Dubai SME members receive Dhs1.12bn in contracts in 2022

Emirati entrepreneurs and national enterprises affiliated with the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME) were awarded contracts and purchases valued at around Dhs1.12bn in 2022 under the Government Procurement Programme (GPP).

This figure reflects a rise of over 21.5 per cent compared to 2021, as reported by Dubai Media Office.

Dubai SME members  secured the contracts from several local and federal government entities, semi-government organisations and private businesses.

Launched to align with the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the GPP requires government and other entities, in which the government holds 25 peer cent or more equity, to allocate 10 per cent of their purchasing to Emirati companies that are members of Dubai SME.

Emirati entrepreneurs and national enterprises affiliated with the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME), part of Dubai’s Department of Economy and Tourism (DET), were awarded approximately AED1.12 billion worth of contracts… pic.twitter.com/thcsCu21lo

— Dubai Media Office (@DXBMediaOffice) July 5, 2023

SMEs represent a major pillar of the economy

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, stated that the emirate continues to enhance the supportive environment necessary for small and medium enterprises to thrive.

SMEs represent a major pillar of the economy, and the government is committed to providing them with the growth-friendly ecosystem needed to launch new ventures, tap opportunities and expand their business, both in the country and beyond its borders, he added.

In another achievement that demonstrates Dubai’s commitment to supporting Emirati entrepreneurs and empowering SMEs, the Government Procurement Programme, an initiative of @DubaiDET, has awarded contracts and purchases worth AED1.12 billion to members of Dubai SME in 2022. The…

— Hamdan bin Mohammed (@HamdanMohammed) July 5, 2023

Sheikh Hamdan also stressed that Dubai is keen to create opportunities for Emirati SMEs to access markets and raise the uptake of their products, services and solutions. “Dubai will continue to build on its status as one of the best platforms for SMEs to thrive. The GPP reflects our commitment to empowering SMEs and raising their contributions to Dubai’s sustainable economic development,” he said.

The programme complements the Department of Economy and Tourism’s efforts to further consolidate Dubai’s status as one of the top three global cities.

The contribution of Dubai government entities towards the programme in 2022 was worth Dhs552.51m, while federal government entities granted contracts worth Dhs88.2m. Semi-government entities contributed Dhs267.65m, while private sector establishments provided support amounting to Dhs214.17m, according to Dubai Media Office.

Several national companies benefitted from contracts in 2022 through the programme. It’s purchases and supplies were diversified to include various sectors, with the commercial sector accounting for 83 per cent of purchases, followed by the professional services sector at 13 per cent and the industrial sector at 4 per cent.

The programme has been playing a significant role in facilitating the success of Emirati entrepreneurs since its inception in 2002, contributing up to Dhs9.64bn in contracts and purchases by the end of 2022.

At a recent meeting of The Executive Council of Dubai, Sheikh Hamdan bin Mohammed approved the adoption of the ‘future model’ of Dubai SME.

Helal Saeed Almarri, director general of Dubai’s Department of Economy and Tourism, commented: “The increase in the value of contracts awarded to Dubai SME members in 2022 underlines the confidence and trust in the local SME sector and its pivotal role in building a competitive and diversified economy.

“As we focus on driving the continuous development of Dubai’s SME sector in line with the goals of our ambitious D33 Agenda, we encourage increased support from government, semi-government, and private sector establishments to create more opportunities for Emirati entrepreneurs and pave the way for top-performing SMEs to grow into successful global enterprises.”

Abdul Basit Al Janahi, CEO of Dubai SME, said: “The significant increase in contracts under the GPP in 2022 has had a huge impact and given a timely boost to the projects launched by Dubai SME members. As we recognise the important role that SMEs play in stimulating economic growth, we are committed to doing our part to ensure that they will continue to have all the support they need to succeed.”

Supporting Dubai SME

Dubai government entities supporting SMEs include Dubai Municipality, the Roads and Transport Authority and Dubai Police.

Federal government entities include Emirates Health Services and the Ministry of Human Resources and Emiratisation.

Majid Al Futtaim Hypermarkets, Union Coop and Emaar were the top contributors from the private sector, while the Emirates Group, Emirates National Oil Company and Dubai Holding topped the list of entities from the semi-government sector supporting SMEs.