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Until two weeks ago…… The Arab region is experiencing exponential growth in wealth, fueled largely by global increases in the price of oil and gas. Over.

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Presentation on theme: "Until two weeks ago…… The Arab region is experiencing exponential growth in wealth, fueled largely by global increases in the price of oil and gas. Over."— Presentation transcript:

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2 Until two weeks ago…… The Arab region is experiencing exponential growth in wealth, fueled largely by global increases in the price of oil and gas. Over $2.6 B per day flow into the Gulf region in petroleum revenues alone. (June, 2008)

3  Arab gulf countries currently invest $3 trillion through sovereign wealth funds.  Qatar spends more of GDP on R and D investments than the US (2.8%)  One Dubai company, Emaar, has $60 B in real estate investments in the region  Non oil-producing countries like Jordan and Egypt are attractive ‘emerging markets’ with local business expertise & management

4 Explosive Social Problems 55 % under age 25, poorly educated, high unemployment, “stalled” youth Growing disparities of wealth and poverty Unresolved conflicts (Arab-Israeli, sectarian, tribal, and ethnic strife) Massive population displacement

5 Sole reliance on governments and foreign donors for solutions is no longer feasible nor desirable. Citizens are seeking new ways to contribute to the development of their societies, through community initiatives, service organizations, and more effective utilization of their philanthropic giving.

6 Philanthropy in Social Context  Market capitalism treats social responsibility as a short-term cost with potential long term benefit. Islamic economics conceives of it as integral to an Islamic system of economics– a moral as well as financial framework that supports the disadvantaged through the compassion of those who succeed. Individuals who do well must put aside income for charitable purposes.

7 Philanthropy in Islamic Context  Based on concept of takaful (social solidarity)  Zakat (obligatory alms)  Sadaqa (voluntary giving)  Waqf (trust or endowment)  Qurd al-hassan (interest free loans)  Islam is not opposed to personal wealth, but to accumulation at others expense.

8 Study Definition of ‘New’ Philanthropy: The institutionalized pooling and distribution of private resources with the goal of building capacity, sustainable financing and expertise for long term societal benefit.

9 Strategic Philanthropy Social investments that leverage systematic change, maximize impact and aim to solve important problems through addressing root causes

10 Study Design 1.Gerhart Center conceptualizes framework and key issues 3. Extensive secondary desk research by country 4. Consultation with country experts 5. Collection of field data and case studies 2. Recruitment and orientation of researchers 6.Analysis workshops, writing, chapter reviews and revision 7. Series of meetings to outline important recommendations 8. Writing and review of the introductory and concluding chapters

11 Countries Covered in First Phase  Jordan  Egypt  Kuwait  Lebanon  Palestine  Qatar  Saudi Arabia  United Arab Emirates

12 Arab Philanthropy is Becoming More Institutional  Waqf, Mabarra, or Birr reinvent classic forms  Individual or Family Foundations sustain a lasting legacy  “Shilla” Foundations citizen business leaders for change  Corporate Foundations formalizing corporate responsibility  Community Foundations pooling small funds from like- minded contributors

13 Trends in Arab Philanthropy II. From the responsibility to give To responsibility to make a difference III. From personal generosity To institutional effectiveness

14 IV. From working alone(“my organization did…”) To working in partnerships (“we leveraged access…”) V. From inefficiently kind To well-managed for impact(and kind) Trends…

15 VI. From meeting immediate needs (food, clothing, medicine) To alleviating core problems (jobs, education, votes) VII. From investing for profits today (luxury marketing) To investing for economic growth tomorrow (pro-poor business strategies) VIII. From leisure class pastime To citizen-business leaders’ commitment Trends…

16 Citizen Business Leaders – Who are they?  Highly successful, often second-generation businessmen and women  Young – 30s and 40s when they begin  Highly educated (Europe and North America)  Globally invested and connected  Bringing economic models to social objectives  Work with each other more easily than in civil society partnerships

17 Corporate Responsibility  Still in its infancy stage – more PR than CSR  Growing rapidly with steep learning curve  Huge Gulf potential given scale of resources  Economic and environmental sustainability are key  Weakness is labor practices  Need to connect local business to regional giants

18 Future Directions  Rulers as philanthropic role models modeling giving, volunteering, organizing  Public-Private partnerships government & private actors join forces  Venture Philanthropists meet community activists apply business principles and personal engagement to create reform

19 Challenges to Greater Effectiveness  Legal and Policy Environments restrict social investment of greater assets  Tax incentives to give are absent, undeveloped or unknown  Traditions of secrecy carry over to modern institutions, inhibiting transparency, documentation, and sharing of best practice

20 Challenges to Greater Effectiveness  Fields of work are “bunched” around children, health, education/employment, disability, widows and orphans  Important development fields are underserved, including arts and culture, rights and empowerment, minority relations and governance.

21 Appreciation and Thanks To the Boeing Corporation, Middle East for supporting the study To The Ford Foundation, Middle East and North Africa for core support to the Gerhart Center. Appreciation to my fellow report authors: Mona Atia, Mahi Khallaf, Hadeel Qazzaz, Fadi Sharaiha, Karim Shalaby, And the Study Coordinator and author Dina Sherif.

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