Dubai policy body recommends establishing PPP unit

17 January, 2018 | By JENNIFER AGUINALDO

A policy paper published by the Mohammed bin Rashid School of Government (MBRSG) has recommended the establishment of a public-private partnership (PPP) unit within the government.

“I think its introduction would be a useful means of coordinating activity across government and with interested firms looking to involve themselves in PPPs,” says Guy Jonathan Burton, associate professor at MBRSG and author of the paper.

Most countries that have successfully implemented PPP projects, including the UK, some states in Australia and South Africa, have existing PPP units. In the Middle East and North Africa region, Egypt and Saudi Arabia have also established PPP units within their finance and economic planning ministries, respectively.

According to Burton, the UAE would benefit from establishing a PPP unit at the beginning of the process rather than later, which was often the case in other countries.

Citing an OECD finding, the policy paper cited that most countries established a PPP unit at a later stage “when they realise the need for one, to provide clarity, coordination, guidance, technical expertise and assessment of PPP projects”.

However, the UAE has to address several key issues before establishing its own PPP unit, including defining its functions and responsibilities, recruitment of qualified staff and its jurisdiction – whether its coverage will include only Dubai or the entire federal government.

Dubai’s finance department approved the emirate’s PPP law in 2015. It also issued guidance for the law the following year.

The guidance set out regulations for four types of PPP contracting. These include build, operate, own and transfer (BOOT); build, operate and transfer (BOT); build, transfer, operate (BTO); and transfer and operate (TO).

It also specified the government agencies to be involved with contracting PPP projects, including: the relevant government entity for PPP projects worth under AED200m ($55m); the finance department for projects worth AED200m-AED500m; and the supreme fiscal committee for projects with budgets exceeding AED500m.

Negotiations for a number of PPP projects outside the power and water sector are already under way in Dubai. They include the development of two new buildings and an automated car park at Dubai Courts as well as the Dubai Union Oasis, a mixed-use real estate project to be developed on the land above the underground station where the Dubai Metro Red and Green lines meet.

Investment potential of the data centre economy continues to rise

As demand for data centres accelerates, diverse investor groups are taking notice Globally, total investment in data centres reached $70.6bn in 2024 and this is projected to grow by 5% to ...

CONNECT SERIES: Force majeure and other options in construction

Experts from Clyde & Co provide insight on force majeure clauses and laws for the construction sector in the wake of Covid-19 Findings from Mashreq Construction Club Connect Series episode I The ...

Strained market conditions mean contractors are shying away from risk

Clients are struggling to get competitive pricing on large, technically challenging projects Disagreements over terms and conditions between contractors working on the Tower at Dubai Creek Harbour scheme and the project owner ...

Pandemic quickens construction job cuts

The Covid-19 pandemic is accelerating lay-offs amid a low-oil price environment, but some employers are seeking alternatives Lay-off and redundancy activity has accelerated in the Middle East’s construction sector as it contends with ...

Export credit works both ways

Ever since the global financial crisis hit the region in 2008, real estate developers in the UAE have been exploring alternative funding methods to deliver their projects. Export credit funding backed ...

Dubai property to sustain demand in 2022

This article is a part of a series from the Dubai Real Estate Forum held by MEED and Mashreq on 22 March 2022 in Dubai. Improving demand is expected to hold ...

New priorities for the post-Covid workspace

The pandemic has changed the requirements for the office of the future Watch the webinar here One year on since office workers across the world were sent home to help prevent the ...

Watch: Conversations shaping GCC Real Estate

The GCC’s real estate sector is entering a new phase of growth, shaped by shifting capital strategies, sustainability commitments, and evolving financing models. In this interview round-up, senior industry leaders ...

Covid-19 sparks contract issues

Force majeure claims are providing new insights into how the regional construction sector’s behaviour must change The rapid spread of the Covid-19 illness has led to an unprecedented ripple effect on the ...

UAE moves to address competitiveness

There has been a string of government announcements aimed at improving competitiveness in recent weeks In recent weeks there has been a string of measures introduced in the UAE that are ...

Investment potential of the data centre economy continues

CONNECT SERIES: Force majeure and other options in

Strained market conditions mean contractors are shying away