Ma’an and Aldar signed an agreement that will see both organisation address priority social challenges through social contracting.Courtesy Aldar
Ma’an and Aldar signed an agreement that will see both organisation address priority social challenges through social contracting.Courtesy Aldar
Ma’an and Aldar signed an agreement that will see both organisation address priority social challenges through social contracting.Courtesy Aldar
Ma’an and Aldar signed an agreement that will see both organisation address priority social challenges through social contracting.Courtesy Aldar

Aldar Properties to invest Dh2 million in Abu Dhabi's first social impact bond


Deena Kamel
  • English
  • Arabic

Aldar Properties, Abu Dhabi's biggest listed developer, will invest Dh2 million in the emirate's first "social impact bond", a new programme that will see private investment help fund social public services.

The Abu Dhabi-listed company signed an agreement with the Authority of Social Contribution, known as Ma'an or "together" in Arabic, to build the Gulf region's first social impact bond that is expected to launch in 2020, Aldar said on Sunday.

"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," said Greg Fewer, chief financial and sustainability officer of Aldar.

Social impact bonds, which were first used in the UK a decade ago, are mainly issued by the public sector to raise money to finance social development projects. As a result, they help governments reduce fiscal costs, encourage companies to provide socially-responsible services and provide new investment opportunities.

Under the agreement, Aldar and the Authority of Social Contribution will address "priority social challenges" through social contracting.

It is a contractual agreement that operates on a pay-for-success basis, whereby payment depends on a successful social outcome – a first for government contracts.

Aldar did not specify the type of social challenges it will address through this agreement.

Abu Dhabi is the first city in the Gulf to introduce this funding method for social services. "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," said Salama Al Ameemi, director general of Ma’an.

The debut of a social impact bond in the Gulf comes amid a rising interest in socially responsible investments such as improving the environment or tackling development issues.

There are 138 social impact bonds issued across the world that have raised $441m (Dh1.6 billion) in capital, with most of the projects in the US and UK, according to data from Social Finance, a non-profit organisation in the UK that channels capital into social projects.

Its sister organisation Social Finance Global Network launched the world’s first social impact bond in 2010, according to its website.

Profile

Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

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Bio:

Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour

Favourite Hobby: Serving poor people 

Favourite Book: The Alchemist by Paulo Coelho

Favourite food: Fish and vegetables

Favourite place to visit: London

ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.