• Research finds over 20% of respondents give over US$1,000,000 annually
  • 80% engage in their philanthropy on a personal level, moving away from their family foundations and businesses 

Dubai, UAE: April 26, 2024: A report titled “Grounded in Tradition, Looking to the Future: Understanding Next-Generation Philanthropy in the Middle East” was recently launched during an exclusive event in the UAE, which revealed that an individual-driven approach to philanthropy, centred on non-traditional giving methods, is gaining traction among next-generation philanthropists in the Middle East. This trend is superseding the traditional family foundations-based approach.

Following six months of pioneering research with next-generation philanthropists in the Middle East, the Pearl Initiative, a business-led non-profit organization focused on promoting corporate governance and accountability in the Gulf region, in collaboration with the Zovighian Partnership, a regional research and social investment platform, and the Bill & Melinda Gates Foundation have discovered that these philanthropists in the region are allocating an average of US$100,000 annually towards high-impact initiatives in education, healthcare and women’s empowerment. The survey also highlighted that almost 20% of respondents contribute over US$1,000,000 annually.

The comprehensive study sheds light on new trends, challenges, and opportunities for giving that are shaping next-generation philanthropy in the region. This initiative aims to fill the gaps in data to help mitigate the risks and challenges in regional philanthropy. Over 80 emerging and established next-generation philanthropists from the region participated in the inaugural quantitative survey, aimed at supporting and empowering the giving community in the Middle East.

The research findings come against the backdrop of an upcoming US$1 trillion wealth transfer in the region by 2030. With this research, the collaborators hope to enable more effective decision-making amongst funders who are having to make more complex and strategic philanthropic decisions. 

Badr Jafar, Founder of the Pearl Initiative and CEO of Crescent Enterprises, said: “Data and research are crucial elements that enhance the impact of philanthropy. This is especially urgent considering the next generation of donors is transforming the practice of philanthropy by demanding more hands-on approaches, with a growing emphasis on accountability and transparency. This research project supports the creation of a comprehensive repository of data around philanthropy in the Arab world and other high growth markets, highlighting the potential for donors to adopt more courageous and impactful approaches to giving.”

With 80 percent of next-generation philanthropists moving away from their family foundations and businesses, over 45 percent are employing non-traditional giving methods such as impact investing, microlending, and donor-advised funds, says the study. Female philanthropists are significantly more likely to invest in women and girls, which could lead to increased efforts to support the economic inclusion of women. Furthermore, nearly 60 percent of respondents believe that direct funding is the most effective giving strategy.

Robert Rosen, Director of Philanthropic Partnerships at the Bill & Melinda Gates Foundation, said: “We are pleased that Pearl Initiative and the Zovighian Partnership have collaborated on this important study. The insights garnered from the next generation of philanthropists in the MENA region, who have emerged as one of the major growth drivers for the sector, holds great significance and potential to better understand the landscape of giving, and unlock transformative and enduring positive social impact.

Governance and accountability are key priorities among next-generation philanthropists. Nearly 50 percent of respondents believe they are supported by well-established governance frameworks for their giving and over 70 percent exhibit a strong commitment to self-accountability.

The report also highlights that over 65 percent of next-generation givers are dissatisfied with the available ecosystem of support for philanthropic giving. However, over 65 percent of next-generation philanthropists hold a positive perception of the impact of philanthropy in the Middle East over the next five years.

Lynn Zovighian, Founder of the Zovighian Partnership, and co-author and co-funder of the research project and report said: "It was so important to deliver this first-time research for our philanthropic community. I am immensely grateful for the support and keen collaboration of many of our peers and fellow changemakers."

Survey respondents predominantly hail from the Gulf Cooperation Council (GCC) countries, Levant and Egypt. Over 80 percent of the participants hold leadership positions, around 50 percent are between the ages of 35-44, and 65 percent are women. With the launch of the survey findings, the Pearl Initiative and Zovighian Partnership will translate the research insights into actionable strategies and initiatives to drive positive change and innovation in the region. 

Download the report at: www.zovpart.com/MENA-Philanthropy-report-2024-en

About Pearl Initiative

The Pearl Initiative is the Gulf region’s leading independent, non-profit organisation working to promote the business case for a corporate culture of accountability and transparency. The organisation was established in 2010 by regional business leaders in cooperation with the United Nations Office for Partnerships. The Pearl Initiative is the only private, non-profit Gulf business network to receive special consultative status from the United Nations Economic and Social Council. The Pearl Initiative runs a series of corporate governance-related programmes, including Anti- Corruption Best Practices, Diversity in Business Leadership, Governance in MSMEs, Governance in Family Firms, Governance in Tech, and Governance in Philanthropy. The organisation also conducts locally relevant research, hosts workshops and executive education training sessions, and convenes business leaders, policymakers, students, and non-profit executives to encourage a proactive approach to implementing best practices in the workplace across the Gulf region. With a growing network of over 40 regional and international partners, the Pearl Initiative continues to strive to be the leading business-led action-oriented platform to advance corporate governance as a key driver of competitiveness, job creation, and sustainable economic growth across the Gulf region.

For more information, please visit www.pearlinitiative.org and check out our Social Media Channels: @PearlInitiative on Facebook, YouTube, and Twitter and @ThePearlInitiative on LinkedIn and Instagram. 

About Zovighian Partnership

Established by a father-daughter duo in 2013, the Zovighian Partnership is a family-owned social investment platform enabling public and private philanthropy and impact through community-led research, strategy and policy innovation, and governance in the Middle East. Their clients are philanthropists, social investors, and peace builders who are deeply grounded in humanity and have a true appreciation for high quality and ethical research and social innovation.  

About the Bill & Melinda Gates Foundation

Guided by the belief that every life has equal value, the Bill & Melinda Gates Foundation works to help all people lead healthy, productive lives. In developing countries, it focuses on improving people’s health and giving them the chance to lift themselves out of hunger and extreme poverty. In the United States, it seeks to ensure that all people—especially those with the fewest resources—have access to the opportunities they need to succeed in school and life. Based in Seattle, Washington, the foundation is led by CEO Mark Suzman, under the direction of Co-chairs Bill Gates and Melinda French Gates and the board of trustees.