Abu Dhabi SME Champions Program Awards AED88.6 Million In Contracts In First 6 Months

The Abu Dhabi SME Champions program facilitated the awarding of AED88.6 million in procurement deals within six months of its launch, exceeding initial expectations.

The program, launched by the Abu Dhabi Department of Economic Development (ADDED) in 2023, aims to help small and medium-sized enterprises (SMEs) participate in procurement opportunities with large private companies and government-related entities.

"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," Mouza Al Nasri, Executive Director of the SMEs Sector at ADDED, was quoted as saying by WAM.

"We extend our thanks and appreciation to our partners and SMEs ecosystem stakeholders for their valuable contributions to the success of this ambitious program," he added.

The program awarded 54 tenders and contracts to about 50 SMEs, with an average contract value of AED 1.8 million, during its pilot phase. Some companies received multiple contracts from different large companies and government entities.

The program started with four champions but has since grown significantly, helping SMEs take part in private and public sector contracts and grow their businesses. By providing more opportunities for SMEs, the program aims to promote economic growth, diversification, and innovation.

Small enterprises received 63.5% of the deals, totaling AED 56 million. Medium-sized companies, on the other hand, got 36.2% of the contracts, worth AED 32.1 million.

In terms of sectors, SMEs in telecommunications accounted for 11% of the contracts, followed by those in the electrical sector at 6%. Consultancy and security SMEs each made up 4%.

SMEs from other sectors, including construction, apparel, and catering, made up 75% of the awarded tenders and contracts. The program received a total of 835 applications from SMEs in various sectors and identified 190 suppliers in its first six months.

As Abu Dhabi works toward a smart, diversified, and sustainable economy, SMEs have a massive potential for growth and will play an important role in building a strong and resilient economy for the future.

To support this, the government has launched various initiatives, including the "SME Finance Facilitator." This program helps SMEs access financial services and products by making it easier to open bank accounts and obtain credit facilities, which are essential for meeting working capital needs and supporting long-term growth.