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.

Kuwait positive on PPP prospects

In addition to key utilities projects, KAPP is also planning to develop real estate public-private partnerships As other regional governments launch ambitious public-private partnership (PPP) initiatives, Kuwait is celebrating the 10-year ...

Watch: The continuing evolution of GCC real estate

Zain Qureshi, Global head of real estate finance and advisory at Mashreq comments on the advancements in the sector Regional impetus The GCC real estate sector is experiencing sustained growth, driven by ...

Sustainability shapes Ras al-Khaimah real estate

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 ...

Project disruption threatens construction jobs

The pandemic will accelerate job losses in the UAE and beyond The Covid-19 pandemic will catalyse the shifting labour dynamics in the UAE, where reduced real estate demand and low market ...

green city - double exposure of lush green forest and modern skyscrapers windows

Sustainable finance shapes the future of GCC real estate

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 ...

The long summer ahead for GCC contractors

Lowered productivity during the second and third quarters of 2020 will add to the financial pressures faced by builders in the region The GCC’s construction industry could face extreme time and ...

Watch: Conversations shaping GCC Real Estate

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 ...

Cost cutting on stimulus projects is a paradox

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 ...

UAE landlords must adapt to a changed market

Commercial property landlords in the UAE need to offer greater flexibility to meet the needs of their tenants in the post-Covid environment, says leading real estate adviser Mashreq Download the complete ...

Ras al-Khaimah: Competitive Horizons

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 ...