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SMEs urged to bid for procurement contracts

ABU DHABI - Abu Dhabi will encourage the small and medium enterprises, or SMEs, supported by the Khalifa Fund for Enterprise Development, to bid for the government procurement contracts, by giving them a share in the multi-million dirham business.

Also the public sector entities in Abu Dhabi will waive off their various fees and charges which they collect from the companies who take part in the biddings process for the 
procurement contracts.

The waivers would be provide on the company registration fees, fees on bidding for a supply contract and various other financial guarantees, which will give SMEs a significant 
financial encouragement.

The Khalifa Fund, which is encouraging Emirati youth to setup SMEs, on Tuesday organised a forum to take pledges of support to such businesses from twenty Abu Dhabi governmental and semi-governmental departments.

Dr Ahmed Khalil Al Mutawa, the Executive Director of the Khalifa Fund for Enterprise Development, said that the initiative aims to bolster the role of the national public sector in backing the small and medium enterprises.

The Fund is creating effective vehicles to support the growth of SMEs and empower them to take an effective part in the process of development by meeting the demands of industries, improving services and at the same time protect their interests from 
unfair competition.

He stressed that the support extended to small and medium enterprises to market their products minimizes risks and maximises their potentials 
and success. The executive director noted that giving these enterprises a share of the government’s procurement contracts helps to increase their competitiveness and to advance the quality of their products as they are obliged to adhere to certain standards.

Al Mutawa also urged the public sector to provide enough support to SMEs and to give them the opportunity to develop their capacities.

During the forum, the Khalifa Fund signed three MOUs with Abu Dhabi General Services Company or Musanada, the Emirates Nuclear Energy Corporation or ENEC and Al Hilal Bank on ways to support SMEs.

According to the MoU signed by Dr Ahmed Khalil Al Mutawa, the Executive Director of the Khalifa Fund for Enterprise Development and Mohammad Khalifa Al Fahed Al Muhairi, CEO of Musanada, Musanada will provide a package of facilities and exemptions to SMEs under the umbrella of 
the Khalifa Fund.

It will exempt them from special guarantees for entering bids.

Abdullah Al Darmaki, Deputy CEO of the Khalifa Fund for Enterprise Development and Saleh Al Shehhi, executive director at the Emirates Nuclear Energy Corporation (ENEC) signed an MoU on exemption of fees on registration of firms.

Al Darmaki and Sarie Arar, Executive Vice-President, Wholesale Banking at Al Hilal Bank, signed a similar MoU.

Mohammed Jamil Berro, Chief Executive Officer of Al Hilal Bank said: “We are interested in serving this growing sector and empowering national human resources to realise their full potential.”

—haseeb@khaleejtimes.com