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ABU DHABI / WAM
The Authority of Social Contribution, Ma’an, and Aldar signed a strategic agreement that will see both organisations address priority social challenges through social
contracting.
Aldar will invest AED2 million, a demonstration of their commitment to the programme. As part of the agreement, Aldar and Ma’an will work together to build a Social Impact Bond, with the aim of launching it later this year.
Social Impact Bonds are an internationally established and successful method to finance the delivery of public services, first introduced in the United Kingdom. They
involve a government commissioner, a social service provider and a social investor, using multi-party partnerships to bring together organisations to solve social challenges.
Abu Dhabi is the first in the GCC to introduce this innovative funding method for social services.
Dr. Saif Alshaali, Ma’an Acting Executive Director for Social Incubator and Contracting, and Greg Fewer, Aldar Chief Financial and Sustainability Officer, signed the Memorandum of Understanding at a signing ceremony in the presence of Salama Al Ameemi, Director-General of Ma’an, and Talal Al Dhiyebi, Chief Executive Officer, Aldar.
“It is part of our wider mission to encourage the third sector to flourish in Abu Dhabi and deliver solutions to social challenges, in partnership with the government, the private sector and civil society,” said Al Ameemi.
Social service providers have the freedom to innovate and come up with a solution that delivers assistance. Private investors, such as High Net Worth individuals or investment funds, will then invest in the Social Impact Bond, giving the service provider the capital upfront to deliver the social programme, and the government will pay back the investor, but only if the outcomes are achieved.
It allows investors to meet the increasing demand for using financing to generate social good, as well as supporting CSR efforts in a way that avoids dependence and increases capital, which can be recycled and reinvested in other projects for social good.
It also ensures that governments only pay for programmes that work and have a measurable social impact.