Global management consultancy firm Booz & Company has said countries in the GCC region need to consider forging a partnership between public and private sectors aimed at effectively promote national development goals in the region.
In the coming years, GCC countries are set to spend more than $500bn on national development plans, much of which will focus on infrastructure and key public services such as health and education, the report said.
The firm recommends setting up Public-Private Partnerships (PPPs) as the best means of investing this money effectively, from both fiscal and development perspectives.
“PPPs can also improve national competitiveness by bringing in top-notch foreign companies with transferable skills and superior practices,” said George Atalla, a partner with Booz & Company.
He cautioned, however, that the countries in the region must also consider that PPPs are not the answer to every development problem.
“Governments must therefore proceed with caution and complement the road map with meticulous assessments of the financial viability and fiscal impact of PPP projects, while building the public sector’s planning and oversight capabilities,” said Atalla.