Hamdan: GPP fuels Dubai GDP growth
Growth in contracts under the government procurement scheme at 74.9% during 2017
Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, said yesterday that by supporting small and medium enterprises (SMEs), the Government Procurement Programme (GPP) promoted national entrepreneurship and contributed to Dubai’s gross domestic product (GDP).
The total value of the contracts provided by Dubai SME for the GPP for SMEs grew from Dh857.76 million in 2016 to Dh1.5 billion during 2017, according to figures supplied by the Government of Dubai’s Media Office.
“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 Dubaibased start-ups,” Shaikh Hamdan said in a statement released by Dubai’s Media Office.
Total value of the contracts provided by Dubai SME for the GPP for SMEs grew from Dh857.76 million in 2016 to Dh1.5b during 2017.
Initiatives praised
Shaikh Hamdan thanked His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for his support for the SME sector. He also praised the federal and local government entities, semigovernment entities and private organisations that developed initiatives and made efforts to improve the programme’s performance.
The annual growth in contracts under the programme, which requires all Dubai Government and Governmentowned entities to buy at least 10 per cent of purchases from Emirati-owned SMEs, was 74.9 per cent.
The programme also requires such entities to waive their approved-supplier registration fees for companies that are Dubai SME members.
Projects highlighted
A Dubai SME report highlighted Dubai Municipality’s projects supporting the scheme.
The municipality — winner of the Best Supporting Government Initiative in the UAE in the SME Awards 2018 — created more than 30 initiatives to support SMEs, including helping entrepreneurs establish shops at lower costs by allocating specific units to them, and by prioritising SMEs in projects including Dubai Safari, Hatta Development Projects and the Marmoom Desert Conservation Reserve.
In total, the municipality awarded SMEs contracts worth Dh482 million in 2017.
A report from Dubai SME, said a total of Dh5 billion worth of contracts and purchases had been awarded to SMEs by government bodies since the Government Procurement Project was founded in 2002.
The total value of contracts awarded to Emirati-owned smallto-medium-sized enterprises (SMEs) within the emirate since the Government Procurement Programme was begun in 2002 is Dh5 billion, Dubai SME has said.
The total value of contracts awarded in 2017 was Dh1.5 billion — the first time the scheme has generated contracts worth more than Dh1 billion in a single year.
The Dubai SME report noted that Dubai Municipality — winner of the Best Supporting Government Initiative in the UAE in the SME Awards 2018 — awarded contracts worth Dh482 million in 2017, and offered more than 30 initiatives and exclusive franchises to Emirati entrepreneurs.
Dubai’s Roads and Transport Authority (RTA) — the best large government entity — provided contracts worth Dh107 million, while the General Directorate of Residency and Foreigners Affairs provided contracts worth Dh11 million.
Emirates Flight Catering, the best semi-government entity supporting the programme, awarded contracts worth Dh120 million, with Dubai Holding awarding contracts worth Dh102 million.
Dubai Statistics Centre made 20 per cent of its purchases through the programme — the highest proportion among government entities — providing contracts worth a total of Dh3 million. Dubai Health Authority had the highest number of initiatives supporting the Government Procurement Programme, and awarded contracts worth Dh45 million.
The Shaikh Zayed Housing Programme — the best UAE federal government entity supporting the programme — awarded contracts worth Dh316.5 million, offering SMEs opportunities in construction and engineering consultancies.
Members of the programme are exempted from paying Dubai SME’s registration fees.
Members of the programme are exempted from paying Dubai SME’s registration fees. Dubai SME acts as a smart portal for government procurement operations.
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.