UAE Ministry Of Finance Releases Guide For Public-Private Partnerships, Highlights Priority Sectors

The UAE Ministry of Finance has announced the approval of the Public-Private Partnership Manual by the UAE Cabinet. This manual aims to create a policy and procedural framework for federal government entities to implement developmental and strategic projects efficiently. It also seeks to leverage the financial, administrative, and technological expertise of the private sector.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, emphasised that the UAE is advancing towards sustainable economic growth through public-private cooperation. He stated, "In a world where cooperation and integration between the public and private sectors are fundamental pillars for achieving the nation’s aspirations and strengthening its position, this cooperation aims to achieve better value in public spending."

The manual outlines roles and responsibilities for relevant entities by documenting procedures related to public-private partnership contracts. This includes proposals from the private sector, market studies, value-for-money assessments, project structuring, and management in line with Federal Decree-Law No. 12 of 2023 on regulating federal public-private partnerships.

It also provides guidelines on prioritising partnership projects between the federal government and private sector. This involves studying proposed projects comprehensively, selecting partners, and detailing bid submission procedures for potential private sector partners. The manual aims to unify mechanisms, standards, and conditions for implementing partnership projects.

Al Hussaini highlighted that enhancing partnerships between the public and private sectors is crucial for social and economic development in the UAE. He added, "The UAE Ministry of Finance is keen on enhancing the partnership between the public and private sectors, recognising their significant role in the social and economic development of the UAE, thereby promoting sustainable economic growth and ensuring comprehensive prosperity for all members of society."

He further mentioned that global case studies show that public-private partnerships improve efficiency and service quality while reducing costs. These partnerships also stimulate innovation, enhance competition, boost economic activity, and protect individual interests.

Priority Sectors in the First Phase

The Ministry has identified priority sectors for initial partnership projects in collaboration with strategic partners. These sectors include infrastructure, energy, healthcare, social services, and education.

This initiative supports national efforts to stimulate investment in joint projects between federal entities and the private sector. The manual governs operations for designing, planning, implementing projects while providing guidelines for federal entities and private sector partners to ensure transparency.

The effort also aims to enhance governance frameworks to maintain government efficiency and flexibility while developing relevant tools. This step contributes to transferring knowledge from the private sector to federal entities.

Additionally, it involves training federal employees in managing projects that provide added value in exchange for public funds. The manual represents an invitation for active participation from the private sector in supporting major strategic projects.

This initiative aligns with efforts to support national economic growth by fostering cooperation between public entities and private businesses. It ensures comprehensive prosperity through effective resource utilisation.

With inputs from WAM