The GCC's first Social Impact Bond will be piloted in Abu Dhabi as part of an agreement signed between the Department of Community Development, the Authority of Social Contribution - Ma'an, Aldar, Aldar Education and Higher Organization for People of Determination to support the employment of people of determination.
Social Impact Bonds are an internationally established and successful way to finance the delivery of public services, first introduced in the UK. They involve the government, a social service provider and a social investor - using multi-party partnerships to bring together the right organizations to solve social challenges.
The contract operates on a pay-for-success basis, whereby social service providers will have the freedom to innovate and come up with a solution that delivers the social outcome. Private investors, such as high net worth Individuals or investment funds, will then invest in the Social Impact Bond and the government will pay back the investor - with interest – but only if the outcomes are achieved.
(Source: Arabian Business YouTube channel)