Dubai Expo 2020 to allocate $1.36bn of contracts to SMEs

Dubai has announced that 20 per cent of direct and indirect spending on the Expo 2020 event will be allocated to small and medium enterprises.

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Dubai has announced that 20 per cent of direct and indirect spending on the Expo 2020 event will be allocated to small and medium enterprises.

Under the plans, more than Dhs5bn ($1.36bn) of contracts will be allocated to local and international SMEs in the coming years.

Reem Al Hashimy, UAE minister of state for international cooperation and director general of Bureau Expo Dubai 2020, said 2,418 of the 6,196 suppliers registered on the government’s e-sourcing portal were SMEs.

Of the 787 contracts awarded so far, 320 have been won by SMEs, she added.

“SMEs are already playing a central role in the UAE’s drive towards cultivating a thriving private sector and diversified economy, which makes SME empowerment a strategic priority for the government,” said Sultan bin Saeed Al Mansoori, minister of economy and chairman of the UAE SME Council.

“This effort is also aligned with the UAE Vision 2021 to transition to a knowledge-based economy that fosters creativity and innovation.”

The country’s Federal Law No 2, introduced in 2014, stipulates that 10 per cent of all federal government contracts are allocated to SMEs.

In addition, firms in which the government owns a 25 per cent stake must contract SMEs for at least 5 per cent of their total purchasing, servicing and consulting needs. More info

Source:  gulfbusiness.com

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