By Bernd Debusmann Jr
The move is expected to boost small businesses in the aftermath of the Covid-19 pandemic
The government of Abu Dhabi plans to allocate 15 percent of its government procurement spending and contracts to SMEs from 2020 onwards to help boost businesses in the wake of Covid-19, it announced on Tuesday.
In line with the #AbuDhabi Economic Stimulus Package, the Dept of Government Support implements new measures to allocate 15% of govt procurement spending & annual contracts to mSMEs from 2020 onwards, driving growth for small businesses as the backbone of the economy. pic.twitter.com/Nc2MdQ3ZsT— مكتب أبوظبي الإعلامي (@admediaoffice) April 28, 2020
In March, the Abu Dhabi Executive Council (ADEC) launched a new set of 16 initiatives under the “Ghadan 21” banner, including a series of stimulus packages to boost SMEs.
Also included in the plan were water and electricity subsidies for Emiratis and the exemption of vehicles from road tolls through the end of 2020.
At a federal level, in April the Central Bank of the UAE doubled a $70 billion stimulus package to support the country’s economy amid the pandemic.
In March, the UAE announced $35 billion package that included aid to the baking system, facilities for loans and injecting funds into the bourses.