Abu Dhabi: The Abu Dhabi Investment Office (ADIO) is significantly advancing the emirate’s public-private partnership (PPP) framework, aligning with its economic acceleration and investment strategies. The framework aims to enhance collaboration between local and international investors and government entities, focusing on investment in strategic sectors to boost the emirate’s competitiveness and economic prosperity. Through PPPs, Abu Dhabi facilitates private sector participation in public infrastructure and value-added services, targeting sectors such as renewable energy, transportation, and healthcare. From 2020 to 2024, ADIO has facilitated AED 2.4 billion in PPP deals, reinforcing Abu Dhabi’s status as a leading investment destination.
According to Emirates News Agency, the Zayed City Schools project highlights the success of Abu Dhabi’s PPP model in education, marking the country’s first instance of schools developed under a PPP framework. The collaboration with the Abu Dhabi Department of Education an
d Knowledge (ADEK) will deliver three state-of-the-art schools for over 5,000 students, ranging from kindergarten to high school levels. The 22-year contract for design, build, finance, and maintenance was awarded to a consortium led by BESIX, a Belgian construction group, and Plenary Group, an Australian infrastructure investor and developer, demonstrating the model’s ability to integrate private sector efficiency with public interest.
Similarly, the Abu Dhabi LED Street Lighting Project, the first of its kind in the GCC region, involves retrofitting 176,000 streetlights with LEDs to support energy conservation, reduce emissions, and enhance road safety. This two-phase project, executed in collaboration with the Abu Dhabi Department of Municipalities and Transport (DMT), involves two separate 12.5-year concessions. The first was awarded to local firm Tatweer, while the second went to a consortium formed by French companies EDF and Engie.
ADIO has also concluded the tender process for the Khalifa University
student housing project, set to become the largest of its kind in the region with 3,260 rooms and shared facilities across two campuses. This project is the first PPP development to integrate the In-Country Value (ICV) scheme, supporting national economic goals by prioritizing local procurement. The accommodation development includes a 23-year concession awarded to the KUnnected Living consortium, led by Plenary Group, BESIX, and Mazrui International, in collaboration with Khalifa University. This project exemplifies the potential of PPPs to contribute economically while aligning with national priorities.
ADIO’s PPP projects are expected to create nearly 5,000 construction jobs and 450 operational roles, directly impacting local employment. The framework allows for more effective public budget utilization, optimizing resources for greater impact. ADIO, in collaboration with the Department of Finance – Abu Dhabi (DoF), has saved AED 1.4 billion in capital and operational costs and energy expenditures across t
hese projects.
ADIO’s rigorous procurement and deal structuring have garnered international acclaim. The Zayed City Schools and LED Street Lighting projects won ‘Deals of the Year’ awards at the IJGlobal Awards in 2022 and 2023, reaffirming Abu Dhabi’s ability to attract and execute high-caliber projects, enhancing its global reputation.
Beyond individual projects, ADIO has pioneered advancements in PPP regulations, governance, and innovation, working with the DoF to establish comprehensive accounting and budgeting policies to facilitate investment opportunities and further elevate Abu Dhabi’s standing as a hub for innovative public-private collaboration.
Public-private partnership models have emerged as crucial instruments for sustainable development and economic growth, leveraging the strengths of both the public and private sectors to deliver impactful projects with sustainable socioeconomic benefits. These partnerships have gained international prominence, with World Bank data indicating that PPP inves
tments in developing countries exceeded $83 billion in 2020, despite global economic challenges. According to the World Economic Forum, PPPs have the potential to address the infrastructure financing gap, estimated to require $15 trillion by 2040, while reducing operational costs by up to 25%, as reported by McKinsey.
