NAFL 5th DRAFT

NAFL REVIEW Feature
Expo 2020 will be the first World
Expo to take place in the MEASA
(Middle East, Africa and South
Asia) region, consisting of 72
countries, with a combined
population of 2.8 billion people.
Located between East and West,
North and South, the UAE is wellplaced
for a major trading nation.
announced that 20 per cent of the Expo's
total direct and indirect spend, representing
more than Dh5 billion in contracts, will be
allocated to Small and Medium Enterprises
(SMEs), both local and international. The
landmark announcement is the latest in a
series of SME-focused operational and
legacy driven initiatives that have emerged
as the result of Expo 2020 Dubai's belief in
the important role that SMEs have to play in
contributing towards the effective and
innovative delivery of an exceptional World
Expo for both participants and visitors, as
Expo 2020's key facts & figures
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well as the UAE's wider diversification efforts.
Commenting on the announcement, His
Excellency Sultan bin Saeed Al Mansoori,
Minister of Economy and Chairman of the
UAE SME Council, said: “SMEs are already
playing a central role in the UAE's drive
towards cultivating a thriving private sector
and diversified economy, which makes SME
empowerment a strategic priority for the
Government. This effort is also aligned with
the UAE Vision 2021 to transition to a
knowledge-based economy that fosters
creativity and innovation.”
The minister also affirmed that the
Government's efforts are underpinned by
Federal Law No 2 of 2014 on Small and
Medium-Sized Enterprises and Projects,
which allocates a minimum of 10 percent of
all federal contracts to SMEs. The law also
stipulates that companies in which the
Federal Government owns a 25 percent stake
must contract local SMEs for at least 5
percent of their total purchasing, servicing
and consulting needs.
SMEs represent almost 94 percent of the
The Expo site covers a total of 4.38 square kilometres, including a
200 hectare gated area. It is located within the Dubai South District,
adjacent to Al Maktoum International Airport.
Between its opening day on 20 October 2020 and its closing date on
10 April 2021, Expo is expected to be visited 25 million times.
70% of all visitors are expected to come from outside the UAE - the
largest proportion of international visitors in Expo history.
The government aims to create and deliver an inclusive and global
Expo with over 200 participants that include nations, multilateral
organisations, corporates and educational institutions.
Expo2020 also has an ambitious volunteer program, which aims to
include more than 30,000 volunteers from a wide range of ages.
total number of companies operating in the
UAE, with 400,000 SMEs contributing 60 per
cent to the nation's GDP – a figure that is
expected to increase to 70 per cent by 2021.
According to Her Excellency Reem Al
Hashimy, UAE Minister of State for
International Cooperation and Director
General Bureau Expo Dubai 2020: “Expo
2020 Dubai acts as an enabler for SMEs and
is constantly looking for opportunities to
maximise their integration into the wider UAE
economy. This is evident in the strong activity
on our e-Sourcing Portal, where of the 6,196
suppliers registered, 2,418 are SMEs, and of
the 787 contracts already awarded, 320 have
been won by SMEs.
The integration of SMEs into the delivery of
Expo 2020 Dubai is set to continue to
stimulate employment, strengthen existing
industries, improve SME competitiveness
and ultimately contribute to sustainable
economic growth. This will be an important
part of Expo 2020 Dubai's legacy for the UAE
and wider region.”
With the number of opportunities available
for SMEs set to increase as a direct result of
this initiative, all interested vendors and
suppliers are encouraged to register on the
Expo 2020 Dubai eSourcing portal
[https://esource.expo2020dubai.ae]. The
portal serves as the primary gateway to the
vast majority of Expo 2020 Dubai
procurement operations. In addition to
announcing upcoming tenders, the portal
also details awarded packages relating to
both goods and services, providing further
possibilities for integration into the supply
chain through indirect procurement and
collaboration.
The procurement process has also been
modified to allow SMEs to bid more
competitively, including a proposal validity of
60 days, no tender bonds required, no
advanced payment guarantee required, 50
p e r c e n t a d v a n c e d p a y m e n t f o r
goods/materials, 25per cent advanced
payment for services, and a commitment to
30 days' payment from receipt of an
approved invoice.
Sep-Oct 2016 / 20