Adopting the Public Private Partnerships Model and its role in attracting Foreign Direct Investment

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Public Private Partnerships (PPPs) have become a popular tool for funding new infrastructure projects around the world. Using PPPs to develop infrastructure gives Governments the opportunity to move large upfront capital spending off their near-term financing commitments. PPP schemes can also play a further role in promoting economic diversification and foreign direct investment.  

The announcement of a PPP law in August (published in September) is a clear indicator of Dubai’s intention to widen this model for the delivery of infrastructure projects.

The new law aims at encouraging the private sector to participate in the development of projects and increasing investment in different fields in a way that serves economic and social development in the Emirate.

Dubai PPP law

His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has issued Law No. 22 for 2015, regulating partnership between the public and private sectors in the Emirate of Dubai in August 2015. The new law aims at encouraging the private sector to participate in the development of projects and increasing investment in different fields in a way that serves economic and social development in the Emirate.

Key Benefits of Dubai PPP Law:

  • Implement its strategic projects effectively and efficiently
  • Harness financial, administrative, technical and technological expertise of the private sector
  • Enable individuals in the community to have better access to services at less cost
  • Increase productivity and improve the quality of public services
  • Transfer of knowledge and experience from the private to the public sector
  • Training and qualifying Emirati public employees in the areas of management and operation of projects
Man and woman in traditional clothes

Dubai PPP Enabling Environment

Dubai PPP Law provides a framework and certainty for potential foreign investors, creating a friendly environment that would further spur PPP initiatives. Dubai Investment Development Agency (Dubai FDI), an agency of the Economic Development Department- Government of Dubai, is advocating a PPP sustainable enabling environment driven by international best practices and innovation.

Dubai FDI efforts to showcase the benefits of investing in PPPs in Dubai is evident in many infrastructure projects and government services. Initiatives to promote current and future project pipelines and develop channels to connect public and private officials to explore unsolicited PPPs were announced during Dubai Investment Forum held in October, 2015 and featured an Expert Panel on Dubai PPP Outlook.

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Anil Khurana

Middle East Consumer and Industrial Products Leader, PwC Middle East

Tel: +971 4 304 3100

Maarten Wolfs

Partner, Capital Projects & Infrastructure Leader, PwC Middle East

Tel: +971 4 304 3100

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