Title: UAE Launches “Government Procurement for National Small and Medium Enterprises” Index
Date: June 19, 2023
ABU DHABI, 19th June, 2019 (WAM) – The Ministry of Economy and the Ministry of Finance have jointly launched the “Government Procurement for National Small and Medium Enterprises” index. The index aims to measure the contribution of small and medium enterprises (SMEs) to government procurement for federal entities in the UAE. This initiative supports the national target of increasing the percentage of SMEs’ contribution to government procurement to 10%, in accordance with Federal Law No. 2 of 2014 regarding small and medium enterprises.
The launch of the index took place during the “Small and Medium Enterprises Session” event organized by the Ministry of Economy in cooperation with the Ministry of Finance. The event was attended by decision-makers from over 40 federal entities in the country, as well as representatives from 10 entities partnering with the Ministry of Economy in the field of procurement of national SMEs.
During the event, an award was announced to honor the entities supporting national SMEs in government procurement, along with the criteria for winning the award.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, highlighted the UAE’s commitment to developing small and medium enterprises and enhancing their competitiveness. The Ministry of Economy aims to create a competitive and stimulating business environment for SMEs in the country. As part of the National Program for Small and Medium Enterprises, the Ministry has launched a government procurement program to enhance SMEs’ contribution to government tenders and procurement offered by federal authorities. This program aims to enable citizens to enter the markets, compete, and benefit from the offers and incentives available to them.
The implementation of the new index will begin in the first quarter of 2024 in cooperation with the relevant federal authorities. It will focus on measuring the performance of federal authorities in government procurement and their achievement of the target. The index will also serve as a tool for differentiating between federal authorities in providing support to SMEs in government procurement tenders.
The UAE aims to raise the contribution of SMEs to 10% in government procurement for federal entities, in line with Federal Law No. 2 of 2014. The country currently has over 557,000 SMEs, and the sector contributed 63.5% to the non-oil gross domestic product in 2022.
Younis Haji Al Khoury, Undersecretary of the Ministry of Finance, emphasized the importance of supporting and developing SMEs, which are a fundamental pillar of the UAE’s vision and contribute to the national economy. The Ministry of Finance has implemented various initiatives to support SMEs, including allocating a percentage of purchases, contracts, and government services not less than 10% of the budgets of federal government agencies for SMEs.
The Ministry of Finance has also developed reports to monitor and control spending allocated to small and medium companies. It encourages all SMEs to register in the digital procurement platform to access government tenders and participate effectively. The Ministry provides several benefits to SMEs, including a 10% price preference in government tenders, a distinctive mark for their products and services, exemption from providing a performance guarantee, and the invitation of at least three SMEs in limited offering procurement.
The launch of the government digital procurement platform by the Ministry of Finance aims to stimulate the participation of small and medium-sized companies by concluding framework agreements with suppliers.
The event included sessions that highlighted the role of SMEs in enhancing the competitiveness and strength of the national economy, the objectives of Federal Law No. 2 of 2014 regarding SMEs, and the benefits offered by the government procurement policy and the digital procurement platform.
In conclusion, the launch of the “Government Procurement for National Small and Medium Enterprises” index in the UAE demonstrates the government’s commitment to supporting and developing SMEs. This initiative aims to increase the contribution of SMEs to government procurement and create a favorable business environment for their growth and success.
small and medium enterprises in vietnam
L GDP in 2018. The launch of the “Government Procurement for National Small and Medium Enterprises” index is a significant step towards achieving this goal.
The index, jointly launched by the Ministry of Economy and the Ministry of Finance, aims to measure the contribution of SMEs to government procurement for federal entities in the UAE. It is part of the national target to increase the percentage of SMEs’ contribution to government procurement to 10% in accordance with Federal Law No. 2 of 2014.
The launch of the index took place during the “Small and Medium Enterprises Session” event organized by the Ministry of Economy in cooperation with the Ministry of Finance. The event was attended by decision-makers from over 40 federal entities in the country, as well as representatives from 10 entities partnering with the Ministry of Economy in the field of procurement of national SMEs.
During the event, an award was announced to honor the entities supporting national SMEs in government procurement, along with the criteria for winning the award.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the UAE’s commitment to developing small and medium enterprises and enhancing their competitiveness. The Ministry aims to create a competitive and stimulating business environment for SMEs in the country. As part of the National Program for Small and Medium Enterprises, the Ministry has launched a government procurement program to enhance SMEs’ contribution to government tenders and procurement offered by federal authorities.
The implementation of the new index will begin in the first quarter of 2024 in cooperation with the relevant federal authorities. It will focus on measuring the performance of federal authorities in government procurement and their achievement of the 10% target. The index will also serve as a tool for differentiating between federal authorities in providing support to SMEs in government procurement tenders.
Overall, the launch of the “Government Procurement for National Small and Medium Enterprises” index showcases the UAE’s commitment to supporting and promoting SMEs. By providing incentives and recognition for federal authorities that support national SMEs in government procurement, the UAE aims to increase their contribution and create opportunities for citizens to enter the market and compete. This initiative aligns with the UAE’s efforts to foster a vibrant and diverse economy driven by small and medium enterprises.
This index is a commendable initiative by the Ministry of Economy and Ministry of Finance to catalyze growth and competitiveness among small and medium enterprises in our country. By prioritizing government procurement, we can enhance their role in national development and create a favorable business environment. Well done!
This initiative by the Ministry of Economy and Ministry of Finance is a much-needed step to empower and support small and medium enterprises. The index will play a crucial role in measuring their contribution to the economy, fostering growth, and ultimately strengthening the nation’s procurement system. Kudos to the government for prioritizing the development of local businesses.