The Corporate Social Responsibility (CSR) Act in the United Arab Emirates (UAE) states that social responsibility is voluntary for both established companies and new businesses in Dubai. However, all companies in the UAE that fall within the scope of the CSR Act must report and include their CSR activities in the CSR Smart platform. The laws of the UAE emphasize that CSR initiatives are mandatory for all companies in the UAE that fall within the scope of the CSR Act. Participating in CSR activities can help your company gain a reputation as a generous, socially conscious organization that earns public trust and puts your business at the forefront of any competitive market.
The new Companies Act seeks to improve the UAE's competitiveness in economic development and shows that international best practices are being applied. It encourages businesses to actively participate in socially responsible practices that have a positive economic, social, and environmental impact, in line with the priorities and sustainable development objectives of the UAE. Existing companies must adjust their position within one year of the entry into force of the new Companies Act (subject to any other extension). The CSR law also requires reporting on contributions made to CSR activities and financial contributions, which will be mandatory for many companies in the UAE and voluntary for others.
It is open to current companies operating in the UAE and to companies setting up a business in the UAE. The effect of the new Companies Act on Article 10 (Foreign Ownership), which allows one hundred percent (100%) foreign ownership of land companies in the UAE, must be determined by a committee appointed by the Cabinet. Organizing sessions to analyze best CSR practices and share knowledge from leading experts can help your staff develop intellectual leadership and position your company as a leader in terms of social awareness. Additionally, partnering with a non-profit organization to promote initiatives that help disadvantaged people while allowing company employees to participate in charitable activities can help promote a culture of generosity, independence, cooperation, and tolerance.
In conclusion, it is essential for all businesses in Dubai and throughout the UAE to review their CSR policy and reporting procedures as this will apply to new business configurations. Participating in CSR activities can help your company gain a reputation as a generous, socially conscious organization that earns public trust and puts your business at the forefront of any competitive market.