Introduction

Micro, Small and Medium Enterprises (MSME) are the backbone of any economy and an engine for economic growth and the promotion of equitable development for all. Where 98% of the number of MSMEs registered in the Emirate of Abu Dhabi represent 35.5% of the total number of jobs, and about 25.6% of the total production. (Statistics of Establishments in the Emirate of Abu Dhabi 2018 - Statistics Center - Abu Dhabi).

Economic incentives

In the interest of the wise leadership in the Emirate of Abu Dhabi to stimulate economic growth and support MSMEs, who issued a package of encouraging economic incentives in the government procurement. Accordingly, the DGS issued a package of economic incentives in Circular No. (6) for the year 2020 regarding economic incentives for MSMEs. The incentives include the following items:

  • Allocating 15% of annual purchases and contracts in ADGEs to MSMEs.
  • Exempting MSMEs from providing the bid bond guarantee.
  • Exemption of MSMES from providing the bank guarantee to ensure performance bond, provided that the ADGEs reserves 5% of the value of each invoice due for a period of 3 months after the final delivery
  • Pay the dues of MSMEs within 15 days of the date of the invoice

How to benefit from economic incentives

To take advantage of these benefits in incentives according to Circular No. (7) of 2020 regarding Economic incentives for Emirati Entrepreneurs, the supplier must be registered. Please click on the link below to access the webpage explaining how to register to become potential supplier to the Entities of Abu Dhabi Government.

 

 


Did You Know

Target group: All Micro, Small and Medium Enterprises who are been licensed by Abu Dhabi Department of Economic Development.
Government agencies included in the incentives program: All government entities of the Emirate of Abu Dhabi.

*MSMEs Classification

  Economic facilities  Number of  employees  Annual Revenues (in AED) 
Trade Sector   Micro  5  or less  Less than 3   Million
 Small   6  to 50  3 to less than 50  Million
 Medium   51  to  200  50  to 250 Million
 Industry Sector  Micro  9  or less  Less than  3  Million
 Small  10  to 100  3  to less than 50 Million
 Medium  101  to  250  50  to 250 Million
 Service Sector  Micro  5  or less  50  to 250 Million
 Small  6 to 50  Less than  2  Million
 Medium  51  to  250  250   Million

As per Ministry of Economics definition for MSMEs https://www.uaesme.ae 

 

Become a Registered Supplier

To take advantage of these benefits and incentives

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