Bahrain’s cabinet has introduced a new quota on all public tenders, stipulating that 10 percent of all contracts awarded should go to small and medium enterprises (SMEs), according to a new report.
Currently, a 10 percent quota exists on auctions for service facilities at government enterprises, but this new mandate expands the quota to all public tenders and will help ensure that SMEs get more access to government deals, according to a report by the Gulf Daily News (GDN) website.
Quotas to support SMEs are nothing new in the region. In the United Arab Emirates, Expo 2020 Dubai said in March it has awarded over half of all contracted related to the event to SMEs and is on target to meet its goal of awarded a fifth of its budget to the sector.
“So far we have over 26,000 registered suppliers from one hundred and fifty countries wanting to do business with Expo. 75 percent of those companies are actual SMEs,” Tina Ghanem, director of Expo 2020’s Online Marketplace (OMP), said in March during a presentation at the Arabian Business Startup Academy in Dubai.
The Central Bank of Egypt in January 2016 announced a new rule that all banks in the country must lend at least 20 percent of loans to SMEs by the end of 2020.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.