In a major booster dose for the fast-expanding business sector, the UAE Ministry of Finance (MoF) signed a Memorandum of Understanding (MoU) with Dubai SME, a division of Dubai’s Department of Economic Development, as part of its relentless efforts to support entrepreneurs and small and medium-sized enterprises (SMEs) in the country.
Mariam Al Amiri, Undersecretary, Financial Management Sector at MoF, and Saeed Matar Al Marri, Deputy CEO of Dubai SME, were representatives signing the MoU. The preliminary agreement would facilitate the registration of smaller businesses in the Federal Supplier Register to participate in government tenders, the ministry said in a statement.
The move will open up new business avenues for the SME sector, accounting for 94 % of total companies in the UAE and employing over 86 % of the private sector workforce. In Dubai, SMEs contribute 40 % of the Emirate’s GDP. The participation of SMEs in government projects will not only create more opportunities for the private sector but also bolster the ongoing diversification of the national economy.
Reaffirming the MoF’s vision to create a growth-oriented ecosystem for the private sector, Al Amiri said, “we are relentlessly working towards achieving the vision of the country’s leadership to support and empower entrepreneurs by framing sound policies to stimulate the economic movement. SMEs play a vital role in any country’s economic growth, and we are keen to increase further their role in creating a sustainable national economy.
As part of the MoU, Dubai SME, the government body tasked with the development of the SME sector in UAE, will encourage its accredited enterprises to register in the Federal Supplier Register. This agency will forward the data of registered SMEs to the Ministry of Finantocan to facilitate their participation in government tenders.
Vowing its full support to the initiative, Dubai SME said it would encourage more and more companies to secure federal accreditation. “We are committed to enhancing the capabilities of enterprises and enabling them to be among the fundamental components in various sectors of the economy,” stated Al Marri.
The UAE has been taking a slew of measures to protect small companies from negative headwinds of the pandemic. Last year, it had provided $114.3 million worth of trade credit to SMEs, helping them recover from the COVID-19 lockdown.
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