Impact Investments Industry projected to grow to over USD 9 billion in 2013

Dubai, UAE, 30TH MARCH 2013: Pearl Initiative Founder and President of Crescent Petroleum, Badr Jafar today outlined his vision for socially responsible investing at a debate co-hosted by the Pearl Initiative and the Higher Colleges of Technology in Dubai in the presence of His Excellency Sheikh Nahayan Mabarak Al Nahayan, Minister of Culture, Youth and Community Development and UAE Chancellor, of Higher Colleges of Technology (HCT). The debate was held in conjunction with HCT's international Festival of Thinkers and Education Without Borders conferences.

In his opening address, His Excellency Sheikh Nahayan Mabarak Al Nahayan, Minister, Culture, Youth and Community Development and UAE Chancellor, The Higher Colleges of Technology said: "We all hope that educated men and women will shape progress and development that will be socially, environmentally, and financially sound.  We all hope to be able to put the financial bottom line in a perspective that genuinely includes societal and environmental bottom. We hope that we will continue to keep societal and environment issues prominent in our investing decisions.  Only our moral principles can guide us toward socially responsible investing, and only a fierce determination to follow those principles will result in success. 

Badr Jafar highlighted the need to move away from a purely financial driven model, stating that "Encouraging social entrepreneurship in our region is a priority, as it helps to not only to positively contribute to socio-economic development and combat unemployment, but also creates real added value within our economies. The days of 'either-or' thinking, or the belief that there is a zero-sum calculation to be made, are over. We are in a world now where businesses can do good, while doing well at the same time." 

Price Waterhouse Cooper's 2011 survey of 17 international private equity companies revealed that 93% of respondents believe environmental, social, and corporate governance measures can be a source of value.

The number of funds and investors engaged in impact investing has grown quickly in the last five years, and a 2012 report from JP Morgan indicates a rapidly growing market, with investors planning to commit USD 9 billion to impact investing in 2013, up from USD 8 billion in 2012. This capital may be in a range of forms including equity, debt, working capital lines of credit, and loan guarantees. Examples in recent decades include many investments in microfinance, community development finance, and clean technology. Its growth is partly in response to criticism of traditional forms of philanthropy and international development, which have been characterized as unsustainable and driven by the goals of the donors. 

In summarising, Badr Jafar concluded "The UAE is uniquely placed to lead this initiative, and our next generation of our men and women entrepreneurs are fully up to this challenge. The time has come for a new breed of social entrepreneurs who are able to demonstrate to stakeholders, true and measurable success that positively impacts people, planet, as well as profit." 

National Bank of Abu Dhabi's Mark Watts led a discussion on responsible investing from a banking perspective, who in turn was followed by Willow Impact Investors' Joe Kawkabani who led the debate on how to invest with a positive impact.

For more information please visit www.pearlinitiative.org  

About The Pearl Initiative
The Pearl Initiative was set up in 2010 in collaboration with the UN Office for Partnerships. To date it has over 25 corporate partners, a Board of Governors made up of regional Business leaders, and hosts over 20 events a year catering to C-Suite level executives across six countries.

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For more information, please contact:
Nick Farmernfarmer@bell-pottinger.co.uk
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© Press Release 2013