They called for the establishment of an electronic platform for trade exchange and obligating the private sector to give 10% of its purchases to small businesses.

Entrepreneurs: Private companies are reluctant to give us procurement contracts

• Entrepreneurs called for benefits and incentives to be given to private companies that sign contracts with small businesses.

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Emirati entrepreneurs confirmed that there is a great reluctance from companies in the private sector to grant supply and purchase contracts to small Emirati companies wholly owned by citizens.

They told "Emirates Today": "Their chances of obtaining contracts are very small, despite the fact that many local emerging companies are successful and reputable companies, and were able to export abroad."

They called for obligating the private sector to grant 10% of its purchases to small Emirati companies, similar to the government sector, and to grant advantages and incentives to private companies that sign contracts with small national companies. They also called for the establishment of an electronic platform for trade exchange, which includes both supplying and buying companies, in order to identify products The needs of each party, and tenders and purchase offers through the platform.

difficulties

In detail, the Emirati entrepreneur, Mansour Ahli, said, “There are difficulties that reach the point of impossibility in many sectors, for small companies owned by 100% citizens to obtain procurement contracts from private sector companies, due to the latter’s reluctance to grant supply and purchase contracts to companies. Little Emirati.

Ahli indicated that "many private companies are foreign companies, and prefer to award contracts to other foreign companies, and some consider Emirati companies to be competitors and do not sign contracts with them," noting that many private companies usually resort to non-Emirati companies and factories within the country. And abroad, to provide for their needs instead of contracting with local emerging companies.

He called for obligating the private sector to give 10% of its purchases to small national companies, similar to the government sector, if they have the same product of high quality, in order to support the national economy.

Features and incentives

Ahli demanded advantages and incentives for private companies that sign contracts with small companies owned by Emiratis, such as entering the government procurement program, and reducing certain obligations on these companies.

He pointed out that encouraging partnerships between small Emirati companies and private sector companies contributes greatly to supporting local companies in these difficult conditions caused by the "Corona" pandemic.

electronic platform

For his part, the citizen entrepreneur, Jassim Al Bastaki, said that “a large number of small companies owned by Emirati entrepreneurs are facing reluctance from private sector companies, with regard to granting them procurement and supply contracts, although there are many small Emirati companies that are considered successful companies. It has a good reputation and has been able to export abroad.”

Al Bastaki called for the establishment of an electronic platform for commercial exchange, which includes in its first stage companies owned by citizen entrepreneurs, and includes both supplying and buying companies, in order to identify the products and needs of each party and to offer tenders and purchase offers, through the platform, provided that the platform will then be expanded to include companies Small privately owned state.

Database

Al Bastaki explained that "such a platform will be very useful for citizen entrepreneurs, and solve part of the challenge that many of them face regarding contracting with private companies."

He added that «one of the advantages of the platform is that it will serve as a database on small companies and the areas in which they operate, and the most prominent goods that they need or produce, which supports small companies in general and expands their areas of work».

Al-Bastaki stressed at the same time that no party can force a private company to buy from a particular party, which requires granting some government incentives to private companies that sign procurement contracts with small companies owned by citizen entrepreneurs, such as exemption from some fees, or obtaining specific discounts. In some services, as well as honoring these companies and receiving certain awards.

fear

In turn, the Emirati entrepreneur, Dr. Khaled Abdullatif Al-Nimer Al-Zarouni, agreed that there is a reluctance from private companies to conclude procurement contracts with citizen entrepreneurs in many sectors.

Al-Zarouni attributed this to several factors, including the lack of knowledge of private sector companies about small national companies, and consequently the fear of the efficiency of these companies, despite the fact that they achieved many successes locally and globally.

He pointed to the importance of supporting entrepreneurs institutions, business associations and funding funds for Emirati entrepreneurs, to support them, stand by them, and provide what supports confidence in them.

negotiate

In the same context, the Emirati entrepreneur and CEO of "Tawafiq Metal Industries" Company, Ghanem Khalifa Al Kaabi, said that "there are difficulties in reaching contracts between Emirati entrepreneurs and companies in the private sector," explaining that "the most important difficulties are related to negotiating contractual terms." appropriate, and protect the rights of small businesses.

Al Kaabi called for organizing training courses and workshops for small Emirati companies on negotiation skills and drafting contracts to preserve their rights, pointing out that protecting the rights of small companies is a very important issue, as small national companies face challenges that lead to contracts being reached.

Al-Kaabi agreed with the importance of establishing an electronic platform for trade exchange for small companies and private sector companies, which allows identifying mutual trade opportunities and offering tenders.

approved list

Emirati entrepreneur, Dr. Khaled Abdullatif Al-Nimer Al-Zarouni, called on the Ministry of Economy to draw up a list of companies registered and approved for Emirati entrepreneurs, making it available on the ministry’s website and categorizing them as categories “A”, “B” and “C”, with an explanation of the specializations in which they work. In addition to the work it has previously carried out, so that there is complete confidence and confidence in dealing with these companies.

• Entrepreneurs demanded to organize training courses in negotiation skills and contract drafting.

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