The Abu Dhabi SME Champions programme has facilitated the award of AED88.6 million ($24 million) in procurement deals within 6 months of its commencement, exceeding the initial expectations.

 

The programme, launched by the Abu Dhabi Department of Economic Development (ADDED) in 2023, aims to boost SME participation in procurement opportunities with large private companies (LCs) and government-related entities (GREs).

 

During the pilot phase, the Abu Dhabi SME Champions programme awarded 54 tenders and contracts to around 50 SMEs, with an average procurement value of AED1.8 million, with some companies awarded multiple tenders from various LCs and GREs. 

 

Catalyst for SMEs

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% of the deals, valued at AED56 million, while 36.2% were awarded to medium-sized companies, valued at AED32.1 million.

 

SMEs in the telecommunications sector represented 11% of the contracts, followed by electrical sector SMEs at 6%, while consultancy and security SMEs constituted 4% each. SMEs operating in other sectors and activities, including construction, apparel, and catering, represented 75% of the awarded tenders and contracts. 

 

835 applications were received from SMEs operating in different sectors, with 190 suppliers identified during the programme’s first six months of operation. 

 

New heights

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 their 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

Major companies such as e&, 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 the programme, awarding tenders and contracts to several SMEs. The programme has onboarded a number of LC and GRE “champions”, such as the Department of 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, Aghtia 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 the doors for SMEs by providing upskilling sessions and support, enabling them to professionally compete for procurement opportunities with large companies, GREs, and government bodies.--TradeArabia News Service