Dubai SMEs land $346m in government contracts
Emirati SME suppliers associated with Dubai SME were awarded AED1.27bn ($346m) in contracts and purchases in 2023 from local and federal government entities, semi-government organisations and private businesses.
The latest figures were announced on the occasion of the UN-designated Micro-, Small and Medium Sized Enterprises (MSMEs) Day – marked internationally on June 27 – recognising the role MSMEs play worldwide in transforming economies, supporting growth and fostering employment.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, said that Dubai SME aims to strengthen the entrepreneurial ecosystem in Dubai by enabling Emirati SMEs to meet the requirements of government, semi-government and private entities.
The objectives of Dubai SME are aligned with the goal of the Dubai Economic Agenda D33 to further consolidate Dubai’s position as one of the top three global cities for business and leisure.
Entities that provided the highest support in 2023 to Dubai SMEs include Roads and Transport Authority, Municipality, Police, General Directorate of Residency and Foreigners Affairs, and the Department of Economy and Tourism.
UAE economy set for more growth in 2024
The UAE economy is set for more growth in the second half of this year, with positive growth rates across macroeconomic indicators. GDP reached Dh1.68 trillion ($457 billion) in 2023, growing by 3.6%.
Non-oil GDP at constant prices was Dh1.25 trillion, growing by 6.2%, placing the national economy fifth globally in the real GDP growth index.
The World Bank forecasts a GDP growth of 3.9% for the UAE, which is expected to rise to 4.1% in 2025. Meanwhile, the International Monetary Fund (IMF) expects the national economy to grow by 4% in 2024, driven by strong activity in the construction, manufacturing, and financial services sectors.
The standout sector, however, was tourism. Consultants TME Legal said: “The nation’s ability to host major international events is expected to be pivotal in attracting 40 million visitors by 2030. Accompanying this objective is a plan to expand the number of hotel rooms to an impressive 250,000 during the same period. These ambitious targets underscore the UAE’s unwavering commitment to becoming a global tourism hub.”
It added: “The emirate of Dubai’s remarkable achievement in attracting 14.7 million international visitors in 2022, double the 2021 figures, is a testament to its allure. The emirate of Abu Dhabi also experienced a 24% increase in hotel guests in 2022 compared to 2021, solidifying its status as a burgeoning tourism destination.”
Dr. Karim El Solh, Co-Founder and Chief Executive Officer of Gulf Capital, told the Gulf News website that “the UAE’s economy is on an upward trajectory, bolstered by strong momentum over the past two years”. He commended UAE government measures, such as stimulus packages, foreign investment incentives and efforts to improve business ease, amid global economic challenges.
In a statement to the Emirates News Agency (WAM), El Solh highlighted the UAE’s strategic location, robust infrastructure, and business-friendly policy as key factors attracting investors and fostering growth.
El Solh said “the UAE’s Vision 2030 framework and forward-looking economic policy, emphasising diversification, innovation and sustainability, have gained international acclaim.
“This has boosted confidence in the national economy, resulting in increased foreign investment, improved credit ratings, and enhanced global competitiveness,” he said.
Damian Hitchen, CEO of Saxo Bank in the Middle East and North Africa, said the UAE’s attractiveness is reflected in its record $23 billion in foreign direct investment in 2022, reaching an all-time high. Additionally, the UAE ranks 14th globally in attracting professional talent, according to the Boston Consulting Group.
Hitchen highlighted the crucial roles of the tourism and aviation sectors in boosting the economy, enhancing trade, and transforming the UAE into a global transportation and logistics hub.
Vijay Valecha, Chief Investment Officer at Century Financial, anticipated the UAE’s economy will sustain robust growth exceeding 4% this year, supported by strong performances in non-oil sectors.
He pointed to the UAE’s economic diversification away from oil, emphasising sectors like renewable energy, technology, financial services, tourism, construction and real estate, which collectively drive over 70% of the UAE’s GDP.
