UAE – Emirati contractors and national companies in Dubai have won contracts worth 921.6 million dirhams from various local and federal government entities, semi-governmental bodies and private companies in 2021 in the public procurement program (GPP).
In terms of value, GPP contracts won by various beneficiaries last year were 3% higher than the MAD 896.7 million won in 2020, according to a report by Dubai SME, one of the Department of Economy’s agencies. and Tourism (DET) in Dubai. The report also showed that since 2002, GPP has so far successfully facilitated contracts worth more than 8.4 billion dirhams for SME members in Dubai, from 69 supporting entities across government, semi-governmental and private.
The public procurement program was implemented in accordance with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, requiring that government entities and establishments in which the government holds 25% or more equity to allocate 10% of their purchases to Emirati companies that are members of Dubai SME.
“The success of the public procurement program demonstrates the high priority the Government of Dubai 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 their success and to build a dynamic hub for entrepreneurial ventures in Dubai.The program has provided exceptional opportunities for local entrepreneurs to demonstrate their success by turning innovative ideas into commercially viable projects across a range of sectors. growing number of government and private sector entities are making important contributions to support the journey of entrepreneurs in Dubai,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.
Since 2002, GPP has secured over 16,934 procurement contracts for 362 UAE companies in various sectors. The commercial sector accounted for 83% of the contracts, while 13% were awarded to companies in the professional sector and 4% to industrial companies.
The Crown Prince hailed Dubai SME’s role in fostering entrepreneurship and start-up growth over the past 20 years. “From a pioneering entrepreneurship development program in 2002, Dubai SME has grown into a comprehensive ecosystem capable of supporting Dubai’s emergence as a hub of entrepreneurial innovation in the technologies and industries of the future,” said Sheikh Hamdan.
Expo 2020 Dubai topped the GPP’s list of local government support agencies last year with contracts worth Dh161.7m, followed by the Roads and Transport Authority with 95.2 million Dh, the municipality of Dubai with 44.2 million Dh, the Health Authority of Dubai with 36.5 Dh. million, and Dubai Electricity and Water Authority worth 24.5 million dirhams.
Federal government entities provided support worth 84.7 million dirhams to GPP last year and the Emirates Health Services Establishment led among them with purchases and contracts worth 35.6 million dirhams. The Ministry of Human Resources and Emiratization (33.4 million Dh), the Ministry of Education (9.8 million Dh), the Ministry of Community Development (3.4 million Dh) and the Ministry Energy and Infrastructure (2.4 million MAD) were also among the main contributors.
The net worth of support from semi-government entities to the GPP was Dh204.9 million in 2021. Emirates Flight Catering Group made purchases and contracts worth Dh52 million, Wasl Real Estate (33 .5 million Dh), Emirates Group (29.2 million Dh), Dubai Holding (Dh27.1 million) and du (Dh26 million) also contributed significantly.
Union Co-op was the main contributor from the private sector (169.9 million Dh in total) with contracts worth 121.5 million Dh, and was followed by Majid Al Futtaim Hypermarkets (18.3 million Dh), Emaar (16.4 million Dh), Etihad Airways (12.9 million Dh) and Ajman Free Zone (more than 547,000 Dh).
Helal Saeed Al Marri, Managing Director of Dubai Department of Economy and Tourism, hailed the remarkable achievement of Dubai SME and its members. He said this reflected government and private sector confidence in the skills 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 businesses. business opportunities for entrepreneurs.
Al Marri said: “The Public Procurement Program is a critical SME support program designed under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum to provide innovative solutions that will accelerate the growth of emerging SME initiatives. small and medium enterprises are among the most important drivers of economic and social development in any country as they have a major role in advancing human and material resources.In fact, many of the large corporations we see in the world today began as a small idea or project.
Al Marri called on all entities supporting GPP to continue to drive the performance of the SME sector in Dubai and the UAE.
Abdul Basit Al Janahi, CEO of Dubai SME, said: “Dubai SME is focused on providing innovative business initiatives, support and advice to the entrepreneurial community as part of our strategy to promote growth. and the competitiveness of national enterprises. The Government Procurement Program is an opportunity for our small and medium-sized businesses that operate in over 30 diverse sectors to grow and grow their businesses by meeting the needs of government-supported entities. The program has had a successful track record since its inception, building the capacity of SMEs and positioning these businesses as major contributors to the GDP of Dubai and the UAE.
Al Janahi also mentioned that Dubai SME has successfully leveraged the GPP to provide an exceptional opportunity for local entrepreneurs to be part of Expo 2020 Dubai, demonstrating their skills at a global event.
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A staff reporter