The UAE Ministry of Finance has announced the UAE Cabinet’s approval of the Public-Private Partnership (PPP) Manual. The manual aims to develop a policy and procedural framework to enable federal government entities to effectively and efficiently implement their developmental and strategic projects. It also aims to enhance the government’s ability to benefit from the financial, administrative, and technological expertise of the private sector.
Encouraging private sector participation
The manual encourages the private sector to proactively participate and contribute to supporting the UAE’s efforts to develop national and strategic projects. It seeks to achieve the maximum possible benefit for society, the nation, the private sector, and the national economy.
Governing partnership projects
This initiative is part of the Ministry’s efforts to create optimal conditions and support national efforts to stimulate investment in joint projects between federal entities and the private sector. Additionally, the manual governs the operations and processes for designing, planning, and implementing PPP projects. It also provides a summary guideline for federal entities and private sector partners to follow, ensuring transparency and clarity for all concerned parties.
Defining roles and responsibilities
The manual further defines the roles and responsibilities of relevant entities by documenting procedures related to PPP contracts, their governance, including proposals from the private sector, market studies, value-for-money assessments, project structuring, and management. This is in compliance with Federal Decree-Law No. 12 of 2023 on regulating federal public-private partnerships.
The manual also includes instructions on determining priorities for partnership projects, studying and evaluating proposed projects, selecting partners, and procedures for submitting bids and offers to potential private sector partners. In addition, by providing this specific framework, the manual unifies the mechanisms, standards, and conditions for implementing partnership projects between the public and private sectors.
Promoting sustainable economic growth
Mohamed Hadi Al Hussaini, UAE minister of State for Financial Affairs, highlighted that the UAE is progressing towards empowering and enhancing its path to sustainable economic growth. He further emphasized that the cooperation between the public and private sectors is a fundamental pillar for achieving the nation’s aspirations and strengthening its position. This cooperation aims to achieve better value in public spending.
Al Hussaini stated that the UAE Ministry of Finance is keen on enhancing the partnership between the public and private sectors, recognizing their significant role in the social and economic development of the UAE. This is to promote sustainable economic growth and ensure comprehensive prosperity for all members of society.
Read more: UAE introduces new framework to boost public-private partnership projects
Identifying priority sectors
In the first phase, the UAE Ministry of Finance has identified priority sectors for future partnership projects, including infrastructure, energy, healthcare, social services, and education. This effort aims to build and manage integrated and effective strategies, enhance cooperation and dialogue between the public and private sectors, and enhance governance frameworks to maintain government efficiency and flexibility.
Moreover, this step facilitates the transfer of knowledge and expertise from private industry to government agencies. It trains and qualifies federal employees to effectively manage and execute projects. Additionally, it implements projects that deliver tangible benefits to the public in exchange for the use of public resources.
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