UAE: New law encourages public-private partnerships

A new law issued in the UAE regulates public-private partnerships. In addition to setting the general framework for partnerships between federal government entities and the private sector, the law encourages companies to participate in developmental and strategic projects; and increase investment in federal government projects of "social and economic value".

According to the Ministry of Finance, the new law will ensure “world-class services at the best value” for the community.

It also aims to train and qualify employees of federal entities in the UAE to manage and operate projects. The 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 law, which entered into force on December 1, 2023, applies to any partnership project that is proposed by a federal entity and wholly or partially funded by the private sector. It specifies exemptions, which include partnership contracts that were entered into before the law’s enforcement date; outsourced services specified in the Partnership Projects Manual; projects whose value is less than the limit specified in the manual; public asset and service privatisation projects; as well as supply and procurement contracts related to national security specified in the manual; and federal entities, sectors, and projects that are exempt pursuant to UAE Cabinet decisions.

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