Smarter procurement for UAE entrepreneurs: Your hidden advantage


For many entrepreneurs, procurement feels like a corporate word…. something for bigger businesses with layers of bureaucracy. But for startups and SMEs navigating tight margins, volatile markets and rising costs, good procurement shouldn’t be seen as red tape, it’s a lifeline.

We know that a large proportion of SMEs, often up to 50 percent, fail within five years. The reasons are well documented: cash flow constraints, supply chain shocks, over-reliance on a few customers or suppliers and lack of long-term planning. What’s less talked about is how better procurement practices could help prevent many of these issues before they arise.

In today’s competitive UAE market, where agility and resilience are essential, SMEs that build procurement capability early on are far more likely to survive and thrive.

Think beyond price 

For many SMEs, the temptation is to always go with the lowest price, especially in the early stages. But short-term savings can lead to long-term costs if you’re not managing supplier risk. Take the example of delivery delays or poor quality from a cut-price supplier. This can cascade into customer dissatisfaction, reputational damage and lost revenue. A slightly more expensive but reliable partner often represents better value over time.

Procurement isn’t about penny-pinching but rather about understanding total cost and total risk. This means thinking about delivery timelines, payment terms, service levels and contingency plans. You don’t need a large team to do this, just a structured approach.

CIPS encourages entrepreneurs to adopt a ‘value for money’ mindset. This means considering factors like supplier reputation, their capacity to scale with you, and how they align with your goals (not just the invoice total).

Build relationships, not transactions

In the UAE and across the wider MENA region, business is built on relationships. This is especially true for SMEs looking to scale, your supplier today could become your strategic growth partner tomorrow.

Yet many startups treat procurement as an afterthought, only engaging suppliers when something goes wrong. This reactive approach leaves no room for negotiating better terms, exploring innovation or improving cash flow.

Instead, SMEs should treat suppliers as part of their business ecosystem. Schedule regular check-ins. Share your growth plans. Ask how they can support you and how you can make the relationship mutually beneficial.

Good procurement is ultimately about securing what your business will need tomorrow. This kind of collaborative mindset helps build trust and creates room for flexibility when times get tough.

Use procurement to unlock growth, not just cut costs

As businesses grow, procurement must evolve from simple purchasing to strategic decision-making. At CIPS, we see more SMEs now using procurement to drive innovation, manage ESG risks and access new markets.

For example, can a local supplier help you meet UAE sustainability regulations or net-zero targets faster? Can a diverse supplier base reduce your exposure to regional disruptions? These are strategic procurement questions and the earlier you begin asking them, the stronger your foundations.

Digital tools can also support this journey. You don’t need enterprise systems, even basic procurement templates or supplier scorecards can help you monitor performance, manage spend and make data-driven decisions.

CIPS has developed guidance and tools specifically for SMEs, including our ethical procurement framework, risk assessment guides and supplier onboarding templates, all designed to give small businesses big business discipline. 

Start smart and stay smart

The reality is this: procurement is not just for big corporates. It’s one of the smartest tools any entrepreneur can use to stretch every dirham, manage uncertainty and build business resilience.

At CIPS, we work with thousands of organisations across the globe, including many SMEs, and the message is clear: those that invest early in procurement capability are better equipped to face what’s ahead.

Entrepreneurs don’t need to become procurement experts overnight. But by embedding a few core principles like value over price, relationship over transaction and strategy over short-termism, UAE startups can gain a competitive edge in even the toughest markets.

About the Author:

Sam Achampong, Regional Director of CIPS: Middle East, Africa and Asia-Pacific (CIPS). Sam has sharp business acumen and has offered his excellent visionary guidance to several leading organisations in the UK and GCC, including Majid Al Futtaim, Nakheel, Municipality of Abu Dhabi and MTN, to produce stronger financial outcomes and leverage high performance with efficient operational strategies.