Dubai supports SMEs with procurement contracts worth Dh896m in 2020

Government entities accounted for 47% of the contracts

Dubai, United Arab Emirates - Reporter: N/A. Stock. General view of Downtown, Dubai and Business Bay. Friday, April 9th, 2021. Dubai. Chris Whiteoak / The National
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Dubai SME, a government agency tasked with developing the small and medium enterprise sector, supported its members with government procurement contracts worth Dh896 million in 2020. 
The contracts came from 61 local and federal government entities and other establishments as part of the Government Procurement Programme (GPP) that helped start-ups and SMEs in Dubai to enhance their competitiveness and sustain growth during the Covid-19 pandemic, the agency said in a statement on Saturday.

"The Government Procurement Programme reflects the continuity and firm commitment from the public and private sectors in the country to supporting SMEs," Sami Al Qamzi, Director General of Dubai Economy, said.

"In spite of Covid-19, a total of 61 governmental, semi-governmental, and private entities co-operated with Dubai SME members in 2020."

Dubai, the commercial and trading hub of the Middle East, has unveiled various support measures for SMEs and businesses amid the Covid-19 pandemic last year. The emirate has also launched stimulus measures worth Dh1.7 billion to off set the impact of the pandemic.

The GPP has so far supported Dubai SME members with Dh7.5bn worth of contracts since its inception in 2002, according to Dubai SME.

Out of all contracts won by Dubai SME members under GPP in 2020, 47 per cent were from Dubai government entities while 22 per cent came from semi-governmental entities, 21 per cent from the private sector and 10 per cent from federal government entities.

The commercial sector accounted for 83 per cent of the purchases, while 12 per cent came from the professional sector, 4 per cent from the industrial sector and 1 per cent from the tourism sector.

Abdul Al Janahi, chief executive of Dubai SME, called for improved co-ordination and response from government agencies and institutions that have yet to achieve the SME procurement target percentage. He also noted the importance of giving priority to tenders submitted by Emirati entrepreneurs and projects in line with government directives.

Dubai government entities awarded Dh427.5m worth of contracts to Dubai SME members in 2020 with the RTA topping the list.

Among federal government entities, the Ministry of Education led the procurement with contracts valued at Dh45m.

Emirates Group topped the list of semi-governmental entities with purchases and contracts valued at Dh79m.

Union Coop topped the list of private sector entities supporting the GPP with purchases and contracts valued at Dh136.5m, followed by Emaar and Etihad Airways.