The humanitarian landscape is constantly evolving as conflicts force civilians to flee their countries in search of safety. In 2025, the Office of the United Nations High Commissioner for Refugees (UNHCR) faced significant funding challenges, raising $3.578 billion, while its 2026 Global Appeal estimates that $8.505 billion is needed to protect, assist and empower forcibly displaced and stateless people. This funding gap highlights the importance of diversifying the sources of humanitarian assistance and developing innovative approaches to refugee funding.

For decades, the United States (U.S.) has been the world’s largest donor to UNHCR, enabling the organization to coordinate funding for emergency shelters, health care and refugee education. However, in recent months, uncertainty about future U.S. funding has intensified, prompting governments and humanitarian organizations to seek new partnerships and approaches.

Gulf States: A Growing Source of Global Support Funding

Gulf States have long played an important role in humanitarian assistance, ranking among the largest donors. As uncertainty over future U.S. funding persists, these expanding partnerships are increasingly viewed as an important part of a broader effort to diversify the global refugee funding base.

Despite their growing financial support through the years, none of the six Gulf Cooperation Council (GCC) states officially recognize the legal concept of refugeehood, as they have never signed the 1951 Refugee Convention or its 1967 Protocol. Instead, they provide support through partnerships with UNHCR, Islamic philanthropy initiatives and bilateral aid programs.

UNHCR’s Refugee Zakat Fund, launched in 2017, has grown into a trusted global funding source for refugees, distinguished by its strong commitment to transparency. Zakat, an obligatory form of almsgiving in Islam, channels charitable giving to those in need.

The fund is an example of refugee funding diversification, receiving more than $23 million in Zakat in 2025 and assisting nearly 580,000 eligible refugees and internally displaced people across 17 countries. Overall, the fund raised $39 million through Islamic philanthropy and reached more than one million displaced people across 25 countries.

The European Union’s Role

The European Union (EU) and its members, including Germany and the European Commission, are among UNHCR’s largest donors, providing substantial financial support for humanitarian assistance and refugee protection.

Alongside direct global refugee funding, the EU supports neighboring host countries, such as Jordan and Türkiye, to improve access to education, health care and employment opportunities for refugees. It also provides financial support to frontline countries, such as Greece, to strengthen asylum systems and refugee integration.

Diversifying refugee funding can strengthen assistance by bringing together governments, international organizations and philanthropic partners. Balancing these demands will be key to strengthening refugee funding diversification and determining the level of additional support the EU can provide to the global refugee funding system.

Conclusion

Governments and humanitarian organizations are realizing the importance of increasingly diversifying funding sources and expanding policies that promote refugee self-reliance. Initiatives such as UNHCR’s Refugee Zakat Fund demonstrate how Islamic philanthropy can complement government contributions and reach vulnerable communities. At the same time, continued support from major donors such as the European Union remains essential.

Together, government funding, philanthropic giving and policies that promote refugee self-reliance can help humanitarian organizations respond to growing needs while reducing reliance on any single source of funding.

– Clara Iglesias Romero

Clara is based in Galicia, Spain and focuses on Politics for The Borgen Project.

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