In a daring initiative to boost economic development and the participation of the private sector, the UAE Ministry of Finance has revealed a detailed new plan to enhance the position of public-private partnerships (PPPs). This project is a major leap towards sustainable development, economic diversification, and long-term investment in the country.
The new framework, which was announced on Thursday, will entail the introduction of a federal law, a comprehensive project manual and a range of specialised training programmes. These elements are strategically formulated to increase transparency, efficiency of the government public undertakings, and the involvement of the private sectors in strategic projects.
This framework is based on Federal Law No. (12) of 2023, which regulates PPPs on the federal level. The law was signed in 2023 to promote the cooperation between the public and private sectors to offer a consistent and concise legal framework of PPPs. The law is especially concerned with fairness, transparency, and accountability in the project selection, bidding and implementation process.
In his words, Younis Haji AlKhoori, the Undersecretary of the Ministry of Finance, the establishment of a competent PPP framework is currently a national priority. The establishment of a sound PPP framework is one of the priorities of the Ministry of Finance as it is a potential source of long-term development and a major contributor to the UAE economic and social progress.
He also argued that the private sector should be used in terms of financial, administrative and technological capabilities and the transfer of knowledge to the federal entities should be ensured. This is not only going to make government operations more efficient and cost-effective but also improve the overall quality of life of residents in UAE.
One of the key objectives of the new PPP framework is to be aligned with the long term national visions, in particular, the We the UAE 2031 vision and the UAE Centennial 2071. The framework will help to strengthen the sustainability and resilience of the national economy by stimulating innovation and increasing competitiveness.
In June 2024, the Ministry of Finance published the Manual on PPP Projects, Management and Execution to facilitate an ease of implementation. The manual is a unified guide to both federal agencies and non-governmental partners, starting at the feasibility stage of the project and ending with its operational management
Along with the legal and procedural framework, the Ministry has also launched a specialised PPP training programme, in collaboration with an APMG International-accredited institute. The overall purpose of this programme is to provide stakeholders with the appropriate knowledge and skills to manage and implement PPP projects, in accordance with global best practices.
By initiating this comprehensive attempt to public-private partnerships, the UAE maintains its distinction as a leader in the region and the world in economic innovations. The new framework does not only enhance the confidence of investors but also facilitates sustainable and inclusive development that is beneficial to both the public institutions and the privately owned businesses.
As the UAE works to diversify its economy and pursue ambitious national agendas, the improved PPP ecosystem is likely to dominate the future infrastructure, innovation, and social development of the country.
Source – https://gulfnews.com/business/economy/uae-unveils-new-public-private-partnership-framework-to-boost-economy-attract-investment-1.500240871
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