Historical Context of Arab philanthropy. What distinguishes Arab philanthropy from global philanthropy? Latest Key trends. Challenges. Framework for Ecosystem of Global and Arab Philanthropy.

Three sub-regions with distinctive characteristics. Common across Arab region is Waqf. Another commonality that all expereinced: “Rich Heritage – Disruption – Renewal”. Renewal characterized as moving from charitable unsustainable Giving to Giving that will lead to social change.

What distinguishes Arab philanthropy from global philanthropy A healthy tension exists between global practices and local traditions of giving. Three main incentives for giving are in play:  Giving as religious duty  Giving to solve certain social problems (comfort)  Giving to effect social transformation (edgy!)

Latest Key trends Two key contributions in July 2015: Prince Alwaleed bin Talal (KSA) pledged his wealth $32B (Giving Pledge). Abdullah Ahmad AlGhurair pledged one third of his wealth (between $6 & 7.5B) – local tradition of giving.

Challenges Legal Environment Better tracking of impact and more rigorous fiscal responsibility to build more community trust.

Framework for Ecosystem of Global and Arab Philanthropy Will be important to test this framework that provides some unified way to look at things yet emphasizing the richness of diversity (based on discussions in Berlin June meeting)

Sources of Funds Intermediaries End Users Potential Funds Available for Social Investment (2% of GDP)

Sources of Funds When considering the potential funds for giving, 2 percent of country GDP seems to be plausible. This is where it stands in Saudi Arabia, UAE and USA. In Muslim countries, the guideline for “zakat” is 2% of one’s income. India is mandating 2% of company profits to fund social projects. Intermediaries Not always used because of issues of trust. In many cases, funds go from sources to end users without passing through an intermediary. End users NGOs/NPOs, community organizations, social businesses, and needy individuals/families.

Sources of Funds Individuals Families & Family Businesses Corporate Sector Waqf Endowments (mostly registered abroad) Foundations inside and outside the region Religious Institutions Intermediaries Philanthropy Advisors (SAANED, Banks, Lawyers, etc.) NGOs and NPOs Foundations that fundraise Social Entreprises & Businesses Religious Institutions End Users Individuals/ Families (takaful) NGOs and NPOs Institutions outside the region UN agencies Religious Institutions Potential Funds $60 Billion (2% of Arab League Countries GDP)

Sources of Funds Funding from international community (bilateral & multilateral government funds, international foundations and NGOs) not included in potential funds available for philanthropy. In-kind contribution like volunteering not included. Intermediaries These include networks like the Arab Foundations Forum, and research centers like the Gerhard Center at American University of Cairo. End users Mostly supporting “safe” activities: health, education, feeding programs during events like Ramadan, distribution of cash to needy families, youth employment. Less to “political” activities to tackle root causes like human rights and policy changes. Rarely to infrastructure and research

Region No. of Ultra HNWIWorth ($ Billion)Annual Growth No. Africa3, % Arab5, % Asia46,6356,9755.8% Russia/CIS2, % South & Central America 14,8052,2255.5% Europe60,5656,4005.8% North America74,86510,2656% Pacific4, % Global Distribution of the Ultra High Net Worth Individuals (Source: 2014 Wealth Report; UHMWI >$30M)