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A Concession Agreement is a binding contract where the UAE government or a public authority grants a private company specific rights to operate, maintain, or develop public assets or services. These deals are common in major infrastructure projects like ports, airports, and power plants across the Emirates.

Under UAE commercial law, these agreements let private businesses generate revenue from public resources while following strict performance standards. The government maintains oversight rights and can set service quality requirements, pricing limits, and operational terms. Most UAE concessions run between 20-30 years, giving companies enough time to recover their investments while ensuring public interests stay protected.

Use a Concession Agreement when your company wants to develop or operate major public infrastructure in the UAE. This contract proves essential for projects like toll roads, power plants, waste management facilities, or port operations where private businesses seek long-term rights to provide public services.

The agreement becomes necessary before starting any significant infrastructure investment, especially when dealing with government authorities in Dubai, Abu Dhabi, or other Emirates. It helps secure your company's operational rights, define revenue mechanisms, and establish clear performance standards. Many UAE infrastructure tenders specifically require a Concession Agreement as part of the bidding process.

• Build-Operate-Transfer (BOT) Concessions: Used for major infrastructure like airports or highways, where private companies construct and operate facilities before transferring them back to the UAE government
• Service Concessions: Common for public utilities and municipal services, focusing on operational rights without asset ownership
• Resource Extraction Concessions: Prevalent in UAE's oil and gas sector, granting rights to explore and extract natural resources
• Commercial Facility Concessions: Popular in UAE free zones, allowing private operation of government-owned commercial spaces
• Management Concessions: Used when authorities want private expertise to operate existing facilities while maintaining public ownership

• Government Authorities: UAE federal or emirate-level entities that grant concession rights and maintain oversight of public assets
• Private Companies: Local or international businesses that operate the concession, often infrastructure developers or service providers
• Legal Counsel: UAE-qualified lawyers who draft and review Concession Agreements to ensure compliance with local laws
• Technical Consultants: Engineers and industry experts who help define operational standards and performance metrics
• Financial Institutions: Banks and lenders who finance concession projects and review agreement terms

• Project Scope: Define the exact infrastructure or services covered, operational boundaries, and duration of the concession
• Government Approvals: Confirm required permits and authorizations from relevant UAE authorities
• Financial Model: Prepare detailed revenue projections, cost estimates, and proposed tariff structures
• Performance Standards: Outline specific service levels, maintenance requirements, and quality benchmarks
• Risk Assessment: Map potential operational, regulatory, and market risks specific to UAE conditions
• Exit Strategy: Plan handover procedures, asset transfer terms, and termination conditions

• Parties and Authority: Full legal names of government entity and private operator, with proof of authorization
• Project Definition: Detailed scope of concession rights, geographical boundaries, and duration
• Financial Terms: Payment mechanisms, revenue sharing formulas, and tariff adjustment provisions
• Performance Standards: Specific service levels, quality benchmarks, and monitoring procedures
• Risk Allocation: Clear distribution of operational, regulatory, and force majeure risks
• Governing Law: Explicit reference to UAE federal and emirate-specific regulations
• Dispute Resolution: Arbitration procedures under UAE law, typically referencing DIAC or ADCCAC

A Concession Agreement differs significantly from a Construction Agreement, though both are common in UAE infrastructure projects. While they may seem similar at first glance, their scope and purpose are quite distinct.

• Duration and Purpose: Concession Agreements typically span 20-30 years and focus on operational rights, while Construction Agreements cover only the building phase, usually 2-5 years
• Revenue Structure: Concession Agreements include ongoing revenue-sharing mechanisms and operational income, whereas Construction Agreements involve fixed payments for specific building work
• Risk Allocation: Concessions transfer operational and commercial risks to the private sector, while Construction Agreements mainly address construction-related risks
• Government Role: In Concessions, authorities maintain regulatory oversight; in Construction Agreements, they act primarily as project owners