Emirati SME suppliers associated with the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development (Dubai SME), part of the Dubai Department of Economy and Tourism (DET), were awarded AED1.27 billion in contracts and purchases in 2023 from local and federal government entities, semi-government organisations and private businesses. The latest figures were announced on the occasion of the UN-designated Micro -, Small and Medium Sized Enterprises (MSMEs) Day, marked internationally this year on 27 June, recognising the role MSMEs play worldwide in transforming economies, supporting growth and fostering job creation.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, said: "The support extended to small and medium enterprises in Dubai reflects the steadfast commitment of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to empowering entrepreneurs to generate new value for the economy. A key pillar of His Highness’s vision for development, SMEs play a crucial role in fostering innovation, competitiveness and sustainability. The SME sector is also a key catalyst in realising the goals of the Dubai Economic Agenda D33 to double the size of the emirate’s economy and transform it into one of the world's top three urban economies by 2033. The achievements of SMEs reflect the vast potential of the nation’s entrepreneurial talent and our ability to provide a dynamic ecosystem where they can thrive and contribute significantly to Dubai's economic surge."

Launched in 2002, in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Government’s procurement policy mandates government bodies and affiliated entities, in which the government holds 25% or more equity, to allocate 10% of their procurement to Emirati companies affiliated with Dubai SME.

Dubai SME aims to strengthen the entrepreneurial ecosystem in Dubai by enabling Emirati SMEs to meet the requirements of government, semi-government and private entities. From 2002 until the end of 2023, the total value of contracts awarded to Emirati entrepreneurs reached AED10.91 billion. The objectives of Dubai SME are aligned with the goal of the Dubai Economic Agenda D33 to further consolidate Dubai’s position as one of the top three global cities for business and leisure.

Emirati entrepreneurs and national enterprises were awarded contracts from Dubai Government entities worth AED606million in 2023, with federal government entities extending support amounting to AED94.46 million. Semi-government entities contributed AED332 million, while the contributions of private sector establishments reached AED238.48 million.

His Excellency Helal Saeed Almarri, Director General of Dubai Department of Economy and Tourism (DET), said: “As an integral component of our growth strategy for SMEs, Dubai SME aligns with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the ambitious goals of the D33 Agenda. The establishment recognises SMEs as a crucial foundation of Dubai’s economy, playing a pivotal role through the success of many enterprising Emirati ventures across the city. The significant value of contracts awarded to Dubai SME members in 2023 is also a testament to the commitment of government, semi-government, federal and private sector entities to empower the SME landscape in the emirate. Through these efforts, we can partner with agile, innovative small and medium enterprises and encourage them to leverage their unique capabilities to deliver impactful projects that position our communities for long-term prosperity, while fostering a vibrant and inclusive business ecosystem that benefits all stakeholders.”

A vital segment of Dubai’s economy, SMEs account for 99% of establishments and 50% of the workforce, and contribute nearly 46% to the total value-add generated in Dubai. They play a critical role in driving economic growth, promoting innovation, progressing business industries and introducing new markets, which helps solidify Dubai’s standing as a world-class business-friendly hub that provides exceptional investments and opportunities.

In line with the objectives of the D33 Agenda, the Dubai Government prioritises the nurturing of the SME sector and focuses on supporting Emirati entrepreneurs by providing them with the skills and knowledge necessary to successfully integrate them into the future workforce. In addition, Dubai intends to increase government spending, which contributes to raising the value of domestic demand for goods and services.

Abdul Basit Al Janahi, CEO of Dubai SME, said: “Promoting entrepreneurship and strengthening the city’s SME ecosystem lies at the heart of our operations at Dubai SME. By nurturing the entrepreneurial environment and inspiring innovation and sustainability, we aim to further reinforce our city's reputation as a premier global destination for business and investment, paving the way for achieving the goals of the D33 Agenda, as envisioned by our visionary leadership. We provide comprehensive financial and technical support to Emirati entrepreneurs throughout the journey of setting up their businesses, ensuring that they obtain all assets required to succeed and become drivers of the city’s economic growth. Our members have also been benefitting from various initiatives and projects such as our network of business incubators, training sessions, and workshops.

Entities that provided the highest support in 2023 to Dubai SMEs
Dubai Government entities: Dubai’s Roads and Transport Authority, Dubai Municipality, Dubai Police, General Directorate of Residency and Foreigners Affairs, and the Dubai Department of Economy and Tourism in Dubai are the top entities in providing increased support in terms of value in 2023. Other Dubai government entities that increased the level of support in terms of volume compared to the same period of 2022 included Public Prosecution, - the General Directorate of Civil Defence – Dubai, -; Dubai Courts, -; and the Dubai Land Department, -.

Semi-government entities: Emirates Group and Emirates Flight Catering are among the top supporting entities in 2023, providing the highest level of support in terms of value, while Dubai Integrated Economic Zones Authority provided the most substantial support in terms of volume in 2023 with an increase of 184% compared to the same period in 2022.

Federal Government entities: The Emirates Health Services Corporation and the Ministry of Human and National Resources provided the most substantial support in terms of financial value in 2023 compared to the same period in 2022, while the Ministry of Education witnessed a surge of over 51% in support in terms of volume compared to the same period in 2022.

Private Sector: Union Coop and Majid Al Futtaim Hypermarkets were the top private sector establishments in terms of value of support in 2023, while Emaar Properties registered an increase of over 203% in the volume of support offered in 2023 compared to the same period of 2022.

Source Media Office Dubai