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Aldar Invests AED2mn in Abu Dhabi’s First Social Impact Bond

Aldar – the leading Real Estate Developer in Abu Dhabi – will invest AED2 million in Abu Dhabi’s first social impact bond as part of a strategic agreement with The Authority of Social Contribution – Ma’an.

The agreement will see both entities work to address priority social challenges through social contracting, according to a statement released today. As part of the pact, Aldar and Ma’an will build a Social Impact Bond, expected to launch later this year. Abu Dhabi becomes the first in the GCC to introduce this funding method for social services.

Dr. Saif Alshaali, Executive Director – Social Incubator and Contracting (Acting), Ma’an, and Greg Fewer, Chief Financial & Sustainability Officer, Aldar, signed the Memorandum of Understanding at a signing ceremony in the presence of H.E. Salama Al Ameemi, Director General of Ma’an, and Talal Al Dhiyebi, Chief Executive Officer, Aldar.

Speaking on the pact,  Her Excellency Salama Al Ameemi, Director General of Ma’an, said: “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. 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 government, the private sector and civil society.”

Greg Fewer, Chief Financial & Sustainability Officer, Aldar, said that they were proud to be partnering with the Authority of Social Contribution – Ma’an to create Abu Dhabi’s first social impact bond. “This is a fantastic example of how the public and private sectors can work together in an innovative way to create outcome-driven programmes that address matters of critical importance to our society and communities at large. This partnership is a clear example of how Aldar is delivering on its sustainability strategy, launched last year, to create a positive impact on our economy, community, people, and environment.”

WHAT ARE SOCIAL IMPACT BONDS
  • Social Impact Bonds were first introduced in the UK and 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.
  • Social contracting is a contractual agreement, which operates on a pay-for-success basis, whereby payment relies on a successful social outcome – a first for government contracts.
  •  Social service providers have the freedom to innovate and come up with a solution that delivers social outcome. Private investors, such as High Net Worth Individuals or investment funds, will then invest in the Social Impact Bond (giving the service provider the upfront capital to deliver the social program) 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 grows capital which can be recycled and reinvested in other social good projects.

 

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6 years ago

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