The construction division is lining up for the ‘Triple P’ outcome in Dubai. For a trade and industry presently in the grasp of eroding profit limits and record overload, it won’t be a flash shortly.
Another PPP-induced profit would be the involvement of capital markets in the support of upcoming projects. If those resources start to flow in, it will be a help for the construction division now struggling with financial flow difficulties and the less than indifferent attention from the banking division.
Dubai’s PPP law, which has been implemented on August 8, put consents on what the private sector can imagine from taking a role in the emirate’s infrastructure needs.
Project work is not beyond Dh200 million may be agreed at the rank of the director-general of the relevant government department. Those beyond this category must be permitted by the Department of Finance, while projects greater than Dh500 million must need green lighting from the Supreme Fiscal Committee of the Emirate of Dubai.
It is the subcontractors who have faced the burden of the delay the business has experienced since the second-half of 2014.
With payment periods urging well past 180 days, subcontractors’ very subsistence is being pressured. And the only chance they cling to is Dubai — from early 2016 — will start setting out the mega developments that it will be needed for Expo 2020.
Private sector participants should make an effort to accomplish win-win situations and in the course implementation is a vast deal of suppleness, endurance, firmness and urgency.
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