The United Arab Emirates (UAE) has announced that the country is to prepare documentation to govern public-private partnerships (PPPs) by the end of the year.

The country aims to encourage private sector participation in infrastructure projects.

According to the Minister of Infrastructure Development Abdullah bin Mohammed al-Nuaimi, the documentation will be submitted to the cabinet this year. It

The documentation, which will be used instead of drafting a new PPP law, will regulate agreements between the private sector and the government and “will give the opportunity to the private sector to be comfortable when they operate with the government”, the Minister said.

In PPPs, private investors take stakes in projects, sharing the risk and profits with the government.

The UAE is spending tens of billions of dollars on huge infrastructure projects, including expansion of airports in Abu Dhabi and Dubai and the Dubai Expo 2020 world’s fair site.

Countries around the region are promoting PPPs as a way to reduce pressure on state finances in an era of low oil prices. In 2015, the emirate of Dubai, which is part of the UAE, enacted its own PPP law.