Innovation is the engine that propels progress, constantly reshaping the way we learn, teach, and solve global challenges. Without innovation, education risks stagnation, unable to evolve alongside the aspirations of learners or the demands of an increasingly interconnected world. Innovation is not merely an enhancement to education; it is its lifeblood – the force that ensures education remains a transformative tool for individuals and societies across generations. The same principle applies to philanthropy. For organizations seeking to address complex global challenges, innovation is not optional; it is essential. Dubai Cares exemplifies this ethos, consistently embracing innovative approaches to drive systemic change in global education.
Since its inception, Dubai Cares has demonstrated a bold willingness to take calculated risks and pioneer new solutions in education. It was the first donor to tackle neglected tropical diseases in Angola through the END Fund, catalysing additional investment into the cause. It played a leading role in supporting Education Cannot Wait (ECW), a fund dedicated to education in emergencies and was a founding donor of the School Meals Coalition under the World Food Programme, working towards ensuring every child receives a nutritious meal in school by 2030. Dubai Cares, broke new ground as the first foundation in the MENA region to invest in a development impact bond – the Skill Impact Bond – showcasing the power of results-based financing to drive measurable educational outcomes. More than just education, this initiative is designed to equip youth with the skills needed to secure stable employment and thrive in the workforce, ensuring long-term economic empowerment.
The Skill Impact Bond in India, spearheaded by the British Asian Trust, is an innovative results-based financing initiative designed to equip over 50,000 young people in India with the skills needed for meaningful employment. This initiative brings together a diverse and experienced group of stakeholders. The Michael & Susan Dell Foundation and the National Skill Development Corporation (NSDC) serve as risk investors, while Dubai Cares, the Children’s Investment Fund Foundation (CIFF), JSW Foundation, and HSBC India contribute as outcome funders. The UK Government’s Foreign, Commonwealth & Development Office (FCDO) and USAID provide technical expertise, ensuring a robust and well-rounded collaboration that addresses the complexities of skilling and employment.
When the program launched in 2021 – the same year I joined Dubai Cares – I had the opportunity to be part of this initiative from its inception. Witnessing first-hand how innovation was embraced and operationalized in results-based financing was both inspiring and instructive. However, the journey was not without its challenges.
Structuring the Skill Impact Bond required extensive legal negotiations, aligning diverse stakeholders, and developing rigorous monitoring frameworks. Dubai Cares had to navigate complex legal and financial landscapes while building internal expertise to manage the intricacies of outcomes-based funding. Unlike traditional grants, results-based financing does not allocate a fixed sum for predetermined activities; rather, funding is tied to measurable outcomes—such as certification, employment and job retention rates. This shift represented a significant learning curve but also an opportunity to redefine philanthropic impact.
Despite these challenges, the Skill Impact Bond has proven to be a profoundly valuable experience. By linking financial investment directly to measurable results, it ensures that funding drives real, sustainable change. This performance-driven model represents a paradigm shift in philanthropy, offering a blueprint for long-term impact in the education sector.
Beyond its immediate impact, the initiative has deepened our understanding of results-based financing and demonstrated the power of experimentation and innovation in philanthropy. It has also reshaped our relationship with donors.
Today, forward-thinking donors – whether individuals, corporations, or institutions – approach philanthropy with the same strategic lens they apply to financial investments. They seek projects where their contributions generate maximum impact, quantified not only by lives improved but also by strengthened systems and broader societal benefits. Dubai Cares’ success with the Skill Impact Bond has provided a compelling response to these expectations, strengthening trust and credibility among its donor base.
The ripple effects of the Skill Impact Bond extend far beyond India. By championing this innovative financing model, Dubai Cares has ignited global conversations on the potential of results-based funding to address pressing educational challenges. Platforms like RewirEd Summit have amplified this dialogue, underscoring the need for bold, systemic innovation in philanthropy. Furthermore, insights gained from this experience are shaping Dubai Cares’ broader strategy, equipping the organization to replicate and scale similar models in other regions.
As the global education sector faces unprecedented funding gaps, the need for innovative financing solutions has never been more urgent. Dubai Cares has shown that philanthropy can go beyond traditional grant-giving to drive sustainable, systemic change. As Sheikh Mohammed bin Rashid Al Maktoum, the founder of Dubai Cares, wisely stated, “Opportunities are made, they do not just lie around waiting for someone to grab them.” This sentiment encapsulates the spirit of our work – urging philanthropic organizations worldwide to embrace innovation, take calculated risks, and lead the way in transforming education through new financing mechanisms.
Embarking on the journey of results-based financing requires a fundamental shift in mindset. While it comes with its complexities – but as our experience has shown, the rewards far outweigh the risks. By harnessing innovation, philanthropy can redefine what is possible in education, ensuring that every dollar invested delivers lasting, meaningful change in the lives of those who need it most. Together, we have the power to shape a new era for global education—one driven by accountability, impact, and unwavering commitment to progress.
