The partnership contract, also known as Public-Private Partnership (PPP) contracts, is considered one of the modern legal and economic mechanisms adopted by developing countries to address increasing development challenges, particularly the limited financial resources and weak infrastructure. This type of contract is based on a balanced distribution of rights and obligations among its parties, ensuring the achievement of public interest while benefiting from the efficiency and technical and administrative expertise of the private sector. Partnership contracts contribute to supporting economic development through the implementation of strategic projects in infrastructure, energy, transportation, and public services without imposing direct financial burdens on the state. They also enhance technology transfer, build local capacities, create job opportunities, and help improve the quality of services provided to citizens, which positively reflects on sustainable development indicators in developing countries. Despite the advantages achieved by partnership contracts, their implementation faces several challenges, most notably weak legislative and regulatory frameworks, limited contractual expertise among public authorities, and the risk of contractual imbalance in favor of the private partner. Moreover, the absence of transparency and oversight may lead to a breach of contractual fairness, which reduces the intended developmental impact of these contracts. Accordingly, the success of partnership contracts in developing countries requires the provision of a clear legal environment, effective monitoring mechanisms, and guarantees that ensure the protection of public funds and the achievement of comprehensive development, in a way that balances private investment requirements with national development objectives. Reference Ahmed Abu Al-Wafa, Administrative Contracts and Their Modern Applications, Dar Al-Nahda Al-Arabiya. The World Bank, Public-Private Partnerships and Sustainable Development, Development Reports. Abdul Karim Al-Talib, The Legal System of Partnership Contracts, Journal of Legal Sciences. University of Al-Mustaqbal – the first university in Iraq