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Local and Federal Government entities play a significant role in supporting the growth of national start-ups by providing lucrative contracts and business opportunities through the Government Procurement Programme (GPP), said Crown Prince of Dubai and Chairman of the Dubai Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. The Programme is a leading initiative that provides business opportunities for Emirati small and medium enterprises (SMEs), and supports them in expanding their operations, thereby promoting national entrepreneurship and contributing to enhancing Dubai’s GDP, His Highness added.
The total value of the contracts provided by Dubai SME – the agency of the Department of Economic Development (DED) in Dubai mandated to develop the SME sector - for GPP members amounted to AED1.5 billion in 2017, 44.5% higher than the AED857.76 million recorded in 2016. For the first time, the value of the contracts exceeded the one-billion-dirham mark.
Sheikh Hamdan thanked Vice President and Prime Minister of the UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum for his support for the SME sector, citing Article (12) of Law No. (16) for 2016, which requires all Dubai Government entities (as well as institutions where the Dubai Government owns more than 25% of the capital) to procure 10% of their purchases from Emirati-owned Dubai-SME-member startups. These entities are also required to waive any fees associated with joining their ‘approved supplier’s registrar’ for Dubai SME members, in addition to giving them preference over other companies when evaluating tenders and bids – as long as the difference between theirs and the best offer does not exceed 5%.
His Highness also applauded all federal and local government and semi-government entities, as well as private organisations, that had put forth initiatives and efforts to improve the performance of the Government Procurement Programme. In evaluating its results, the Programme took into consideration the nature of the support offered by each entity, the number of initiatives it launched, as well as the number of SMEs benefitting from their support.
“The Government Procurement Programme has made a great leap forward in the quest to support SMEs, spearheaded by government and private entities across the UAE, in terms of the value of contracts signed and the number of participating institutions. This reaffirms the great faith that these entities have in innovative Dubai-based startups,” Sheikh Hamdan stated.
According to recent Dubai SME statistics, which were published in a detailed report, the value of contracts allocated to Emirati entrepreneurs and startups through the Government Procurement Programme has reached AED5 billion since the agency was established in 2002.
The report revealed that Dubai Municipality – winner of the Best Supporting Government Initiative in the UAE in the SME Awards 2018 – allocated more than AED482 million in 2017 in contracts and tenders, and offered more than 30 initiatives and exclusive franchises for Emirati entrepreneurs. The Municipality also helped these entrepreneurs establish their projects at lower costs by allocating a number of shops and sites exclusively for them, in addition to prioritising them when signing contracts in major projects, such as: Dubai Safari, Hatta Development Projects, and the Marmoom Desert Conservation Reserve, among others.
The Roads and Transport Authority (RTA) – the Best (Large) Government Entity Supporting the Government Procurement Programme – has awarded contracts worth more than AED107 million in 2017 to Emirati entrepreneurs. In turn, the General Directorate of Residency and Foreigners Affairs (GDRFA) – the Best (Medium) Government Entity Supporting the Government Procurement Programme – offered contracts valued at AED11 million for more than 33 national companies.
Meanwhile, Emirates Flight Catering (the Best Semi-Government Entity Supporting the Government Procurement Programme) offered contracts worth more than AED120 million to Emirati entrepreneurs since joining in 2016, followed by Dubai Holding, which awarded AED102 million worth of contracts to national companies in various sectors and activities, in addition to supporting SMEs in Dubai. The Dubai Statistics Centre, for its part, procured 20% of its purchases through the Programme – the highest percentage among government agencies – and provided contracts worth more than AED3 million.
The Dubai Health Authority (DHA) made purchases worth more than AED45 million from local SMEs, and was named the Entity with the Highest Number of Initiatives Supporting the Government Procurement Programme.
The Sheikh Zayed Housing Programme (the Best Federal Government Entity Supporting the Government Procurement Programme) awarded contracts worth more than AED316.5 million, opening up new prospects for contracting SMEs through construction and engineering consultancy contracts.
Government Procurement Programme
The Government Procurement Programme in Dubai offers small and medium enterprises the opportunity to develop their business and grow through supplying the demands of the Government of Dubai. With a successful track record since its inception in 2002, the GPP has established itself as one of the leading programmes supporting SMEs in the local market, underlining their role as major contributors to the national economy.
Members of the programme are exempted from paying Dubai SME’s registration fees. Dubai SME acts as a smart portal for government procurement operations, providing a comprehensive platform on the website that supports the government’s smart strategy. The agency seeks to establish centralised procurement systems that act as a unified access point for SMEs in Dubai, starting from registration, and going through the training and participation stages, to eventually gain access to government contracts.
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