What are the top 3 benefits of public private partnerships for development in the UAE?

Jul 14, 2022 | Africa, Announcements, Countries, Financing, Home Page, Markets, Sectors, Snippets

ABiQ outlines the top 3 benefits of public private partnerships for development in the UAE.

ABiQ outlines the top 3 benefits of public private partnerships for development in the UAE.

A public-private partnership (PPP) is a contract between a public entity and a private organisation. PPPs combine the resources and experience of the two sectors to deliver infrastructure or services at a lower cost. The UAE has been utilising PPPs for many years to fulfil rising infrastructure demands. Below are some of the benefits that PPPs can provide:

1. Access to finance

PPPs can offer access to private capital. This way, the public sector can use this opportunity to reallocate resources for investments in sectors where private investment is not possible.

2. Reduced risk

One of the primary incentives created by PPPs is the transfer of risks to private partners. This can result in better control over the overall project cost, delivery schedule, and output quality. Through PPPs, the public sector mitigates risk and likelihood of occurrence. This is undertaken by distributing risks to the parties most qualified to manage them.

3. Quick turnaround times

PPPs include time-to-completion as a metric of performance and, consequently, of profit. This leads to quicker project completions and fewer delays on infrastructure projects.Some PPPs may also include early completion bonuses, this further increases efficiency.

At ABiQ, we provide validated data and trusted business intelligence covering Africa and the Middle East. We use our unique forecasting and project tracking tool to track projects worth over $6.0 Trillion in UAE, Saudi Arabia, and 54 countries across Africa so that you can stay ahead of your competitors and grow your business. Contact us today to book a free demo now or register to get free access to a light version of our platform.

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