MBR FOUNDATION ANNOUNCES THE ARAB CENTRE FOR PHILANTHROPY

C O N F I D E N T I A L SECTION 01 OF 02 DUBAI 000061

SIPDIS

SIPDIS

DEPT FOR NEA/ARP/I BAGWELL AND MASILKO

E.O. 12958: DECL: 2/14/2018
TAGS: PREL PGOV PHUM SCUL AE
SUBJECT: MBR FOUNDATION ANNOUNCES THE ARAB CENTRE FOR PHILANTHROPY

REF: A) 07 DUBAI 601 B) 07 DUBAI 614

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CLASSIFIED BY: David J. Williams,, Acting Consul General, EXEC,
DOS.
REASON: 1.4 (b),(d)




1. (U) Summary: During a January 30 meeting, Nabil Alyousuf,
Director General of the Dubai Executive Office and President of
the recently established Mohammed bin Rashid Foundation (MbRF),
elaborated on the proposed Arab Centre for Philanthropy,
announced during the 20-21 January "From Charity to Change:
Trends in Arab Philanthropy" conference conducted in Dubai under
the auspices of the MbRF. The conference stressed the
importance of institutionalizing and coordinating philanthropic
endeavors in the region in order to create a "united force" in
pan-Arab philanthropy. During the conference, Sheikh Mohammed
bin Rashid Al Maktoum Vice-President and Prime Minister of the
UAE and Ruler of Dubai, also announced the launch of the Arab
Centre for Philanthropy. The proposed Centre is being
positioned to play a major role in coordinating activities. End
summary.


2. (U) The "From Charity to Change: Trends in Arab Philanthropy"
conference was based on a recent research study, funded by
Boeing and conducted by the American University of Cairo. The
study noted that philanthropy in the Arab world is increasingly
strategic and focused, with a "rise in citizen activism among
successful and affluent business leaders who are bringing
innovation to...philanthropic activity." The study cited the
recent Ramadan 2007 Dubai Cares initiative (which raised over
the span of twelve weeks more than $200 million targeted towards
education/food relief for underprivileged children) and the
Dubai Harvard Foundation for Medical Research (an endowment
funding basic research) as examples of strategic giving,
concluding that: "If the accumulation of wealth and private
equity has dominated the mindset of Emiratis for the past
several decades, how to use that wealth for public benefit now
seems to be high on their list of priorities as they determine
the regional role they wish to play over the decades to come."
However, the study also pointed out restraints on the
development of philanthropy, most notably, stringent laws
restricting civil society activities in many Arab countries as
well as a lack of coordination and cooperation among charitable
organizations.


3. (U)Building on the conference theme, Sheikh Mohammad bin
Rashid Al Maktoum, Vice-President and Prime Minister of the UAE
and Ruler of Dubai, used it as a venue to announce the launch of
the Arab Centre for Philanthropy. According to Alyousuf, the
MbRF will play a critical role in developing the concept and
framework for the new Centre. He summarized the Centre's five
key objectives as: 1) coordinating philanthropic activities in
the region, 2) promoting philanthropy among wealthy Arabs, 3)
promoting social entrepreneurship and volunteerism, 4)
institutionalizing philanthropy, and 5) sponsoring scientific
research in the region. Alyousuf envisions the Centre as a
consultative organization, serving as a source of information on
best practices for both donor and recipient groups. He noted
that recipient organizations need to enhance transparency of
operations, increase strategic planning and management practices
and focus on results-driven objectives. He also observed that
donors require education and encouragement to move towards
long-term development objectives in targeting their donations,
with an emphasis on creating and maintaining endowments, rather
than on the historical approach of simply handing money over to
address short-term needs.


4. (U) Funding and initiating additional research studies on
philanthropic infrastructure and the legal environment are also
Centre goals. Alyousuf noted that research that could be useful
to organizations advocating legislative reform which would
hopefully encourage more transparent charities and NGOs in many
Arab countries. However, he was careful to add that the Centre
itself would not seek to change legal restrictions, but simply
act as an advisor and support mechanism for individual
organizations seeking change in their home nations. Alyousuf
also noted that Dubai is currently studying a proposal for the
establishment of a philanthropic "free zone" (nfi).


5. (U) On a programming level, the Centre plans to issue a
guide/directory of existing Arab philanthropic programs,
organize workshops to develop strategic planning skills for
philanthropic organization staff members, and provide
scholarships to social leaders to pursue further education in
non-profit management programs.


6. (C) Comment: During his initial announcement of the Dubai
Cares initiative and at the recent Charity to Change Conference,
MbR has repeatedly stressed the need for the private sector to

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assume more of the burden for social responsibility with very
pointed comments, such as "[the private sector] takes a lot but
gives back very little" and "The private sector needs to know
that its income comes from the people and it has to go back to
them." Whatever his true intentions for pressing the private
sector, MbR has given clear notice to UAE based businesses that
now is the time for them to step up and increase their
involvement in philanthropic endeavors. Given the fact that
business typically follows the ruler's directives in Dubai, we
anticipate an increase in money flows to philanthropic efforts
over the next year. Through the creation of both the MbRF and
the Arab Centre for Philanthropy, MbR is attempting to provide
the necessary tools and expertise to fill large regional gaps in
education, health and job creation. Better coordination could,
if well managed, improve the effectiveness of the large
donations being made in the region. However, the question
remains as to whether existing charitable organizations will be
able to concurrently develop the internal management skills
necessary to handle the increased donations in a transparent
manner or whether the private sector, concerned about
accountability, will seek to develop their own spin-off
foundations (similar to that of Microsoft founder's Gates
Foundation). End comment.
WILLIAMS