Gerald Du/ Getty Images
Gerald Du/ Getty Images
Gerald Du/ Getty Images
Gerald Du/ Getty Images


Strategic philanthropy can be central to giving young people a better life


Sonia Ben Jaafar
Sonia Ben Jaafar
  • English
  • Arabic

December 22, 2023

In the current global context, we find ourselves confronting profound challenges, some of which are particularly affecting the Arab youth. They face a range of difficulties, from economic instability to the effects of climate change, that for many can result in a sense of marginalisation and uncertainty.

In response, professionals and experts across various fields are collaborating to address these interconnected issues. Amid these challenges, the role of philanthropy, especially strategic philanthropy, has become increasingly crucial. This involves thoughtful and impactful giving that is focused on long-term solutions rather than temporary relief.

The impact of philanthropy can seem limited in the face of monumental challenges such as climate change, mass displacement and water scarcity. Its effects, however, can go beyond traditional acts of generosity and offer a comprehensive road map for sustainable change.

Traditional philanthropy is commendable and focuses on immediate aid needed to alleviate the suffering of people and responding to emergencies and gaps worldwide. It is a reaction that comes from the best part of humanity – our sense of empathy for others. It is the kind of giving that we witnessed after the devastating earthquakes in south-eastern Turkey and northern Syria, when over 54,000 people died. With buildings having collapsed, families were living in tents and flimsy shelters.

This kind of impact is the difference between sending blankets and food to Haitian earthquake survivors and investing in structural resilience and safety in communities

Charity plays a critical and compassionate role, especially in dire times. These days, the Middle East and North Africa region, where over 60 per cent of the population is under the age of 30, confronts a significant challenge: youth unemployment.

This reality risks leading to a bleak future in many parts of the region. Reports from the World Bank and the International Labour Organisation indicate the region has the highest youth unemployment rate in the world, exceeding 26 per cent. Charity will not alleviate the potential crisis ahead, but strategic philanthropy can help.

Strategic philanthropy delves deeper, beyond a temporary balm, to heal the wound at its core. It addresses the underlying causes of issues and employs careful planning and flexibility to maximum affect. Strategic philanthropy starts with a clear vision of the desired state and what is needed to reach it. In doing so it aligns itself with business approaches.

Haiti eathquake. Photo: United Nations University/UNICEF
Haiti eathquake. Photo: United Nations University/UNICEF

Business and philanthropy may appear distinct at first glance, but they share more common ground than one might think. Both require the cultivation of robust relationships, a well-defined vision and a steadfast commitment to effecting meaningful change in the world.

While at the surface level these paradigms might seem at odds – one often perceived as a pursuit of greater wealth for the already affluent, and the other as an altruistic endeavour aimed at aiding the less fortunate – there is a point where corporate acumen and social good intersect.

From this intersection arises strategic philanthropy that involves setting specific, measurable objectives aligned with the broader mission of the philanthropic endeavour. It involves collaborating with other organisations, governments or communities. These partnerships can leverage additional resources, expertise and local knowledge to increase the impact of philanthropic efforts.

Beyond short-term fixes, strategic philanthropy is flexible and responsive to changing conditions and new information. This means adjusting strategies and approaches based on continuous valuation and feedback. There is an emphasis on being open about goals, strategies, outcomes and challenges. This transparency helps build trust with stakeholders and the broader community.

Instead of just addressing the symptoms of social issues, strategic philanthropy often aims to address the underlying systemic causes. This may involve policy advocacy, public awareness campaigns or other efforts to drive broader societal changes. These principles guide philanthropists in using their resources effectively to create significant, lasting impact.

This kind of impact is the difference between sending blankets and food to Haitian earthquake survivors and the work of Habitat for Humanity, which invested efforts in Haiti to cultivate structural resilience and safety in communities. The homes that they built in the earthquake-prone region were built for a purpose – to withstand the elements in the worst cases.

These include new homes designed for elderly residents and homes built in partnership with the International Organisation for Migration. After the ultimate test, these homes have proven to be more long-lasting and able to withstand catastrophic events, providing a sense of security for the families they serve. This is looking at the root problem and contributing to resolving the issues of safe housing for the long term – that is strategic philanthropy.

