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
Postponing the event to 2021 will give the construction sector time to complete projects
The postponement of Expo 2020 Dubai will allow the construction sector to complete projects and should coincide ...
READ MORE
CEO of Arzan Investment Management, Oliver Hogg, comments on how the asset class provides developers with alternative funding solutions and greater flexibility in capital structuring
Download the full case study
An icon ...
READ MORE
Abu Dhabi has put the foundation in place to become a global hub for real estate investments
Abu Dhabi has embarked on an ambitious programme to attract private and foreign investment ...
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
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
The meeting was chaired by the emirate’s Deputy Ruler Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum
Deputy Ruler Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum has chaired the first meeting of ...
READ MORE
Real estate players in Abu Dhabi emphasise the need to balance Abu Dhabi’s property sector to ensure long-term sustainability
This article is the third in a series that captures key highlights ...
READ MORE
How investment in rail is transforming mobility in the Middle East
The story of rail could not differ more across the region. In North Africa, nations including Algeria, Morocco and Egypt ...
READ MORE
Completed in 2008, Palm Jumeirah stands out as one of Dubai’s most iconic real estate developments. The palm-shaped archipelago stretches over 560 hectares of reclaimed land and is now home ...
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
Expo move should coincide with real estate revival
Watch: The rising prominence of private debt in
Abu Dhabi Real Estate on the Rise
Unlocking green finance for Dubai real estate
Middle East risk is an international problem for
Dubai’s supreme committee for real estate holds first
Balancing real estate supply and demand in Abu
Case Study: Palm Jumeirah- Redefining real estate development
Workforce shortages could hamper GCC tourism growth
17 January, 2018 | .By JENNIFER AGUINALDO
