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.

UAE Construction Think Tank recommends adoption of standardised contracts

Standardised construction contracts in the UAE could help to tackle delays and cost overruns on projects UAE construction sector significantly impacted by Covid-19 pandemic Construction industry think tank outlines 26 ...

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 ...

Dubai pushes reforms for cancelled projects

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 ...

Sustained recovery: Positive outlook for UAE real estate will drive new projects

Post Covid-19 recovery has long legs as market dynamics remain positive for the property sector across asset classes and emirates Off-plan sales are driving new projects as existing stock does ...

Shortages in high-end real estate loom for Dubai

Concerns surrounding oversupply are taking a backseat as growing buyer demand coupled with rising interest rates poses a new set of challenges for premium property in Dubai Dubai’s premium market ...

Gulf Projects Index continues to decline

Six of eight tracked regional markets note downward movement amid tightened cash flow Data shows value of projects planned or under way ($bn) Six of eight markets tracked by the Gulf Projects ...

Pandemic quickens construction job cuts

The Covid-19 pandemic is accelerating lay-offs amid a low-oil price environment, but some employers are seeking alternatives Lay-off and redundancy activity has accelerated in the Middle East’s construction sector as it contends with ...

Planning for a year of transition in construction

The region’s construction sector is undergoing great change, as contractors shift their focus to exploring new sectors and geographies After five years of being propped up by projects in Dubai, the ...

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 ...

Building a more resilient UAE hospitality sector

The UAE hospitality sector requires vital support to navigate a post-Covid-19 economy A think tank comprising of leading experts from the UAE's hotel and tourism industry has recommended key areas for ...

UAE Construction Think Tank recommends adoption of standardised

Project disruption threatens construction jobs

Dubai pushes reforms for cancelled projects

Sustained recovery: Positive outlook for UAE real estate