In a recent Cabinet resolution, the UAE has rolled out a comprehensive framework of administrative penalties for public benefit institutions. The move is designed to strengthen compliance with Federal Decree-Law No. (50) of 2023, which governs how these organizations operate across the country.
Under the updated regulations, institutions could face fines ranging from Dh 1,000 up to Dh 30,000, depending on the severity and frequency of the offence. The measures are intended to safeguard accountability, transparency, and proper governance within the sector.
Key Offences and Penalties
Improper management of funds
- 1st violation: Warning
- 2nd violation: Dh5,000 fine
- 3rd violation: Dh10,000 fine
Affiliation or membership in foreign organizations without ministry authorization
- 1st violation: Dh10,000 fine
- 2nd violation: Dh20,000 fine
- 3rd violation: Dh30,000 fine
Joining activities organized by foreign associations without approval
- 1st violation: Dh5,000 fine
- 2nd violation: Dh10,000 fine
- 3rd violation: Dh15,000 fine
Hosting international participants without approval
- 1st violation: Dh2,000 fine
- 2nd violation: Dh4,000 fine
- 3rd violation: Dh6,000 fine
- 4th violation: One-month temporary closure
Hosting local participants in events without approval
- 1st violation: Warning
- 2nd violation: Dh1,000 fine
- 3rd violation: Dh2,000 fine
Unauthorized participation in events
- 1st violation: Warning
- 2nd violation: Dh1,000 fine
- 3rd violation: Dh2,000 fine
- 4th violation: One-month temporary closure
Failure to notify authorities of institutional changes
- 1st & 2nd violation: Warning
- 3rd violation: Dh1,000 fine
- 4th violation: One-month temporary closure
Why These Rules Matter
This resolution reflects the UAE government’s commitment to upholding transparency and accountability in the non-profit and public benefit sector. Institutions are strongly encouraged to review and align their practices with these new standards to avoid costly penalties and ensure smooth operations.
By putting clear rules in place, the government aims to protect the credibility of the sector, encourage responsible management, and ensure that public benefit institutions remain aligned with national priorities.
