Social service providers have the freedom to innovate and come up with a solution that delivers social outcomesby Kudakwashe Muzoriwa
Aldar Properties will invest AED 2 million in Abu Dhabi’s first social impact bond that is set to be launched later this year.
Aldar signed an agreement with the Authority of Social Contribution—Ma’an to launch the Gulf region’s first social impact bond that will see the two entities addressing priority social challenges through social contracting.
Greg Fewer, the Chief Financial & Sustainability Officer of Aldar, said, “We are proud to be partnering with the Authority of Social Contribution—Ma’an to create Abu Dhabi’s first social impact bond.”
In a statement, Aldar Properties said that social impact bonds are an internationally established and successful way to finance the delivery of public services, first introduced in the UK.
The bonds involve a government commissioner, a social service provider and a social investor—using multi-party partnerships to bring together the right organisations to solve social challenges.
HE Salama Al Ameemi, the Director-General of Ma’an, said, “Social Impact Bonds are a game-changer for how we think about the delivery of social programmes, putting a relentless focus on specific and measurable outcomes for the people of Abu Dhabi.”
Social Impact Bonds are now used by more than 40 countries worldwide and help to develop an outcome-oriented approach to social challenges, encouraging innovation and growth within the third sector.
Social service providers have the freedom to innovate and come up with a solution that delivers social outcomes. Private investors such as High Net Worth Individuals and investment funds invest in the social impact bond and the government will pay back the investor—only if the outcomes are achieved.