The UAE’s Ministry of Finance has introduced a new regulatory framework and enacted a law with the aim of significantly expanding public-private partnership projects throughout the country.
In an announcement, the ministry disclosed Federal Decree-Law No. 12 of 2023, which regulates federal public-private partnerships. The law aims to promote increased investment and involvement from the private sector in developmental and strategic infrastructure projects led by the federal government.
According to the ministry, this law incentivizes the private sector to participate in developmental and strategic projects within a transparent regulatory framework that ensures the success of government strategic projects by fostering efficiency and effectiveness.
By leveraging private capital, expertise, and management capabilities, the government intends to broaden the pool of financial resources available for projects and expedite implementation timeframes.
Stimulating new investments
The framework is designed to stimulate new investments in economic, social, and service initiatives. The UAE has long recognized public-private partnerships (PPPs) as a valuable model for sustainable economic growth, as evidenced by global case studies demonstrating that such partnerships enhance the efficiency, quality, and affordability of services while freeing up public funds.
Read more: New UAE decree to regulate public-private sector partnerships
To facilitate the implementation of the new law, the ministry intends to issue comprehensive guidelines that outline regulations and standards for all stages of the PPP process. This will encompass clear guidelines for proposals, evaluations, contract structures, and management responsibilities.
Partnership guidelines
The guidelines aim to define the roles of all relevant government entities involved in partnership agreements and are in alignment with the objectives of Federal Decree-Law No. 12 to enhance transparency and enable more projects between federal agencies and businesses.
“As part of the UAE Ministry of Finance’s efforts to support the country’s efforts to stimulate joint projects between federal government entities and the private sector, the Ministry will prepare a guide to regulate the public-private partnerships,” the statement read.
According to the ministry, the guidebook would provide detailed provisions that govern partnership projects. These provisions would encompass procedures and standards for presenting partnership projects, including project proposals, clarification request mechanisms, market studies, value-for-money evaluations, project structuring, and management.
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