Dubai SME members won procurement contracts worth AED 972.9 million in 2019

The total value of procurement contracts for members of Dubai SME, the agency of Dubai Economy mandated to develop small and medium enterprise (SME), reached about AED 972.9 million during 2019, of which 48% came from local government entities, 35% from semi-governmental entities, 11% from private sector entities, and 6% from federal government entities. This reflects the role of the Government Procurement Programme (GPP) as one of the most prominent tools that support Emirati entrepreneurs as well as the role of Dubai SME in promoting co-operation and partnerships with various entities that contribute to supporting the SME sector and economic development in Dubai.

The GPP contributes to enabling Emirati members of Dubai SME to obtain opportunities and enhance their participation in the national economy. The programme is aligned to the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, government agencies, institutions, and companies in which the government owned 25% or more in equity should allocate 10% of their purchases to Emirati companies that are Dubai SME members, which confirms the leadership’s confidence in national competencies and their role in building a competitive and diversified economy.

A total of 63 governmental, semi-governmental, and private entities cooperated with Dubai SME members in 2019 for purchases related to various sectors distributed as follows: commercial sector (50%), professional sector (46%), industrial sector (3%), and tourism sector (1%).

His Excellency Sami Al Qamzi, Director General of Dubai Economy, said the GPP achievements of Dubai SME members reflect sustained efforts of various entities and the diversity of SMEs benefiting from the purchases. “All entities, including government, semi-government, and private, extending their support to Emirati entrepreneurs and their startups is important as these projects have a prominent role in enabling and promoting the growth of knowledge-based and innovative national projects. We are grateful to the leadership for their unlimited support and motivation provided to Emirati entrepreneurs, who are always looking to develop and offer outstanding services and solutions.

Abdul Basit Al Janahi, CEO of Dubai SME, said: “We are constantly striving to implement the Dubai Government strategy that aims to increase the percentage of SME contribution to the non-oil GDP, support the SME sector, enhance its growth and competitiveness, and contribute to raising the ease of doing business in the country. The contracts and purchases awarded by various entities to Dubai SME members affirm a shared commitment to achieving these goals.”

Al Janahi explained that the GPP has taken remarkable strides since its inception in 2002 by providing opportunities for national projects to win government as well as private sector contracts, which also promoted competition among them. It is also a major inspiration for Dubai SME to continue supporting and guiding emerging projects as part of empowering nationals and developing their competencies.

The top five entities supporting the GPP in 2019 were the Roads and Transport Authority (around AED 114 million), Dubai Municipality (AED 96.2 million), Union Coop (AED 85.8 million), Emirates Flight Catering (AED 83.9 million), and Emirates Group (AED 72.8 million).

RTA and Dubai Municipality topped the list of entities supporting owners of national projects in 2019, followed by Dubai Health Authority (AED 54 million), Dubai Police (AED 40.4 million), and Mohammed Bin Rashid Housing Establishment (over AED 22 million).

The Ministry of Health and Prevention topped the list of Federal Government entities supporting the GPP with purchases and contracts valued at AED 24.3 million, followed by the Ministry of Human Resources & Emiratisation (AED 15.1 million), and the Ministry of Education (over AED 13 million).

Emirates Flight Catering topped the list of semi-governmental entities supporting the GPP with purchases and contracts valued at AED 89.9 million, followed by Emirates Group (AED 72.8 million), Emaar Properties (AED 62.9 million), Dubai Holding (AED 48.9 million), and Emirates National Oil Company, ENOC (AED 26.7 million).

Union Coop topped the list of private sector entities supporting the GPP with purchases and contracts valued at AED 85.8 million, followed by aswaaq (AED 11.7 million), and Etihad Airways (AED 9.6 million).