In the evolving landscape of corporate social responsibility (CSR), the United Arab Emirates (UAE) presents a unique case study markedly different from Western contexts. Recent research delves into the multifaceted challenges that companies in the UAE encounter while striving to implement CSR initiatives within a complex regulatory and cultural environment. This exploration uncovers the inherent contradictions, cultural dynamics, and strategic dilemmas that shape CSR practices in the region, illustrating the intricate relationship between corporate governance, societal expectations, and sustainable development goals.
One of the pivotal barriers to effective CSR engagement in the UAE stems from the contradictory and ambiguous regulatory framework. Unlike jurisdictions with harmonized CSR mandates, the UAE’s mosaic of federal and emirate-level laws creates significant uncertainty for corporations. The lack of a unified CSR legal definition and the existence of conflicting statutes—such as distinctions between public companies and Limited Liability Companies (LLCs)—confuse compliance efforts. For instance, while some laws incentivize or mandate specific CSR contributions, others leave companies with discretionary authority, often limited to financial donations capped at a certain percentage of profits. This regulatory inconsistency hampers the formation of coherent CSR strategies and undermines stakeholder confidence, as companies grapple with unclear obligations and risk disparate interpretations.
Culturally, the UAE’s CSR landscape is further complicated by a deeply entrenched culture of dependency. The region’s generous philanthropic traditions, while commendable, have inadvertently fostered a dynamic where beneficiaries rely heavily on corporate donations rather than participating in sustainable development initiatives. This phenomenon contrasts sharply with the fundamental tenets of stakeholder theory, which advocate for empowerment and mutual benefit through collaborative engagement. Such dependency weakens the potential transformative impact of CSR by reducing community agency and reinforcing passive modes of receiving aid. Corporate actors note that CSR efforts often revolve around episodic philanthropy—such as charitable donations during religious periods—without fostering long-term capacities or systemic change.
Another core issue is the absence of an embedded CSR framework within many UAE corporations. CSR activities frequently operate as peripheral or ad hoc endeavors disconnected from the strategic heartbeat of the organization. Rather than being integrated into corporate governance, culture, and operational decision-making, CSR remains episodic and symbolic. This lack of strategic embedding dilutes the potential impact of CSR and fails to align corporate values with social and environmental objectives. However, movement toward comprehensive frameworks—embracing Corporate Sustainability and Environmental, Social, and Governance (ESG) principles—signals a nascent shift. These frameworks introduce measurable metrics into CSR practices, underscoring the necessity of quantifiable impact, a critical step for accountability and continuous improvement.
Stakeholder skepticism further complicates CSR implementation due to widespread misconceptions about corporate motives. Varying stakeholder interests and perceptions often fuel mistrust, with some viewing CSR initiatives as cynical attempts to secure lucrative projects or improve public image rather than genuine social contributions. This divergence in stakeholder outlook results in fragmented support and potential conflicts within CSR activities. Transparent and systematic stakeholder engagement becomes essential to dispel such misconceptions by fostering mutual understanding and shared purpose, thereby enhancing the legitimacy and efficacy of CSR programs.
Measuring the real impact of CSR initiatives poses another significant challenge. Despite growing adoption of ESG standards, many UAE companies still struggle with developing standardized, culturally relevant metrics that capture both quantitative and qualitative outcomes. The complexity arises acutely in social impact assessments, where indirect benefits, such as knowledge transfer within communities, elude easy quantification. Conventional Western measurement paradigms often fail to contextualize the unique socio-economic and cultural realities of the UAE, resulting in assessments that may underestimate or misrepresent actual impacts. Tailoring CSR metrics to reflect local contexts is therefore paramount to achieving meaningful evaluation and fostering trust among stakeholders.
Awareness deficits compound these challenges across corporate and public spheres. A prevailing perception of CSR as unsolicited philanthropy rather than a strategic business imperative constrains engagement and innovation. Companies frequently lack a shared understanding of CSR’s multifaceted potential, leading to inconsistent approaches and resistance within organizational hierarchies. Furthermore, when CSR is viewed predominantly through a social lens—often equated solely with charity—economic and environmental dimensions receive inadequate attention. This narrow perspective impedes the holistic integration of CSR principles aligned with the UAE’s ambitious vision for sustainable development and economic diversification.
The ambiguity and inconsistency in legal frameworks exacerbate awareness issues, blurring the lines between voluntary CSR engagement and mandatory reporting or fee requirements. Such regulatory contradictions foster confusion, hindering companies from developing coherent CSR policies and dissuading proactive participation. Clearer, more transparent legal guidelines are essential to promote a uniform understanding and to catalyze both compliance and innovation across sectors.
Alongside legal and awareness challenges, the landscape is further complicated by difficulties in identifying credible CSR partners. The distinctly limited presence of an independent civil society and structured non-governmental sector in the UAE places disproportionate responsibility on corporations to seek trustworthy collaborators. This scarcity of credible partners impedes multi-stakeholder engagement crucial for scalable and sustainable CSR initiatives. However, some corporations have begun to recalibrate their approach from transactional donations to strategic partnerships that emphasize measurable social return on investment. By aligning CSR objectives and performance metrics, these companies aim to elevate partnerships to value-driven collaborations, though this remains a work in progress.
The extensive challenges facing CSR in the UAE paint a complex picture of a region in transition. While regulatory ambiguities and cultural dependencies constrain progress, evolving corporate mindsets and global sustainability agendas offer pathways for reform. Embedding CSR into core strategic and operational frameworks, adopting robust impact measurement tools sensitive to local contexts, and fostering transparent stakeholder engagement stand out as critical levers for change. The journey from ad hoc philanthropy to systemic corporate sustainability requires concerted efforts from governments, businesses, and civil society, underscored by clear policies and ongoing dialogue.
Moreover, societal factors such as consumerism add another dimension to the CSR discourse in the UAE. With rising consumption patterns, corporations must navigate the intricate balance between economic growth and environmental stewardship while addressing social equity. The Triple Bottom Line concept—which champions a balanced emphasis on people, planet, and profit—provides a valuable lens for redirecting corporate priorities toward sustainable value creation. Yet, this demands collective responsibility beyond corporations, involving consumers and policymakers in a shared commitment to sustainable behaviors.
In summary, the CSR ecosystem in the UAE encapsulates the tensions and opportunities inherent in implementing global sustainability principles in a distinctive socio-political context. Regulatory reforms that clarify responsibilities and incentivize comprehensive CSR, combined with strategies to diminish dependency and deepen stakeholder collaboration, will be instrumental. Equally important is the cultivation of a common language and framework across sectors to enable consistent reporting and benchmarking. As UAE corporations increasingly embrace ESG frameworks, they signal readiness to transcend traditional CSR paradigms toward integrated sustainability leadership. The insights from this research offer valuable guidance for stakeholders seeking to navigate and transform the CSR landscape in the Gulf region and beyond.
Subject of Research: Corporate social responsibility challenges and dynamics in the United Arab Emirates.
Article Title: Corporate social responsibility in a non-western context: the case of the United Arab Emirates.
Article References:
Antwi-Boateng, O., Eisa Saeed Al Harasi, N. Corporate social responsibility in a non-western context: the case of the United Arab Emirates.
Humanit Soc Sci Commun 12, 1481 (2025). https://doi.org/10.1057/s41599-025-05669-z
Image Credits: AI Generated
