A NEW decree was issued by the Federal government in UAE on Thursday that set a regulatory framework for all future public-private partnerships (PPP) involving federal government entities.
The Ministry of Finance issued Federal Decree Law No. 12 of 2023 which seek to encourage ‘encourage’ private sector entities to participate in developmental and strategic projects; increase investment in federal government projects of social and economic value, and help the government to ‘efficiently’ implement strategic projects.
Parties involved stand to benefit from financial and administrative expertise, technical knowledge, and technology solutions available to the private sector. “The new law will boost productivity and improve the quality of public services, while ensuring effective management for the development of those services,” the statement from the Ministry added. In addition, the expertise transfer from the private sector to federal entities, side by side with training public sector employees to manage and operate projects.
“The new law will accelerate the implementation of projects that offer an added value for public funds, minimise financial and operational risks on the government, transform the management of some infrastructure projects and public services, and enhance the competitiveness of projects in local, regional, and global markets,” the Ministry said.
To ensure ‘flexibility and business continuity’, the new Law ‘explicitly’ mentions the continuation of implementation of Cabinet Resolution No. (1/1) of 2017 on the procedures manual for partnership between federal entities and private sector. And Cabinet Resolution No. (4/8) of 2019 on the procedures manual for partnership between public and private sectors in the UAE, until the issuance of the ‘Partnership Projects Manual’. So long as they do not conflict with the law.
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