What is PPP?

Public Private Partnership (PPP) is a contractual relationship between one or more government entities and one or more organisations of the private sector. Each party plays a certain role, integrated in one developmental framework. There are many forms of partnerships with the private sector which depend on the level of contribution and responsibilities each party has. The forms include:

• service contracts
• management contracts
• leasing contracts
• concession contracts
• build, operate, transfer (BOT)
• build, own, operate, transfer(BOOT)
• build, own, operate (BOO)

Legal framework of public-private partnerships

The Federal Decree-Law No. 12 of 2023 on Public-Private Partnerships sets the general framework for partnerships between federal government entities and the private sector.

In addition to regulating public-private partnerships in the UAE, the law aims to:

• encourage the private sector to participate in developmental and strategic projects,
• increase investment in federal government projects of social and economic value,
• enable the government to efficiently implement strategic projects
• benefit from financial and administrative expertise, technical knowledge, and technology solutions available to the private sector.

The new law, which came into force on 1st December 2023, 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 the local, regional, and global markets.

Read related news coverage.

Why adopt the ‘PPP’ model?

The PPP model would serve the UAE’s goals and agenda in implementing a sustainable, competitive-economy based on knowledge, expertise and diversity. It would serve the public interest from the integration of efforts, fund, expertise and technologies of both the government entities and the private partners. In addition, it is an ideal option to render efficient commodities and services at a lower cost and to make use of the private sector’s capabilities and efficiency.

Other benefits include:

• attracting national, regional and foreign investments
• cost saving on  projects’ operation and maintenance through competitive bidding and innovative technologies offered  by  private tenderers
• motivating the private sector to innovate
• promoting economic growth by creating more job opportunities in the country
• reducing government spending and funding and/or sharing economic risks with the private sector

Services based on the PPP model

There are many private partners in the UAE, which work in association with the public sector to render services. Some of them are listed below.

Utility services
Abu Dhabi Distribution Company distributes and supplies water and electricity in the emirate of Abu Dhabi except in the city of Al Ain.

Typing services

General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA) facilitates the application for visa and residence-related transactions via typing centres approved by them.

Postal and mail services

Several government departments such as Roads and Transport Authority and Dubai Courts use the services of Zajel courier company for mail deliveries.

UAE’s strategic partnerships with the private sector and international bodies

Learn more about the UAE’s strategic partnerships with the private sector and international bodies in the following key sectors:

• health
• education 
• employment 
• environmental 
• social 
• justice 
• financial
• technology
• telecom and digital.

Read also about UAE’s global partnership for sustainable development.