In early 2022 Abu Hwaij Assurance & Consulting Services was awarded Financial, Operational and Outcome Verification Audits of the first Social impact bond in the Middle East and the Arab World. The Bond aimed to address Type II Diabetes Mellitus (T2DM) which is a growing epidemic among Palestinians and is estimated to affect between 15%-20%, well above the world average of 8.2%. Prevalence of established risk factors is growing within the population- Palestine is recognized as one of the countries experiencing some of the largest increases in obesity globally.
The project led an evidence-based lifestyle-focused intervention which aimed to delay the on-set development of Type II Diabetes Mellitus among Palestinians. The intervention, which was funded through a Social Impact Bond (SIB) would yield a positive impact on overall human health and productivity and reduce healthcare costs concurrently. The duration of the project was approximately three years.
The pioneering funding mechanism Social Impact Bond (SIB) is a relatively new investment tool that is designed to create an opportunity for investors to do well financially while still addressing key social and economic issues. The project was structured as follows:
- The Investor - Bank Of Palestine (BOP) - provides the up-front capital needed for the designated Service Provider to conduct the intervention. The investor will be entitled for principle and interest which are contingent on the intervention meeting or exceeding the intended outcomes defined by the pre-established metrics.
- The Service Provider - Juzoor for Health and Social Development - will deliver the intervention through a 32 months period to the designated Social Group.
- The Social Group are 150 participants specifically pre-diabetic refugee women in Ramallah and its vicinity mainly, Jalazoun, Amary, Qalandia, Beit Sourik refugee camps.
- The Outcome Funder - Paltel Group Foundation (PGF) - following the successful completion of the intervention, the outcome funder may reimburse the principle invested by the Investor, plus a “Interest“. The amount of “Interest” and Principle to be paid by the Outcome Funder is contingent on the metrics pre-established having been met, exceeded or missed.