mena public private partnerships - unlock potential
TRANSCRIPT
OCTOBER 2015
Unlock Potential
MENA Public Private
Partnerships
Page
“The private sector (investors) would like to see the
ground is strong (for PPP’s). The strength of the
ground is actually nothing but the legislation and the
regulations. And what we have today is a goodstarting point.
” Abdullah Al Nuaimi, the UAE’s Minister of
Public Works.
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Capital resources required for ramping-up or
building new MENA infrastructure run into USD
trillions. A joint initiative by World Bank, Islamic
Development Bank and International Finance
Corporation estimated in 2012 that the MENA
region requires capital investment of 75 to 100
billion USD yearly until 2020 to sustain economic
growth rates of prior years. PPP’s offer significant
advantages to both Government and private
sectors investors; It provides alternative funding
sources, which alleviates budget deficit, and
provide investors attractive asset classes to
diversify their portfolios. However, to fertilize PPPs’
full potential requires focus and policy upgrade.
PPP’s 3C’s – A Fertile Landscape
CULTIVATE
opportunity
CATALYZE
Potential
CANNIBALIZE
Impact
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MENA Governments have pressing need for infrastructure
investment to meet economic expansion requirements,
constituents’ demand for better services and lifestyle, urban
development objectives, and expectations of foreign
investors.
The MENA Gulf Cooperation Council (GCC) Governments
revenues and budgets are heavily impacted by Oil prices.
The other MENA countries are dependent on subsidies from
the Oil-rich countries to fund portion of their public spending,
and have their own public finances challenges to mitigate.
Increasing private sector involvement in economic
development and wealth creation, a long-declared economic
policy objective, is back in the spot light again and would
release public subsidies to more productive economic uses.
Yet, analysts indicate that it is difficult to unlock potential of
PPP’s before improvements to legislative and legal
environments, and public sector implementation capacity
takes place. A World Bank study in select MENA countries
indicated that Legislative and Regulatory environment is the
highest growth barrier for PPP’s take-off, at 36% to 45%
depending on Country. By contrast, Political and Financial
barriers were ranked second at 24%.
Business Case for PPP’s
MENA Public Private Partnerships - Unlock Potential - Oct. 2015 222
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Target focused project
portfolio to optimize impact
potential.
Pursue coherent PPP agenda, reform
legislative environment to encourage uptake
and sound implementation.
Reassert PPP’s as key
procurement model to derive
number of benefits.
PPP’s Growth Framework
Define PPP
models
Set strategy
PPP’s
Growth
Framework
Build
capacity
Improve
regulatory
environment
Streamline
process for
PPP’s
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2
3
4
5
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Provide alternative funding
source for capital projects
Improve projects quality,
delivery time & budget
performance
Grow the size, capacity of
local private sector
Attract foreign direct
investment and experience
Upgrade infrastructure
Economic development and
social stability
Risk transfer
Water, power &
wastewater
Education
Healthcare
Housing
Transport including
Airports
Communications
MENA Governments: 3C’s Call to ActionCultivate
Opportunity
Catalyze
Potential
Cannibalize
Impact
Hospitality & Tourism
MENA Public Private Partnerships - Unlock Potential - Oct. 2015 222
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About the Author
Omar Al-Sharif | [email protected]
Omar has over 20 years of management consulting industry experience working with Deloitte,
EY, Accenture and Independently. He has impeccable track record of management consulting-
business leadership and growth capabilities. He is frequently consulted by clients about, and
influential in shaping their strategy and operations decision-making. With Deloitte, he is highly
respected member of the Consulting management team, across functional/service lines/ Industry
groups, and sought after counselor and coach.
Omar consulting experience spans number of industries and mainly focused on advising
Financial Services, Public Sector institutions, and Family Owned Businesses in Saudi Arabia and
the Middle East region to restructure/ transform their business, achieve significant business
growth, and improve governance and operations excellence levels.
Increasingly, Omar is focusing on the MSME and has been engaged with relevant government
and private sector institutions towards developing strategies and programs that increase
business sustainability and socio-economic development.
Omar holds a M.Sc. from the George Washington University, Washington DC., USA, and B.Sc.
from the University of Jordan.
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