The UAE’s Ministry of Finance has established a new regulatory framework and issued a law aimed at vastly expanding public-private partnership projects across the country.
In a statement, the ministry announced Federal Decree-Law No. 12 of 2023 on regulating federal public-private partnerships. The new law seeks to encourage greater private sector investment and participation in developmental and strategic infrastructure projects led by the federal government.
“This law encourages the private sector to participate in developmental and strategic projects within a clear regulatory framework that ensures the success of efforts to build efficient and effective government strategic projects,” the ministry said.
By utilising private capital, expertise, and management skills, the government hopes to both expand available financial resources for projects and reduce timeframes for implementation. The framework aims to stimulate new investment into economic, social, and service initiatives.
The UAE has long recognised public-private partnerships (PPPs) as a valuable model for sustainable economic growth. Global case studies show such partnerships improve efficiency, quality, and affordability of services while freeing up public funds.
To support the implementation of the new law, the ministry plans to issue comprehensive guidelines detailing regulations and standards for all stages of the PPP process. This will include clear rules for proposals, evaluations, contract structures, and management responsibilities.
The guidelines seek to define the roles of all relevant government entities involved in partnership deals. They are in line with the goal of Federal Decree-Law No. 12 to increase transparency and facilitate more projects between federal agencies and businesses.
“As part of the UAE Ministry of Finance’s efforts to support the country’s efforts to stimulate joint projects between federal government entities and the private sector, the Ministry will prepare a guide to regulate the public-private partnerships,” the statement read.
“This guidebook defines the detailed provisions regulating partnership projects to govern the procedures and standards for presenting partnership projects, including project proposals and the mechanism for requesting clarification, as well as market studies, value-for-money evaluations, project structuring, and management.”
The ministry doubled down on efforts this year to realise the UAE leadership’s vision of advancing sustainable development through public-private cooperation. It expects the new framework to pave the way for major joint ventures in the years ahead
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