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

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.

EU split over budget as Germans push for curbs

Updated 17 September 2019

EU split over budget as Germans push for curbs

  • Divisions over the next 2021-2027 financial framework run deeper than usual

BERLIN: The EU may need to scale back its plans to boost growth and counter climate change if it fails to quickly agree on a long-term budget, European officials said on Monday, as Germany and other northern states push to restrict spending.

The EU administration is funded with a seven-year budget. The size and targets are often subject to prolonged haggling among its member states.

But divisions over the next 2021-2027 financial framework run deeper than usual at a time when the bloc faces risks of a new economic recession and uncertainty over the outcome of the Brexit process — which is expected to lead Britain, one of the largest contributors to the EU coffers, out of the union.

“My big concern is that Europe will be in a difficult economic and geopolitical situation if there is no budget by the first of January,” the EU commissioner in charge of the talks, Guenther Oettinger, told an EU ministers’ meeting in Brussels.

He said the urgency to strike a deal was heightened by the bloc’s weakening economy, with Germany and other EU states stagnating. He said it would take years to find a compromise at the current pace of negotiation.

The long-term financial framework needs to be adopted well in advance of its starting date because it has to be translated into yearly spending programs which also usually require long negotiations.

The EU’s executive commission proposed last year a seven-year budget of roughly €1.1 trillion ($1.22 trillion) which would represent 1.11 percent of the bloc’s Gross National Income (GNI), a measure of domestic output. The estimate does not include funding from Britain, which is planning to leave the EU at the end of October.

But Germany, the EU’s largest economy and the main contributor to the budget, has made it known that it wants to limit spending to 1 percent of economic output, according to a document seen by Reuters. Sweden and the Netherlands openly support Berlin’s more cautious spending plans.

The budget for the current seven-year period also amounts to 1 percent of GNI, but Brussels said it has to go up because of planned higher spending on research, digital economy, border control and defense.

Berlin said the proposed cap would represent a net increase in spending by EU states, as the bloc would have to do without contributions from Britain. It also urged more spending to counter climate change.

The European Parliament, backed by southern and eastern European states who are net receivers of EU funds, wants a bigger budget, set at 1.3 percent of the bloc’s GNI.

Lawmakers also urged further funding for new projects on climate change and for unemployment benefits as mentioned by the commission’s president-designate Ursula von der Leynen in her inaugural speech after appointment in July. Spain’s state secretary for EU affairs, Marco Aguiriano Nalda, said differences between the proposals made it almost impossible to find a compromise before the end of the year.

“I have to express strong worries and reservations on the state of play of the financial framework,” he told his counterparts at a televised session of the ministerial meeting.

Poland’s State Secretary for European Affairs, Konrad Szymanski, told the same meeting that reduced spending caps would inevitably translate into lower ambitions.

A compromise is made more difficult also by plans to make EU funding conditional on upholding the bloc’s values, including the rule of law. Germany called for this “conditionality” in its confidential document reviewed by Reuters.