DOHA // Muhammad Yunus may have kick-started modern microfinance, won the Nobel Peace Prize and inspired the current vogue for social entrepreneurialism. But across the Middle East and North Africa, his Muslim brethren seem to have dropped the baton.
Of the thousands of social businesses around the world, Arabs founded fewer than 75, according to a study by the Middle East Youth Initiative. Of those, five were launched in the wealthy nations of the GCC: three in Kuwait and one each in Saudi Arabia and Bahrain; none in Qatar and the UAE. "Social entrepreneurship is a nascent field here," said Ehaab Abdou, an adviser to MEYI, a partnership of the Brookings Institute and the Dubai School of Government. "This is a big gap that we need to address."
One after another, officials, academics and industry experts speaking at the third annual World Congress of Muslim Philanthropists (WCMP) here underscored how the Muslim world - which represents nearly a quarter of humanity - has been failing to pull its weight in responding to poverty, hunger, humanitarian emergencies and the radicalisation of youth. In bringing philanthropists and aid organisations up to speed, they may need to start with the basics.
"Very few people in the field in Saudi Arabia even know what development is," said Saudi Princess Banderi Abdul Rahman Al Faisal, the director general of the King Khalid Foundation (KKF), which works with Saudi non-profit organisations to train staff, design projects and improve effectiveness and monitoring. Ms Faisal likely hit on the key problem: inadequate education. "The way to jannat [Arabic for 'paradise'] is not just building mosques," said Atta-ur-Rahman, a former education minister of Pakistan who now heads the science and technology body of the Organisation of the Islamic Conference (OIC). "You have to build schools, you have to build research and innovation centres and knowledge parks."
Ten years ago, Sheikh Saud bin Saqr, Crown Prince and Deputy Ruler of Ras al Khaimah, helped launch the Arab Science & Technology Foundation. Today it has 15,000 member scientists and regularly links international businesses with entrepreneurial Arab scientists. "We try to match those who have some knowledge with those who have some money to develop something really good," said Abdallah al Najjar, the foundation's president and CEO. Out of 90 start-up concepts the organisation has presented to investors, 22 have received financing.
Yet more needs to be done, particularly within Muslim countries. Nearly one billion people in OIC-member states are below the age of 25, according to Mr Rahman. Due to a lack of training and opportunity, many are unable to access the advantages of a globalised economy. A study by the International Council on Security and Development (ICSD) found that more than 85 per cent of young men in Afghanistan, Iraq and Somalia say there are not enough jobs and that greater numbers are joining militant groups.
Similar problems exist from Algeria to Indonesia. ICSD works to minimise such discontentment by providing homes, jobs, marriage and education. "We could turn this group of young men, this demographic time bomb, into married men with jobs, a house, a commitment to their community, a sense of identity, a sense of enfranchisement," said Norine McDonald, ICSD director. "All these things we work on should be given the same political and financial support as we give to military and police actions."
Such support is undermined by a lack of information and suspicion about aid efforts. In a recent YouGov survey, nearly 40 per cent of respondents across the Middle East said they had not donated to Haitian earthquake relief because they did not know where or to whom to contribute. Further, 35 per cent said they did not trust local non-profits and 36 per cent believed it was easier to donate to international organisations. KKF has partnered with the Columbia Business School, Acumen Fund and the United Nations' Millennium Development Goals. Yet most Saudi donors still view non-profits as ineffective or unaccountable and prefer to give directly to the beneficiary. "We have to build non-profit capacity because the donors must be able to trust their abilities," said Ms Faisal. "We're actually looking to shift the mindset, shift the culture, and that's very difficult." Another hurdle is a lack of commitment from those in a position to help. The Islamic Development Bank is one of the world's largest and most innovative international aid institutions and many of the more developed Muslim nations have significant aid agencies. As a percentage of GDP, in fact, wealthy Gulf states are among the world's leading providers of aid. And while philanthropists gathered in Doha, Arab leaders met in Cairo hoping to net US$2 billion (Dh7.3bn) for a new Darfur reconstruction fund. Yet only a small percentage of the more than $100 billion in zakat payments collected annually by OIC member states goes to help the needy, said Mat Hassan Essa, head of the International Zakat Organisation. He proposed a cooperative effort to collect and disburse these funds to projects for the poor. Islamic bankers, too, generally ignore the base of the pyramid. Globally, Islamic finance is set to reach $10 trillion this year, yet out of 77 million microcredit loans worldwide, some 380,000, or about 0.4 per cent, are Sharia-compliant. "Right now Islamic financing is geared towards serving the haves of the world," said Ali Ibrahim, a law professor at Georgetown University in Bahrain. Many of those haves might be unaware that one-sixth of humanity remains hungry and that food production in Africa is set to drop one-fifth by 2050. Tarik Cheema, CEO of the WCMP, is not among them. At the conference's opening session he announced the Hasana Fund, a microfinance initiative that will provide interest-free loans to small-scale farmers across more than 20 poorer nations, including Bangladesh, Ghana, Ethiopia. "As human beings and Muslims," said Mr Cheema, "it is our duty not just to give food but also to help the poor produce their food so that they are not dependent."
dlepeska@thenational.ae
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
THE SPECS
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed dual clutch
Power: 710bhp
Torque: 770Nm
Speed: 0-100km/h 2.9 seconds
Top Speed: 340km/h
Price: Dh1,000,885
On sale: now
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.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
HIV on the rise in the region
A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.
New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.
Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.
Access to HIV testing, treatment and care in the region is well below the global average.
Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.
THE BIO:
Sabri Razouk, 74
Athlete and fitness trainer
Married, father of six
Favourite exercise: Bench press
Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn
Power drink: A glass of yoghurt
Role model: Any good man
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Killing of Qassem Suleimani
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
'The Ice Road'
Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne
2/5
Eyasses squad
Charlie Preston (captain) – goal shooter/ goalkeeper (Dubai College)
Arushi Holt (vice-captain) – wing defence / centre (Jumeriah English Speaking School)
Olivia Petricola (vice-captain) – centre / wing attack (Dubai English Speaking College)
Isabel Affley – goalkeeper / goal defence (Dubai English Speaking College)
Jemma Eley – goal attack / wing attack (Dubai College)
Alana Farrell-Morton – centre / wing / defence / wing attack (Nord Anglia International School)
Molly Fuller – goal attack / wing attack (Dubai College)
Caitlin Gowdy – goal defence / wing defence (Dubai English Speaking College)
Noorulain Hussain – goal defence / wing defence (Dubai College)
Zahra Hussain-Gillani – goal defence / goalkeeper (British School Al Khubairat)
Claire Janssen – goal shooter / goal attack (Jumeriah English Speaking School)
Eliza Petricola – wing attack / centre (Dubai English Speaking College)
Race card:
6.30pm: Baniyas (PA) Group 2 Dh195,000 1,400m.
7.05pm: Maiden (TB) Dh165,000 1,400m.
7.40pm: Handicap (TB) Dh190,000 1,200m.
8.15pm: Maiden (TB) Dh165,000 1,200m.
8.50pm: Rated Conditions (TB) Dh240,000 1,600m.
9.20pm: Handicap (TB) Dh165,000 1,400m.
10pm: Handicap (TB) Dh175,000 2,000m.
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
The specs: 2019 Subaru Forester
Price, base: Dh105,900 (Premium); Dh115,900 (Sport)
Engine: 2.5-litre four-cylinder
Transmission: Continuously variable transmission
Power: 182hp @ 5,800rpm
Torque: 239Nm @ 4,400rpm
Fuel economy, combined: 8.1L / 100km (estimated)
