Dubai SME members have been awarded government procurement contracts worth AED1.12 billion in 2022, marking a significant growth of over 21.5% compared to the previous year. The contracts were secured by Emirati entrepreneurs and national enterprises affiliated with the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME).
Under the Government Procurement Programme (GPP), which was launched in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, government entities, as well as other entities where the government holds 25% or more equity, are required to allocate 10% of their purchasing to Emirati companies that are members of Dubai SME.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, highlighted the importance of supporting small and medium enterprises (SMEs), stating that SMEs are a major pillar of the economy and play a crucial role in Dubai’s sustainable economic development. He emphasized Dubai’s commitment to providing a growth-friendly ecosystem for SMEs to thrive, both within the country and internationally.
The Government Procurement Programme aims to create opportunities for Emirati SMEs to access markets and enhance the uptake of their products, services, and solutions. Dubai seeks to build on its status as one of the best platforms for SMEs to grow and succeed. The programme reflects the city’s dedication to empowering SMEs and increasing their contributions to its economic development.
The Government Procurement Programme has been instrumental in supporting Emirati entrepreneurs since its establishment in 2002. By the end of 2022, it will have contributed up to AED9.64 billion in contracts and purchases. This programme plays a vital role in assisting Dubai SME members in meeting market demands and promoting entrepreneurship in the emirate.
During a recent meeting of The Executive Council of Dubai, HH Sheikh Hamdan bin Mohammed approved the adoption of the ‘future model’ of Dubai SME. Aligned with the objectives of Dubai’s Economic Agenda D33, this strategic model aims to support innovative ideas and projects, create new job opportunities, enable more Emirati entrepreneurs, establish numerous projects, and contribute significantly to the GDP.
Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, emphasized the programme’s alignment with the strategic vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum. He stressed the importance of bolstering the entrepreneurial ecosystem and positioning Dubai as a global hub for business and investment.
Abdul Basit Al Janahi, CEO of Dubai SME, highlighted the organization’s role in promoting and enhancing entrepreneurship among its members. He expressed their commitment to providing the necessary guidance, ideas, and incentives to support Dubai SME members in their economic development endeavors.
Government entities such as Dubai Municipality, the Roads and Transport Authority, and Dubai Police, along with federal entities such as Emirates Health Services and the Ministry of Human Resources and Emiratisation, have supported SMEs. Private sector establishments like Majid Al Futtaim Hypermarkets, Union Coop, and Emaar, as well as semi-government entities like the Emirates Group, ENOC (Emirates National Oil Company), and Dubai Holding, have also contributed significantly to supporting SMEs.
The Government Procurement Programme covers a wide range of economic activities that meet the needs of various stakeholders and partners. It promotes Dubai SME members to partner entities and allows them to obtain membership in the Dubai government’s e-procurement portal. Registered national companies in the programme are also exempt from registration fees in the approved suppliers’ register.
Overall, the Government Procurement Programme has played a pivotal role in boosting the growth of Dubai’s SME sector. It has provided substantial support to Emirati entrepreneurs and contributed to Dubai’s economic diversification and sustainable development goals. By empowering SMEs, Dubai aims to further consolidate its position as one of the top global cities and foster a thriving business environment.
