2023-06-19 21:15:40
Mustafa Abdul Azim (Dubai)
The Ministries of Economy and Finance revealed new initiatives to expand the benefit of small and medium-sized companies from the government procurement program, and support the achievement of the national target, by raising the percentage of these projects’ contribution to government procurement to 10%, in accordance with Federal Law No. 2 of 2014 regarding small and medium enterprises.
The initiatives that were announced yesterday, during a joint session organized by the Ministry of Economy, in cooperation with the Ministry of Finance, included working to launch the index of “government procurement for national small and medium enterprises” during the first quarter of 2024, and announcing an award honoring the entities supporting national small and medium enterprises in government procurement.
The Ministry of Economy revealed its plans to double the number of small and medium-sized companies under the National Program for Small and Medium Enterprises from 4,000 companies currently to regarding 25,000 companies within the next few years, as well as doubling the total value of government purchases, which during the past year amounted to regarding 30 million dirhams only. While data from the Ministry of Finance showed that the total number of suppliers from the small and medium-sized companies category registered in the digital procurement platform amounted to only regarding 226 suppliers.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, and Younis Haji Al-Khoury, Undersecretary of the Ministry of Finance, participated in the session, in the presence of agents of support services who make decisions in the procurement department in more than 40 federal entities in the country, and more than 120 representatives of federal entities in the country, and partners of the Ministry of Economy in The field of procurement of national small and medium enterprises, which numbered 10 entities.
Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, said during the session that the ministry is working to raise awareness among the small and medium enterprises sector, by taking advantage of the government procurement program and the price preference granted by government and semi-governmental agencies to the products of small and medium enterprises.
He stressed that the UAE, thanks to the vision of the wise leadership, was keen to develop the business of small and medium enterprises and enhance their competitiveness, as a major contributor to the growth of the national economy and supporting its sustainability during the next fifty years, and from this standpoint, the Ministry of Economy adopted a vision to create a competitive and stimulating business environment for small and medium enterprises. In the country, and encourage it to expand and grow, as the Ministry launched a government procurement program within the initiatives of the National Program for Small and Medium Enterprises; With the aim of enhancing the contribution of small and medium enterprises to government tenders and procurement offered by the federal authorities, and enabling the citizens of the country to enter the markets and compete and address purchases as it is one of the most important means of support as it provides gaining experience for project owners, and enhances their benefit from the offers and incentives available to them.
Al Saleh considered the session organized by the Ministry in cooperation with the Ministry of Finance as a new starting point for a series of discussion sessions and dialogues that will be held during the next stage, in order to enhance cooperation with federal agencies and private sector institutions to develop small and medium-sized companies in the country, and support pioneering projects led by Emirati youth. And providing them with all the ingredients and tools for commercial success, continuity and growth, in addition to enhancing awareness of the importance of government purchases for small and medium enterprises in advancing the economic development of the state.
Al Saleh revealed that he will start work on implementing the new indicator during the first quarter of 2024, in cooperation with the concerned federal authorities, as it will focus on measuring the performance of the federal authority donating government procurement and being able to follow up on the extent to which it achieves the target in particular and for the participating agencies in general. An important tool for comparison and measurement between federal entities in providing support to small and medium enterprises in government procurement tenders.
He added, during his participation in the event: “The national work continues to raise the contribution of small and medium enterprises to 10% in government procurement for federal entities, in line with Federal Law No. 2 of 2014 regarding small and medium enterprises, especially since there are more than 557 thousand companies Small and medium enterprises in the country, and the small and medium enterprises sector contributed by 63.5% to the country’s non-oil gross domestic product during the year 2022.
Empowering entrepreneurs
Younis Haji Al-Khoury, Undersecretary of the Ministry of Finance, stressed the importance of supporting and developing small and medium enterprises and enterprises, which are a fundamental pillar of the UAE’s vision and contribute to the national economy, as many mechanisms and programs have been put in place to support these projects.
He pointed to the commitment of the Ministry of Finance to develop and implement initiatives aimed at promoting and supporting small and medium enterprises, the most prominent of which is the allocation of a percentage of purchases, contracts and government services that is not less than 10% of the budgets of federal government agencies for small and medium enterprises.
He stressed the keenness of the Ministry of Finance to support innovative entrepreneurs and small and medium enterprises, as the ministry provides them with a number of advantages, including granting a price preference of 10% to this category of suppliers when evaluating government tenders, and adding a distinctive mark to the products and services of small and medium enterprises, in addition to exemption from submitting Ensuring good performance and replacing it with withholding amounts from the payable invoices. The Ministry also instructed the procurement units to invite no less than 3 small and medium projects in the limited offering operations.
Al-Khoury said that the launch of the government digital procurement platform by the Ministry of Finance stimulates the participation of small and medium-sized companies by concluding framework agreements with suppliers. .
He added: “The launch of an award to support small and medium enterprises contributes to opening great horizons for these projects, defining their capabilities and capabilities, highlighting points of excellence in their work, and allowing the federal authorities to access them, especially since applying for awards gives these facilities the opportunity to dialogue with specialists and get acquainted with the best frameworks.” To manage and develop its business optimally.
The Undersecretary of the Ministry of Finance said that there are three challenges facing small and medium-sized companies, which are the huge volume of tenders compared to these companies, the abundance of financial solvency, and the energy and production capacity required to meet the requirements of tenders. All these challenges constitute important opportunities for the growth and development of small and medium enterprises, if they are managed optimally.
The event included a number of sessions, where the Ministry of Economy reviewed during the first session the prominent and vital role of small and medium enterprises in enhancing the competitiveness and strength of the national economy, by increasing production, exports and foreign trade of the country, creating job opportunities, and providing pioneering and creative ideas in various economic and commercial activities.
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