Dubai: The new generation high net-worth (HNW) business owners in the Middle East, Asia and Africa are committed to giving back to their communities amid their focus on growing their businesses and increasing market share, according to a recent study by Standard Chartered Private Bank in partnership with Campden Wealth Research,
Almost 91 per cent of those surveyed currently contribute to philanthropic causes, with efforts extending beyond one-off donations. For these participants the preference is to become directly involved in the cases they support, over one-time donations and simple aid giving. They seek causes/programmes that will deliver measurable social, economic and environmental impact to their local communities as opposed to the developed world’s more common mode of disbursements of capital.
“Philanthropy is an integral part of Middle Eastern culture. It is felt to be an essential component of one’s religious and cultural duties to give a portion of one’s wealth, however small, to those less fortunate. In that sense, commitment to philanthropy has been a very personal matter for the people of this region,” said Richards Evans, regional head of Private Banking for Europe, the Middle East, Africa and south Asia.
The report shows that there is a lack of awareness on the role that private banks can play in supporting their clients in their philanthropic activities.
Of the various philanthropic causes surveyed, education emerges as the top preference, with 97 per cent of respondents rating it important or very important.
Specifically, 65 per cent of respondents ranked education as the most important philanthropic cause, with typical efforts including the building of schools and offering of scholarships. This was followed by efforts supporting social enterprise (76 per cent) and fighting poverty (74 per cent). Respondents shared that they use their businesses to create internship opportunities as well as provide venture capital for entrepreneurs.
Comparing across regions, African respondents rated almost all philanthropic causes as important/very important, unlike Asian and Middle Eastern respondents for whom education is the standout cause.
The majority of HNW business owners from these regions indicated that they do not get involved in philanthropy via their private bank (96 per cent), as donating to charities is something they would rather do themselves. Often, this segment approaches philanthropy by creating their own foundations and initiatives, not simply donating to the work of others.
