Middle East rich are among world’s most generous, report says

On average, wealthy people — those with a net worth of $30 million or more — will donate $29.6 million over the course of their lifetimes. (AFP photo)
Updated 15 December 2016
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Middle East rich are among world’s most generous, report says

DUBAI: Major donations among ultra-high net worth (UHNW) individuals rose to an all-time high last year, growing by 3 percent since 2014, according to a new report on global philanthropy released on Thursday.
On average, UHNW individuals — those with a net worth of $30 million or more — will donate $29.6 million over the course of their lifetimes, with total global UHNW public lifetime giving estimated at $550 billion.
The median gift by major UHNW philanthropists in the Middle East is $5 million, 50 percent higher than in North America, and rising levels of wealth in the region suggest that even larger sums will be directed at positive causes in the coming years.
“Ultra-wealthy individuals in the Middle East give nearly 10 percent of their net worth to philanthropic causes, which does not even account for the substantial Zakat and Sadaqah charitable contributions made anonymously across the region,” said John Hanafin, CEO of Arton Capital in Middle East and North Africa (MENA).
“The trends identified in this report are truly global, with the ultra-wealthy behaving in similar ways whether they are from Shanghai or Zurich or New York, and the Middle Eastern members of this club are no different, which demonstrates the global connectivity of wealth in the modern world.”
His remarks came as the new report — “Changing Philanthropy: Trend Shifts in Ultra Wealthy Giving — revealed that major donors, those UHNW individuals who have donated at least $1 million in their lifetime, are significantly wealthier than their UHNW peers and have an average net worth of nearly $300 million.
The report — commissioned by Arton Capital and produced by Wealth-X — also shows that major donors hold a greater share of their wealth in liquid assets, $85 million on average, and typically donate about half of their cash holdings to charity over a lifetime.
The report focuses on innovations in giving, identifying the trends that are helping to increase the scale of donations and exploring new developments in philanthropy such as impact investing, how “giving back” is becoming integral to the identity of an organization, and analyzing the extent to which the Millennial generation is setting a new philanthropic agenda.
Other findings from the report include:
• Most major donors are self-made – UHNW individuals with self-made fortunes represent nearly 70 percent of major donors and, on average, they are more than twice as wealthy as their UHNW peers.
• Education and health are top causes — education remains by far the most popular philanthropic cause for UHNW individuals, followed by health, with environmental issues increasing in importance.
• Millennials are reshaping philanthropy — the younger generation is ushering in new philanthropic models that combine traditional foundations with profit-making endeavours and social enterprises, and are driving employee-based philanthropy.
• The blurring of corporate and individual philanthropy — UHNW individuals are leveraging the resources at their disposal to maximize their return on giving, aligning the philanthropic strategy of their business with their own personal giving.  
Arton Capital Founder and President Armand Arton said: “At Arton Capital we share the firm belief that the prosperity of one individual, one company, or one nation is interdependent with the prosperity of others.”
He said: “By shifting focus from day-to-day thinking to generation-to-generation planning, wealthy individuals have the power to make a positive impact to some of the world’s most significant challenges.”
The Arton Capital and Wealth-X Philanthropy Report 2016 utilizes Wealth-X’s unique and proprietary UHNW database, the world’s most extensive collection of curated research and intelligence on ultra-high net worth (UNHW) individuals. 
The report also employs the Wealth-X Giving Index, which takes into account participation (the number of gifts made annually) and size (the value of gifts) from the world’s UHNW individuals, based on the Wealth-X UHNW database.


Egyptian firms to build $3bn power plant on Tanzanian world heritage site

Updated 12 December 2018
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Egyptian firms to build $3bn power plant on Tanzanian world heritage site

  • Arab Contractors and El Sewedy to build plant
  • Plan triggers protests from environmentalists

DAR ES SALAAM: Tanzania has signed a deal with Egypt’s El Sewedy Electric and Arab Contractors to build a $3 billion hydroelectric plant on a World Heritage site in the country, that will more than double Tanzania’s power generation capacity.
The project has faced opposition from conservationists, who say the construction of a dam on a river that runs through the Tanzania’s Selous Game Reserve, known for its elephants, black rhinos and giraffes, as well as many other species, could affect the wildlife and their habitats.
Energy Minister Medard Kalemani, said in comments broadcast on state television on Wednesday that the plant would have an installed capacity of 2,115 megawatts, calling it “a very huge dam project.”
Representatives of state-run Tanzania Electric Supply Co, El Sewedy and Arab Contractors signed the agreement in the presence of President John Magufuli and Egyptian Prime Minister Mostafa Madbouly, TV broadcasts showed.
Magufuli said the project will be wholly funded from taxes. Monthly tax revenue collection has increased from 850 billion shillings ($370.37 million) per month before he came to power in late 2015, to an average of 1.3 trillion shillings ($566.45 million)under his administration, he said.
“When we asked for financing for this project, the lenders refused to give us money but thanks to improved tax collection, we are able to finance this project using our own resources,” he said.
Arab Contractors will have a 55 percent stake in the project and El Sewedy 45 percent, El Sewedy said on Tuesday.
El Sewedy said the Egyptian stock market had halted trading of its shares pending details on the deal it had signed.
Covering 50,000 square kilometers, the Selous Game Reserve is one of the largest protected areas in Africa, according to UNESCO.
The World Wildlife Fund conservation group said in a report in July last year the proposed hydropower dam “puts protected areas of global importance, as well as the livelihoods of over 200,000 people who depend upon the environment, at risk.”
Officials at the WWF Tanzania office were not immediately available to comment on Wednesday’s deal.
Magufuli dispelled the environmental concerns, saying Tanzania had allocated 32.5 percent of its total land mass to conservation.
“The dam will become a major source of water and the cheap electricity to be produced from the dam will reduce the number of people who cut trees for firewood,” he said.
Magufuli, nicknamed “the bulldozer,” for his forceful leadership style, has in the past pushed for the project to start as quickly as possible to speed up development.
He has introduced anti-corruption measures and tough economic reforms and pushed for swift completion of big infrastructure projects including roads, railways and airports.