In the UAE, an individual may not collect donations at all. Article 6(1) of Federal Law No. 3 of 2021 Regulating Donations states plainly that it is prohibited for a natural person to collect donations, and Article 7(2) requires fundraising to be done through a charity. Breaching Article 6 carries imprisonment and a fine of AED 150,000 to AED 300,000, doubled on repetition, and Article 36(4) obliges the court to confiscate the money collected and to deport the foreigner after the sentence is served.

That is the answer to the question most residents are actually asking: setting up an online appeal for a colleague’s medical bills, passing a collection envelope around the office, or posting bank details for a family in difficulty is regulated conduct, not a private act of kindness. This guide explains what the law covers, who may raise money and how, what the permit process involves, which acts are criminal, and what the practical alternatives are for helping someone in genuine need. It applies across the country, free zones included.

The Law, Its Scope, and When It Took Effect

Federal Law No. 3 of 2021 Regulating Donations was issued on 11 April 2021. Article 43 provides that it comes into force six months after publication in the Official Gazette. Article 2 sets the scope: the law applies to any party wishing to collect or provide donations in the country, expressly including free zones.

The definition of donations in Article 1 is deliberately wide. It covers whatever is collected of funds of any kind, in cash or in kind, movable or fixed, including national currency, foreign currencies, bonds, sukuk and stocks, and whatever their form, including electronic or digital, in order to be spent on charitable or humanitarian services or assistance.

Two consequences follow from that wording. Digital collection is inside the law rather than outside it, so a crowdfunding page or a payment link is treated the same as a physical collection box. And in-kind collections of goods are donations too, which is why the law has separate rules on food and medicine.

The competent authority is the Ministry of Community Development or the relevant local authority, depending on the emirate. In Dubai that function sits with the Islamic Affairs and Charitable Activities Department; Abu Dhabi and Sharjah each have their own awqaf and Islamic affairs bodies.

Who May Raise Money, and Who May Not

The law creates three categories, and only two of them can lawfully collect.

Category Who it is May collect?
Licensed entities Charitable societies and federal, local and non-governmental organizations whose founding law, decree or decision allows them to collect, receive and provide donations Yes, under their own instrument
Permitted entities Legal persons granted a fundraising permit by the competent authority Yes, within the terms of the permit
Natural persons Any individual, resident or citizen No, prohibited outright by Article 6(1)

Article 7(1) confirms the position from the other direction: the first condition for a permit is that the applicant be a legal person. An individual cannot cure the problem by applying, because they are ineligible to apply. Article 7(2) then requires that the fundraising be done through a charity, so even an eligible company channels the collection through a licensed charitable body rather than running it itself.

The Permit: What Must Be Stated and How Long It Takes

Article 7(3) requires a permit application to state nine things, and the list is a useful description of what the authority is actually assessing.

  • The purpose of the fundraising.
  • The names and identities of those in charge of the fundraising process.
  • The beneficiary or beneficiaries.
  • The means by which donations will be raised.
  • The locations where donations will be raised.
  • The duration of the fundraising.
  • The period for submitting donations to the beneficiaries.
  • Evidence of the charity’s approval of the fundraising.
  • The percentage of administrative and operating expenses that will be deducted for the charity in charge.

Article 9 gives the competent authority 20 working days from a complete submission to approve or reject, and states that the lapse of that period without a response is considered a rejection. Silence is a refusal, not a deemed approval, so an applicant who hears nothing has been refused and should treat the clock accordingly.

Article 10 caps the number of permits: no party may be granted more than four permits in one year, except by a decision of the head of the competent authority. Article 34 gives a right of grievance against any decision of the authority within 15 working days, to a committee that must decide within 15 working days, and that committee’s decision is final.

Article 5 allows a percentage of the donations collected to be deducted as administrative and operational expenditure, with the percentages left to the Executive Regulations. The applicant must state that percentage up front under Article 7(3)(i), which is the transparency mechanism the law relies on.

Bank Accounts, and Why the Bank Will Refuse

Article 17(4) prohibits banks and financial institutions from opening any account to collect or receive donations for any party except with a letter from the head of the competent authority or an authorized delegate. This is the provision that quietly closes the practical route for informal appeals, because the collection account itself cannot lawfully be opened.

For entities that hold a permit, the obligations are strict. Article 17(1) requires them to open one or more current accounts with a national bank operating in the country and to notify the competent authority of the bank name and account number within 10 working days of opening. Article 17(2) requires charities to open independent current accounts for permit proceeds, with the same 10-working-day notification. Article 17(3) prohibits depositing any funds other than fundraising proceeds into those accounts and requires periodic financial statements.

Article 15 adds that banks and financial institutions may not conduct any transfer outside the country through donation accounts except under rules set by the concerned authorities. This sits inside the wider anti-money-laundering framework, which we cover in our guide to UAE AML compliance and goAML obligations, and the general reporting rules on outbound transfers are set out in transferring large sums out of the UAE.

Advertising a Fundraiser Is Itself Regulated

Article 31 prohibits authorized parties from publishing or broadcasting any publicity or advertising for fundraising without the approval of the competent authority. A breach falls within Article 36(2), carrying imprisonment and a fine of AED 150,000 to AED 300,000, or one of those penalties, doubled on repetition.

