Abu Dhabi's MA'AN Launches Athar: A New Social Impact Bond Program for Non-Profits and Social Enterprises
MA'AN, the Authority of Social Contribution in Abu Dhabi, has officially launched Athar, a pioneering social impact bond program designed to channel significant funding towards non-profit organizations and social enterprises driving positive change in the Emirate. This initiative aims to foster innovation and sustainable solutions for pressing social challenges.
Key Details of Athar
The Athar program marks a significant step in Abu Dhabi's commitment to social impact funding. It introduces the innovative social impact bond model to the region's social sector.
Key features include:
Target Funding: The program aims to provide AED 30 million in funding over a period of three years.
Beneficiaries: Funds will be directed towards qualifying social enterprises and non-profit organizations operating in Abu Dhabi.
Mechanism: Unlike traditional grants, social impact bonds involve private investors providing upfront capital for specific social programs. Returns to investors are contingent on the program achieving predefined, measurable social outcomes.
Focus Areas: While specific focus areas were not detailed in the announcement, the program is expected to support initiatives tackling key social priorities in the Emirate.
Purpose: Athar seeks to create a more sustainable funding ecosystem for the social sector, encourage data-driven approaches to social programs, and foster greater collaboration between the public sector, investors, and social impact organizations.
Implications for the MENA Social Sector
The launch of Athar is a notable development for the social impact landscape in the MENA region. By introducing a large-scale social impact bond program, Abu Dhabi is pioneering a results-oriented funding model that could potentially be replicated elsewhere.
Innovation in Funding: This moves beyond traditional philanthropic or government grant models, encouraging a focus on measurable results and efficiency.
Attracting Investment: The structure can attract impact investors looking for both social returns and financial returns tied to success.
Empowering Social Innovators: Social enterprises and non-profits are empowered to scale effective interventions with dedicated, outcomes-based funding.
This initiative aligns with Abu Dhabi's broader vision of building a resilient and thriving social ecosystem that contributes significantly to the well-being of its community.
About MA'AN
MA'AN, the Authority of Social Contribution, is an Abu Dhabi government entity established in 2019. Its mandate is to drive social innovation and build a collaborative ecosystem to address social priorities in the Emirate. MA'AN works across four pillars: the Social Incubator and Accelerator, the Social Investment Fund, Community Engagement, and the Social Impact Bonds program. Athar is the latest initiative under the Social Impact Bonds pillar.
Looking Ahead
The successful implementation and outcomes of the Athar program will be closely watched. Its performance in attracting investors, funding impactful programs, and achieving measurable social results will be crucial. The program's impact could serve as a blueprint for future outcomes-based funding initiatives both within Abu Dhabi and across the wider MENA region, signaling a maturing approach to social investment and development.
Source: Zawya