Impact of Privatisation on the development of Abu Dhabi Public Sector - Issues and Challenges

Abstract

This thesis addresses the imperative market reform of Privatisation within the public sector, undertaken by governments globally to enhance efficiency, reduce administrative burdens, and foster competitive advantages. Motivated by adverse economic effects due to fluctuating global oil prices, the Abu Dhabi government strategically turned to Privatisation, among other measures, to navigate these challenges. This research endeavours to construct a comprehensive framework for the implementation of Privatisation activities in Abu Dhabi's public sector. The study begins with a critical review of existing literature, delving into various theories, concepts, advantages, and challenges associated with Privatisation. Through a qualitative approach, employing interviews with 12 experts, 6 consultants, and 7 researchers, the research identifies key factors influencing the Privatisation process. The conceptual framework encapsulates drivers like competition, political interference, efficiency, burden reduction, service delivery, and a short-term view. Simultaneously, barriers and challenges encompass investment, supply risk, moral hazard, monopoly, pricing, and competitive bidding. Stakeholders, recognised as employees, government, society, and decision-makers, play pivotal roles in shaping the Privatisation landscape. Crucially, the research confirms the nuanced impacts of Privatisation, emphasising that success is contingent on various key success factors and good practices. At the pre-Privatisation stage, meticulous planning and analysis are imperative. The practice stage involves the actual implementation of policies and procedures. A key good practice is the appointment of knowledgeable representatives for negotiating the sale of public assets on NSX markets. In the evaluation paradigm of good practices, post-Privatisation monitoring becomes integral. The government is advised to monitor the work structure and profitability of privatised assets, focusing on the impact on employees' skills, investor decisions, and related sectors. This thesis not only synthesises existing knowledge but also pioneers a conceptual framework tailored to the unique context of Abu Dhabi. The incorporation of key good practices in the conclusion distinguishes this work, providing actionable recommendations for stakeholders navigating the complex terrain of Privatisation in the public sector.

Date of Award	2024
Original language	English
Awarding Institution	Aberystwyth University
Supervisor	Sarah Lindop (Supervisor)