The utility sector of the oil rich Dubai would be regulated by a new regulatory body for looking into its operations. The body, created by the Dubai Executive Council under the Higher Committee for Energy and Environment, will liaison the private sector to flourish its business offering a framework.

The authority would work under Saeed Mohammad Al Tayer, Chief Executive of the Dubai Electricity and Water Authority (DEWA) and it is expected to give push to the public-private partnership in the sector. Tayer told, "The regulator will set up a legislative and monitoring agency that will create a healthy environment to encourage private-public sector partnerships."

The body would be given full financial support and it would have its own budget to offer its services through transparent mechanism. DEWA, responsible for streamlining power and water sector, has also been proposing to issue a new bond in the second quarter of 2010.

The new regulator, according to Al Tayer, may also expand its scope to the transmission and distribution sectors in future. In nutshell, the move would prove a big step forward for the privatization in Dubai.