OVERVIEW OF THE CABINET RESOLUTION NO. (5) OF 2025 REGARDING THE EXECUTIVE REGULATIONS OF FEDERAL DECREE-LAW NO. (50) OF 2023 REGARDING THE REGULATIONS OF PUBLIC WELFARE ASSOCIATION

Regulating public welfare activities in the UAE is essential to ensure transparency, accountability, and the efficient use of resources—ultimately enhancing the credibility and impact of such initiatives for the public good. In this context, Cabinet Resolution No. (5) of 2025 was issued to implement Federal Decree-Law No. (50) of 2023 Regarding the Regulation of Public Welfare Associations. The Resolution sets out executive regulations applicable to Public Welfare Associations, Unions, National Societies, and Social Solidarity Funds. This article outlines the key provisions introduced by the Resolution.

Public Welfare Associations

Public Welfare Associations are non-profit legal entities licensed to operate in fields such as health, education, culture, environment, and humanitarian aid, without a profit motive. Article 1 mandates the creation of a centralized register at the Ministry of Community Development (MOCD), which will maintain comprehensive records of all registered associations.

Under Article 2, each association must adopt By-laws based on a Ministry-approved template in coordination with the Local Authority. These By-laws must include:

• The association's name, objectives, headquarters, and geographic scope of operation;

• Registration and licensing details;

• Information on founding members;

• Membership types, conditions, and rights;

• The structure and election process of the Board of Directors (via secret ballot);

• Financial controls, audit mechanisms, and staff appointment procedures;

• Procedures for convening General Assembly meetings; and

• Rules for amendments, mergers, and the creation of branches.

According to Article 3, establishment applications must include approvals from founding members, draft By-laws, identification documents, and other required data. The Ministry or Local Authority (depending on jurisdiction) is required to issue a decision within 30 days. Associations receive a renewable license valid for up to three years, per Article 4.

Associations and their branches may organize events and activities, provided they submit an application at least 15 days in advance, detailing the activity's nature, target audience, organizer, date, and location. They may also undertake overseas projects aligned with their objectives, subject to submitting a detailed application to the Competent Authority at least 30 days prior to the scheduled activity.

National Societies

National Societies are specialized public-interest organizations operating on a broader national level. While their governance structure is based on that of Public Welfare Associations, their scope and mandate are more expansive. Founding members must contribute to the Society’s assets, and non-citizen members must have resided in the UAE for at least three consecutive years..

As detailed in Article 18, the license application must include:

• Founders’ approval and personal data.

• Draft By-laws and a list of contributed assets.

• A resolution appointing the Board of Trustees.

The By-laws, as per Article 19, must address the society’s administrative structure, financial resources, the manner of their utilization and disposal, the mechanism of financial oversight over expenditures, the commencement and end of the fiscal year, and the system for retaining and managing imprest and its values to cover urgent expenses, conditions and rules governing the voluntary dissolution and liquidation of the national society and the devolution of its assets. n cases where a National Society is established by bequest, the bequest terms serve as its initial By-laws.

Unless otherwise exempted, National Societies are governed by the same rules applicable to Public Welfare Associations (Article 20).

Unions

A Union is an umbrella body that includes at least five (5) National Societies or Associations that practice similar Public Welfare Activities to collaborate and coordinate their work, provided they share similar objectives. A union may represent its members in national and international forums. The application process mirrors that of regular associations and must include:

• Draft Union By-laws.

• General Assembly approval from each founding entity.

• A list of all member associations with licensing and registration data.

The Union becomes an independent legal entity, subject to the same compliance and licensing rules, with a maximum renewable license term of three years.

Social Solidarity Funds

Social Solidarity Funds aim to provide welfare services—financial or otherwise—to specific groups such as employees of public institutions, association members, or workers of large private companies. They must have a minimum of 25 founding members and be approved by the government body to which they are affiliated.

Applicants must submit:

• Draft By-laws outlining services, funding sources, and liquidation procedures.

• Identity and employment verification of founding members.

• Membership commitments and financial contributions.

The Competent Authority may approve Funds for private-sector employees, provided the company employs at least 100 workers. These Funds are intended to promote mutual support among members and may only offer services outlined in their By-laws. Licenses are valid for up to three years and renewable.

Social Solidarity Funds affiliated with federal government entities are supervised by the Ministry, while others fall under the Competent Authority’s jurisdiction. Oversight includes administrative, technical, and financial aspects to ensure proper expenditure and resource management.

The Cabinet Resolution provides clear provisions for the dissolution, liquidation, and merger of Social Solidarity Funds. In cases where a Fund needs to be dissolved, such as the termination or legal discontinuation of the entity under which it was established, the same rules that apply to Public Welfare Associations will govern the dissolution and liquidation process. The assets resulting from such dissolution are to be distributed as outlined in the Fund’s By-laws. If no such provision exists, the Competent Authority will designate the receiving entity.

A merger or asset transfer of a Fund may occur, but only with prior approval from the Competent Authority. Such cases include:

·       merger of the hosting entity with another that already has a Fund,

·       transfer of all employees to a body that maintains a Fund,

·       merger of two entities where only one has a Fund, and

·       other situations as determined by the Competent Authority.

The procedures, legal implications, and requirements of the merger must be clearly defined in the decision of the Competent Authority. If the merger decision originates from a Local Authority, it must be communicated to the Ministry, which will then issue an official merger resolution, publish it in the Official Gazette, and remove the merged Fund from the official register upon completion of procedures.

Anti-Money Laundering and Counter-Terrorism Measures in Public Welfare Associations

In alignment with Federal Decree-Law No. (20) of 2018 and Federal Decree-Law No. (50) of 2023, the Ministry is tasked with ensuring that Public Welfare Associations adopt and implement effective anti-money laundering (AML) and counter-terrorism financing (CTF) procedures. In coordination with Local Authorities and federal bodies, the Ministry is responsible for:

1. Establishing regulatory frameworks to enforce compliance with AML/CTF legislation;

2. Conducting both desk-based and on-site inspections based on risk assessments;

3. Providing guidance and feedback to enhance compliance; and

4. Maintaining an updated register of compliance officers and documenting all enforcement actions against non-compliant associations.

These steps are part of a broader national strategy to protect the Public Welfare Association sector from financial abuse and ensure transparency in their operations.

Conclusion

Cabinet Resolution No. (5) of 2025 sets a robust and detailed regulatory framework for non-profit organizations in the UAE. It emphasizes structured governance, financial accountability, and alignment with public interest objectives. The provisions enable entities like Public Welfare Associations, Unions, National Societies, and Social Solidarity Funds to operate transparently and effectively, while maintaining national oversight and compliance with federal values.