The Ministry of Finance establishes a pioneering model that enhances sustainable partnership between the public and private sectors
Abu Dhabi, 8 May / WAM / The Ministry of Finance is keen to strengthen the partnership between the public and private sectors, being aware of the significant role this partnership plays in the process of economic and social development in the United Arab Emirates, thus promoting sustainable economic development and achieving comprehensive prosperity for all members of society.
Global experiences have proven that partnership contracts with the private sector work to raise the efficiency and effectiveness of performance, raise the level and quality of services, reduce costs, and optimize the exploitation of resources through innovation, enhancing competition, stimulating the economy, and ensuring the interests of individuals.
In light of this, the Ministry of Finance seeks to build and manage integrated and effective strategies, and work to enhance and develop cooperation and dialogue between the public and private sectors in view of the importance of this cooperation and its repercussions on various aspects of economic activity, and work to improve governance frameworks to maintain the efficiency and flexibility of government work and develop its tools.
The concept of partnership between the public and private sectors is a model that aims to enhance cooperation and understanding between the federal public sector and the private sector to implement joint projects or provide services to the community in various fields such as infrastructure, health, education, energy, transportation, and others.
The partnership between the public and private sectors helps provide the private sector’s capital, knowledge, and experience in project management, which contributes to expanding the financial resources available as a result of cooperation with the private sector, reducing the time periods for project implementation, and reducing and improving the cost of services.
The Ministry of Finance continues its endeavors to establish and develop the partnership system between the public and private sectors and establish a legal and legislative framework that effectively contributes to protecting the rights of all parties through implementing a number of initiatives, procedures and awareness workshops to achieve this goal.
With the aim of creating the best conditions to encourage various business sectors in the United Arab Emirates, stimulate investment, and attract more new investments, the Ministry of Finance recently announced the issuance of Federal Law No. (12) of 2023 regulating partnerships between the federal and private public sectors, which encourages the private sector to participate in Development and strategic projects, within a clear regulatory framework that ensures the success of efforts aimed at building strategic government projects efficiently and effectively.
The law aims to encourage the private sector to participate in development and strategic projects, organize partnerships between the federal public sector and the private sector in the country, increase investment in projects of economic, social and service value implemented by the federal public sector, enable the government to implement its strategic projects efficiently and effectively, and benefit from The financial, administrative, organizational, technical and technological capabilities and expertise available in the private sector, reducing the burden of financial and operational risks on the government that may result from implementing projects, increasing productivity and improving the quality of public services, while ensuring effective management for the development of those services.
This year, the Ministry of Finance began redoubling its efforts to achieve the visions of our wise leadership in developing the financial and economic sector, advancing sustainable development and achieving first positions for the United Arab Emirates at all levels, to enhance the country’s leadership.
In this context, the Ministry of Finance is working on a unified register of existing and future projects at the level of federal agencies, and meeting with qualified entities to discuss future projects.
As part of the Ministry of Finance’s efforts to support the state’s efforts to stimulate joint projects between federal agencies and the private sector, it will prepare a guide for regulating partnerships between the public and private sectors, which specifies the detailed provisions regulating partnership projects, to govern the procedures and standards for offering partnership projects, including project proposals and the mechanism for requesting clarification. Market study, value-for-money assessment, project structuring and management.
The guide highlights the efforts of the Ministry of Finance in clarifying the roles and responsibilities of the relevant authorities by documenting the procedures related to partnership contracts between federal agencies and the private sector, and how they are governed, which are consistent with the provisions of Federal Law No. (12) of 2023, related to regulating partnerships between the federal and private public sectors.
The partnership project includes 5 stages: identifying opportunities, examining opportunities, evaluating projects, offering projects, and managing contracts.
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