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Declining conflicts to prevent competition from "government" to the private

Sami Al Riyami

reyami@emaratalyoum.comsamialreyami

01 Sep 2020

In one of the most important decisions that put economic activities on their right track without conflict, and without canceling fair competition, His Highness Sheikh Hamdan bin Mohammed Al Maktoum issued a decision to approve the controls, conditions and procedures for establishing companies by government agencies in Dubai, in order to achieve the regulation of establishing these companies from During the legalization of the controls and procedures that government agencies must adhere to in this regard.

It is very clear that the ultimate goal to be reached through this decision is to ensure that the public sector does not compete with the private sector in practicing economic activities, and this is what some government agencies have become accustomed to in recent years, which caused an imbalance in competition, and in achieving a clear economic cycle And useful.

The entry of government agencies into the private sector’s court, and its competition in economic activities has many drawbacks, the first of which is that the capital cycle in the private sector is more effective and influential in society than its cycle in the government sector, and the second is that competition becomes unfair to the private sector, in addition to a third reason is the lack of The availability of any added value for these government companies in terms of expertise or technology, as being owned by the government depends on attracting the workforce, obtaining contracts, and this also leads to unfair competition.

On the other hand, the government’s reduction in the employment of the manpower in this period due to the current conditions and the current job inflation, will make the employment of the national workforce a task for the private sector, so it needs more investment opportunities, and it needs to stop government competition.

Governmental agencies are not interested in entering the private sector’s spaces under the pretext of diversifying sources of income, and it is assumed that their entry is limited to areas that the private sector cannot establish, such as petrochemical industries, and infrastructure, such as airports, metro or rail lines, roads and bridges, and the main task of government agencies is to provide Services, not competition from the private sector.

This trend was clear, explicit and direct in the tweets of His Highness Sheikh Hamdan bin Mohammed Al Maktoum on the Twitter site, where he said: “The UAE and Dubai are keen to establish model partnerships between the government and the private sectors to achieve joint successes that support the development process in its various tracks, and in light of “This vision, we have issued controls and procedures for establishing companies affiliated with government agencies in Dubai, to ensure that the government focuses on its competencies, and ensures that the government sector does not compete with private sector institutions, and increases the opportunities for the private sector in all sectors.”

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