Will Federal Procurement Finally Open to SMEs?

In a significant step towards building a globally competitive entrepreneurial ecosystem, the UAE Council for Entrepreneurship recently held its second meeting of the year, reaffirming the nation’s deep commitment to nurturing startups and small businesses. The session was led by H.E. Alia bint Abdulla Al Mazrouei, Minister of State for Entrepreneurship, and brought together a diverse mix of federal and local government representatives, economic development departments, and entrepreneurship-focused councils and funds.

So, what was on the table? A lot—starting with a review of the progress made since the Council’s inaugural meeting. The members evaluated how far they’ve come in implementing earlier recommendations and focused on aligning these efforts with the broader goals of the “We the UAE 2031” vision, which aspires to position the UAE as a hub for innovation, knowledge, and entrepreneurship.

A key highlight of the meeting was the review of Federal Law No. 2 of 2014 concerning Small and Medium Enterprises. Alongside this, the Council explored the creation of a unified national database for entrepreneurs—something that could radically enhance how support is provided to startups across the Emirates. Another topic that generated considerable discussion was how to better coordinate local and federal efforts to streamline support mechanisms for entrepreneurs.

Minister Alia Al Mazrouei emphasised the importance of these efforts, stating that the Council is working on frameworks and future-facing strategies designed to empower entrepreneurs through stronger collaboration across various stakeholders. The ultimate goal? To make it easier for startups to grow, access investment, and seize new partnership opportunities—both locally and globally.

There was also an important focus on future-readiness. The Council is looking not just at current needs, but also at how to prepare entrepreneurs for a fast-evolving global market. This includes encouraging innovation, fostering integration among government and private entities, and advancing national initiatives that boost the business ecosystem's competitiveness.

Another key agenda item was the Youth Entrepreneurship Council Strategy—a dedicated push to empower young innovators to launch ventures that can lead the UAE into the future. With the country already making waves on the global stage, the strategy aims to solidify the UAE’s position as a world leader in youth-led entrepreneurship.

Participants also delved into ways to ensure effective UAE representation at global entrepreneurship events, especially in 2025, by encouraging more entrepreneurs to participate in international expos. This is a strategic move to open new doors for global partnerships and exposure.

One especially exciting development was the upcoming National Forum for Government Procurement. This initiative is designed to make it easier for UAE-based SMEs to access government tenders. The forum will provide a direct platform for SME owners to engage with federal entities, understand upcoming contract opportunities, and discuss procurement-related challenges face-to-face. It’s a practical way to boost local business participation in government spending, while also streamlining the procurement landscape and strengthening collaboration with funding institutions.

The meeting wrapped up with a deep dive into the National Agenda for Entrepreneurship and SMEs. This agenda rests on seven core pillars—ease of doing business, innovation, support services, digital transformation, access to finance, human capital, and demand creation. The Council reviewed how each pillar is progressing and where more momentum is needed to meet the country’s ambitious goals.

At its heart, this meeting wasn’t just about policies and strategies—it was about laying the groundwork for a future where entrepreneurship thrives, startups scale, and the UAE remains a beacon for innovation and business excellence. If you’re an entrepreneur in the UAE or planning to enter the market, these developments signal a very exciting time ahead.