Expo 2020 Dubai has announced that 20 per cent of the expo’s total direct and indirect spend, representing more than Dh5 billion ($1.36 billion) in contracts, will be allocated to small and medium enterprises (SMEs), both local and international.
The announcement is the latest in a series of SME-focused operational and legacy driven initiatives that have emerged as the result of Expo 2020 Dubai’s belief in the important role that SMEs have to play in contributing towards the effective and innovative delivery of an exceptional World Expo for both participants and visitors, as well as the UAE’s wider diversification efforts, said a statement.
Sultan bin Saeed Al Mansoori, Minister of Economy and chairman of the UAE SME Council, said: “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. This effort is also aligned with the UAE Vision 2021 to transition to a knowledge-based economy that fosters creativity and innovation.”
Al Mansoori added that the UAE’s local and federal authorities are working closely together to further strengthen the local SME sector and provide entrepreneurs and SMEs with the support they need to fulfil their role in the economy. The minister also affirmed that the government’s efforts are underpinned by Federal Law No 2 of 2014 on Small and Medium-Sized Enterprises and Projects, which allocates a minimum of 10 per cent of all federal contracts to SMEs. The law also stipulates that companies in which the Federal Government owns a 25 per cent stake must contract local SMEs for at least five per cent of their total purchasing, servicing and consulting needs.
