20% on direct and indirect spending on Expo 2020 to be allocated to SMEs
Posted on 30th August 2016
The total number of contracts for Dubai Expo 2020 that have so far been awarded to small and medium enterprises (SMEs) has been revealed.
It was recently revealed by the Dubai Expo 2020 organiser team that 20% of direct and indirect spending on the event will be allocated for SMEs.
Under the plans, contracts worth more than $1.36bn (AED5bn) will be awarded to local and international SMEs, Expo 2020 stated.
Reem bin Ibrahim Al Hashemi, 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 are SMEs.
Of the 787 contracts awarded by Expo 2020 so far, 320 have been won by SMEs, Al Hashemi revealed.
She added: "The integration of SMEs into the delivery of Expo 2020 Dubai is set to continue to stimulate employment, strengthen existing industries, improve SME competitiveness, and ultimately contribute to sustainable economic growth.
"From the needs of our 30,000 strong force of volunteers, to the services required by international participants developing self-built pavilions and the transfer of knowledge in the legacy phase, we are committed to working with the most innovative businesses of all sizes, spreading the opportunity as far as possible and capturing the spirit of the event," Al Hashemi added.
Up to 94% of all companies operating in the UAE are SMEs, WAM reported, according to Constructionweekonline news report.
These 400,000-odd SMEs account for 60% of the country's GDP, with the number expected to grow to 70% by 2021.
The UAE’s Federal Law No 2, introduced in 2014, stipulates that 10% of all federal government contracts are allocated to SMEs.
Additionally, firms in which the government owns a 25% stake must contract SMEs for at least 5% of their total purchasing, servicing, and consulting needs.Back to all Construction News
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