A new regulatory framework and a regulation were published by the UAE's Ministry of Finance to greatly increase the number of public-private partnership projects throughout the nation.
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The UAE’s Ministry of Finance has embarked on a significant regulatory overhaul, introducing Federal Decree-Law No. 12 of 2023 to regulate federal public-private partnerships (PPPs). This legislative move aims to foster a more robust environment for collaboration between the public and private sectors in driving forward developmental and strategic infrastructure projects across the nation.
Private Sector Stimulus
In a bid to bolster private sector involvement, the ministry is implementing a clear regulatory framework designed to incentivize increased investment in projects led by the federal government. This initiative is underpinned by the belief that leveraging private capital, expertise, and management capabilities can not only enhance the financial resources available for projects but also expedite their implementation, ultimately fostering economic growth and development.
Recognizing the proven efficacy of PPP models in promoting sustainable economic progress, the UAE has long championed the adoption of such partnerships. International examples underscore their potential to enhance the efficiency, quality, and affordability of services while simultaneously alleviating the burden on public finances.
To facilitate the effective implementation of the new regulatory framework, the ministry is poised to issue comprehensive guidelines that delineate the requisite regulations and standards governing all stages of the PPP process. These guidelines will encompass clear directives pertaining to proposal submission, evaluation procedures, contract structuring, and delineation of management responsibilities.
Central to the guidelines is the delineation of the roles and responsibilities of relevant government entities involved in partnership arrangements. This emphasis on clarity and transparency is aligned with the overarching objectives of Federal Decree-Law No. 12, which aims to enhance transparency and streamline collaboration between federal agencies and private enterprises.
In a proactive move to support the operationalization of the new legislative framework, the Ministry of Finance will develop a guidebook that serves as a comprehensive reference point for regulating public-private partnerships. This guidebook will offer detailed provisions governing the presentation of partnership projects, encompassing aspects such as project proposals, mechanisms for seeking clarification, market studies, value-for-money assessments, project structuring, and management protocols.
The ministry's unwavering commitment to advancing sustainable development through collaborative endeavors is evident in its intensified efforts to realize the UAE leadership's vision. With the new regulatory framework in place, the stage is set for the emergence of significant joint ventures that promise to shape the trajectory of the nation's development in the years to come.