New law to govern private-public partnerships

Gurmeet Kaur

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued a law regulating the partnership between the public and private sector.

Law No. 22 of 2015 aims to encourage the private sector to participate in development projects and boost their investments in these projects to serve economic and social development in Dubai. It also aims to empower the government in effectively implementing strategic projects and to benefit from the management, financial, technological and organisational expertise enjoyed by the private sector, which will allow the community to access the best standard of services at a lower cost.

Gurmeet Kaur, head of projects UAE, Eversheds shared her thoughts on the law, “Public Private Partnerships (“PPPs”) provide a fantastic mechanism for harnessing private sector expertise and capital. There is general consensus that private sector involvement will bring with it increased efficiencies and innovation in design, operation and management and offer overall value for money for the public sector. For a successful PPP program it is important to provide an environment in which bidders and funders are confident that there is a clear and realistic opportunity to win contracts through a process that accommodates the need of both the public and private sector and to receive a return on their investment. Such confidence will be generated if there are adequate political, legal and financial safeguards in the market."

She added, “The enactment of Dubai Law 22 of 2015 regulating public private partnerships is a great development. It demonstrates the Dubai government’s commitment and drive to put in place the necessary legal and economic mechanisms to attract investment. The benefits of having a PPP Law include that it establishes a clear legal basis for PPPs and a transparent and flexible procurement process; it demonstrates government support and provides confidence to procuring authorities and investors, and draws international attention to the country. This represents another milestone for Dubai which is seen as a leader in innovation in many areas. There is no doubt that PPPs will play a key role in the lead up to Expo 2020 and the development of major infrastructure projects in Dubai and the enactment of the new law is a key step in the right direction.”