In the scope of the Social Contribution Authority, Abu Dhabi will release the initial Social ImpactBond of the GCC, a creative and recognized financial instrument that raises private investment to promote high impact social programs.
The Social Impact Bonds will be released next year, on a pay-for-success basis, with rewards dependent on a successful social outcome.
The first Social Impact Bonds launched in the UK is now being used by more than 40 countries worldwide to establish a social problem result-oriented strategy, promote innovation and growth in the third sector.
Social service providers will have the autonomy to innovate and find a solution for the public outcome. The government will then repay the lender with interest and only with the benefits if the private investors, such as high net income individuals and investment funds, are to invest in the Social Impact Bond (giving the service provider the early money to implement the Social Programme).
Social Impact Bonds are a long term source of investment and dedication by the social service providers to expand their innovations and foster third sector development. The long-term value of the Social Impact Bonds
This allows investors to meet the growing demand for social good use and endorse CSR activities to avoid reliance and to build resources that can be recycled and reinvested into other ventures of good social value.
It also ensures that governments only pay for work programs and that the social impact is measurable.
Ma'an will facilitate social impact bonds and support agreements between Abu Dhabi government departments and social service providers and investors from third parties. It also tracks and evaluates the performance of the Social Impact Bond.
Ma'an is currently studying 24 different projects with the possibility of becoming social impact bonds. They will announce shortly a series of MOUs with various governments and partners in the private sector that will promote these ventures.
Tags : GCC, Social Impact Bonds, Social Contribution Authority, Abu Dhabi, Social service providers,