By Tamara Pupic
The UAE Ministry of Finance implements a new, SME-friendly initiative.
Emirati-owned SMEs will receive free registration to the federal register of suppliers within the first two years of establishment, the UAE Ministry of Finance (MoF) has announced.
The move also allows for the activation of free registration for government-owned companies, and comes in response to the UAE Cabinet’s decision to allocate 10 percent of government spending towards supporting the SME sector.
The federal register of suppliers allows registered SMEs to deal with all federal ministries within the UAE by being able to review the latest tenders and practices issued by federal ministries.
It permits suppliers to purchase tenders directly via the internet, obtain pricing requests and entering prices in accordance with each item. The federal register of suppliers also allows them to be linked with any catalogue related to the offer.
The federal register of suppliers also shows approved and closed tenders, in addition to repealing or amending those that were not yet issued, in addition to modifying the data of companies and institutions.
Commenting on the move, HE Mariam Mohammad Al Amiri, Assistant Undersecretary for the Management of Financial Resources at MoF, said: “The Ministry strongly believes in SMEs’ role in supporting the national economy as they account for 92 percent of the total workforce, and is keen to achieve its strategic objective on developing legislative and fiscal policies as well as providing a competitive environment.
“The Ministry continuously works on preparing recommendations to provide support to SME projects and raising them to the UAE Cabinet.”
The UAE Cabinet’s decision allocates purchase and tender requests as well as direct contracting for SME owners during the first two years from the date of the company’s establishment.
The decision also specifies that funding will be allocated for purchases and tenders including publications, stationery, gifts and electronics for up to AED200,000 per contract or transaction; as well as direct transactions up to AED15,000 for SMEs within the first two years of establishment.