The UAE, Egypt and Kuwait have been identified as three of the main markets that are likely to offer more opportunities to major international contractors and financiers thanks to their adoption of the public-private partnership (PPP) model, according to BMI Research.
The consultancy said that increased use of PPPs to fund infrastructure projects in the region will allow major companies with experience of delivering long term, privately-financed projects – such as the European construction multinationals Vinci and Ferrovial – greater chances to participate in the regional market.
The UAE is expected to generate more opportunities after Dubai passed its PPP law last November. Thus far, an automated car park project at Dubai Courts has been awarded, while the Roads and Transport Authority is evaluating bids from developers for the Union Oasis project, which will involve 15,000 square metres of space being built in towers above one of the city’s busiest metro stations. But Egypt is currently leading the way in the Mena region.
The country was highlighted by BMI because the government’s financial constraints (it is facing a 10 per cent annual budget deficit for each of the next five years, according to BMI) have led it to embrace a “proven” PPP model. More info
By Michael Fahy www.thenational.ae