United Arab Emirates Expert: Anonymous with Contributions from Staff at the Indiana University Lilly Family School of Philanthropy
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United Arab Emirates Expert: Anonymous With contributions from staff at the Indiana University Lilly Family School of Philanthropy QUICK FACTS Legal forms of philanthropic organizations included in the law: Public-welfare Associations (Institutions of Public Benefit), Charitable Societies, Nonprofit Organizations, and Nonprofit Incorporated Organizations Five main social issues addressed by these organizations: Higher Education, Basic Needs, International Causes, Food, Religion, Environment The lines are very blurred here. Only few private foundations address these issues; there are very few charities because of the difficulties of registration. Average time established by law to register a philanthropic organization: 31-60 days Average cost for registering a philanthropic organization: US $0 Government levels primarily regulating the incorporation of philanthropic organizations: Federal, State (Emirates) Philanthropic organizations need to register at federal or state level according to their levels of operation. POs operating at the federal level register with the Ministry of Social Affairs, while POs operating in the Emirates of Dubai needs approval from local authorities such as the Islamic Affairs and Charitable Activities Department. Other authorities in Dubai include the International Humanitarian City (for organizations operating in the IHCs). Philanthropic Environment Scores: Ease of Tax Cross-Border Political Socio-Cultural OVERALL Year Operating Incentives Flows Environment Environment SCORE 2018 2.8 4.3 3.5 3.0 4.0 3.52 1 THE GLOBAL PHILANTHROPY ENVIRONMENT INDEX I. Formation/Registration, Operations, Dissolution of a Philanthropic Organization (PO) The three questions in this section pertain to the laws and regulations governing philanthropic organizations (POs). The scoring questions for this category cover three aspects of regulations: (A) formation and registration, (B) operations, and (C) dissolution. Question 1: To what extent can individuals form and incorporate the organizations defined? Score: 3.0 UAE is a federal state. Emirates (states), especially Dubai and Sharjah, have separate laws. Article 33 of the Constitution of the UAE guarantees the freedom of assembly and association; however, philanthropic organizations face many burdensome restrictions on the right of association (Freedom House, 2016). In October 2016, the UAE government passed the Federal Law Decree No 8 of 2016 stating, “that anyone found guilty of establishing an organization aimed at 'overthrowing the government' or 'fighting against constitutional principles' will face the death penalty or life imprisonment. Organizations that endanger state security are also outlawed” (CIVICUS, 2016). Article 2 of the Federal Law No 2 of 2008 Concerning Public Welfare Associations and Organizations establishes that Public Welfare Associations and Organizations will have social, religious, cultural, scientific, educational, professional, feminist, creative or artistic purpose. They will provide humanitarian services; achieve any benevolent aim; or achieve solidarity whether by financial, material or technical assistance; and seek only public welfare in all its activities without attaining material benefits (Article 2). To establish a public association, there shall be at least 20 founders. Founders must be least 18 years old, UAE citizens, demonstrate good conduct and name, and have not been previously sentenced to custodial penalty in a felony or misdemeanor that infringes honor or integrity (Article 3). The law clearly states the required documents for registration, including a copy of the organization’s articles of association, minutes of the founder’s meeting signed by the attendees, and the decision of the ad hoc committee authorizing one of its members to submit the registration papers (Article 6). The Ministry of Social Affairs must decide the approval or rejection of applications for registration within 60 days from date of submission (Article 7). If rejected, an ad hoc committee established by the funders of the public association may raise a complaint within 180 days from the date of receiving notice, and the final decision shall be delivered within another 180 days from the date of the submission (Article 8). The 60 day-deadline established in the law rarely applies in reality. Registration is entirely up to the government and there is no guarantee that the license to operate will be obtained, even in cases of subsidiaries of big international NGOs. Public associations and institutions of public benefit and social solidarity funds must apply to the Ministry of Community Development to prove their legal personality so that their founders can contract and make transactions in their name. The Ministry considers the application and refers to the Cabinet, which makes the final decision on registration. Currently there are 166 associations registered (bayanat.ae, 2017). 