The UAE exemplifies a proactive approach to philanthropy, effectively bridging the gap between intentions and concrete actions. In the realm of strategic philanthropy, which promotes innovation and collaboration among diverse stakeholders such as non-profits, government entities and the private sector, the UAE's collaborative methodology is particularly effective. This approach aligns well with the country's dynamics, fostering more innovative and practical solutions to complex social challenges.

The Abdulla Al Ghurair Foundation’s Nomu initiative is an example of such collaboration. It brings together various sectors to tackle youth unemployment within the framework of the Global Council on Sustainable Development Goals (SDGs) led by the Office of the Prime Minister. Since its inception in 2021, Nomu has significantly impacted over 21,000 youths across the UAE and is now expanding to other countries in the region, starting with Jordan, Lebanon and Tunisia.

Strategic philanthropy is increasingly engaging directly with beneficiaries, ensuring interventions meet community needs for more effective results. In the Mena region, this model is growing, focusing on youth empowerment in line with the SDG nexus model. It emphasises innovation, sustainability and regional solutions, particularly in equipping youth with 21st-century skills.

This approach demonstrates how strategic partnerships and efficient resource utilisation can lead to sustainable community improvements. By aligning with global standards and addressing local needs, it facilitates practical plans for preparing the next generation with relevant skills and opportunities in today's world.

A Tunisian woman holds baby shoes during a silent march in solidarity with the Palestinian people, in Tunis, Tunisia, on November 25. EPA
A Tunisian woman holds baby shoes during a silent march in solidarity with the Palestinian people, in Tunis, Tunisia, on November 25. EPA

Fondation Tunisie Pour Le Développement focuses on social and economic development, particularly aimed at enhancing the employability of young Tunisians and addressing regional disparities. Their programmes, such as “Elife” and “Smart Tunisia”, are strategically crafted to tackle distinct challenges in local contexts.

This approach is crucial, especially considering the data from the past two years highlighting a dire situation. In 2022 alone, over 15,000 young Tunisians risked their lives attempting to reach the Italian coast as migrants in search of hope for a decent life, with most being sent back – excluding those who died at sea. By offering targeted solutions for decent employment, the foundation aims to address the underlying crisis that provokes these youths to undertake such perilous journeys, thereby contributing significantly to mitigating this life-threatening trend.

Strategic philanthropy is gaining momentum due to its focus on impact, sustainability, accountability and innovation. It is attracting donors and organisations interested in tangible results and understanding the difference their contributions make as a long-term investment. This shift towards measurable outcomes is encouraging more strategic allocation of philanthropic funds.

Moreover, with a growing demand for transparency and accountability, especially in philanthropy, donors want to know that their money is being used effectively. This is where strategic philanthropy comes in, providing a framework for accountability and efficient use of funds.

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Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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Wayne Rooney 53
Bobby Charlton 49
Gary Lineker 48
Jimmy Greaves 44
Michael Owen 40
Tom Finney 30
Nat Lofthouse 30
Alan Shearer 30
Viv Woodward 29
Frank Lampard 29

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Director: Christopher McQuarrie

Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

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UAE currency: the story behind the money in your pockets
Despacito's dominance in numbers

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Views: 5.3 billion on YouTube

Sales: With 10 million downloads in the US, Despacito became the first Latin single to receive Diamond sales certification

Streams: 1.3 billion combined audio and video by the end of 2017, making it the biggest digital hit of the year.

Awards: 17, including Record of the Year at last year’s prestigious Latin Grammy Awards, as well as five Billboard Music Awards

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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.”

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Evacuations to France hit by controversy
  • Over 500 Gazans have been evacuated to France since November 2023
  • Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
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THE SPECS

Engine: 3.5-litre supercharged V6

Power: 416hp at 7,000rpm

Torque: 410Nm at 3,500rpm

Transmission: 6-speed manual

Fuel consumption: 10.2 l/100km

Price: Dh375,000 

On sale: now 

Specs

Price, base: Dhs850,000
Engine: 3.9-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
Fuel economy, combined: 11.3L / 100km

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Gulf Under 19s final

Dubai College A 50-12 Dubai College B

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

Updated: December 22, 2023, 6:00 PM