In a significant move towards economic advancement, the United Arab Emirates has recently enacted pioneering legislation governing public-private partnerships (PPPs). This groundbreaking law, effective since December 1, underscores the nation’s commitment to fostering increased private sector involvement in pivotal government projects.
According to reports from the state news agency WAM, the federal legislation is poised to stimulate private sector engagement by encouraging heightened investment in the government’s developmental and strategic initiatives. Beyond financial contributions, the law also emphasizes the importance of leveraging technical knowledge and expertise from the private sector.
It’s noteworthy that individual emirates, including the prominent Dubai, have established their own frameworks governing PPPs. However, the new federal law provides a unified approach, ensuring consistency and coherence in regulating PPP projects proposed by federal entities and either fully or partially funded by the private sector.
The United Arab Emirates, comprised of seven emirates at varying stages of economic development, is strategically focused on propelling growth in smaller emirates. This legislative move aligns with the nation’s broader vision to diversify income sources, steering away from traditional dependence on oil and gas. As Abu Dhabi and Dubai lead the way, the government’s commitment to federal projects underscores a collective effort to spur development across the entire nation.
