ABU DHABI: The Abu Dhabi SME Champions programme, launched by the Abu Dhabi Department of Economic Development (ADDED) in 2023 to boost SME participation in procurement opportunities with large private companies (LCs) and government-related entities (GREs), facilitated the award of AED88.6 million in procurement deals within six months of the programme’s commencement, surpassing initial expectations.
During the pilot phase, the Abu Dhabi SME Champions programme awarded 54 tenders and contracts to approximately 50 SMEs, with an average procurement value of AED1.8 million, with some companies securing multiple tenders from various LCs and GREs.
The programme – which started with four champions – has expanded significantly, serving as a catalyst for SMEs to engage in private and public sector procurement opportunities and scale their businesses. By creating avenues for SMEs to thrive, the programme aims to drive economic growth, diversification, and innovation.
Small enterprises were allocated 63.5 percent of
the deals, valued at AED56 million, while 36.2 percent were awarded to medium-sized companies, valued at AED32.1 million.
SMEs in the telecommunications sector represented 11 percent of the contracts, followed by electrical sector SMEs at 6 percent, while consultancy and security SMEs each constituted 4 percent. SMEs operating in other sectors, including construction, apparel, and catering, represented 75 percent of the awarded tenders and contracts.
A total of 835 applications were received from SMEs across different sectors, with 190 suppliers identified during the programme’s first six months.
Mouza Al Nasri, Executive Director of the SMEs Sector at ADDED, said, ‘We are delighted to see the Abu Dhabi SME Champions Programme soar to new heights and exceed its initial targets. The interest shown illustrates the potential of our SME sector in the Emirate and the benefits that can be reaped with the right support. We extend our thanks and appreciation to our partners and SMEs ecosystem stakeholders for thei
r valuable contributions to the success of this ambitious programme.”
‘As we continue to rapidly move towards a knowledge-based, smart, diversified, inclusive, and sustainable economy, SMEs in Abu Dhabi have huge potential for future growth and will make vital contributions to ensuring that we have a strong, resilient, and sustainable economy for generations to come. To this end, we have launched various initiatives and programmes, including the ‘SME Finance Facilitator’, which improves SMEs’ access to financial services and products by facilitating the process for opening bank accounts and accessing credit facilities to support working capital needs and long-term growth.’
Major companies such as eand, Aldar Projects, Etihad Aviation Group, Industrial Capital Group, and Emirates Steel Arkan have joined the programme in its pilot phase and are actively participating in awarding tenders and contracts to several SMEs. The programme has also onboarded a number of LC and GRE ‘champions’, such as the Department o
f Government Enablement (DGE), Department of Tourism and Culture (DCT), Department of Finance (DOF), Masdar City, Abu Dhabi Investment Office (ADIO), Khalifa Fund for Enterprise Development (KFED), Abu Dhabi Ports, Agthia Group, Emirates Development Bank (EDB), Miral, and Abu Dhabi Global Market (ADGM), with a total target of AED230 million in procurement opportunities to be provided for SMEs in 2024.
The programme opens doors for SMEs by providing upskilling sessions and support, enabling them to professionally compete for procurement opportunities with large companies, GREs, and government bodies.
Source: Emirates News Agency