Federal Law No. (12) of 2023 on Regulating the Federal Public-Private Partnerships (PPP)
Federal Law No. (12) of 2023
Regulates partnership projects between federal public entities and the private sector, including project selection, governance, procurement, contracts, risk allocation, financing, oversight and grievances.
Overview
What this legislation covers
Regulates partnership projects between federal public entities and the private sector, including project selection, governance, procurement, contracts, risk allocation, financing, oversight and grievances.
Who or what it applies to
- Federal entities considering or undertaking PPP projects.
- Private-sector companies proposing or bidding for federal PPP projects.
- Project companies, financiers and other PPP counterparties.
- Government committees and officials responsible for approval and oversight.
Key points
Important points at a glance
Creates the federal legal framework for public-private partnership projects.
Encourages private-sector participation in development, strategic, economic, social and service projects.
Requires federal entities to assess whether projects are suitable for PPP delivery.
Allows private-sector parties to submit unsolicited project initiatives subject to the statutory framework.
Requires project proposals, feasibility work and approvals to follow the Partnership Projects Guide.
Regulates procurement and selection of private partners.
Addresses allocation of commercial, operational and financial risks.
Regulates the PPP contract, term, obligations, amendments, termination and handback.
Protects confidential information and intellectual-property interests in private-sector initiatives.
Provides a grievance mechanism for decisions under the PPP process.
Practical explanation
Understanding the law
Practical explanation
What the law does
It gives federal entities a formal route to deliver infrastructure and public-service projects with private-sector capital, expertise and operational capability.
Project preparation
A PPP starts with project identification, suitability analysis and feasibility work. The federal entity must demonstrate why PPP delivery is appropriate and obtain the required approvals.
Private-sector proposals
Businesses may bring project ideas to government, but those proposals must pass statutory evaluation and do not bypass procurement or approval requirements.
Risk allocation
The project contract should assign construction, demand, availability, financing, operating and other risks to the party best placed to manage them.
Contract management
Long-term PPPs require continuing performance monitoring, change control, payment mechanisms, default remedies and clear end-of-term arrangements.
Practical notes
- The Partnership Projects Guide is important for project-development and procurement procedures.
- A private-sector initiative does not automatically confer a project award; it remains subject to statutory evaluation and procurement rules.
- PPP contracts should clearly allocate risk, performance standards, financing obligations, termination consequences and asset handback.
- Project-specific federal and emirate-level approvals may still be required.
Legislation text
Text and provisions
Official-text notice. This package provides a structured English rendering based on the official UAE legislation source identified in the manifest. It is not represented as the legally controlling Arabic text. For interpretation and application, consult the original Arabic text and the latest consolidated official UAE legislation.
Verified legislative metadata
| Instrument | Federal Law No. (12) of 2023 |
|---|---|
| Issued date | 2023-11-27 |
| Effective date | See official source / commencement provision |
| Status | Active / in force |
| Official Gazette | See official source |
| Official source | UAE Legislation |
Structured rendering of the legislation
Article 1 — Definitions
Defines the State, Government, Ministry, federal agencies, partnership projects, private sector, project company, project team, Partnership Projects Guide and other concepts used by the law.
Article 2 — Objectives
Aims to organise federal PPP projects, attract private-sector investment and expertise, improve public-service quality and productivity, transfer knowledge, achieve value for public money and distribute project risks efficiently.
Scope and governance
Establishes the federal scope of PPP regulation and allocates roles among the Ministry of Finance, federal entities and the committees or teams responsible for project review, approval and implementation.
PPP project identification
Requires federal entities to evaluate whether a project meets PPP criteria and to justify the selection of the PPP model in accordance with the statutory framework and Partnership Projects Guide.
Private-sector initiatives
Permits the private sector to propose partnership-project initiatives and requires procedures for evaluation, confidentiality, intellectual-property protection and any incentive or benefit available to the initiative owner.
Feasibility and approvals
Requires technical, financial, economic, legal and risk analysis before a project proceeds through the required approval stages.
Selection of the private partner
Regulates competitive procedures, qualification, requests for proposals, evaluation, negotiation and award in accordance with the law and the Partnership Projects Guide.
PPP contract
Requires the partnership contract to identify the project scope, performance standards, financing and payment arrangements, rights and obligations, risk allocation, monitoring, change mechanisms, defaults and termination consequences.
Project company and financing
Allows project structures to use a dedicated project company and financing arrangements, subject to the contract and applicable law.
Monitoring, amendment and termination
Provides for oversight during the project term and regulates changes, defaults, termination and the treatment or handback of project assets.
Grievances and final provisions
Provides a grievance mechanism and authorises implementing rules, guides and resolutions necessary to administer the federal PPP regime.
Verification
Official source & references
Official legislation sourcehttps://uaelegislation.gov.ae/en/legislations/2189Open ↗This page is a research and educational resource. Legislation can be amended, repealed, supplemented by regulations or interpreted by courts and authorities. Obtain advice before relying on it for a live matter.