Title: UAE Government Announces New Initiatives to Boost Small and Medium Enterprises in Government Procurement
Subtitle: Ministries of Economy and Finance collaborate to support national small and medium enterprises
Date: June 19, 2023
Dubai, UAE – The Ministries of Economy and Finance have unveiled a series of new initiatives aimed at expanding the benefits of the government procurement program for small and medium-sized companies. These initiatives are designed to support the achievement of national targets and raise the contribution of these projects to government procurement to 10%, in accordance with Federal Law No. 2 of 2014 regarding small and medium enterprises.
During a joint session organized by the Ministry of Economy in cooperation with the Ministry of Finance, several key announcements were made. One of the initiatives is the launch of the “government procurement for national small and medium enterprises” index, scheduled for the first quarter of 2024. Additionally, an award will be introduced to honor entities that support national small and medium enterprises in government procurement.
The Ministry of Economy has outlined plans to double the number of small and medium-sized companies under the National Program for Small and Medium Enterprises from the current 4,000 to approximately 25,000 within the next few years. Furthermore, the total value of government purchases is set to be doubled, with last year’s figure standing at around 30 million dirhams. Data from the Ministry of Finance revealed that only about 226 suppliers from the small and medium-sized companies category are registered in the digital procurement platform.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the ministry’s commitment to raising awareness among the small and medium enterprises sector. By leveraging the government procurement program and the price preference granted by government and semi-governmental agencies to the products of small and medium enterprises, the ministry aims to enhance their competitiveness and contribute to the growth of the national economy.
The Ministry of Economy has adopted a vision to create a competitive and stimulating business environment for small and medium enterprises in the country. The government procurement program, launched as part of the National Program for Small and Medium Enterprises, aims to increase the contribution of these enterprises to government tenders and procurement offered by federal authorities. This initiative enables citizens to enter the markets, compete, and benefit from the offers and incentives available to them, while gaining valuable experience for project owners.
The joint session organized by the Ministry of Economy and the Ministry of Finance marks a new starting point for a series of discussions and dialogues aimed at enhancing cooperation with federal agencies and private sector institutions. The goal is to develop small and medium-sized companies in the country and support pioneering projects led by Emirati youth. The ministries aim to provide these projects with the necessary ingredients and tools for commercial success, continuity, and growth. Additionally, raising awareness about the importance of government purchases for small and medium enterprises is seen as crucial for advancing the economic development of the state.
Abdullah Ahmed Al Saleh revealed that work on implementing the new indicator, measuring the performance of federal authorities in supporting small and medium enterprises in government procurement tenders, will commence in the first quarter of 2024. This indicator will serve as an important tool for comparison and measurement between federal entities.
Younis Haji Al-Khoury, Undersecretary of the Ministry of Finance, highlighted the significance of supporting and developing small and medium enterprises, 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 promote and support these enterprises, including allocating a percentage of purchases,
benefits of e-procurement in public sector
Um-sized enterprises. Through these new initiatives, the government aims to provide greater opportunities for these businesses to participate in government procurement and increase their contribution to the economy.
One of the key initiatives announced is the launch of the “government procurement for national small and medium enterprises” index, which is scheduled for the first quarter of 2024. This index will measure and track the involvement of small and medium-sized enterprises in government procurement, providing transparency and accountability.
Furthermore, an award will be introduced to recognize entities that support national small and medium enterprises in government procurement. This award aims to encourage more organizations to actively engage with these businesses and provide them with the necessary support to thrive in the procurement process.
The Ministry of Economy has set ambitious targets to expand the National Program for Small and Medium Enterprises. Their plan is to double the number of registered companies under the program from the current 4,000 to approximately 25,000 within the next few years. This significant increase will create more opportunities for small and medium-sized enterprises to participate in government procurement and contribute to the overall economy.
Additionally, the government aims to double the total value of government purchases, which stood at around 30 million dirhams last year. This increase will further enhance the opportunities available for small and medium-sized enterprises to secure government contracts and expand their operations.
It is worth noting that the Ministry of Finance has highlighted the low number of registered suppliers from the small and medium-sized companies category in the digital procurement platform. This indicates the need for more awareness and participation from these businesses in government procurement.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, emphasized the ministry’s commitment to raising awareness and supporting the small and medium enterprises sector. By leveraging the government procurement program and the price preference granted by government and semi-governmental agencies to the products of small and medium enterprises, the ministry aims to enhance their competitiveness and contribute to the growth of the national economy.
Overall, these new initiatives introduced by the Ministries of Economy and Finance in the United Arab Emirates demonstrate the government’s commitment to boosting small and medium enterprises in government procurement. With the launch of the government procurement index, the introduction of an award, and the ambitious targets set by the Ministry of Economy, small and medium-sized enterprises can expect increased opportunities and support to expand their presence in government contracts. These initiatives will not only benefit individual businesses but also contribute to the overall economic growth of the country.
These new initiatives are a much-needed boost for small and medium-sized companies, as they open doors to government procurement opportunities that were once only accessible to larger corporations. By leveling the playing field, these efforts will promote fairness and support economic growth for businesses of all sizes.