The Abu Dhabi Department of Planning and Economy, DPE, has made a bold commitment to seek to increase the private sector’s contribution to the Gross Domestic Product, GDP, of the Emirate of Abu Dhabi to 32% by 2015. As the economic champion for industrial diversification and sustainable economic growth and development, the DPE works in coordination with the Abu Dhabi Council for Economic Development, ADCED, and the Abu Dhabi Chamber of Commerce and Industry, ADCCI, to enhance the overall private sector investment environment for prosperity and progress.

The modus operandi chosen is public-private partnerships, PPPs, combining government resources including land and the best of government services provision with private sector market discipline and business practices to unlock the potential. The DPE ensures legislative and regulatory frameworks for an ideal business environment from business licencing and consumer protection to data and information as well as trade support and market access.

Information communication technology, ICT, and the new knowledge-based economy, KBE, force the pace of liberalisation and deregulation, while globalisation means competition, on one hand, and connectivity, on the other hand, for business opportunities. As Abu Dhabi rises to these challenges, the DPE is one lead change agent with PPPs for contracting-out, privatisation, and to engage with and making the private sector a lead growth engine with its expertise and ideas.

The traditional “government-knows-best” approach is not enough; in reality, the private sector knows more. The DPE draws up Abu Dhabi’s economic plan with strategic private sector partners who know more of the latest industrial technology and market trends. In turn, the private sector needs the government to open markets and create investment opportunities, including technology transfer, in free trade agreements, FTAs, with major trading partners.

Efficient and effective PPP execution needs DPE decision-takers and policy-makers to be bureaucrats who are more technology-savvy. Technocrats through PPPs learn about industry and market needs so that they can respond with appropriate rules and incentives to facilitate, not regulate, private sector business. Small and medium-sized enterprises, SMEs, need technical and financial assistance to grow and trade support to venture abroad together with bigger and more mature local enterprises.

Government productivity and performance are not easy to measure in contrast to private sector profitability in terms of the bottom line to optimise resources, from capital to manpower. Government budgetary control and customer satisfaction in government services may be among some key performance indicators, KPIs. But reorienting the civil service to be performance-based and customer-centred needs a change in mindset, with the right incentives.

The DPE has socio-economic functions too, in social welfare and employment creation for nationals in the emirate, including the rural Western, Al Gharbia, Region. Political decisions balance socio-economic, cultural and security priorities. Political governance in an accountable and transparent government is as important as corporate governance for private commercial enterprises. The best PPP vehicle delivers social and private goods and services in the economy for the society at large.

The public component of PPPs ensures the macroeconomics of sustainable growth, employment creation and price stability with resources expended in physical infrastructure and human resources development, HRD, to enable the private sector in PPPs to bring about projects productively. Strategic PPPs mean a mutual understanding to synchronise and synergise all stakeholders in the economy and society as one force, pulling in the same direction.

In practice, PPPs manage and steer more than projects and outcomes. PPPs are conceptualised as a holistic and integrated ecosystem, not a mere business model. One fundamental prerequisite is public education and awareness, via communication, of them being an inclusive ecosystem. The public and community at large must know about the what, who, why, when and how of changes to be effected by PPPs as change agents, with the right mindset change.

The DPE’s mandate in consumer protection requires as much in public education and awareness as in the right licencing and regulatory environment. To manage long-term sustainability and smooth short-term volatilities, the DPE needs data and knowledge for policy-oriented studies and measures. Again, the private sector in PPPs is the listening post as the DPE designs and executes policies as appropriate.

As in all partnerships, there is no absolute equality in resources and strength, varying with tasks and time dimensions. PPPs need not always imply an upper hand for the government, more a long-term vision in industrial diversification, new industries and employment creation to bear fruit via PPPs. At times, the private sector pulls the engine in research and development of new products in line with industry technology and/or market demand.

The best business environment is one of incentives and self-regulation for a globally competitive private sector ultimately. Enabling success factors lie in the overall conditions for doing business, the investment environment, an adequate supply of human resources and political stability to underpin safety and security. The UAE’s population and demography and resultant unique high dependence on foreign labour and talents means a transition with technology and capital-intensive methodologies via government incentives.

For the first time, Abu Dhabi entities have come together to produce the Abu Dhabi’s Policy Agenda, Plan Abu Dhabi 2030 and the Abu Dhabi 5-Year Strategic Plan in consultation with, and with feedback from, the private sector. The DPE’s 5-Year Strategic Plan incorporates an economic development plan in cooperation with the ADCED and the private sector in the best PPP tradition and practice. Economic growth in quantitative GDP is twinned with qualitative economic development in lifestyle changes to brand Abu Dhabi as a sophisticated, naturally beautiful Arab city-state.

There are many international studies, indicators and role models as benchmarks, standards, quality and best practices for Abu Dhabi PPPs, eventually to emulate to become an exemplar. To be among the five best governments, Abu Dhabi already enjoys high per capita income, stability and security, physical and ICT connectivity including e-government, with more via PPPs. It is never an exact science even with PPPs; more an art of government with a visible private sector hand. Leadership matters in government as it does in industry.