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.
Related Posts
Oversupply points to further decline and shrinking developer margins in the Dubai real estate market in 2019, and continued weakness through 2020
Dubai real estate prices will continue to deteriorate in ...
READ MORE
Governments need to invest in developing local talent and deploy innovative strategies to create a competitive tourist sector, says Mashreq Bank
The GCC’s tourism sector could face a shortfall ...
READ MORE
The process of transformation is already underway in the regional construction industry with Covid-19 accelerating the need for this change
Already facing severe cash-flow challenges after five years of recession in ...
READ MORE
Experts at the Business Leaders Forum analysed the trends supporting Ras al-Khaimah’s position as a real estate and tourism investment destination
Although the surprise announcement in early 2022 of the estimated ...
READ MORE
The region’s construction sector is undergoing great change, as contractors shift their focus to exploring new sectors and geographies
After five years of being propped up by projects in Dubai, the ...
READ MORE
Obtaining finance for capital projects remains a challenge for first-time hotel developers in Ras al-Khaimah
This article is the third in a series that captures key highlights from the RAK ...
READ MORE
Contractors can look forward to a number of major refurbishment projects in the lead up to the Expo
Dubai’s preparation for the Expo has been dominated by efforts to ensure it ...
READ MORE
The commercial impact of Covid-19 has dramatically changed the banking needs of companies in the UAE, says latest briefing from Mashreq Bank
Download the complete media briefing here
Over half of ...
READ MORE
On 23 May, Abu Dhabi’s Department of Culture issued guidelines to hotels in the emirate for the reopening of restaurants, bars, beaches, pools and gyms.
The announcement marked the start of ...
READ MORE
Environmental, social and governance (ESG) principles are influencing investor decisions in the GCC real estate market, says Mashreq Bank
The Covid-19 pandemic has reiterated the need to address concerns surrounding ...
READ MORE
Dubai real estate will improve in 2021 at
Workforce shortages could hamper GCC tourism growth
CONNECT SERIES: Re-engineering construction in the GCC
Ras al-Khaimah: Competitive Horizons
Planning for a year of transition in construction
Dubai needs to prioritise mid-market hotel segment for
Companies call for greater financing support from Covid-19
CONNECT SERIES: A new model for hospitality
Sustainable finance shapes the future of GCC real
17 January, 2018 | .By JENNIFER AGUINALDO
