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
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
Carillion is the latest international firm to report problem projects in the region
Before the London Stock Exchange opened for the week on 10 July UK construction company Carillion issued a trading ...
READ MORE
This article is a part of a series from the Dubai Real Estate Forum held by MEED and Mashreq on 22 March in Dubai
Global alternative investment firms are keen to ...
READ MORE
Mall owners and retailers recommend actions for a more sustainable and resilient retail sector in the UAE
Download your copy of the white paper here
The UAE Retail and Malls Think Tank ...
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
Real estate activity in the sector is helping the emirate emerge as an independent tourism and hospitality powerhouse
This article is the first in a series that captures key highlights from ...
READ MORE
Governments have been quick to cut spending after two years of launching stimulus projects
The big challenge for the region’s construction sector over the coming year will be dealing with the ...
READ MORE
Organisations in the UAE are beginning to see the value in adopting closed-loop resource systems
Key takeaways:
Governments and organisations are beginning to recognise the multi-trillion-dollar business value of circular economy ...
READ MORE
A lack of incentives is limiting the development of green financial instruments in Dubai’s real estate sector
While environmental, social and governance (ESG) considerations are a priority for many investors today, ...
READ MORE
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
Ras al-Khaimah: Competitive Horizons
Middle East risk is an international problem for
Dubai investors seek quality real estate stock
Think tank calls for action to boost retail
CONNECT SERIES: Re-engineering construction in the GCC
Ras al-Khaimah carves out its identity
Cost cutting on stimulus projects is a paradox
Circular economy reshapes business strategies in the UAE
Unlocking green finance for Dubai real estate
Dubai’s real estate and construction sectors shift focus
17 January, 2018 | .By JENNIFER AGUINALDO
