Turning Public into Private Participation in GCC States' Infrastructure: Sustainable Institutions in a World of International Investment Standards

Financing resources are necessarily finite. State governments may envision prospects that entail the most developed infrastructure which provides residents of the country with paramount welfare. The Gulf Cooperation Council (GCC) States of which this study is premised are undergoing a pivotal period where oil rents have experienced volatile phases and the same government means of financing promising large infrastructure projects are no longer sustainable. The study focuses on Kuwait, Saudi Arabia, and the UAE of the GCC States. The introduction of the private sector as a major actor in these countries’ development plans is a shared accord amongst the three states. This study looks into the utilization of public-private partnerships (PPPs) as a tool for the Arab Gulf governments to implement their anticipated projects by empowering the private sector. By using law and development theoretical frameworks on regulations and institutions, the study asserts that the structure of the economic systems of the GCC States as largely welfare states must be well comprehended and outlined in terms of what empowering the private sector through PPPs involves. There are key aspects in light of international investment standards that would shape Gulf States’ institutional practices when adopting PPPs. These standards may nevertheless be balanced with notions like public interest to mitigate the extreme transformation to private sector lead in state development schemes.