Introduction:
The Ministry of Finance in the UAE heralds a new era with the issuance of Federal Decree-Law No. 12 of 2023 on public-private partnerships (PPPs). This landmark legislation establishes a comprehensive framework for collaborations between federal government entities and the private sector, ushering in a wave of developmental and strategic initiatives.
Key Highlights:
- Encouraging Private Sector Participation:
- Fosters private sector involvement in developmental and strategic projects.
- Increases investment in federal government projects with social and economic impact.
- Efficient Implementation of Strategic Projects:
- Empowers the government to efficiently implement strategic projects.
- Leverages financial and administrative expertise, technical knowledge, and technology solutions from the private sector.
- Enhancing Public Services:
- Aims for world-class services at optimal value.
- Boosts productivity and elevates the quality of public services through effective management.
- Knowledge Transfer and Employee Training:
- Catalyzes knowledge and expertise transfer from the private sector to federal entities.
- Trains and qualifies employees of federal entities in the UAE to manage and operate projects.
- Accelerating Project Implementation:
- Speeds up the implementation of projects adding value to public funds.
- Minimizes financial and operational risks on the government.
- Global Competitiveness:
- Enhances the competitiveness of projects in local, regional, and global markets.
Scope and Exemptions:
- Applies to partnership projects proposed by federal entities and funded by the private sector.
- Specific exemptions detailed in Article (4) ensure flexibility, including pre-existing contracts, outsourced services, projects below specified value, and national security-related contracts.
Business Continuity:
- Ensures continuity with the implementation of existing resolutions until the issuance of the Partnership Projects Manual, preserving flexibility and business continuity.
Effective Date:
- Federal Decree-Law No. 12 of 2023 came into force on December 1, 2023.
The UAE’s visionary approach to PPPs through this decree-law establishes a robust foundation for collaborative ventures, promising innovative solutions and transformative outcomes. As the law takes effect, its positive impact on infrastructure development and public services is eagerly anticipated. For more details, refer to the official decree document or visit the Ministry of Finance website.
