The concept of public-private partnership (PPP) has gained immense importance around the world. The business model has been used to effectively utilize state resources and the talent pool available in the private sector in order to achieve economic prosperity. Saudi Arabia has started focusing on this model to achieve its socioeconomic goals as set out in the Vision 2030 reform plan. PPP helps ease the financial burden on a state. However, it should be kept in mind that such partnerships are governed by certain conditions, and come with proper checks and balances to ensure transparency in operations and achievement of economic goals. Undoubtedly, in today’s world, PPP is one of the most effective approaches that combine the complementary capabilities of the public and private sectors to achieve the desired results. This model thrives on capitalizing the strengths of both sectors. With this approach many economic sectors such as health, education and transportation can be turned around for the welfare of the people. PPP allows the public and private sectors to complement each other to achieve a common goal. It also helps policymakers identify the shortcomings of both sectors and devise ways to bridge the existing gaps by exchanging expertise within the sectors. It should be understood that public-private partnership in any sector does not push it out of state laws and control. A state continues to exercise its authority over such a sector. We should understand it as an effective management tool to streamline functions of a sector and use resources efficiently for the greater good of the people. Before initiating a public-private partnership in any sector, feasibility studies are conducted to assess the overall impact of the partnership on the state’s budget and economic benefit in the long term. Once it is determined that a project will help reduce burden on the state coffers and lead to better results, a PPP is agreed on. It goes without saying that due to strong competition the private sector is always in a position to provide the best and most cost-effective solutions or products. This quality gives the sector an edge over the public sector. It is also important to note such partnerships are not only about investment capital and profits but also risk sharing. The public sector transfers to the private sector some of the project’s risks and retains others so that the two sectors can share the burden according to their ability to better manage them and, of course, in accordance with the studies and the principles of governance that are enacted for each project. In the case of a long-term project, it is important to study its feasibility and impact on the state’s budget and debts before approving such a partnership. Authorities need to ensure the accuracy and transparency of feasibility reports before entering into an agreement with the private sector. • Dimah Talal Alsharif is a Saudi legal consultant, head of the health law department at the law firm of Majed Garoub and a member of the International Association of Lawyers. Twitter: @dimah_alsharif Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News" point-of-view