Dubai SME members win AED 348.6 million worth of procurement contracts

Dubai SME, the agency of Dubai Economy mandated to develop the small and medium enterprise (SME) sector supported its members through procurement contracts worth AED 348.592 million from 60 businesses and establishments, including local and federal government entities in the emirate, during the first six months of 2021.

The contracts were part of the Government Procurement Programme (GPP), which enables entrepreneurs to play their part in the national economy, and in line with the strategic focus of Dubai SME in promoting collaboration between those entities supporting SMEs as well as economic development in Dubai.

The GPP is aligned to the Law No. (16) of 2016 on issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, mandating government agencies, institutions, and entities in which the government holds 25% or more in equity to allocate 10% of their purchases to Emirati companies that are members of Dubai SME.

Dubai SME has assisted its members in the Government Procurement Programme with contracts worth over AED 7.8 billion since its launch in 2002 to the first half of 2021 with the support of  federal and government entities, semi-government establishments and private businesses.

Abdul Baset Al Janahi, CEO of Dubai SME, said:

“Small and medium enterprises, with their different size and diverse economic activities, are strategic partners in sustainable economic development. Our strategy, therefore, focuses on promoting the growth and competitiveness of these national enterprises through innovative economic initiatives, consultancy and support of the business community. In doing so, we are guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which places the citizen at the centre of economic development. Since its inception in 2002, the Government Procurement Programme has continued to empower entrepreneurs and the local start-up community."

Al Janahi commended the efforts and role of local and federal government organisations as well as semi-government and private establishments for their effective contribution to supporting GPP and SMEs. He also called on all government and government-related entities to play an active role in supporting national competencies and local entrepreneurs.

Saeed Matar Al Marri, Deputy CEO of Dubai SME, added:

"The Government Procurement Programme provides small and medium enterprises with the opportunity to develop and grow their businesses by supplying the needs of Dubai government entities. The Programme has had a series of successes since its launch in 2002 and evolved into one of the most important support programmes that enable local small and medium-sized companies to enhance their contribution to the gross domestic product.”

Al Marri said GPP has so far supported small and medium-sized companies in more than 30 diverse sectors, including: public services, medical supplies, hotel and hospitality sector, advertising and interior design, decoration, furniture and general supplies such as stationery products, catering materials, and training and advisory services.

The commercial sector accounted for 79% of the procurement from entities supporting GPP while 17% came from the professional sector, and 4% from the industrial sector.

Dubai Government entities awarded AED 198.5 million worth of contracts to Dubai SME members in first half of 2021. Expo 2020 Dubai topped the list of local government entities supporting owners of national projects with AED 109 million worth of contracts, followed by the Dubai Health Authority (AED 24. 49 million), Dubai Municipality (AED 19.32 million) and the Dubai Electricity and Water Authority (AED 7.78 million).

Federal government entities awarded contracts worth AED 12 million to Dubai SME members under GPP during the first half of 2021. The Emirates Foundation for Health Services awarded contracts worth AED 7.3 million, Ministry of Human Resources and Emiratisation contributed AED 3 million, and the Ministry of Education contributed more than AED 1.7 million.

Semi-government entities awarded contracts worth 59.908 million dirhams under GPP during the first half of 2021. The Emirates Flight Catering Group accounted for purchases and contracts worth AED 28.6 million, followed by Emirates National Oil Company Limited (Enoc) at AED 10 million, Emirates Integrated Telecommunications Company (du) at AED 8.5 million and Dubai Holding at AED 7.9 million.

Dubai SME builds strategic partnerships with the public and private sectors in the country to secure contracts and purchases for the benefit of its members. Various facilities and professional expertise necessary for the development of projects are also provided under such partnerships. Co-operation between public and private entities brought contracts worth  AED 78.2 million to Dubai SME members during the first half of 2021. Union Coop supported with AED 59 million worth of contracts, Emaar supported with AED 5.508 million and Etihad Airways with AED 4.5 million.

News Source: Dubai Media Office