Public-private partnerships (PPPs) are rising to the fore again in the GCC, with Riyadh indicating it will complete certain transport schemes in collaboration with private firms.

A decade ago, the PPP model was considered the way out for GCC states as the 2008-09 financial crisis brought projects markets to a grinding halt. Governments looked at reviving stalled projects using the model, but were subsequently sidetracked by a rebound in oil prices. PPPs were relegated to the backburner.

Without any legislative frameworks in place, the model was mostly limited to the power and water sector. PPPs have now garnered a wider appeal in other sectors as low oil prices force governments to tighten their belts.

Saudi Arabia has said it will finish planned and unawarded rail schemes including the Saudi Landbridge, the Mecca Metro and urban rail projects in Jeddah, Medina and Dammam on a PPP basis. Qatar is considering awarding football World Cup-related schemes as PPPs and Dubai is generating interest for deals in the real estate market. Kuwait and Dubai have rolled out legislative frameworks for private sector participation and Qatar is likely to have a PPP law enacted in the next few weeks.

There are still challenges around how supportive governments will be in developing a projects pipeline and providing adequate risk coverage to firms, but the prospects for the PPP market are definitely healthier today than they were a decade ago.