The Master Development Delivery Model Explained

Within the GCC region, the model was first implemented in Dubai in the early 2000’s. The business model is based on the concept of public-private partnerships, adapted for local business requirements:

• A government-owned company is established, called the ‘’master developer’’
• The government grants raw land to the master developer at a zero or near-zero land basis
• The master developer is responsible for
  • creating a master-plan in-line with the government’s vision for the project
  • injecting the capital expenditure required for infrastructure development, community and public facilities and key ‘’anchor’’ projects
  • executing the project to completion by organizing private-sector participation in the project through selling serviced land plots to sub-developers and then managing the sub-developer’s build-out of the project

In order for this model to be executed at the project level, the master developer must establish certain business and technical processes. From a technical project execution perspective, the master developer then puts in-place a series of systems and processes which allow for efficient project execution:

• A comprehensive land-sales process; this includes a government-approved SPA template (Sales and Purchase Agreement), a land title transfer system, a customer relations helpdesk for investors, and a clear development timetable with land control regulations
• A series of Development Regulations and Guidelines (DRGs) which clearly outline the roles and responsibilities of the master developer versus the sub-developer
• The setup of a Technical Interface Office (TIO) which functions as a project-specific ‘’mini-municipality’’ to field incoming sub-developer requests and applications, and coordinate on behalf of the project and the sub-developer with necessary government agencies and ministries, thus improving efficiency and reducing delays
• Managing the development’s service charges by engaging in a Service Charge study and levying and collecting service charges from private sector investors and sub-developers, and managing the community accounts over time
• Setup and management of the Master Community Association, a governing body made up of representation from investors (similar to a Homeowners Association) mandated for long-term community management of public areas, community facilities, and infrastructure