Grants and private bids in the Gulf region amount to $210 billion

Today, the global philanthropic system is witnessing radical transformations, and philanthropic capital now exceeds one trillion dollars annually, more than three times as much as humanitarian and development aid in the world. Most importantly, an increasing proportion of this philanthropic capital is emerging from the traditional giving mold and moving more towards strategic investments in research, science, and innovation.

This was the content of the virtual symposium organized by the Sharjah Research, Technology and Innovation Park on February 25, with the prominent participation of the Special Envoy of the UAE Minister of Foreign Affairs for Business and Charitable Affairs and author of the book “The Economy of Charitable Work,” Badr Jaafar, in a dialogue with the CEO of the park, Hussein Al Mahmoudi.

Commenting on the impact of these changes, Badr Jaafar said: “Charity work, at its best, is not just a response to crises, but rather a tool for forming integrated systems that prevent them. Effective giving is not temporary and reactionary, but rather proactive and renewable.”

He cited historical examples, including the Rockefeller Foundation’s funding of agricultural scientist Norman Borlag in the 1940s, which sparked the “green revolution” and saved more than a billion lives. He also pointed to the March of Dimes Foundation, which provided $230 million in philanthropic investments that funded Jonas Salk’s innovation of the polio vaccine.

He also referred to the mRNA technology from which the Covid-19 vaccines emerged, indicating that what supported its continuation was funding for research in its early stages from charitable organizations at a time when no commercial investor wanted to delve into this field.

Badr Jaafar continued: “These examples are not isolated examples, but rather a clear pattern of charitable funds allocated to support promising initiatives in their early experimental stages despite the aversion of all other non-charitable investments to them.”

The discussion highlighted the volume of giving in the Middle East and the radical transformations taking place in the charitable system, especially with grants, donations and zakat funds in the region reaching high levels ranging between $400 billion and $1 trillion annually, while private giving in the Gulf in particular is estimated at about $210 billion annually, that is, more than the gross domestic product of most countries.

Badr Jaafar explained that what is actually changing is not the spirit of giving itself, but rather the infrastructure of charitable work and its strategic goals, as capital is directed more and more towards the development of education, health care, technology and climate solutions, and the donor has become more aware, involved and keen to follow the path of his giving, its impact and the extent of its sustainability.

Jaafar described the approach adopted by the UAE as an “integrated platform,” explaining that it is the same model that led the country to the heights of success in the fields of renewable energy, space, and logistics services in the humanitarian field, and aviation, and it also applies it to charitable work and innovation. He said: “In many regions of the world, charitable work and innovation are still two separate fields, unlike the UAE, which is keen to merge and integrate them to maximize their impact, and perhaps this is due to the Emirati society’s inherent adherence to the culture of generosity.” Giving, and the state’s strong desire to support and adopt innovation.”

Hussein Al Mahmoudi commented: “The world is witnessing clear changes in the role of philanthropy, with its shift from traditional models of giving to long-term strategic investments in knowledge, scientific research and innovation. At the Sharjah Research, Technology and Innovation Park, we believe that allocating charitable funds to innovative systems is an effective approach to achieving sustainable social and economic values. Our work is guided by a clear vision, which seeks to bridge the gap between scientific research and practical application, and to build an integrated environment that brings together startup companies, universities, investors and charitable institutions. It has the necessary engines and incentives to accelerate research and translate it into tangible, scalable solutions.

He added: “Through our research platforms and programs to support innovative and pioneering efforts, we lay solid foundations for the growth of effective international partnerships and dedicated charitable initiatives that enhance the region’s attraction of knowledge resources. Our goal is to make our complex a leading regional model, embodying the great power that emerges from the combination of philanthropy and innovation to create sustainable values, support the economy of the future, and serve society in its entirety.”