The Abu Dhabi Investment Office (ADIO) continues to advance the emirate’s public-private partnership (PPP) framework, facilitating a total of AED2.4 billion ($653.4 million) in PPP deals from 2020 to 2024, underscoring the emirate’s position as a premier investment destination.
ADIO plays a pivotal role in advancing Abu Dhabi’s PPP framework, in alignment with the emirate’s economic acceleration and investment strategies. The framework strengthens cooperation between local and international investors and government entities with a focus on promoting investment in strategic sectors, furthering the emirate’s competitiveness, and bolstering economic prosperity.
In Abu Dhabi, PPPs facilitate private sector involvement in public infrastructure development and value-added services, targeting sectors like renewable energy, transportation, and healthcare.
PPP models vital for economic growth
PPP models have emerged as vital instruments for sustainable development and economic growth, as they harness the strengths of both the public and private sectors, delivering impactful projects with sustainable socioeconomic benefits.
World Bank data highlights that PPP investments in developing countries surpassed $83 billion in 2020, despite global economic challenges. Meanwhile, the World Economic Forum (WEF) suggests that PPPs have the potential to address the infrastructure financing gap, estimated to require $15 trillion by 2040, while reducing operational costs by up to 25 percent, according to a report by McKinsey.
Beyond producing impactful projects, PPPs facilitate knowledge transfer and technology integration. According to the World Bank, these partnerships improve public sector efficiency by providing access to private-sector technology and management expertise.
Compared to traditional projects, knowledge transfer facilitated through PPPs has the potential to raise public sector efficiency by 30 percent and accelerate the sector’s adoption of digital innovation by 40 percent, PwC reported. Countries that leverage PPPs for infrastructure development experience an additional 1.5 percent in annual economic growth on average due to improved investment environments, according to a report from the Organization for Economic Co-operation and Development (OECD).
Key PPP projects in Abu Dhabi
The Zayed City Schools project exemplifies the success of Abu Dhabi’s PPP model in education, marking the nation’s first schools developed under a PPP framework. This collaboration with the Abu Dhabi Department of Education and Knowledge (ADEK) will deliver three state-of-the-art schools for over 5,000 students from kindergarten to high school.
The 22-year design, build, finance, and maintenance contract was awarded to a consortium led by BESIX, a Belgian construction group, and Plenary Group, an Australian infrastructure investor and developer, showcasing the PPP model’s capacity to integrate private sector efficiency with public interest.
In addition, the Abu Dhabi LED Street Lighting Project, the first of its kind in the GCC region, involves retrofitting 176,000 streetlights with LEDs. The project aims to support energy conservation, reduce emissions, and enhance road safety. This two-phase project involves two separate 12.5-year concessions, the first of which went to local firm Tatweer, and the second of which went to a consortium formed by French companies EDF and Engie.
ADIO also recently concluded the tender process for the Khalifa University student housing project, set to become the largest of its kind in the region with 3,260 rooms and shared facilities across two campuses.
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ADIO’s PPP projects to create over 5,000 jobs
ADIO’s PPP projects are expected to create nearly 5,000 construction jobs and 450 operational roles, directly impacting local employment. The framework enables more effective utilization of the public budget, optimizing resources to achieve greater impact, with ADIO facilitating and the Department of Finance – Abu Dhabi (DoF) saving AED1.4 billion in capital and operational costs and energy expenditures across these projects.
Beyond individual projects, ADIO has also pioneered advancements in regulations, governance, and innovation for PPPs, collaborating with the DoF to establish comprehensive accounting and budgeting policies to facilitate investment opportunities and further elevate Abu Dhabi’s standing as a hub for innovative public-private collaboration.
