Ajman issued a new law to regulate partnerships between public and private sectors in the emirate.
The law – Law No. 2 of 2022 – aims to encourage the private sector to engage in developmental projects, as well as attract national, regional and international investments in all areas, supporting the emirate’s economic and social development.
The law, issued by Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman, also aims to enable the emirate’s government to fully implement strategic projects, increase productivity, improve the quality of local public services, reduce financing burdens on its public budget, and support the emirate’s strategic plans aimed at creating a sustainable economy.
The new law stipulates that a project to be economically, financially, technically and socially feasible as a condition for completing a partnership contract between the public and private sectors.
The law also identifies the authority in charge of approving projects. The director-general of a government agency approves projects if the total cost to the authority under the partnership contract does not exceed AED20 million while the director-general of the Department of Finance approves projects whose total cost exceeds AED20 million until AED50 million.
If the partnership contract exceeds AED50 million, it must be approved by the Ajman Ruler’s Representative for Administrative and Financial Affairs.
The law also stipulates that the relevant government authority must establish an internal committee – partnership committee – whose members will be appointed by the authority’s director-general.
The law also includes several rules regulating the selection of partners, company preparation mechanisms, specifications, and acceptance and evaluation of offers.
The new law will come into force on January 1, 2023.
“The new law underscores the aspirations of the Ajman government to foresee the features of the coming period in terms of financing vital government projects, through the partnership between the public and private sectors,” Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, said.
He also affirmed the law’s importance in strengthening the relations between the public and the private sectors, by increasing productivity, improving the quality of public services, transferring knowledge and expertise from the private to the public sector, and boosting the capacities of employees in project management and operations.
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