New law on public, private partnerships in Dubai
Dubai - The law aims at encouraging the private sector to participate in the development of projects and increasing investment in different fields.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has issued Law No. 22 for 2015, regulating partnership between the public and private sectors in the emirate of Dubai.
The new law aims at encouraging the private sector to participate in the development of projects and increasing investment in different fields in a way that serves economic and social development in the emirate. It also allows the government to implement its strategic projects effectively and efficiently, as well as harness financial, administrative, technical and technological expertise of the private sector.
This will also enable individuals in the community to have better access to services at less cost.
The new law also aims to increase productivity and improve the quality of public services, transfer of knowledge and experience from the private to the public sector, as well as training and qualifying Emirati public employees in the areas of management and operation of projects.
It specifies terms for partnerships between the public and private sectors as per a partnership agreement that follows the bylaws of this law. The project has to be economically, financially, technologically and socially feasible.
The law also stipulates conditions for the approval of projects. A government body's director-general or their deputy can approve a project as long as the total cost that will be incurred by the body through the partnership agreement does not exceed Dh200 million.
The Department of Finance will be responsible for approving projects that have a total cost above Dh200 million to Dh500 million. Projects valued at more than Dh500 million will be approved by the Supreme Financial Policy Committee.