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Published: 28-05-2020
With fluctuations in oil prices and fiscal deficits registered across the MENA region, governments are stepping away from their traditional reliance on oil revenues to continue with economic diversification strategies. Population growth remains high and budgetary limitations for governments also mean that alternative methods for funding construction projects become a mandatory requisite. Therefore, regional governments are now seeking the private sector’s involvement in projects that were once exclusively state-funded. Sectors such as power, waste, water, and infrastructure, hospitals, schools, housing seem to be more suited for implementing the PPP model. The substantial investment in projects especially in infrastructure by the MENA governments has led to an increased interest in PPP. It is estimated that US$ 230 bn worth of PPP projects are planned or underway in the MENA region.
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