Report showed that the total economic value of joint ventures between the public and private sectors in the Gulf countries reached 628 billion U.S. dollars in the last ten years.
The report issued by the Kuwait Finance House (KFH) to the total value of infrastructure projects granted by the governments of the GCC countries during the last ten years in the framework of partnership between the public and private sectors amounted to 628 billion dollars.
The report, prepared by the Company (KFH) Research Ltd. of Kuwait Finance House, the pace of partnership projects between the public and private sectors during the last ten years has accelerated dramatically in the Gulf Cooperation Council (GCC) as a result of the prosperity of infrastructure projects and increased government spending on these projects.
The report that the UAE and Saudi Arabia represent the largest markets for the models of partnership between the public and private sectors, particularly in infrastructure projects such as energy, water, and to a lesser extent in Kuwait expected to increase partnership contracts between the two sectors in the region during the coming period in light of the recovery in the project finance market and understand the clients of this partnership . He said that since September last was signed more than 50 contracts for the partnership between the two sectors in the Gulf region with investments of nearly $ 60 billion, noting that the Kuwaiti government provided about 32 projects in various sectors require investments worth $ 28 billion. The report considered that the countries Gulf and a relative newcomer to the model of partnership between public and private sectors where they were to start the first draft of a partnership between public and private sectors in the context of infrastructure projects in 1994 through the signing of the draft water power derived in Abu Dhabi. He was the model adopted by the Water and Electricity Authority Abu Dhabi effect essential to the utilities sector in the GCC to become a model for energy, where the Sultanate of Oman to resume the program of privatization of public utilities in 1999 and was followed in 2000, Qatar and Bahrain and Saudi Arabia in 2003.
The report said that in the years 2009 and 2010, Kuwait announced and the Government of Dubai determination power of government over the course of your energy and started the Gulf governments to expand the partnership model between public and private sector in other areas to prepare the infrastructure to be in 2002 granted permission to establish the first station in the region to address water sanitation in the region of the Crusades in Kuwait.
He noted that the GCC countries has signed more than 100 types of partnership agreements between public and private sector, mostly as contracts management and a first step towards privatization has been the use of management contracts in abundance in the transport sector, giving the vast majority of port projects of regional intervention in recent years in the sectors of education and care health and sanitation. The report explained that the construction contract, operate and transfer property, known as (me. or. T), the second form of partnership public and private sectors the most common, which represents about a quarter of regional deals have been allocated more than 95 percent of construction contracts, operation and transfer of ownership in the Gulf Cooperation Council (GCC) in the electricity and water.
And regional markets, the report said the United Arab Emirates and Saudi Arabia represent the largest markets for the partnership public and private sectors because of private investment in new power and desalination of water where the Emirates until September last signed partnership contracts between public and private sector $ 20 billion went 7 billion for the sector public facilities in Abu Dhabi. The report went on to the enthusiasm for the partnership between the public and private sectors in Kuwait, especially after the founding of the technical staff to study development projects in 2008 in Kuwait, where he presented to the government in mid-2010 a program of partnership between public and private sector included 32 projects require an investment of $ 28 billion dollars are transportation projects and real estate, health care and public facilities feature in the list.
The report that the most prominent of these projects is to draft outline of the national railway Kuwait $ 10 billion, pointing to the absence of problems in the financing of these projects because of huge government surpluses.
Indicating that the estimates of the technical staff refers to the allocation of $ 4 billion a year to spend on infrastructure in the foreseeable future. The report considered that it an attempt by the Kuwaiti government to implement projects more efficiently and give the private sector an important economic role to help diversify the local economy.