This is where a widely repeated figure needs correcting. Press coverage of the law commonly reports a penalty of up to AED 500,000 for supporting or promoting an unlicensed fundraiser. On the face of the statute, the AED 200,000 to AED 500,000 band in Article 36(1) attaches only to a breach of Article 20(1), which prohibits trading in donated funds, entering into financial speculation with them, or distributing revenues or returns to members or employees. Promotion and advertising without approval sit in the lower band under Article 36(2). Both are serious, but they are not the same offense and the figures are not interchangeable.

The practical reading for a resident is unchanged: sharing an appeal that has no permit is regulated conduct, and the online dimension brings the cybercrime and content rules into play as well. Our guide to UAE social media laws and fines covers that overlap, and the pattern of appeals used as a cover for fraud is described in the common UAE scams report and how to report to eCrime.

What the Law Prohibits Outright

Article 20 imposes two prohibitions on licensed and permitted entities. The first is trading in donated funds, entering into financial speculation, or distributing any revenues or returns to members or employees. The second is committing any act, while collecting, accepting or providing donations, that harms public order, national security or public morals, or encourages sectarian, ethnic, racial, religious or cultural disputes, or serves any unlawful purpose.

Article 16 adds a naming rule with its own penalty. No party may call itself a charitable or humanitarian association, organization or institution, or deal under such a name in any way, except under a classification certificate issued by the competent authority. The exception is for bodies whose founding law, decree or decision already gives them that label. Article 36(3) sets a fine of up to AED 100,000 for a breach, which reaches a company that describes a commercial venture as a charitable initiative in its marketing.

Article 26 governs in-kind donations of food and medicine. Accepting, transferring, storing or providing them inside the country in breach of UAE specifications is prohibited. For distribution outside the country, three conditions apply: a remaining shelf life of not less than six months from receipt, collection, transport and distribution in a manner that ensures suitability and safety, and appropriate storage. Article 27 requires the competent authority’s approval before in-kind donations are converted into cash, and the authority supervises that conversion.

Penalties in Full

Conduct Penalty Article
Trading in donated funds, financial speculation, or distributing returns to members or employees Imprisonment and AED 200,000 to AED 500,000, or one of them; doubled on repetition 36(1), for a breach of 20(1)
Collecting as an individual or without a permit; unapproved collection methods; unlawful delivery abroad; account breaches; record-keeping failures; food and medicine breaches; advertising without approval; or using donations for a purpose other than the one they were collected for Imprisonment and AED 150,000 to AED 300,000, or one of them; doubled on repetition 36(2), for breaches of Articles 6, 12, 14, 17, 21, 26 and 31
Using the label charitable or humanitarian without a classification certificate Fine up to AED 100,000 36(3), for a breach of 16
In all cases Confiscation of the donations collected in violation, and deportation of a foreigner after the sentence is carried out 36(4)
The person responsible for the actual management of the entity, where they knew of the acts or their breach of duty contributed to the offense The same penalty as the offense itself 37

Article 35 preserves any more severe penalty available under another law. Article 38 gives designated employees of the competent authority the capacity of judicial officers for proving violations. Article 30 requires the authority to suspend a permit where the charity or authorized entity breaches its conditions.

A gap worth naming. Article 36(1) is drafted by reference to Clause (1) of Article 20 only. The prohibition in Article 20(2), covering acts that harm public order, national security or public morals, is not listed in Article 36(1) or in the list of articles in Article 36(2). Conduct of that kind would almost certainly be caught by other legislation through Article 35, and Article 33 leaves administrative penalties to a separate Cabinet decision. We record the drafting point rather than smoothing it over, because the Cabinet decision setting those administrative penalties was not retrievable during research.

Reporting Obligations for Entities That Do Hold a Permit

Article 23 sets the reporting timetable, and the deadlines are short.

  • A report on the outcome of the donations collected, within 15 days of receiving the donations. The authority may require it to be approved by a registered audit firm.
  • A report on the beneficiaries, within 15 days of the donations being made.
  • Periodic reports on projects, completion rates and payments, where the purpose is a charitable or humanitarian project.
  • A report on final accounts or audited financial statements showing the amount collected and the means of disbursement, within 30 days of the permit expiring.

Article 24(4) requires charitable societies to deliver the proceeds of collection within 30 days of the permit expiring. Article 19 covers the case where the intended beneficiaries cannot be reached or the stated purpose cannot be fulfilled: the head of the competent authority, not the collector, specifies alternative beneficiaries or purposes. Article 25 establishes a unified electronic record at the Ministry recording donors, proceeds, disbursements and beneficiaries.

Article 13 restricts collecting or receiving donations, gifts, bequests or aid from any person or entity outside the country to the rules in the Executive Regulations, and requires a detailed report to the competent authority. Article 14 applies equivalent restrictions to delivering or transferring donations to any person or entity outside the state, including proof that the donations reached the beneficiaries.

