The UAE will have a crucial role to play in the future of philanthropy, Robert Rosen, Director, Philanthropic Partnerships, Bill & Melinda Gates Foundation told Arabian Business.
“I think the UAE and the region more broadly are crucially important to the future of philanthropy,” Rosen said.
For Rosen, the region’s importance has a lot to do with its past story of economic success and growth. In particular, when looking at the growth of the Arabian Gulf, especially the UAE over the past 20 years, “trying to extrapolate that [growth] forward 20 years demonstrates that this is a critical hub in the globe for philanthropy, unquestionably so. And so, I think, there is an inevitability that philanthropy will continue to grow [in the UAE].”
Looking to the future, Rosen sees two particular trends emerging. Firstly, the emergence of a new generation of leaders, which he terms “NextGens,” that are beginning to take over family businesses, corporate leadership positions, and entering company boards.
“It is this transition of leadership where we will see a shift as to how these younger leaders view or partake in philanthropy and often it is different from their predecessors with more attention given to strategic philanthropy, generating long-term impact and transparency.”
Secondly, the Middle East is also “about to witness one of the biggest transfers of wealth,” a dynamic which is linked to the transfer of leadership.
“Over the next couple of decades nearly $26 trillion will be transferred across generations in growth market regions, which includes the MENA, and as a result there will be a substantial increase in potential philanthropic capital,” Rosen said.
“So, it is fair to say, that with these elements at play, not only will philanthropic giving grow, but it will undoubtedly become more optimised, strategic and impactful, contributing greatly to the development of the region’s communities and better address inequalities,” he added.
The philanthropy model
Rosen was quick to explain that while the Gates Foundation has continued to follow a “programmatic strategy, followed by partnerships for implementation,” there are many different ways for philanthropy to operate.
“I think as a sector we are sometimes tempted to say that this is the one right approach, but that isn’t necessarily true. I think naturally if you look at it, you’ll see that there are different models that work.”
The Gates Foundation has built its strategy around a “network of great partners,” acting as a partner “in shaping the strategy with recipients and other knowledgably players in the sector.”
In comparison, Rosen pointed to billionaire philanthropist MacKenzie Scott who has entered the philanthropy scene through a model of participatory grantmaking at “truly extraordinary speed.”
“It’s remarkable, she’s taken an approach that’s different from ours in terms of how she gives and it’s very interesting … In many ways [MacKenzie Scott and the Gates Foundation] are complementary in funding streams, there’s not necessarily one perfect model,” he said.
The universal truth
For Rosen there are “some universal truths” about humans, including that they are “actually quite generous,” noting that people’s traditions, including in the Muslim world, tend to include a degree of generosity.
However, despite innate generosity, philanthropy is a complicated artform, with Rosen arguing that data is key to deploying capital in the most efficient way possible.
“Having data informed decisions in something that we firmly believe in. I would be overstating it to say that we are unique in the philanthropic sector of having data challenges though,” he said.
As in many sectors, the challenge of acquiring adequate data is key, as, without this data, there’s little chance of a philanthropic institution understanding if they are achieving desired outcomes.
In a conversation around understanding how capital can be successfully deployed, comparisons are quickly drawn to the investing sector. While philanthropy and investing are very different from one another, there are some similarities.
Rosen explains: “There are parallels in their differences. I want to nuanced in this, but in a somewhat similar way, it’s a capital allocation process. Givers have resources and they need them to flow to implementers who are actually going to drive the outcome that they want to see.
“The overall flow and information on that process in the sector is, unfortunately, very different than the investment sphere, where there’s an industry that is dedicated to providing meaningful information that helps inform decision points. In the philanthropy sector, there are significant gaps there.”
For the future, Rosen believes that “collaboration is crucially important.” In the Middle East, he also noted excitement at building some “great local partnerships” with big plans to “accelerate in the years ahead,” while donors in the region will continue to collaborate and learn to overcome barriers to philanthropy.
“I project that there will be significant momentum not just regionally but globally in terms of that happening. I think it will accelerate,” he concluded.
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