UAE Approves Public-Private Partnership Guidelines in Landmark Decision

27 Jun, 2024

 The UAE has approved a manual on Public-Private Partnerships (PPP), providing a comprehensive policy and procedural framework to facilitate federal government entities in implementing projects and leveraging private sector expertise. The UAE Ministry of Finance announced the UAE Cabinet’s approval, supporting national efforts to stimulate investment in joint projects between federal entities and the private sector, thereby encouraging private sector participation in developmental projects. The manual outlines operations and processes for designing, planning, and implementing projects, offering a guideline for federal entities and private sector partners to ensure transparency and clarity. It defines the roles and responsibilities of relevant entities, detailing procedures related to public-private partnership contracts, governance, market studies, value-for-money assessments, project structuring, and management, in line with the 2023 law on regulating federal public-private partnerships. Instructions include determining priorities for partnership projects, evaluating proposed projects through comprehensive analysis, selecting partners, and procedures for submitting bids and offers to potential private sector partners. The framework aims to unify mechanisms, standards, and conditions for implementing partnership projects. Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, emphasized the UAE’s commitment to sustainable economic growth, highlighting the importance of public and private sector cooperation. He noted that such partnerships enhance efficiency, service levels, and resource utilization through innovation and competition, ultimately promoting economic growth and prosperity. The UAE Ministry of Finance, in collaboration with strategic partners, has identified priority sectors for future partnership projects, including infrastructure, energy, healthcare, social services, and education. This initiative aims to enhance governance frameworks, transfer knowledge from the private sector to federal entities, and train federal employees in managing and operating projects that add value to public funds.

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