Sustainable Procurement and SME Support: The UAE's Best Practices for Economic Growth and Development
Waleed AlSaeedi FCIPS
Director of Supply Management at Culture and Tourism Department, ABUDHABI
Supporting Small and Medium Enterprises (SMEs) is crucial for economic diversification and innovation. Governments worldwide are increasingly leveraging procurement practices to foster a thriving SME ecosystem. The United Arab Emirates (UAE) has established itself as a regional leader in economic diversification and innovation, driven by its commitment to responsible procurement practices and SME support.
I explore the UAE's model for responsible procurement and SME support, specifically focusing on the initiatives undertaken by some government entities like Abu Dhabi Department of Economic Development (ADDED) and Abu Dhabi Department of Government Support (ADGS). We can glean valuable lessons for organizations worldwide seeking to replicate this model for sustainable economic development.
Responsible procurement goes beyond simply acquiring goods and services. It encompasses a holistic approach that prioritizes transparency, sustainability, and social responsibility throughout the supply chain. This translates to ethical sourcing, local content prioritization, and sustainability integration.
Ethical sourcing is critical in ensuring that procurement practices align with international labor standards, environmental regulations, and fair competition within the procurement process. Local content prioritization encourages the use of local resources and suppliers, fostering domestic economic growth and reducing dependence on imports. Sustainability integration considers the environmental and social impacts of procurement decisions throughout the lifecycle of products and services.
Supporting SMEs is equally vital for economic diversification and resilience. SMEs act as engines of innovation and job creation, fostering a dynamic and competitive marketplace. By providing targeted support, governments can empower SMEs to contribute significantly to national growth.
The UAE, with its diverse federal and local government structure, showcases a collaborative approach towards responsible procurement and SME support. ADDED's initiatives offer a compelling case study, while other government entities play a crucial role in driving these efforts forward.
ADDED serves as a leading example within the UAE's framework for responsible procurement. Its initiatives, outlined in the 2022 Sustainability Report, demonstrate a commitment to transparency, sustainability, and local content prioritization. ADDED's procurement activities align with other government entities, promoting local content through the Abu Dhabi Local Content (ADLC) Programme.
In 2022, ADDED achieved full In-Country Value (ICV) compliance, highlighting its commitment to responsible sourcing. Additionally, by implementing electronic processes for tendering, contracting, and archiving, ADDED has significantly reduced paper usage and overall waste generation, demonstrating a focus on environmental sustainability.
领英推荐
Recognizing the vital role of SMEs in Abu Dhabi's economic development strategy, the government has implemented several initiatives to foster their growth and participation in government procurement opportunities. These include the SMEs Government Procurement project and the Homegrown Supply Chain Programme, launched as part of the Abu Dhabi Industrial Strategy (ADIS).
The SMEs Government Procurement project aims to increase SME participation through dedicated policies, streamlined registration processes, and an end-to-end support system for SMEs navigating government tenders. This project demonstrates a commitment to empowering SMEs to contribute to national growth.
The Homegrown Supply Chain Programme promotes domestic products and increases self-sufficiency in the industrial sector. This initiative aligns with broader goals of enhancing market access for local businesses and fostering collaboration between public and private sectors.
The UAE's model for responsible procurement and SME support is built on several key principles:
In addition to these initiatives, other government entities, such as the Abu Dhabi Department of Government Support (ADGS), have also implemented initiatives to support SMEs, including:
By adopting best practices from the UAE's model, organizations can contribute to sustainable economic development and foster a thriving ecosystem for innovation and growth.
Chairman of Urban Outsourcing & Security Services Ltd
5 个月Great job
Managing Director - UAE at Chalhoub Group
5 个月Great Waleed AlSaeedi FCIPS
Strategic Procurement Leader | CIPS, CPP, CPPM Certified | Transforming Procurement Efficiency and Vendor Management
5 个月UAE's model for supporting SMEs through responsible procurement is truly inspiring. By prioritizing transparency, sustainability, and local content, and fostering collaboration across government entities, UAE is driving innovation and economic diversification. SMEs Government Procurement project and Homegrown Supply Chain Programme, offer valuable lessons for any country. Adopting these best practices can empower SMEs, fuel national growth, and create a sustainable, competitive marketplace.
Strategic Procurement Leader | Full-Cycle Procurement Expert | MCIPS Chartered | 19+ Years in Strategic Sourcing, Category management & Vendor Management | Pursuing MRICS Accreditation
5 个月This research excellently highlights the influence of SMEs on sustainability, the economy, and national growth. During my tenure with the Qatar 2022 World Cup, we spearheaded an initiative to engage SMEs by categorizing them into different grades and incorporating their utilization as a key performance indicator (KPI). We aimed to ensure a certain percentage of SME involvement across various categories. Additionally, we drafted a policy to promote SME utilization in support services, marketing, and events. This policy was designed to enable SMEs to capitalize on government expenditure on national projects, thereby enhancing their portfolios and experience.
Sr Procurement Manager CPPM, CISCM, CPP, CISCP
5 个月I am eager to see the development and implementation of a COP (Code of Practice) in Procurement by the UAE. In my opinion, COP will provide a clear framework for how the UAE envisions the development, implementation, and management of its supply chain and procurement activities. A well-crafted COP will stimulate the economy, foster strong supply chain relationships, and promote healthy growth in the sector. As a role model in many areas globally, I hope we will also excel in establishing best practices in Procurement. Waleed AlSaeedi FCIPS - Can we expect an article on this subject soon? It would be wonderful to read your insights on the development and implementation of the Procurement Code of Practice in the UAE, and how it could shape the country's supply chain and economic growth.