In recent years, Sharjah’s economic diversification efforts, pro-investor regulations and central location have enticed companies from across the globe to set up shop – and the figures speak for themselves.
Last year, Sharjah’s gross domestic product grew by 5.2 per cent, driven by economic programmes that align with the emirate's development strategy.
ADVERTISEMENTIt registered €34.6 billion (Dh136.9 billion) in GDP earnings in 2022 compared with €32.8 billion (Dh130.1 billion) in 2021, according to Sharjah's Department of Statistics and Community Development in May.
In 2023, Sharjah airport welcomed more than 15 million passengers from over 100 destinations, serving as a gateway to the Middle East, North & East Africa, Asia, South East Asia, Central Asia, Russia & Europe.
And, with its six free zones, 33 industrial zones and robust legislative and security frameworks, the economic future looks bright for Sharjah ".
“The Etihad Rail, once in operation, will further connect Sharjah Airport with the major ports across the region.”
Why is Sharjah a good place to start a business?
Sharjah has been working to achieve overall growth by putting the development of industrial and technological infrastructure at the heart of its ambitions.
ADVERTISEMENTCurrently, the emirate is home to 33 industrial zones with leading integrated facilities, totalling more than a third of the factories in UAE and representing 16.7 per cent of its GDP.
For His Excellency Hamad Ali Abdalla Al Mahmoud, Chairman of Sharjah Economic Development Department (SEDD), Sharjah’s commitment to empowering businesses and attracting foreign direct investment is a top priority, while continuously evolving laws and procedures to do so.
“The Economic Development Department developed more than 90 procedures and services in 2022, bringing the customer satisfaction rate with technical applications and technical communication networks with customers to 99.98 per cent,” he says.
“The number of business service centres in the emirate has now reached 18 and the number of licenses in the emirate now stands at more than 72,000, with a total growth rate of 5 per cent last year.”
“The licensing system is also being developed with a number of new services such as adding reservations to licenses and adding the fingerprint of parties to the electronic licensing system to provide a positive environment for investment and economic activities in the emirate.”
Businesses in Sharjah can also benefit from significant investments in the commercial sectors, which continue to grow.
“Continuous promotion, marketing and application of the investment map in industrial areas and encouragement of commercial sectors have played their positive role,” adds Al Mahmoud.
“For instance, the wholesale and retail trade became a giant sector in the emirate with a size of €8.3 billion (Dh32.9 billion) and represents 24 per cent of the emirate’s economy and 14.3 per cent of the volume of licensing activities registered in the Department. The sector achieved an economic growth of 5.7 per cent in 2022.”
A goldmine for foreign investors
Much of Sharjah’s success can be credited to its bilateral business relations, made possible by its strategic location and accessibility for foreign businesses.
As well as UAE national reforms such as the Golden Visa, New Companies Law, Bankruptcy Law and changes to IPO limits, Sharjah also boasts several differentiators from other emirates that it utilises, such as seaports on both the Arabian Gulf and Gulf of Oman.
ADVERTISEMENT“These include our positioning of Sharjah as a gateway to the UAE and the broader GCC economy, which is worth over US$ 1.7 trillion in 2022” says Mohamed Al Musharrakh, CEO of the Sharjah FDI Office.
“The emirate boasts a strategic location between the East and West and offers excellent global connectivity - it is the only emirate in the UAE that shares a border with all six other emirates; and is the only emirate that has seaports on both Arabian Gulf and Gulf of Oman.
“The Sharjah International Airport connects the emirate to over 150 global destinations and the Etihad Rail, once in operation, will connect major ports across the region.”
Al Musharrakh and his team work to strengthen confidence in Sharjah’s investment environment, support investors’ journey and promote investment opportunities in the emirate.
As a result, the emirate's relationships with nations such as China, South Korea, Japan, India and Russia have enjoyed a significant boost.
In recent years, Sharjah has launched several initiatives to incentivise foreign investment, the majority of which aim to ease business processes, including the FDI’s Sharjah Investors Services Centre, which provides a wide range of services to foreign investors.
"While we continue to build on our bilateral business relations and forge new ties with like-minded nations and cities globally, Sharjah’s tailored services position the emirate strongly in the global marketplace," says Al Musharrakh.
"Whatever businesses and investors look for in a city, not only in terms of stability, infrastructure or opportunities to match their interests but also public services and other amenities that make their experience whole - we provide it all."
Arada: from inception to success
One of Sharjah’s biggest business success stories is property development company Arada, which has become the largest in the emirate since its first project in 2017.
In the last seven years, the company has launched three large-scale communities in Sharjah, with a further two projects in Dubai, featuring a combined sales value of more than Dh37 billion.
To date, Arada has sold 13,000 units valued at nearly Dh15 billion, completed 7,400 homes and delivered extensive public facilities, including an international school, retail and dining centres, a popular entertainment zone, world-class sporting facilities and a range of parks.
For Group CEO Ahmed Allkhoshaibi, the decision to set up in Sharjah was cemented by the emirate’s reputation for fostering start-ups, its robust regulatory environment and its business-friendly policies.
“Sharjah has a hugely exciting and dynamic economy that has a great track record of playing host to some of the region’s biggest companies, operating in fields as diverse as energy, food manufacturing, industry and green tech,” he says.
“As Sharjah continues to grow, we’re proud to be a playing a role in that transformation, helping to deliver truly mixed-use communities that continue to create value for owners, residents and visitors alike. In 2023, we will start construction on two projects at Aljada that we believe are central to the growth of Sharjah’s economy; Arada CBD, a next-generation business park that will be a new commercial hub for the Emirate, and Madar Mall, an exciting new lifestyle destination designed by Zaha Hadid Architects with over 350 outlets.”
Now, Arada plans to expand to the next stage of its growth, having announced its first projects in Dubai last year.
“Our ambitions have always been to expand Arada into new locations and geographies,” adds Allkhoshaibi. “We have a lot more to come, both inside the UAE and internationally, and for us, Sharjah has been the perfect springboard for that growth plan.”
