JobXDubai

A landmark move in the United Arab Emirates (UAE) promises to redefine the landscape of public-private collaborations. The Ministry of Finance has officially issued Federal Decree-Law No. 12 of 2023, designed to streamline partnerships between federal entities and the private sector within the UAE.

This strategic decree aims to galvanize private investment in projects with economic and social impacts, enabling the UAE government to leverage private sector expertise and innovative technology solutions. Its primary goal is to foster a business environment where high-value strategic projects are efficiently executed.

Embracing the change since December 1, 2023, this law paves the way for the delivery of globally competitive public services, enhanced value, and superior management for development, simultaneously boosting productivity and service quality.

Additionally, this fresh legislation spurs a knowledge exchange, equipping employees in federal institutions with the necessary skills to effectively manage and operate these growth-inducing projects.

Key advantages of the new law include:

• Speedier project delivery that enhances public fund utilization
• Diminished financial and operational risks for the government
• A transformative approach to infrastructure projects and public service management
• An uptick in the competitiveness of local and international market projects

The decree is applicable to partnership projects initiated by federal bodies, with full or partial private sector funding. Certain exceptions specified in Article (4) include pre-established contracts, outsourced services, projects not meeting a specified value threshold, privatization efforts, supply and procurement for national security, along with sectors and projects identified by the UAE Cabinet.

In an effort to maintain fluidity and business progression, the new decree also references Cabinet Resolutions No. (1/1) of 2017 and No. (4/8) of 2019, which remain effective until the Partnership Projects Manual is issued, provided they are aligned with the overarching new law.