Dubai SME members win government procurement contracts worth AED921.6 million in 2021

Dubai SME members win government procurement contracts worth AED921.6 million in 2021

DUBAI, 22nd March, 2022 (WAM) -- Emirati entrepreneurs and national enterprises in Dubai won contracts worth AED 921.6 million from various local and federal government entities, semi-government bodies and private businesses in 2021 as part of the Government Procurement Programme (GPP).

In value terms, GPP contracts won by various beneficiaries last year was three percent higher than the AED 896.7 million achieved in 2020, according to a report by Dubai SME, one of the agencies of the Department of Economy and Tourism (DET) in Dubai. The report also showed that since 2002, GPP has so far succeeded in facilitating contracts worth over AED 8.4 billion for Dubai SME members, from 69 supporting entities across the government, semi-government and private sectors.

GPP was implemented in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, requiring government entities and establishments in which the government holds 25 percent or more equity to allocate 10 percent of their purchasing to Emirati companies that are members of Dubai SME.

"The success of the Government Procurement Programme is testament to the high priority that the Dubai government places on supporting start-ups as part of His Highness Sheikh Mohammed bin Rashid Al Maktoum’s vision to create an environment that accelerates their growth and success and build a vibrant hub for entrepreneurial ventures in Dubai," said H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council.

"The Programme has provided exceptional opportunities for local entrepreneurs to demonstrate their success in turning innovative ideas into commercially viable projects in a range of sectors. An increasing number of government and private sector entities are making important contributions to supporting the journey of entrepreneurs in Dubai," he added.

Since 2002, GPP has secured over 16,934 procurement contracts for 362 Emirati companies in varied sectors. The commercial sector accounted for 83 percent of the contracts, while 13 percent were awarded to companies in the professional sector and 4 percent to industrial firms.

The Crown Prince hailed the role Dubai SME has played in promoting entrepreneurship and start-up growth over the last 20 years, and said that from a pioneering entrepreneurship development programme in 2002, Dubai SME has evolved into a comprehensive ecosystem capable of supporting Dubai’s emergence as a centre for entrepreneurial innovation in technologies and industries of the future.

Helal Saeed Al Marri, Director General of the Department of Economy and Tourism in Dubai, lauded the remarkable achievement of Dubai SME and its members, and said it reflected the confidence of the government and the private sector in the competencies of the local SME sector and its role in building a competitive and diversified economy, as well as the priority given by these sectors to creating more business opportunities for entrepreneurs.

He also called on all entities supporting GPP to continue to stimulate the performance of the SME sector in Dubai and across the UAE.

Abdul Basit Al Janahi, CEO of Dubai SME, said, "Dubai SME focuses on providing innovative economic initiatives, support and advice to the entrepreneur community as part our strategy to promote the growth and competitiveness of national enterprises. The Government Procurement Programme is an opportunity for our small and medium enterprises that operate in more than 30 diverse sectors to develop and grow their business by supplying the needs of government-backed entities."

He also noted that the Programme has had a successful journey since its inception, enhancing SME capabilities and positioning these enterprises as major contributors to both Dubai and the UAE’s GDP."

He also mentioned that Dubai SME has successfully leveraged GPP to provide an exceptional opportunity for local entrepreneurs to be part of Expo 2020 Dubai, thus demonstrating their competencies at a global event.

Expo 2020 Dubai topped the list of local government support agencies of GPP last year with contracts worth AED 161.7 million, followed by Roads and Transport Authority with AED 95.2 million, Dubai Municipality with AED 44.2 million, Dubai Health Authority with AED 36.5 million, and Dubai Electricity and Water Authority with a value of AED 24.5 million.

Federal government entities extended support worth AED 84.7 million to GPP last year and the Emirates Health Services Establishment led among them with purchases and contracts of AED 35.6 million. The Ministry of Human Resources and Emiratisation (AED 33.4 million), Ministry of Education (AED 9.8 million), Ministry of Community Development (AED 3.4 million), and the Ministry of Energy and Infrastructure (AED 2.4 million) were also among the leading contributors.

The net value of support from semi-governmental entities to GPP was AED 204.9 million in 2021.The Emirates Flight Catering Group made purchases and contracts worth AED 52 million, Wasl Real Estate (AED 33.5 million), Emirates Group (AED 29.2 million), Dubai Holding (AED 27.1 million) and du (AED 26 million) also contributed substantially.

Union Co-op was the top contributor from the private sector (AED 169.9 million in total) with contracts worth AED 121.5 million, and was followed by Majid Al Futtaim Hypermarkets (AED 18.3 million), Emaar (AED 16.4 million), Etihad Airways (AED 12.9 million), and Ajman Free Zone (over AED 547,000).