New Rules for Public Welfare Entities in the UAE: Understanding Cabinet Resolution No. (5) of 2025

The UAE continues to modernize its regulatory environment, with recent developments bringing more structure and accountability to the country’s non-profit and welfare sector. Cabinet Resolution No. (5) of 2025, issued to implement Federal Decree-Law No. (50) of 2023, introduces a comprehensive set of executive regulations governing Public Welfare Associations, Unions, National Societies, and Social Solidarity Funds. These changes aim to improve transparency, oversight, and operational efficiency in organizations working for the public good.

What Are Public Welfare Associations?

Public Welfare Associations (PWAs) are licensed, non-profit entities operating in fields such as health, education, humanitarian work, environment, and culture. According to Article 1 of the Resolution, the Ministry of Community Development (MOCD) will maintain a centralized register of all licensed PWAs across the UAE.

Each association must operate under By-laws based on an official template approved by the Ministry and Local Authority. These By-laws must clearly define the association’s name, purpose, geographic scope, member eligibility, financial procedures, board structure, and processes for General Assembly meetings. Associations are licensed for up to three years, with renewals subject to compliance checks. Any planned activities or events—domestic or international—must be notified to the relevant authority at least 15 to 30 days in advance, depending on the nature of the initiative.

Regulation of National Societies

National Societies operate on a broader scale and are designed to serve public interest objectives across the UAE. They follow a similar governance model as PWAs but are typically required to contribute assets at the time of formation. Non-citizen founding members must have resided in the UAE for a minimum of three years.

Their By-laws must cover administrative structure, financial planning and oversight, rules for fund disbursement, and procedures for voluntary dissolution or asset liquidation. Article 20 confirms that, unless stated otherwise, National Societies follow the same rules as Public Welfare Associations.

What is a Union?

A Union consists of five or more licensed associations or National Societies engaged in similar welfare activities. It acts as a coordinating body and may represent its members in local or international platforms. The licensing procedure for Unions is similar to that of other non-profit entities, and they too receive renewable licenses valid for up to three years. Unions are recognized as independent legal entities and are expected to comply with national rules on governance, financial management, and activity reporting.

Understanding Social Solidarity Funds

Social Solidarity Funds are welfare initiatives aimed at providing financial and social support to specific groups—such as employees of public institutions, large private companies, or association members. These funds must be founded by a minimum of 25 members and are subject to approval from the relevant government body.

The By-laws must outline the services provided, funding sources, eligibility for support, and processes for liquidation. Funds must also disclose employment verification of founding members and projected financial contributions. These funds operate under the oversight of the Ministry (if affiliated with federal government entities) or the Competent Authority for other affiliations.

In cases where the host organization is dissolved or merged, the Ministry will issue an official decision—published in the Official Gazette—to either dissolve the fund or merge it with another. This ensures clear legal procedures for asset transfer, dissolution, or restructuring.

Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Oversight

In alignment with Federal Decree-Law No. (20) of 2018 and Decree-Law No. (50) of 2023, the Resolution introduces specific obligations for non-profit organizations regarding AML and CTF. The Ministry of Community Development, in coordination with local and federal entities, is responsible for enforcing compliance by:

• Requiring internal AML/CTF policies and officer appointments.

• Conducting desk-based and on-site inspections based on risk.

• Maintaining a compliance officer registry and taking action against non-compliance.

These measures reflect the UAE’s broader commitment to financial integrity and aim to protect the welfare sector from misuse.

Conclusion

Cabinet Resolution No. (5) of 2025 brings much-needed clarity to the operations of public welfare entities in the UAE. By ensuring proper licensing, transparent governance, and legal compliance, the Resolution strengthens public trust in non-profit work. Whether you're a charity worker, policymaker, or part of a corporate social responsibility (CSR) initiative, understanding these new requirements is essential for legally operating in this space. The detailed rules help ensure that welfare services are managed efficiently, safely, and in accordance with national interests.