organisations, institutions and foundations. Data were collected from 108 professionals in the Saudi waqf sector at various levels, including senior, executive, supervisory and advisory managers; board members; and interested waqf researchers. The study produced several significant findings, most notably a strong correlation between the four governance principles and the organisational structure. Transparency, oversight, accountability and commitment were found to have a positive impact, albeit to varying degrees, on the organisational structure of endowment institutions. These results reflect a generally strong level of implementation of governance principles within the Saudi endowment sector. This study suggests that Saudi Arabia establish a regulatory framework for endowments, which could serve as a motivator for successful Saudi Arabian initiatives to oversee endowment organisations and promote accountability and transparency in the endowment sector. This could inspire similar global initiatives in the endowment sector, encouraging sustainable endowment development and persuading endowment foundations and institutions to prioritise governance in their organisational and legislative agendas, ultimately increasing the sector’s contribution to economic growth and global stability.

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