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
Existing assets are being upgraded as the emirate grapples with the issue of over supply
The focus for companies engaged in Dubai’s oversupplied real estate sector is shifting from new projects ...
READ MORE
The rise of e-commerce and the need for the rapid delivery of online purchases is creating new opportunities for Dubai real estate developers
Real estate developers and landlords in Dubai should ...
READ MORE
Supply and demand imbalance is resulting in less office space being built and property owners offering tenants generous incentives
Dubai’s office market continues to be oversupplied, resulting in less office space ...
READ MORE
Fitch says non-oil economies could decline by 1-5 per cent in the region this year
US ratings agency Fitch forecasts an unprecedented non-oil sector recession in the GCC due to Covid-19.
The ...
READ MORE
Regional tourism markets are slightly ahead of global peers as borders reopen for international travellers
The immediate business impact of precautionary measures against Covid-19 was felt most deeply by the tourism ...
READ MORE
Decarbonising supply chains requires concerted efforts from governments and businesses alike
Key takeaways:
The inaugural MEED-Mashreq Business Leaders Forum on 31 January highlighted the importance of reducing supply chains’ carbon ...
READ MORE
Beijing-based China State Construction Engineering Corporation is the frontrunner for the contract to build the world’s tallest man-made structure in Dubai.
Local developer Emaar received bids from two groups for the ...
READ MORE
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 ...
READ MORE
The emirate’s growing real estate sector can benefit from leveraging sustainable practices from the outset
This article is the fourth in a series that captures key highlights from the RAK Real ...
READ MORE
Mall owners will not only be threatened by e-commerce, they also risk losing business to other malls
Dubai has never been a place for shirking a challenge and its decision to ...
READ MORE
Dubai’s real estate and construction sectors shift focus
Hyperlocal services unlock new real estate market
Oversupply continues to challenge Dubai office market
GCC faces unprecedented non-oil recession
Middle East tourism economy readies to reopen
UAE firms steer towards net-zero future
Chinese in front to build world’s tallest tower
Watch: Conversations shaping GCC Real Estate
Sustainability shapes Ras al-Khaimah real estate
The fight ahead for Dubai’s retail sector
17 January, 2018 | .By JENNIFER AGUINALDO
