UAE, one of the fastest-growing countries in the world, is renowned for its economic and tech innovations. From towering skyscrapers to cutting-edge infrastructure, there are many factors that drive the country’s economy to a global leadership position. However, what is rarely discussed is the role of UAE’s organized partnership between the public and private sectors.
The public-private partnerships, or PPPs, have kept the UAE economy functioning even during the pandemic era. By ensuring that private enterprises remain at their most efficient and drive innovation, the 53-year-old young Middle Eastern country has ensured that its economic performance never falters.
There is definitely a lesson to be learnt here, especially by the Western nations.
How to Build PPPs the Right Way
Building a solid relationship between the public and private sectors is not always easy. For example, when the UK tried to create a PPP model for its HS2 program to build train lines, it did not work.
But, if we take a look at the 2020 Dubai metro route project, we will see an absolutely successful PPP project. This metro route now allows around 270,000 citizens to commute between the busiest parts of the city without any hassle.
The key factor that enabled the success of the Dubai metro project was the Expolink Consortium. Instead of the government taking the reins of the project, a group of industry leaders were put together to lead the charge and it ultimately led to massive financial growth.
Dubai is now highly committed to funding more PPP projects and has recently rolled out over 100 such projects to be undertaken over the next half-decade. However, there have been successful PPPs in other parts of the world as well, such as the Pacific Highway upgrade project in Australia.
PPPs are the Answer to the Ongoing Economic Struggle
The Western economy has been facing a rough few years, especially with the American market being hit by a recession. So, the time is ripe to build solid ties between the public and private sectors and undertake projects that can generate both jobs and wealth.
Even in situations where funding is low, the private sector can be utilized by the government to maintain a steady flow of income-generating projects. Sectors such as civil engineering and construction stand to gain massive benefits via PPPs. UAE’s construction market alone is now valued at over $90 billion, and this is largely owed to PPPs.
Perhaps it is the right time for Western powers to step in and learn from this innovative model, and in the process find a solution to its own economic woes.
