The adoption of the Public-Private Partnership (PPP) model in the GCC is expected to give more opportunities to major international contractors and financiers across regional markets.
The UAE, Egypt and Kuwait have been identified as the most to benefit from the adoption of the model, according to BMI Research.
Egypt especially is leading the way as the government’s financial constraints have pushed the country to embrace a “proven” PPP model with 39 projects in the pipeline at a combined value of $38.7 billion.
"That so many PPP projects are in either the planning stage or are in tender reflects the fact that the Egyptian government has significantly ramped up its use of the PPP model in the past year as it prioritises infrastructure development," said David Lee, an infrastructure analyst at BMI.
Kuwait comes in second with the best developed project pipeline since the Partnerships Technical Bureau was commissioned to oversee the process in 2013, building the pipeline to 17 projects as of today.
Dubai passed its PPP law last November and has since ramped up its pipeline to include several new projects awards including an automated car park project at Dubai Courts. The Roads and Transport Authority is also 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.
David Lee, an infrastructure analyst at BMI, has also identified Saudi Arabia as the market with the greatest long-term potential, though no viable model has been developed as of yet.
He said: "We expect it to take longer for PPPs to gain traction in Saudi Arabia because of the country’s unique business environment.”