Dubai’s charitable associations and institutions are now officially permitted to accept donations in the form of cryptocurrencies, marking a significant step in modernizing the emirate’s philanthropic sector. The move was announced by the Islamic Affairs and Charitable Activities Department (IACAD), aiming to align charitable work with Dubai’s forward-thinking digital economy.
Fostering Innovation in Philanthropy
To facilitate the transition, IACAD will organize a series of workshops for participating charities to clarify the necessary procedures and operational requirements for handling digital assets. This initiative reflects the department’s commitment to leveraging new technologies to enhance the efficiency and reach of charitable giving.
“This qualitative step reflects the Department’s commitment to fostering innovation in charitable work and enabling the sector to keep pace with global technological and financial developments,” an IACAD announcement stated.
This city-wide directive builds upon a successful pilot program. The local NGO, Dubai Charity Association, began accepting cryptocurrency donations back in 2022, but IACAD’s latest announcement opens this pathway to all registered charities in the emirate.
Building on a Crypto-Native Base
The decision is well-timed, tapping into the UAE’s high rate of digital currency adoption. According to Singapore-based payment provider Triple A, approximately 30 percent of UAE residents own cryptocurrencies, providing a substantial pool of potential donors familiar with the technology.
Dubai and the wider UAE have cultivated a reputation as crypto-friendly destinations, with a growing number of businesses and government bodies exploring digital currencies as a valid mode of payment. While the UAE has launched its own central bank digital currency, the Digital Dirham, IACAD’s announcement did not specify if it would be included in the approved assets for donations.
The UAE’s Ministry of Community Empowerment lists around 40 civil society organizations across the country, many of which are based in Dubai and now stand to benefit from this new fundraising channel.
About Islamic Affairs and Charitable Activities Department (IACAD)
The Islamic Affairs and Charitable Activities Department (IACAD) was founded in 1969 by a decree from the late Sheikh Rashid bin Saeed Al Maktoum. IACAD’s vision is to be a leading Islamic and charitable organization. Its mission is to promote Islamic and cultural values, develop charitable work, and provide its services to the community of Dubai.
Source: AGBI