What to Do Instead If Someone Genuinely Needs Help

The law does not prohibit generosity; it prohibits collecting from others without authorization. Giving your own money directly to a person in need is not fundraising under Article 1, which defines donations by reference to what is collected. The exposure arises the moment you gather funds from third parties.

Three routes stay open. The first is donating through a licensed entity or an existing campaign that already holds a permit, which is what the four-permit-per-year cap in Article 10 and the classification certificate in Article 16 are designed to make identifiable. The second is asking a licensed charity to open a case for the person, so the collection runs under the charity’s own instrument rather than yours. The third, where the need arises from unpaid wages or an employment dispute rather than hardship as such, is the statutory route: our guides to filing a MOHRE complaint over unpaid salary and to personal insolvency and debt settlement in the UAE set out remedies that do not depend on a collection at all.

One further trap. Prize draws and raffles attached to a charitable appeal are a separate regulated question, not a fundraising technique the donations law authorizes. The gaming and lottery framework is covered in our guide to whether gambling is legal in the UAE, and a charity raffle needs to be assessed against that framework as well as against Federal Law 3 of 2021.

Frequently Asked Questions

Can an individual collect donations in the UAE?

No. Article 6(1) of Federal Law No. 3 of 2021 prohibits a natural person from collecting donations, and Article 7(1) makes being a legal person the first condition for a permit, so an individual cannot apply for one either. Article 7(2) requires fundraising to be conducted through a charity.

Is GoFundMe or online crowdfunding legal in the UAE?

The law makes no distinction by platform. Article 1 defines donations to include funds in any form, expressly including electronic or digital, so an online appeal collecting money in the UAE falls under the same permit requirement as a physical collection. Article 2 applies the law across the country, including free zones.

What is the penalty for fundraising without a permit in the UAE?

Article 36(2) sets imprisonment and a fine of AED 150,000 to AED 300,000, or one of those penalties, doubled on repetition, for breaching Article 6. Article 36(4) requires the court in all cases to confiscate the donations collected in violation of the law and to deport a foreigner after the sentence is carried out.

Is it an offense to share or promote a fundraising appeal?

Article 31 prohibits authorized parties from publishing or broadcasting publicity or advertising for fundraising without the competent authority’s approval, and a breach falls in the AED 150,000 to AED 300,000 band under Article 36(2). Note that the AED 200,000 to AED 500,000 figure often quoted in press coverage attaches under Article 36(1) to trading in donated funds under Article 20(1), not to promotion.

How long does a fundraising permit take in the UAE?

Article 9 requires the competent authority to decide within 20 working days of a complete application. If the period passes without a response, the application is considered rejected. Article 10 limits any party to four permits per year unless the head of the competent authority decides otherwise.

Can I collect money at work for a colleague in difficulty?

Gathering contributions from other people is collecting donations, and Article 6(1) prohibits an individual from doing that regardless of the setting or the sincerity of the cause. Giving your own money directly is not fundraising. The compliant route is to have a licensed charity open a case, so that the collection runs under its authorization.

Can a bank open an account for a charity collection?

Only with authorization. Article 17(4) prohibits banks and financial institutions from opening any account to collect or receive donations for any party except with a letter from the head of the competent authority or an authorized delegate. Permitted entities must also notify the authority of the bank name and account number within 10 working days of opening.

Can donated food and medicine be sent abroad from the UAE?

Only under conditions. Article 26(2) requires a remaining shelf life of not less than six months from receipt, collection, transport and distribution in a manner ensuring suitability, safety and usability, and appropriate storage places meeting UAE requirements. Providing food or medicine inside the country in breach of UAE specifications is prohibited outright.

Who decides where the money goes if the beneficiary cannot be reached?

The head of the competent authority. Article 19(1) requires authorized parties to deliver the proceeds to the beneficiaries or spend them on the purposes stated in the permit. Where that is not possible, Article 19(2) puts the decision on alternative beneficiaries or purposes with the head of the competent authority, not the collector.

Can a company call its initiative charitable in its marketing?

Not without a classification certificate. Article 16 prohibits any party from calling itself a charitable or humanitarian association, organization or institution, or dealing under that name in any way, unless it holds a classification certificate or its founding instrument grants the label. Article 36(3) sets a fine of up to AED 100,000.

Official Sources

Information current as of August 2026. Every article number, deadline and penalty above was read from the official English text of Federal Law No. 3 of 2021 published on the UAE Legislation portal, retrieved through an archived copy because the portal blocks automated retrieval. Two limitations apply. First, the law delegates a great deal to its Executive Regulations, including the permitted means of collection under Article 12, the percentage that may be deducted for administrative and operational expenses under Article 5, the cross-border rules under Articles 13 and 14, and the record-retention periods; the Executive Regulation could not be retrieved from any channel, so no percentage, method list or retention period is quoted here. Second, Article 33 leaves administrative penalties to a Cabinet decision that was likewise not retrievable, so the figures above are the criminal penalties in the law itself and do not represent the full sanction picture. Emirate-level procedures and fees are set locally.

Disclaimer: This guide is general information, not legal advice. Whether a specific collection, campaign or platform requires a permit is a fact-specific question for the competent authority in the relevant emirate. Speak to a UAE-licensed lawyer or the competent authority before organizing any collection.