Page 18 - Inside K&A - March 2019
P. 18
OPINION
PROJECT FINANCE AND THE
MIDDLE EAST
Helena De Flaviis, Khatib & Alami's (K&A) senior director for corporate development, gives her thoughts
on how the procurement, delivery and funding of public infrastructure is evolving in the region.
The Middle East is a region the ongoing Five Year Plan For some, the level of uptake is
which dreams big and acts in Oman, and Abu Dhabi not fast enough, yet for others
big. It is a region with an Vision 2030), as well as the progress is commensurate
insatiable appetite to break supporting the private sector. with the development cycle of
ground on projects that Yet, as countries develop these countries. We are already
stretch the imagination or multiple sectors within their seeing new PPP frameworks
challenge the norm. Just think economies, they throw emerge in the Arab world, with
of the Kingdom Tower in the open opportunities for Saudi Arabia publishing a draft
Kingdom of Saudi Arabia, a alternative procurement and Private Sector Participation
mile-high super-tall skyscraper funding models. law to boost private sector
set to be the tallest building in Public-Private Partnerships participation beyond utilities,
the world, or the GCC Railway, (PPPs) are never far from and Oman announcing work
a gigantic pan-Arab railway people’s minds in this on its own PPP law. While the
network connecting the Gulf regard. They have been in likes of Kuwait, Dubai and Abu
states. The Middle East is existence in the UK since Dhabi have established PPP
home to all of these and much the inception of the Private laws in place.
more. Finance Initiative (PFI) in the The region’s PPP projects
As countries continue to early 1990s. Yet what of the are typically seen in large
diversify their economies away Middle East currently? As of infrastructure projects or in
from a dependency on oil, the August 2018, the Middle East the power and water sectors,
construction industry has been Economic Digest (MEED) where private developers have
integral in making flesh many noted that there were about been attracted by the assured
of the ideals and outcomes $224bn-worth of PPPs revenues of government
expressed in strategic planned or under way in the electricity and water offtake
government initiatives (such Middle East and North Africa guarantees, coupled with
as Vision 2030 in Saudi Arabia, (MENA) region. governments as the main
