• The UAE was the country which made the most individual donations to the UNHCR's Zakat fund for refugees in 2020. Leslie Pableo / The National
    The UAE was the country which made the most individual donations to the UNHCR's Zakat fund for refugees in 2020. Leslie Pableo / The National
  • Mulism pilgrims gather around the Kaaba, Islam's holiest shrine, at the Grand Mosque in Saudi Arabia's holy city of Mecca on August 8, 2019, prior to the start of the annual Hajj pilgrimage in the holy city. Muslims from across the world gather in Mecca in Saudi Arabia for the annual six-day pilgrimage, one of the five pillars of Islam, an act all Muslims must perform at least once in their lifetime if they have the means to travel to Saudi Arabia. / AFP / FETHI BELAID
    Mulism pilgrims gather around the Kaaba, Islam's holiest shrine, at the Grand Mosque in Saudi Arabia's holy city of Mecca on August 8, 2019, prior to the start of the annual Hajj pilgrimage in the holy city. Muslims from across the world gather in Mecca in Saudi Arabia for the annual six-day pilgrimage, one of the five pillars of Islam, an act all Muslims must perform at least once in their lifetime if they have the means to travel to Saudi Arabia. / AFP / FETHI BELAID
  • The third highest amount of individual Zakat donations to the UNHCR came from the US in 2020. Getty Images
    The third highest amount of individual Zakat donations to the UNHCR came from the US in 2020. Getty Images
  • Kuwait was the country with the fourth highest number of individual donations to the UNHCR's Zakat fund in 2020. Giles Barnard/Construction Photography/Avalon/Getty Images
    Kuwait was the country with the fourth highest number of individual donations to the UNHCR's Zakat fund in 2020. Giles Barnard/Construction Photography/Avalon/Getty Images
  • The Doha skyline in Qatar. The nation made the fifth highest number of individual donations to the UNHCR's Zakat fund for refugees. Getty Images
    The Doha skyline in Qatar. The nation made the fifth highest number of individual donations to the UNHCR's Zakat fund for refugees. Getty Images

Ramadan 2021: UN urges more zakat funds as Covid-19 aid cuts hit


Patrick Ryan
  • English
  • Arabic

Refugees are at risk of being forgotten as governments grapple with the financial fallout from Covid-19, a senior humanitarian has said.

Khaled Khalifa, the UN refugee agency's regional representative to GCC countries and senior adviser for Islamic philanthropy – UAE, said charity groups are instead having to rely on donations from the private sector and individuals.

Speaking on Monday to launch the UNHCR's report into Islamic philanthropy and the impact of its "refugee zakat fund" in 2020, he urged governments not to turn their back on those most in need despite the huge financial toll of the pandemic.

“There is a risk that countries and donors will focus internally and this is something we are afraid of,” said Mr Khalifa, also the UNHCR's representative to the GCC.

We are calling on donors – individuals or governments – to really consider the plight of refugees at these very difficult times

“We are calling on donors – individuals or governments – to really consider the plight of refugees at these very difficult times.”

As Ramadan approaches, Mr Khalifa also urged all Muslims to embrace the ideals of zakat and supports its fund. Zakat is one of the five pillars of Islam and is a form of alms giving that is treated as a tax or religious obligation. Muslims across the world donate around $76 billion in zakat each year.

The report revealed how in 2020 the UNHCR supported 2.1 million refugees and internally displaced people globally through these types of donations.

A total of $61.5 million was raised through its zakat initiative last year - a 12.5 per cent increase on 2019, resulting in a growth of 59 per cent in zakat beneficiaries.

The majority of those who received help - 1.6 million - came from 10 countries: Yemen, Lebanon, Bangladesh, Jordan, Egypt, Iraq, Mauritania, India, Niger and Pakistan.

Despite the sums raised, Mr Khalifa said the impact of the pandemic meant they needed more help.

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The UNHCR has projected a global budget of $9.1bn to help meet the needs of refugees and the displaced in 2021.

He said $2.7bn was needed in countries where it will be distributing zakat, providing support to 24.2 million people in Jordan, Lebanon, Yemen, Iraq, Mauritania, Egypt, Bangladesh, India, Pakistan, Thailand, Iran, Nigeria, Burkina Faso, and Somalia.

The UNHCR said the UAE was the nation where the most individual donations came from. It was followed by Saudi Arabia, the US, Kuwait and Qatar.

The country which made the biggest contribution between the private sector and foundations was Qatar with the UK, the UAE, Saudi Arabia and Kuwait making up the rest of the top five.

The biggest beneficiaries of the fund in 2020 were the internally displaced in Yemen with more than 651,000 individuals and 110,000 families receiving aid.

“With the holy month of Ramadan upon us, we urge everyone to continue supporting refugees and displaced families who will welcome Ramadan in incredibly difficult circumstances,” he added.

Dr Koutoub Sano, secretary general of the International Islamic Fiqh Academy, who was taking part in the same panel discussion, praised the impact the money raised by the refugee zakat fund was having on marginalised communities.

“The Muslim community responded with generosity to the UNHCR’s refugee zakat fund, in particular in the context of the consequences of the pandemic," said Mr Sano.

“But the needs are still high, and there is much space left to cover for the expenditures of zakat-compliant activities.”

Dr Sano said Muslims had a duty to make zakat donations to help those who were most vulnerable.

“Just like you have an obligation to pray or fast you have an obligation to pay zakat,” he said.

“Not paying zakat is just the same as not praying or fasting or not travelling to Hajj when you are fit to do so.”

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The biog

Nickname: Mama Nadia to children, staff and parents

Education: Bachelors degree in English Literature with Social work from UAE University

As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families

Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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UAE currency: the story behind the money in your pockets

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

TOP 5 DRIVERS 2019

1 Lewis Hamilton, Mercedes, 10 wins 387 points

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4 Charles Leclerc, Ferrari, 2 wins, 249 points

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