Non-profit organizations (NPOs) are a crucial element of social and community development in any country and the United Arab Emirates (UAE) is not an exception. The UAE has seen great prosperity in the non-profit sector over the past few years creating an environment that supports social responsibility and community action. Such growth has been promoted by the strategic location of the UAE, its pledge to sustainable development and the fact that the government continues to pay attention to humanitarian issues.
In this blog, I will take you through a journey of comprehending what non profit organizations entail, the legal framework in the UAE that applies to these types of organizations and also enlighten you on some of the prominent non profit making organizations that are making a difference in the country.
What is a Non-Profit Organization?
A non-profit organization (NPO) is a collective organization established to attain a given social mission as opposed to making an income to owners or stakeholders. Non-profits do not place priority on economic benefits, but they focus on other social objectives including alleviating poverty, enhancing health, education, environmental protection and humanitarian initiatives. In most of the cases, these organizations channel any excess funding to the same cause they represent and this increases their force.
Key Characteristics of Non-Profits
It is possible to distinguish several characteristics of non-profit organizations:
- Their chief aim is to fulfill a social or a public mission instead of high profits.
- Sources of Funding: The money used to finance them is usually donated, granted, or sponsoring as opposed to sale of product or services.
- Legal Status: Non-profits are guided by certain regulations and laws, in the case of the UAE, their sensitivity is included in such regulations, so that their activities have the background oriented to social welfare and charity.
- Transparent Operations: Non-profits have to keep the operations and finances well documented so that they guide their actions in the interests of the people.
Non-profit institutions are gaining importance in the UAE, which indicates the country commitment to the universal humanitarian and development missions.
Legal Framework for Non-Profits in the UAE
The UAE has a rigid legal framework within which the non-profit organizations must operate; it is aimed at the transparency, accountability, and being in line with the national interests of the country. The main legislation applicable to the non-profits is the Federal Law No. 2 of 2017 on Civil Society Associations.
Key Provisions of Federal Law No. 2 of 2017
This law gives directions as to the formation, functionalization, and regulation of non-profits:
Types of Non-Profit Organizations Allowed
The law recognizes the existence of different types of non-profits such as:
- Canonic Conversations: civic bodies concerned with or directed toward humanitarian ends, with the provision of aids or toward social welfare.
- Cultural Associations: These are bodies that propagate the arts, appreciation of heritage and cultural values within the society.
- Professional Associations: Volunteer organizations established to help individual professionals, to increase their skills and to share knowledge.
- Youth Associations: Inclusion of associations that work to empower youth by means of promoting education, skills development and sports.
Establishment Process
In the UAE setting up a non-profit, the law entails:
- A minimum of Five Founders: Minimum of five persons have to join hands in the establishment of the non-profit.
- Application Submission: A submission must be made to the concerned government department.
- Memorandum and Association and Bylaws: The application should be accompanied by detailed documentation of the purpose describing the purpose, structure and operations of an organization.
- Final approval: The final body where approval is decided on is the Ministry of Community Development in the UAE and this is the common regulator.
Regulatory Oversight
The Ministry of Community Development is involved in the process of overseeing all non-profits in the UAE, as well as assuring national standards and goals.
Financial Regulations
Non-profits must be transparent by:
- Have Proper Financial Records: Proper accounting must be maintained.
- Annual Financial Reports: Non-profits are obliged to submit annual financial reports to the Ministry.
- Audit Requirements: Regular audits are normal in non-profits so that there is accountability in expenditure of funds.
Tax Exemptions
UAE regulations exempt in general all non-profits and non-profit organizations partial or full exemptions of corporate tax and duties on importation of goods to be utilized in the charities process. This lowers the financial requirements and allows such organizations to channel all funds towards their specific cause.
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Prominent Non-Profit Organizations in the UAE
The UAE is the place of different non-profits that have an enormous contribution within various spheres including humanitarian aid, education, health, and environmental sustainability. Here, I will dwell on some of the giants in both spheres.
