The Prospects of Introducing the Private Finance Initiative in the UAE Construction Industry
The British University in Dubai (BUiD)
Private public partnerships have assumed new dimensions through a process of constant evolution in synchronisation with modern economic challenges. Private finance initiative has emerged as the leading choice for public ventures requiring private involvement especially in the more advanced economies. In recent years, there has been an overwhelming move to take up private finance initiative as a means to facilitate governance through the involvement of the private sector. Third party involvement has comprised in large part on infrastructure provision as well as some service provision. Given the changing trend in public procurement and service provision, countries such as the UAE are looking towards private finance initiative as the leading method to provide for a demanding populace as the global economy tends to slow down. However, the UAE tends to face a host of challenges not the least of which are its aging economic structures required to support private finance initiative. Research has been carried out to investigate the various social, political and economic challenges that may contribute to and hamper the progress of private finance initiative in the UAE. Results show an encouraging realisation of the need to move towards private finance initiative although structural issues in the social and political arena remain. In turn, social and political issues tend to hold back economic reformation required for the progress of private finance initiative. The current state of the UAE’s economy has the potential to install private finance initiative with essential yet gradual social, political and economic reformation.
private finance, construction industry, United Arab Emirates (UAE), economic challenges, law