Emirati entrepreneurs and national enterprises in Dubai won contracts worth Dh921.6 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 per cent higher than the Dh896.7 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 Dh8.4 billion for Dubai SME members, from 69 supporting entities across the government, semi-government and private sectors.

The Government Procurement Programme was implemented in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, requiring government entities and establishments in which the government holds 25 per cent or more equity to allocate 10 per cent 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. 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,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.

Since 2002, GPP has secured over 16,934 procurement contracts for 362 Emirati companies in varied sectors. The commercial sector accounted for 83 per cent of the contracts, while 13 per cent were awarded to companies in the professional sector and 4 per cent 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. “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,” said Sheikh Hamdan.

Expo 2020 Dubai topped the list of local government support agencies of GPP last year with contracts worth Dh161.7 million, followed by Roads and Transport Authority with Dh95.2 million, Dubai Municipality with Dh44.2 million, Dubai Health Authority with Dh36.5 million, and Dubai Electricity and Water Authority with a value of Dh24.5 million.

Federal government entities extended support worth Dh84.7 million to GPP last year and the Emirates Health Services Establishment led among them with purchases and contracts of Dh35.6 million. The Ministry of Human Resources and Emiratisation (Dh33.4 million), Ministry of Education (Dh9.8 million), Ministry of Community Development (Dh3.4 million), and the Ministry of Energy and Infrastructure (Dh2.4 million) were also among the leading contributors.

The net value of support from semi-governmental entities to GPP was Dh204.9 million in 2021.The Emirates Flight Catering Group made purchases and contracts worth Dh52 million, Wasl Real Estate (Dh33.5 million), Emirates Group (Dh29.2 million), Dubai Holding (Dh27.1 million) and du (Dh26 million) also contributed substantially.

Union Co-op was the top contributor from the private sector (Dh169.9 million in total) with contracts worth Dh121.5 million, and was followed by Majid Al Futtaim Hypermarkets (Dh18.3 million), Emaar (Dh16.4 million), Etihad Airways (Dh12.9 million), and Ajman Free Zone (over Dh547,000).

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. He 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.

Al Marri said: "The Government Procurement Programme is a critical SME support programme devised in line with the directives 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 big firms we see around the world today started off as a small idea or project.”

Al Marri 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. 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.

Al Janahi 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.