The United Arab Emirates has long been celebrated for its culture of generosity and charitable giving, with philanthropy and Zakat – the obligatory almsgiving in Islam – serving as cornerstones of its social fabric. In recent years, the UAE’s thriving population of high net worth (HNW) and ultra high net worth (UHNW) individuals have emerged as key drivers of this philanthropic landscape, making significant contributions and embracing innovative approaches to giving that are reshaping the sector.
The Scale of Giving
Across the Gulf Cooperation Council countries, including the UAE, annual philanthropic giving is estimated at an impressive $210 billion. The UAE’s wealthy elite, with net worths ranging from $1 million to over $30 million, are responsible for a sizable portion of these donations.
Anwar Safa, a trusted advisor to HNW Emiratis, observes: “The scale of giving we’re seeing from UAE’s wealthy is truly remarkable. It’s not just about the amounts, though. What’s exciting is how these donors are approaching philanthropy with a strategic mindset, seeking to maximize impact and drive sustainable change.”
Globally, UHNW individuals accounted for over a third of all individual giving in 2021. In the UAE, this trend is even more pronounced, with nearly 20% of UHNW individuals having established their own charitable foundations. This statistic highlights their deep commitment to making a positive impact on society and their desire for a more hands-on approach to philanthropy.
The Evolution of Giving Practices
As a new generation of Emirati philanthropists comes to the fore, there is a notable shift towards more strategic, evidence-based giving practices. Younger donors are keen to invest in innovative solutions like impact investing and social entrepreneurship to drive sustainable, long-term change.
“The new generation of Emirati philanthropists is eager to maximize the impact of their giving,” Safa notes. “They want to see tangible results and are willing to take calculated risks on innovative solutions. It’s not uncommon to see these donors applying business principles to their philanthropic endeavors, seeking measurable outcomes and scalable solutions.”
This shift is reflected in the growing number of private foundations established by UHNW individuals in the UAE. These foundations allow for more structured, long-term approaches to philanthropy, often focusing on specific causes or issues aligned with the founder’s values and vision.
Aligning with National Priorities
Importantly, there is growing alignment between the philanthropic priorities of wealthy Emiratis and the UAE government’s socioeconomic development goals. By working hand-in-hand with national strategies, HNW donors can amplify their impact in critical areas such as education, healthcare, poverty alleviation, and more.
“The most effective philanthropists recognize the importance of collaboration,” Safa emphasizes. “By partnering with government initiatives and other stakeholders, they can tackle complex challenges in a holistic way and achieve far greater impact than they could alone.”
This collaborative approach is exemplified by initiatives like the Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI), which brings together multiple charitable organizations under one umbrella to maximize impact and efficiency. Such initiatives demonstrate how strategic philanthropy can complement and enhance government efforts to address social and economic challenges.
The Power of Zakat
As an Islamic nation, Zakat remains an integral part of charitable giving in the UAE. This obligatory form of almsgiving, amounting to 2.5% of a Muslim’s wealth above a certain threshold, continues to be a significant source of charitable funds in the country.
Numerous organizations are authorized to collect and distribute Zakat funds to support vital causes both within the UAE and internationally. The United Nations High Commissioner for Refugees’ (UNHCR) Refugee Zakat Fund, for example, has assisted over 6 million refugees and internally displaced people since 2019. Respected UAE institutions like the Al Jalila Foundation also accept Zakat to provide life-saving medical treatment to those most in need.
“Zakat is a powerful tool for social justice and poverty alleviation,” Safa points out. “By channeling their Zakat contributions strategically, HNW individuals can make a profound difference in the lives of the most vulnerable. We’re seeing an increasing number of wealthy donors taking a more active role in directing their Zakat towards specific causes or organizations that align with their philanthropic goals.”
Building the Philanthropic Ecosystem
The UAE is taking proactive steps to build the necessary infrastructure to support strategic philanthropy. The establishment of the UAE’s International Humanitarian and Philanthropic reflects a clear commitment to realizing this objective. Chaired by his Highness Sheikh Mohamed bin Zayed Al Nahyan, the Council is expected to oversee the policy agenda for international humanitarian and philanthropic affairs and develop the future vision and implementation frameworks for enhanced outcomes across this domain.
Local initiatives such as the Pearl Initiative’s Governance in Philanthropy programme in collaboration with the Gates Foundation, and NYU Abu Dhabi’s Strategic Philanthropy Initiative are equipping philanthropists with the knowledge and resources needed to maximize their impact. By fostering collaboration between all stakeholders and promoting best practices, these developments are laying the groundwork for a thriving philanthropic ecosystem in the UAE and beyond.
Challenges and Opportunities
Despite the significant progress, the philanthropic sector in the UAE faces several challenges. These include the need for more robust legal and regulatory frameworks to govern philanthropic activities, the importance of building local capacity in the non-profit sector, and the ongoing need to enhance transparency and impact measurement.
Safa reflects, “One of the biggest challenges I see is the need for more collaboration and knowledge sharing within the philanthropic community. There’s tremendous potential for donors to learn from each other’s experiences and to pool resources for greater impact. Platforms that facilitate this kind of exchange and collaboration will be crucial going forward.”
However, these challenges also present opportunities for innovation and growth. The UAE’s position as a global hub for business and innovation puts it in a unique position to lead in developing new models of philanthropy that can address complex social and environmental challenges.
Looking to the Future
As the UAE continues to prosper, there is no doubt that HNW individuals will remain at the heart of the country’s vibrant philanthropic ecosystem. By embracing strategic giving practices, collaborating with government initiatives, and harnessing the power of Zakat, the UAE’s wealthiest have an unparalleled opportunity to drive meaningful change and shape a brighter, more equitable future for all.
“Philanthropy is not just about generosity; it’s about leadership,” Safa concludes. “The UAE’s HNW philanthropists have the potential to set a powerful example for the region and the world, demonstrating how strategic giving can transform lives and communities. As we look to the future, I’m optimistic that we’ll see even more innovative and impactful philanthropy emerging from the UAE, addressing not just local needs but global challenges as well.”
As the UAE emerges as a hub for strategic philanthropy, it has the opportunity to lead by example and inspire others to embrace frameworks that nurture the practice of impactful giving. By harnessing the power of technology, fostering collaboration between stakeholders, and promoting a culture of transparency and accountability, the UAE is poised to drive positive change in the sector and make a meaningful difference in the lives of millions around the world.