EDC launches Dubai Subcontracting and Partnership eXchange Program
Dubai Export Development Corporation (EDC) has partnered with Gulf Organization for Industrial Consulting (GOIC) and the United Nations Industrial Development Organization (UNIDO) in establishing the Dubai Subcontracting and Partnership eXchange Program (Dubai-SPX) to act as a bridge between main contractors in the local, regional and international markets and subcontractors in the UAE, thereby increasing business opportunities for investors, traders and exporters.
Launched in the presence of H.E. Dr. Lulwa Al Misned Acting Secretary General for Gulf Organization for Industrial Consulting – GOIC; Khalid Al Kassim, Deputy Director General for Planning and Development, Department of Economic Development, Government of Dubai; Engineer Saed Al Awadi, Chief Executive Officer, EDC; and Mithat Feeyaz Kulur, Chief, Investment Promotion Unit, UNIDO, Dubai-SPX Program is a modern and efficient tool to organise industrial production as it facilitates matchmaking between main contractors and subcontractors, leading to division of work in the production systems in a professional scheme.
“GOIC has started the Subcontracting and Partnership Exchange Program in 2004 to provide the regional economic and industry forums with one of the best programmes aimed at expanding the supply chain within the small and medium enterprises as well as big companies and at enhancing the industrial cooperation between contractors and subcontractors across the GCC,” said HE Al Misned.
“The launch of the Dubai-SPX happened after two years of in-depth surveys and studying resulting to classifying 400 companies from Dubai in the SPX Program. Additionally, the first-ever Dubai Industrial Investment and Partnership Forum (DIIPF) exhibition held in February 2008, has witnessed around 80 matchmakings between GCC contractors and subcontractors, which in total has added 800 companies in GOIC SPX,” she added.
Meanwhile, Al Kassim said, “the launch of Dubai Subcontracting and Partnership Exchange Program plays a vital role in further strengthening the growth of the business sector in Dubai in line with the Dubai Government’s strategy. It also contributes to providing a business-friendly environment – a key factor that has been the key to the success of Dubai.
“The program is aimed at strengthening the capacity of small and medium industries (SMI) to encourage import substitution and promote exports of manufactured goods. The Department of Economic Development seeks to enhance the growth of the industrial sector by attracting foreign investment and improving the overall investment climate of Dubai,” Al Kassim furthered.
Dubai-SPX will also facilitate matchmaking between main contractors and subcontractors through robust database consisting of profiles of manufacturers in the UAE who are capable of subcontracting. The database is part of the regional central database in GOIC Doha.
“The Dubai-SPX is in line with EDC’s mission of empowering and diversifying Dubai’s economic growth by offering pioneering export services to businesses. Dubai and the UAE are fast emerging as an industrial hub in the Middle East and various projects across all sectors are created on a daily basis. There are industries that often outsource some of their projects to specialised industries that have more expertise on different fields or when production capacity is not sufficient to cope with the total volume of production or they do not have expertise in the requested field,” said Al Awadi.
“Our partnership with GOIC and UNIDO will ensure that the Dubai-SPX serves as a technical information centre for business contacts, and as a tool to find opportunities in the domestic and international markets. We aim to forge the relationship between main contractors and subcontractors by accomplishing the partnership concept,” he added.
In the Dubai-SPX, the subcontractor executes the work as per the customer specifications provided by the main contractor as it will also serve to utilise the supply chain capacity of the global SPX network.
“The launching of the SPX Programme in Dubai marks an important milestone for the growth of local supply capacities in the United Arab Emirates and the Gulf Region as a whole. The development of indigenous supply chains is critical for increasing local value-added services and the strengthening of domestic technical and managerial capabilities,” explained Mithat Feeyaz Kulur.
Main contractors and sub-contractors will meet regularly from complimentary industrial sectors in a business-networking atmosphere where they can conduct pre-scheduled meetings in private meeting environment.
Dubai-SPX team will search the database for potential subcontractors after receiving enquiries from interested main contractors through various channels. A potential subcontractor is verified to have the capability and capacity needed and Dubai-SPX schedules a meeting for both parties if required.
For more than 20 years, UNIDO has developed the SPX concept and has evolved into a global network of more than 44 SPX units in over 30 countries. GOIC’s partnership with UNIDO on SPX programme focuses on the areas of petrochemicals, water desalination, metal works, plastics and rubber, electrical and electronics, and industrial services.
