Dubai Endowment and Dubai Land Department have started an endowment initiative that urges real estate developers to allocate one unit from their projects to support charitable causes, as the UAE prioritises social development and welfare.
An endowment is a donation of money or property to a non-profit organisation, which uses the resulting investment income for a specific purpose.
The new endowment scheme aims to support those who are unable to complete their studies, provide medical treatment to low-income patients, support orphans, people of determination and people in need, Dubai Media Office said on Tuesday.
Several developers have already pledged properties to the initiative, and the process of accepting applications to join the initiative is continuing, said Marwan bin Ghalita, chief executive of the Real Estate Regulatory Agency.
“We are keen to launch innovative endowment projects with the participation of community institutions to enhance endowment and charity in Dubai,” said Zainab Al Tamimi, director of the Mohammed bin Rashid Global Centre for Awqaf and Endowment.
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The move is in line with the endowment strategy advocated by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of The Executive Council of Dubai.
Property sales in Dubai surged in the first quarter of this year compared with the same period a year ago as the market continued to rebound strongly from the coronavirus pandemic on the back of government initiatives, higher oil prices and other measures to support the economy.
Dubai’s real estate sector recorded a total transaction value of Dh157 billion ($42.75 billion) in the first quarter of 2023, marking an 80 per cent annual increase, the Dubai Media Office said last week.
Dubai-based ORO24 Real Estate Developments made the first contribution to the new scheme.
“ORO24 will grant a fully paid real estate unit in each project that it launches,” said founder and chairman Atif Rahman.
“The endowment would enable Dubai Endowment to access ongoing returns from the unit, which would be used to support programmes related to education, widows, orphans, and prisoner’s release.”
Mr Bin Ghalita urged more developers to participate in the charitable initiative, whose proceeds will be used to meet the needs of society in the areas of health, education, and charity, he said.
Ali Al Mutawa, secretary general of Dubai Endowment, said the new initiative is a significant boost to the endowments in Dubai, as it allows developers to support the foundation’s charitable expenditures.
