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
The global real estate financing landscape is evolving, with private debt emerging as a pivotal alternative to traditional bank lending. This shift has created an opportunity for private credit funds, ...
READ MORE
The rapid response of governments and banks has sustained the economy through the lockdowns, but the Covid-19 crisis is creating new challenges for banks
Q&A with Roy Philip, senior executive vice-president and group chief credit officer, Mashreq ...
READ MORE
Tribunal formed to oversee cancelled and liquidated real estate projects and ensure investors' rights
A special committee to oversee unfinished and cancelled real estate projects has been set up in Dubai.
Sheikh ...
READ MORE
Dubai Properties has received proposals from contractors for framework agreements that will cover construction work on the local developers’ upcoming projects.
The proposed framework agreements will be used for a wide ...
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
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 pandemic has changed the requirements for the office of the future
Watch the webinar here
One year on since office workers across the world were sent home to help prevent the ...
READ MORE
Experts at the Real Estate Forum analysed trends disrupting the property market in the coming year
Despite the multitude of challenges that have faced the market in recent years, Dubai’s real ...
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
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
Case Study: Opportunities for private debt in real
MARKET TALK: Keeping business going during the crisis
Dubai pushes reforms for cancelled projects
Contractors submit proposals for Dubai Properties framework agreements
Watch: The rising prominence of private debt in
Dubai needs to prioritise mid-market hotel segment for
New priorities for the post-Covid workspace
Outlook for Dubai Real Estate
Case Study: Palm Jumeirah- Redefining real estate development
Sustainability shapes Ras al-Khaimah real estate
17 January, 2018 | .By JENNIFER AGUINALDO