1. Humanitarian Aid Organizations
Emirates Red Crescent
Emirates Red Crescent is a well-known humanitarian organization in the UAE, with an aim to provide aid, healthcare, and disaster relief on the global scale.
- Founded: 1983
- Mission: Bring relief to those that are afflicted by conflict and disasters.
- The Impact: The organization has provided relief to the areas in Asia, Africa, and the Middle East, helped refugees, constructed new schools and provided medical aid.
Khalifa Bin Zayed Al Nahyan Foundation
The KhalifaBin Zayed Al Nahyan Foundation is a charitable organization that focuses on the establishing and funding of humanitarian and social projects in different countries.
- Areas of focus: Education, health and social welfare.
- Key Achievements: Scholarships have been offered, hospitals built and infrastructure projects financed in both countries, which are economically difficult.
2. Education and Development Organizations
Dubai Cares
Dubai Cares is a UAE based organization, which aims at enhancing access to quality education to children in the developing world.
- Founded: 2007
- Focus Areas Early childhood education, a school-level infrastructure, teacher training, and technology in education.
- Projects: Dubai Cares works in 60 countries around the world by providing scholarships to students, teacher trainings and the construction of schools.
Emirates Foundation
The Emirates Foundation is a not for profit organization dedicated to empowering the youth of the UAE through the facilitation of education, innovation and entrepreneurship.
- Founded: 2005
- Youth education, skills development, and social entrepreneurship.
- Programs: Programs such as Kafa’at (a youth development program) and Think Science (STEM education promotion), are some of the programs the foundation is best known with.
3. Health and Wellness Organizations
Noor Dubai Foundation
The Noor Dubai Foundation works to eliminate blindness and to enhance eye health care access.
- Founded: 2008
- Mission: To prevent and treat blindness and visual impairments in the less privileged segment of society.
- Impact: Noor Dubai has also done medical missions in Asia and Africa and vision screening of millions of people.
Al Jalila Foundation
Sheikha Al Jalila, the Al Jalila Foundation, is named after the person and aims at developing research and treatment in the UAE.
- Founded: 2013
- Goals: Encourage research in such fields as cancer, diabetes, cardiovascular diseases and mental health.
- The funding: The foundation provides funds to healthcare professionals and researchers and sponsors treatment programs
4. Environment and Sustainability Organizations
Emirates Wildlife Society (EWS) in Association with WWF
UAE cooperates with the World Wildlife Fund (WWF) through The Emirates Wildlife Society to facilitate the need of conservation of animals in the UAE.
- Founded: 2001
- Mission: Save diversity of life, save endangered species, and promote sustainable practice.
- Projects: Keeping the ocean wildlife safe to the desert of the UAE, EWS involves itself in different projects in order to protect the natural environment of the future generation.
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FAQs
What is a charity in UAE?
It is a non-profit making organization that works socially, culturally or for humanitarian purposes.
What is the law that governs non-profits in UAE?
They are governed according to Federal Law No. 2 2017 on Civil Society Associations
What non-profits are in UAE?
The organizations are charitable, cultural, and professional, youth, education, health and environmental organizations.
What is the way to start a non-profit in the UAE?
Minimum five founders are required to submit the application through the Ministry of Community Development with the exercises of bylaws and other documents.
Final Words
It is expected that the future of the non-profit organizations in the UAE is bright. As government support augments and the concept of social responsibility becomes prominent among residents and businesses, there is a reasonable likelihood that the non-profit sector will grow even more. The UAE provides an opportunity where people and organizations can combine their efforts to resolve international issues.
Whether you are thinking of establishing a non-profit or seeking solutions to support a cause, or just keen to understand more about social initiatives, the non-profit sector in the UAE proves one thing, that positive change is on-going and possible. Non-profits in the UAE can do so through teamwork, creativity, and effort to make the world more caring, environmentally sustainable, and inclusive.
