The UAE is set to become a philanthropic powerhouse

The UAE marked Zayed Humanitarian Day yesterday, a day after President Sheikh Mohamed described the country’s spirit of philanthropy as a “defining pillar” of its national identity. Zayed Humanitarian Day, observed every year on Ramadan 19, the anniversary of Sheikh Zayed’s death according to the Islamic Hijri calendar, is an important moment during which the people of the UAE, citizens and residents alike, reflect on the Founding Father’s legacy of giving. It has also become an occasion for rallying around humanitarian and charitable initiatives.

This Zayed Humanitarian Day, the Mohamed bin Zayed Foundation for Humanity was launched. The new philanthropic organisation will work with governments and other international partners to invest in healthcare and development initiatives in poorer countries. It will operate under the umbrella of Erth Zayed Philanthropies, which was established by the President last year.

“The Mohamed bin Zayed Foundation for Humanity reflects the UAE’s determination to build a more equitable world through catalysing innovation, seeking out new solutions, and building partnerships that can uplift and enable communities worldwide,” said Sheikh Theyab bin Mohamed, Chairman of the Office of Development and Martyrs Families Affairs at the Presidential Court, Chairman of the International Humanitarian and Philanthropic Council and Chairman of the Board of Trustees of Erth Zayed Philanthropies.

For decades, the global centre of gravity in philanthropy – formal, structured financial donation to a registered charity – has been in the West. It is led by America, where a high concentration of private wealth and strong tax incentives for donations result in more citizens giving money to registered charities than anywhere else on the planet. Charity in much of Asia and Africa, especially in Muslim communities, has traditionally been personal and informal. But as greater wealth accumulates in these regions, they are experiencing a strategic philanthropic boom.

That ought not to be a surprise. While America and the rest of the West lead the pack in formal donations, when one adopts a more nuanced view of charity, the picture of global generosity changes completely. The World Giving Index, a widely cited report published by the UK-based Charities Aid Foundation, includes in its definition of generosity informal donations, helping strangers and volunteering time. Indonesia has led the index seven years in a row, while the US ranked sixth last year. Three of the top 10 countries are in Africa. The UAE – ranked ninth – has been among the top 15 for the past decade.

The Islamic world, in particular, has always been home to deeply rooted traditions of giving – something we are reminded of now during the month of Ramadan. As the charity sector in this region grows more sophisticated, the world can expect formal philanthropy to become a more influential part of the picture. In many cases, the state has a vital role to play in fostering progress. As Sheikh Mohamed said on Tuesday, philanthropy in the Emirates is both an “honour” and a “national responsibility”.

There are ample benefits to individuals, organisations and governments from this region taking on a bigger role in the philanthropic landscape. While the Middle East is home to some engines of wealth and islands of stability like the Emirates, it is also home to millions of people who are regular beneficiaries of charitable and international aid. Philanthropists from this part of the world will know best how to serve it, and they are well-placed to apply its lessons in other areas plagued by similar issues.

The developing world, moreover, is steadily getting richer, but threats like public health crises, armed conflict and climate change are not receding. Consequently, there is plenty of work for the charitably minded to do.