DUBAI: Emirati contractors and national companies in Dubai have won contracts worth AED 921.6 million from various local and federal government entities, parastatals and private companies in 2021 in under the public procurement program (GPP).
In terms of value, GPP contracts won by various beneficiaries last year were 3% higher than the AED 896.7 million won 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 successfully facilitated contracts worth more than AED 8.4 billion for Dubai SME members, from 69 sector support entities governmental, semi-governmental and private.
The GPP was implemented in accordance with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, requiring that government entities and establishments in which the government holds 25% or more of the capital 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 businesses in Dubai,” said His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.
“The program has provided exceptional opportunities for local entrepreneurs to demonstrate their success in turning innovative ideas into commercially viable projects across a range of sectors. A growing number of government and private sector entities are making significant contributions to support the journey of entrepreneurs. entrepreneurs in Dubai,” he added.
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 the role Dubai SME has played in fostering entrepreneurship and start-up growth over the past 20 years, and said that from a pioneering business development program entrepreneurship 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.
Helal Saeed Al Marri, Director General of Dubai Department of Economy and Tourism, hailed the remarkable achievement of Dubai SME and its members, and said it reflected the confidence of government and the private sector 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 business opportunities for entrepreneurs.
He also 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 enterprises that operate in over 30 diverse sectors to grow and grow their businesses by meeting the needs of government-supported entities. »
He also noted that the program has had a successful journey since its inception, building the capacity of SMEs and positioning these businesses as major contributors to the GDP of Dubai and the UAE.”
He 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.
Expo 2020 Dubai topped the list of GPP local government support agencies last year with contracts worth AED 161.7 million, followed by the 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 worth AED 24.5 million.
Federal government entities provided support worth AED84.7 million to GPP last year and Emirates Health Services Establishment led among them with purchases and contracts of AED35.6 million of AED. The Ministry of Human Resources and Emiratization (33.4 million AED), the Ministry of Education (9.8 million AED), the Ministry of Community Development (3.4 million AED) and the Ministry of Energy and Infrastructure (2.4 million AED) were also among the main contributors. .
The net worth of support from semi-government entities to the GPP was AED204.9 million in 2021. Emirates Flight Catering Group made purchases and contracts worth AED52 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 largest contributor from the private sector (AED 169.9 million in total) with contracts worth AED 121.5 million, followed by Majid Al Futtaim hypermarkets (AED 18.3 million AED), Emaar (AED 16.4 million), Etihad Airways (AED 12.9 million) and Ajman Free Zone (over AED 547,000).