Abu Dhabi will soon introduce the GCC’s first Social Impact Bond to bolster high-impact social programmes under Ma’an, the authority for social contribution.
The bond is an internationally recognised financial tool that aims to increase private investments. The Abu Dhabi social impact bond will be offered to potential investors by government agencies.
Investors who are willing to support a particular social project will see a return on investment only if the scheme is successful, the local media reported. However, investors would lose their capital if the scheme does not perform well.
Under the scheme, the social projects will be designed and developed by non-profit groups and private companies—and is expected to be fully operational by next year.
Salama Al Ameemi, Director General of Ma’an, told the media that, “Social Impact Bonds are a game-changer for how we think about the delivery of social programs, putting a relentless focus on specific and measurable outcomes for the people of Abu Dhabi. We are proud to be leading the way in the region for introducing this internationally-recognised method of financing and delivering solutions for social challenges. Ma’an will be launching Abu Dhabi’s first Social Impact Bond next year and we are currently working with government and private sector partners to identify potential projects that will be suitable.”
Currently, Ma’an is exploring 24 projects with a potential to transform into Social Impact Bonds. The authority will facilitate these bonds and support contractual agreements between government agencies and social service providers. A series of MoUs will be announced by the authority involving various government and private sector partners.