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.

Case Study: Palm Jumeirah- Redefining real estate development

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 ...

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 ...

New priorities for the post-Covid workspace

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 ...

Contractors submit proposals for Dubai Properties framework agreements

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 ...

UAE real estate must reassess asset health strategies

Fast-growing markets such as the UAE need to pay greater attention to the quality of ageing buildings and infrastructure, says Mashreq Bank Planners, developers, designers and asset managers need to ...

UAE mulls curbs on lax labour markets

Labour ministry may stop MoUs or impose hiring quotas on countries not responding to repatriation requests from UAE-based workers The UAE’s Ministry of Human Resources and Emiratisation (Mohre) is considering the stoppage ...

Abu Dhabi Real Estate on the Rise

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 ...

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 ...

GCC faces unprecedented non-oil recession

Fitch says non-oil economies could decline by 1-5 per cent in the region this year US ratings agency Fitch forecasts an unprecedented non-oil sector recession in the GCC due to Covid-19. The ...

Travel and tourism outlook brightens on vaccine rollout

Building consumer confidence and opening up in a phased manner will be crucial in ensuring the resumption of UAE’s tourism sector, says latest briefing from Mashreq Bank Download the complete media ...