Dubai: The philanthropic landscape in the UAE is undergoing a phase of transformation with more emphasis on 'strategic philanthropy' instead of traditional 'charitable' giving, a study on the Arab trends of philanthropy stated.
The study, released during the Trends in Arab Philanthropy conference in Dubai, stated that while there has always been a culture of giving in the UAE, strategic philanthropy in the country is only a recent phenomenon, citing charitable organisations such as Dubai Cares and the Dubai Harvard Foundation for Medical Research as examples of strategic philanthropy.
Developmental
According to the study, Emirati families whose net worth exceeds $100 million are now giving in ways that are more developmental than charitable "but not necessarily institutionalised". It singles out the UAE's ruling families as being at the forefront of philanthropic activities in the country.
"For the most part, giving is done quietly and discreetly through personal channels. But recently, new focus has emerged on institutionalising philanthropy through the creation of professionally managed foundations such as the Emirates Foundation and Mohammad Bin Rashid Al Maktoum Foundation, among others," it states.
The framework for local philanthropy in the UAE, says the study, "is a diverse multi-billion dollar growth industry" based on individual-based foundations such as the Sultan Bin Ali Al Owais Cultural Foundation, public-private partnership foundations such as the Sharjah-based Arab Science and Technology Foundation, community-based foundations such as Dubai Cares, charities such as Beit Al Khair and private equity firms such as Abraaj Capital.
Private equity firms, according to the study, are poised to become the leaders in targeted social investment "however they have not yet become as stringent and ambitious when it comes to benchmarking and ensuring a return on their social investment as they are with their financial investments".
The study's chapter on the UAE concludes: "One thing is certain. If the accumulation of wealth and private equity has dominated the mindset of Emiratis for the past several decades, how to use that wealth for public benefit now seems to be high on their list of priorities as they determine the regional role they wish to play over the decades to come."
