Memorandum of Co-operation (MoC) signed between the Authority of Social Contribution – Ma’an and the Department of Municipalities and Transport to identify new social projects which could be funded under the innovative financing scheme 
 
Abu Dhabi, 16 January 2019: The Authority of Social Contribution – Ma’an and the Department of Municipalities and Transport have today announced a new Memorandum of Co-operation (MoC) that will see the two government organizations work together to progress the introduction of the Social Impact Bonds system of financing social impact projects. The MoC ceremony was attended by His Excellency Dr. Mugheer Khamis Al Khaili, Chairman of Department of Community Development – Abu Dhabi, His Excellency Falah Mohammad Al Ahbabi, Chairman of the Department of Municipalities and Transport, His Excellency  Abdulla Al Sahi, Acting Undersecretary for the Department of Municipalities and Transport and Her Excellency Salama Al Ameemi, Director General of Ma’an.

Signed during Abu Dhabi Sustainability Week, the partnership will support efforts to identify suitable social benefit projects that can be supported by a Social Impact Bond. The Authority of Social Contribution – Ma’an are developing the GCC’s first Social Impact Bond to launch in 2020.

Announced in November, Social Impact Bonds are an innovative and internationally recognized financial tool that leverages private investment to support high-impact social programs. They are also known as pay-for-success contractual agreements between public sector entities and private sector investors, who finance social service interventions up front in exchange for future pay-outs.

First introduced in the UK, Social Impact Bonds are now used by more than 40 countries worldwide and help to develop an outcome-oriented approach to social challenges, encouraging innovation and growth within the third sector.

The Memorandum of Co-operation (MoC) commits Ma’an and the Department of Municipalities and Transport to work together on a feasibility study which will develop and identify new social projects which could benefit from being funded through the Social Impact Bond mechanism. 
Such projects could fund innovative programmes in the community to improve wellbeing, social cohesion and support vulnerable groups. 

Her Excellency Salama Al Ameemi, Director General of Ma’an and His Excellency Abdulla Al Sahi, Acting Undersecretary for the Department of Municipalities and Transport, marked the occasion at a signing ceremony during Abu Dhabi Sustainability Week where global experts gathered to discuss sustainable development and social impact.

H.E Dr. Mugheer Khamis Al Khaili, Chairman of Department of Community Development – Abu Dhabi, said: “To promote a sustainable society and economy that is transparent and responsive to the needs of diverse communities across the emirate of Abu Dhabi, we must forge partnerships across government, the private sector and civil society. The expertise of the Department of Municipalities and Transport will be crucial in making the introduction of Social Impact Bonds a success.”

“The signing of the MoC with Ma’an symbolises the cooperation between local entities to better serve the society. It also supports the long-term developmental plans that are set to accomplish the sustainable development and improve the quality of life in Abu Dhabi Emirate,” said His Excellency Falah Mohammad Al Ahbabi, Chairman of the Department of Municipalities and Transport.

His Excellency added that such agreements enhance the cooperation opportunities and supports the strategic partnerships between the public and private sectors by developing social benefits projects, creating investment opportunities that support the social development plans and improving the quality of services offered to the public in Abu Dhabi.

Giving a speech to the Abu Dhabi Sustainable Finance Forum today, H.E. Salama Al Ameemi, Director General of the Authority for Social Contribution – Ma’an, said: 
“Every day at Ma’an, we are working towards fulfilling the vision of our leadership to make Abu Dhabi a place that is admired for its quality of life. Our ambition is to create collaborative communities that contribute towards the common good.

“Social Impact Bonds have the potential to be a game-changer in solving social challenges. As more and more people look to integrate environmental, social or governance criteria into business or investment decisions for the lasting benefit of society, Abu Dhabi has been one of the first to look to get ahead of this shift in focus”.

Her Excellency added: “It is exciting to see this work gather momentum. Ma’an’s collaboration with the Department of Municipalities and Transport will help to accelerate our drive to find the projects which can have the biggest social impact in Abu Dhabi and determining how – and if – they can be supported through a Social Impact Bond.” 

“We look forward to close co-operation with the Department of Municipalities and Transport over the coming year.”
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