UAE unveils new public-private partnership framework to boost economy, attract investment

Abu Dhabi: The UAE Ministry of Finance announced Thursday plans to accelerate its efforts to strengthen public-private partnerships (PPPs), establishing them as a core pillar for achieving sustainable economic growth and development.

The Ministry has announced the launch of a comprehensive framework that includes a new federal law, a detailed project manual, and extensive training programs, all designed to enhance market oversight and attract greater private sector investment.

This major initiative builds on the momentum of Federal Law No. (12) of 2023, which was enacted in 2023 to regulate PPP projects at the federal level. The law is designed to encourage private sector participation in strategic projects and enable the federal government to deliver key initiatives with greater efficiency.

The UAE’s comprehensive approach to PPPs has established it as a model for other economies. Rather than relying on a fragmented system, the country has developed a robust and integrated framework that addresses the core concerns of private investors and ensures projects are both viable and transparent.

The new framework aims to leverage the private sector’s financial, administrative, and technological expertise, while also transferring that knowledge to federal agencies, according to the Ministry of Finance. The legal framework provides a clear structure for project selection, proposal, and bidding, ensuring transparency and fair competition.

According to Younis Haji AlKhoori, Undersecretary of the Ministry of Finance, the new framework is a top priority. "Developing a robust PPP framework is a top priority for the Ministry of Finance, recognising its role as an effective instrument for sustainable development and a significant player in fuelling the UAE’s economic and social advancement,” he said.

He added that these partnerships will enable the exchange of financial, administrative, and technological expertise with the private sector. The goal is to "improve the community’s quality of life, reinforcing the resilience and sustainability of the national economy, and advancing the objectives of the 'We the UAE 2031' vision and the UAE Centennial 2071.”

AlKhoori stated that PPPs enhance the efficiency of government operations and reduce project costs through innovation and competition, resulting in a "lasting positive impact on society."

To ensure the new framework is implemented effectively, the Ministry of Finance released the 'Manual on PPP projects, management and execution' in June 2024. The manual outlines clear procedures and policies for both federal entities and private sector partners, covering every stage of a project from planning and design to execution and operational management.

The Ministry said this serves as a comprehensive reference guide to govern the entire project lifecycle, from initial feasibility studies to contract finalisation and long-term supervision. The Ministry has also launched a specialised PPP training program, developed in collaboration with an APMG International-accredited training institute.