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Wednesday, May 21, 2025

UAE Leads Gulf in Charitable Spending

UAE Leads Gulf in Charitable Spending

The UAE is positioned as a leader in charitable contributions, with substantial investments in humanitarian initiatives both domestically and internationally.
The United Arab Emirates (UAE) has emerged as a leader in charitable and humanitarian spending within the Gulf and Arab regions, reflecting support from its leadership for social responsibility initiatives, particularly during the month of Ramadan.

This prominence comes alongside the announcement by President Sheikh Mohammed bin Zayed Al Nahyan of 2025 being designated as the 'Year of Community' under the theme 'Hand in Hand', which aims to strengthen the vision of the leadership toward building a cohesive and prosperous society—a continuation of initiatives from the founding rulers.

Globally, the UAE is recognized as a nation of humanitarian giving, with residents inclined to donate to government entities and licensed charities, benefitting lower-income groups and fostering overall economic growth.

According to the Interregional Strategic Analysis Center in Abu Dhabi, charitable spending in the UAE is anticipated to witness substantial growth in 2025, spurred by projected national economic growth of between 4% and 6%.

Data compiled by Interregional indicates that investments in charitable endowments within the UAE have seen significant growth in recent years.

In a related initiative, Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum launched the 'Mother's Endowment' campaign in 2024, with a value of one billion dirhams, coupled with community contributions exceeding 1.4 billion dirhams.

Additionally, he initiated the 'Billion Meals Endowment' project, also valued at one billion dirhams, intended to create a food security network for those in need worldwide, alongside the 'Father's Endowment' program, aimed at providing health care and treatment for the poor, exemplifying the UAE government's leadership in humanitarian efforts.

The General Authority of Islamic Affairs and Endowments indicated that in 2017, the total endowment assets it managed was two billion dirhams, while in Dubai, this figure reached 10.3 billion dirhams by 2023. These figures reflect the UAE's commitment to fostering a culture of charitable endowment and developing investments to support various societal and humanitarian sectors.

The proceeds from these endowments are utilized to implement educational projects in the most in-need communities in the country, with the goal of empowering individuals and providing them with the necessary skills for a dignified and independent life.

Interregional noted that the UAE continues to show a significant commitment to promoting charitable and humanitarian activities both domestically and internationally.

As of September 2022, there were 40 licensed and accredited charitable organizations in the UAE authorized to receive and distribute donations both within and outside the country.

By the first half of 2024, the Emirates Red Crescent had executed humanitarian and developmental programs valued at 424 million dirhams, benefiting approximately 15 million individuals.

This underscores the commitment to providing aid and assistance to those in need both domestically and globally, enhancing the values of humanitarian solidarity.

The UAE is considered one of the world's foremost countries in humanitarian and charitable work; reports from international specialized organizations have ranked it as the best country in providing humanitarian aid.

Since the establishment of the federation in 1971 up until mid-2024, the UAE has provided external aid exceeding 360 billion dirhams (around 98 billion dollars), demonstrating its ongoing commitment to supporting global humanitarian efforts.

The UAE has consistently ranked first globally as the largest donor of foreign aid as a percentage of its national income, at 1.31%, which is more than double the United Nations’ required rate of 0.7%.

These accomplishments illustrate the UAE's dedication to enhancing humanitarian and charitable work both locally and globally, reaffirming its prominent position in this field.

Furthermore, according to World Bank estimates, global zakat funds amount to approximately 600 billion dollars annually, representing a significant boost to economies and could be utilized to support underprivileged regions while alleviating pressure.
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