Dubai Securing Its Future Through Innovation

Jul 4 2016, 4:41 AM4 min read

Traditionally a prime hub for trade, logistics and communications, Dubai, the UAE, are looking to secure the future as a hub of business innovation.

On the 27th of November 2013, Dubai was voted as the host city for Expo 2020, an event that aims to bring together a global audience to discuss issues pertinent to every person in the world. Based on central theme of “Connecting Minds, Creating the Future”, Expo 2020 will also cover key sub-themes of sustainability, mobility and opportunity.

While the event will place the country at the heart of an event with an estimated 25 million visitors, it also helps to cement Dubai’s place as a centre for technology and business innovation.

Smart Cities

Dubai is already well on its way to becoming a ‘smart city‘, with huge sums of money being invested in making the emirate a hub for IT and technology. In September 2015, Dubai was named as the second-best city in the world for expats wishing to start a business, while the UAE was among the top 10 countries for expats to work in.

These titles run in line with Dubai’s aim to open its doors to the best and brightest technology innovators and entrepreneurs. As part of its investment in infrastructure during its ‘Year of Innovation‘ in 2015, provisions were made to assist small to medium-sized startups with technological assistance, aimed at creating growth in this sector.

And, as part of this drive to encourage more global technology organisations to come to Dubai, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, announced a $544 million fund to finance innovation in the city.

While the fund doesn’t actually go live in terms of investment until later this year, it is anticipated that it will provide funding to companies based in the UAE, as well as those providing “exceptional innovative ideas“, helping to drive growth and economic development across the region.

Innovation…and Procurement

All of this comes as part of the UAE’s ‘Vision 2021‘, which aims to make the country one of the most innovative in the world. And it’s good to know that procurement and supply chain have a key role to play in this process too.

In the coming months, a huge procurement and contracting effort will be undertaken to award build work for the site, infrastructure and transportation to support the hosting of Expo 2020. Dubai is forecast to spend around $8 billion on infrastructure mega projects in the build up to Expo 2020 including hotels, new metro links and malls.

Kicking it off last week, the RTA awarded a $2.88 billion contract for the construction of its Expolink metro. This will be followed by purchase of trains to service both the new, and existing, Dubai metro lines.

It’s estimated that Dubai’s Road and Transport Authority (RTA) will look to 30 per cent of the project cost through private funding, with public-private partnerships mooted for the remainder.

Is it too much to ask for to have a little innovation in the procurement process? While traditional processes might still hold sway, we can only hope that the profession can get in on the act in the next few years.

Need something to chat about in the tea room? Or something to enjoy with your coffee? Here are the week’s big headlines…

States Come Together for Purchasing Agreement

- TheNational Association of State Procurement Officers (NASPO) has been formulating a collective procurement agreement which is expected to benefit 34 states in America.

- The Value Point platform will give states purchasing similar items cooperative buying power as one organisation, rather then by state basis.

- The Cloud-based platform will enable information storage and allow for different payment structures.

The final agreement is expected to be signed off in August and will the states to move forward with a cohesive, cooperative approach to procurement.