UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

A Public-Private Partnership (PPP) is a long-term contractual arrangement between a public authority and a private entity for the provision of infrastructure or services traditionally delivered by the public sector. PPP models vary from concessions and build-operate-transfer (BOT) agreements to availability-based contracts. The core rationale is to leverage private-sector capital, operational expertise, and innovation while the government retains strategic oversight and regulatory authority. Risk allocation — distributing construction, demand, operational, and financial risks between the public and private parties — is the defining feature of well-structured PPPs.

UAE Context

The UAE has enacted PPP legislation at both the federal and emirate levels. Abu Dhabi’s Law No. 2 of 2019 established a formal PPP framework for the emirate, while Dubai Law No. 22 of 2015 governs partnerships in the emirate. Federal PPP guidelines were strengthened in 2023 to standardise procurement, risk allocation, and dispute resolution across emirates. Major UAE PPP projects include independent water and power projects (IWPPs) such as the Taweelah desalination plant, school construction programmes in Abu Dhabi, and healthcare facility development. The Sharjah and Ras Al Khaimah PPP programmes have expanded into waste management, housing, and tourism infrastructure.

Key Data

The UAE PPP pipeline exceeds AED 50 billion in project value across utilities, transport, education, and healthcare sectors. The Taweelah reverse osmosis desalination plant — the world’s largest at 909,000 cubic metres per day — was developed under a PPP framework with ACWA Power and TAQA. PPP models have been particularly effective in the UAE’s utility sector, which has attracted billions in private investment.

Vision 2031 Significance

PPPs are essential to Vision 2031’s infrastructure and diversification ambitions. By bringing private capital and efficiency into public service delivery, PPPs reduce fiscal burden on government budgets, accelerate project timelines, and introduce competitive dynamics into sectors historically dominated by state entities.

  • FDI Law — Foreign investment legislation that enables private-sector participation in PPPs.
  • Sovereign Wealth Funds — Government investment vehicles that sometimes co-invest in PPP projects.
  • Infrastructure Development — The physical development agenda PPPs primarily serve.
  • Economic Diversification — The national strategy that PPPs support by mobilising private capital.