2 THE GLOBAL PHILANTHROPY ENVIRONMENT INDEX In Dubai, applications for registration can be submitted to one of two entities: the Islamic Affairs and Charitable Activities Department, and the International Humanitarian City (IHC). Each one of these has its own range of authority. IHC is a nonprofit, independent, humanitarian free zone located in Dubai, where a community of members comprised of UN agencies, Nonprofit Organizations, Intergovernmental Organizations and Commercial Companies operate to bring humanitarian help to the world. However, the license to operate in the IHC is hard to obtain and according to the International Humanitarian City General Rules and Regulations, Clause 4.2, to obtain a license organizations must comply with one of the following requirements: be registered with the Dubai Economic Department, or equivalent authority in any other Emirate; be registered with the Authority in accordance with the Authority’s Registration Regulations; or be registered and incorporated in a jurisdiction outside the UAE (if the Establishment is a branch of a foreign entity). In cases of organizations like the United Nations High Commissioner for Refugees (UNHCR), they operate within the International Humanitarian City regulations and register with the IHC authority. IHC Authority issues licenses only to organizations operating within the free-zone. Any activity undertaken outside of the free-zone must be in accordance with the laws of the UAE and Dubai (International Humanitarian City General Rules and Regulations, Clause 7.2.1). The registration of charities in the Islamic Affairs and Charitable Activities Department (IACAD) is mainly regulated by Law No. 2 of 2011 (Article 8) and the Dubai Executive Resolution No 26 of 2013 (Article 3). Charity organizations carry out religious or charitable activities in the Emirate and its activities are authorized and supervised by the IACAD. According to the Executive Resolution (Article 5), founders must be a national of the State; enjoy legal capacity; have solvency and financial capability for spending on the activities of the charity; be of good conduct and reputation; and never been dismissed or stopped for activities in any charity. The decision of approval takes 60 days, and if the decision is not issued within this period, the application must be deemed to have been dismissed. If approved, the organization can acquire legal personality and be recorded in the official register with the department (Article 6). Licenses must be renewed annually 30 days prior to expiration (Article 7). Question 2: To what extent are POs free to operate without excessive government interference? Score: 3.0 Public Welfare Associations and Organizations registered with the Ministry of Social Affairs can operate only within the limits of the purposes for which they were approved (Federal Law No 2, Article 16), but are permitted to establish branches within the country. To operate, these 3 THE GLOBAL PHILANTHROPY ENVIRONMENT INDEX organizations must have a board to manage affairs, provide the necessary means to carry out activities and achieve organizational purposes (Federal Law No 2, Article 23). Several of the articles established in the law can be considered barriers to the free operation of Public Welfare Associations and Organizations: The organization may be represented in overseas participations such as conferences, forums, meetings or interviews only upon approval of the Ministry (Article 17); Membership in more than one association that aim at achieving the same specific activity is not authorized (Article 25); and The Ministry delegates a representative to the meeting of the general assembly (Article 27). Government and state-funded philanthropic foundations in the UAE can freely use the media and focus on effective communication with their stakeholders using social media to promote their activities (Sheikh Saud Bin Saqr Al Qasimi Foundation, 2016). However, according to the report published by Freedom House (2016) “social media platforms (…) are heavily monitored by the government.” Therefore, open discussion of sensitive topics is limited. Additionally, the Federal Decree-Law No 5 of 2012 on Combating Cybercrime states that whoever establishes, administers or runs a website or publishes online to promote or praise any programs or ideas, which would prompt riot, hatred, racism, sectarianism, or damage the national unity, social peace, or public morals can be put in prison and fined. Fundraising in the UAE is highly regulated. At a federal level, the permission to fundraise is given by the Ministry of Social Affairs. Federal Resolution