The Abu Dhabi SME Champions Program, initiated by the Abu Dhabi Department of Economic Development (ADDED) in 2023, aims to enhance the involvement of small and medium-sized enterprises (SMEs) in procurement opportunities with major private firms (LCs) and government-related entities (GREs). In its first six months, the program successfully allocated AED88.6 million ($24.1 million) in procurement contracts, which surpassed initial expectations, Abu Dhabi Media Office reported.
Pilot phase achievements
During its pilot phase, the program awarded 54 tenders and contracts to 49 SMEs, with an average deal size of AED1.8 million. Several companies notably secured multiple contracts across various LCs and GREs.
Expansion and impact
Originally launched with just four champions, the program has rapidly expanded and acts as a vital platform for SMEs to tap into procurement opportunities in both private and public sectors, fostering business growth. By establishing pathways for SMEs to flourish, the initiative seeks to stimulate economic growth, diversification, and innovation.
Procurement distribution
Small enterprises received 63.5 percent of the total procurement contracts, amounting to AED56 million, while medium-sized companies were awarded 36.2 percent, totaling AED32.1 million, along with additional contract opportunities.
Sector representation
In terms of sector representation, SMEs in telecommunications accounted for 11 percent of the contracts, while electrical sector SMEs made up 6 percent. Consultancy and security SMEs each constituted 4 percent, while other sectors, including construction, apparel, and catering, represented a substantial 75 percent of the awarded tenders and contracts.
The program received 835 applications from SMEs across various industries and identified 190 suppliers within its first six months of operation.
Exceeding initial goals
Mouza Al Nasri, executive director of the SMEs Sector at ADDED, expressed enthusiasm about the program’s success, noting that the remarkable results and exceeding of initial goals reflect the immense potential of the SME sector in the emirate. She acknowledged the strong interest and the benefits that could arise with appropriate support, extending gratitude to partners and stakeholders in the SME ecosystem for their invaluable contributions to the initiative.
Future growth potential
Al Nasri further emphasized that as the emirate strives towards a knowledge-based, smart, diversified, inclusive, and sustainable economy, SMEs in Abu Dhabi hold significant potential for future expansion. She highlighted their crucial role in building a resilient and sustainable economy for future generations, mentioning the introduction of various initiatives, including the ‘SME Finance Facilitator,’ which enhances SMEs’ access to financial services by streamlining the process of opening bank accounts and securing credit facilities for working capital and long-term growth.
Support and training for SMEs
Moreover, prominent companies, including e&, Aldar, Etihad Aviation Group, Industrial Capital Group, and Emirates Steel Arkan, have actively participated in the pilot phase of the SME Champions Program, awarding tenders to numerous SMEs. Additionally, several LCs and GRE champions, such as the Department of Government Enablement – Abu Dhabi (DGE), Department of Tourism and Culture – Abu Dhabi (DCT Abu Dhabi), Department of Finance – Abu Dhabi, 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), aim to provide AED230 million in procurement opportunities for SMEs in 2024.
The program also offers SMEs training sessions and support to equip them to compete for procurement opportunities with larger firms and government entities.
Noteworthy that the Abu Dhabi SME Champions Program operates under the auspices of ADDED’s SMEs sector.
For more news on banking & finance, click here.
