The UAE Ministry of Finance has announced the issuance of Federal Decree-Law No. 12 of 2023 on public-private partnerships. This sets the general framework for partnerships between federal government entities and the private sector, it was shared.
Having entered into force on December 1, 2023, the Federal Decree-Law No. 12 of 2023 applies to any partnership project proposed by a federal entity and wholly or partially funded by the private sector.
That being said, on Thursday, the Ministry shared that exemptions apply, including partnership contracts that were entered into before the law’s enforcement date, projects whose value is less than the limit specified in the Partnership Projects Manual, public asset and service privatisation projects, and supply and procurement contracts related to national security specified in the Partnership Projects Manual.
Federal entities, sectors, and projects that are exempt pursuant to UAE Cabinet Decisions were also highlighted here.
Beyond regulating public-private partnerships in the UAE, the law has a number of different aims.
This includes encouraging the private sector to participate in developmental and strategic projects, increasing investment in federal government projects of social and economic value, and enabling the government to efficiently implement strategic projects, as well as benefit from financial and administrative expertise, technical knowledge, and technology solutions available to the private sector.
The Ministry also shared that the new law aims to catalyse knowledge and expertise transfer from the private sector to federal entities, and train and qualify employees of federal entities in the UAE to manage and operate projects.
The law also seeks to accelerate the implementation of projects that offer 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.