Sharjah’s appeal amongst top businesses, investors intensifies

Steering investments towards a wise economy in a rapidly changing world is a strategic decision for foreign investors seeking stable and sustainable growth.

Sharjah’s economy, playing a pivotal role in the UAE’s economic landscape, is one of the region’s most diversified and sustainable economies. The emirate’s gross domestic product (GDP) saw a 6.5 per cent surge, reaching approximately Dhs145.2 billion, compared to Dhs136.4 billion in 2022, which marked a 4.9 per cent growth from 2021, according to Sharjah’s Department of Statistics and Community Development (DSCD).

Global appeal: Sharjah’s markets are ideal destinations for SMEs seeking growth and sustainability, offering an environment that fosters business development and expansion into regional and global markets. Economic reports highlight Sharjah’s success in attracting foreign investments, attributed to its diversity policies, balanced economic sectors, and advanced industry, technology, and commerce infrastructure.

Sharjah’s economy is integrated with the national Emirati economy and the GCC region, which is expected to grow by 3.2% this year, according to the World Bank’s 2023 report. The emirate implements wise policies to support investors, providing guidance and advice before and after business establishment.

The Sharjah FDI Office (Invest in Sharjah) has developed strategies to attract foreign investors, emphasising partnerships between investors and the local economy. These strategies involve engaging investors in economic development and encouraging investment in promising sectors like industry, commerce, and energy, which are vital for local economies worldwide.

PureGlass, a global leader in the glass industry, has chosen Sharjah for its first regional production headquarters. This decision underscores the emirate’s appeal to companies of all sizes and nationalities. PureGlass has invested around Dhs50 million to build its 10,000 sqm facility in Sharjah’s Sajaa Industrial Area, with a daily production capacity of 1,000 square metres.

This move, supported by Invest in Sharjah, aligns with future market trends. The Float Glass Market is estimated to grow from 80.27 million tons in 2024 to 105.90 million tons by 2029, driven by the real estate and commercial markets in the UAE and the wider Gulf.

Sustainability in energy and climate is central to global economic policies. Invest in Sharjah seeks to attract impactful companies in this field. As part of these efforts, IPT Energy Power Trading LLC, a leader in the energy sector since 1970, has invested Dhs40 million to expand its business in Sharjah, with plans to double this investment to Dhs80 million by 2025-2026.

Invest in Sharjah’s future plans align with the UAE Energy Strategy 2050, aiming to triple renewable energy contributions by 2030 and invest Dhs150 to Dhs200 billion to meet growing energy demands.

Commerce and production centre

Industry and commerce are central to Sharjah’s economic activities. The wholesale and retail trade sector, valued at Dhs34.8 billion, accounts for 24% of the emirate’s economy. The growth in these sectors has attracted many companies to establish their businesses or logistics headquarters in Sharjah, serving as a gateway to other markets in the UAE and the region.

Given this industrial and commercial appeal, Alexandria International, a leading manufacturer in the flooring and office furniture sector, has inaugurated a 74,000 sqm logistics distribution centre in Sharjah. This centre caters to consumers in the UAE and the wider region, meeting the growing demand for commercial facilities and headquarters.

Home to more than 65,000 foreign companies specialising in various sectors, the emirate’s blend of economic expertise and modern technology makes it an ideal investment destination for those seeking a sustainable role in the global economy.

Separately, the Sharjah Investment Forum (SIF) will hold its seventh edition on Sept.18-19 under the theme “A Futuristic Vision for Smart Economies.” Organised by the Sharjah FDI Office (Invest in Sharjah), the forum will explore the role of investments and capital in directing Artificial Intelligence (AI) systems to support global growth and enhance efficiency, flexibility, and inclusiveness across various sectors.

The event is set to take place at the Jawaher Reception and Convention Centre and will convene decision-makers, investment and economic experts, and business leaders from the region and worldwide.

Invest in Sharjah noted that the theme and direction of this year’s forum reflect the UAE’s achievements in technology and digital infrastructure supported by the country’s annual investment in innovation of approximately $3 billion. According to the Interregional Centre for Strategic Analysis in Abu Dhabi, the UAE aims to increase the contribution of AI to its GDP to Dhs 352 billion by 2030, accounting for 14%, positioning the nation as an ideal destination for technology and AI investments.

At the global level, the McKinsey Global Institute estimates that AI could provide an additional $13 trillion in economic activity by 2030, equivalent to an annual GDP growth increase of 1.2% across various sectors.

The Sharjah Investment Forum aims to highlight the UAE’s exceptional investment opportunities in modern economic sectors, and leverage the country’s drive to integrate smart systems across industries such as manufacturing, agriculture, services, health, and education.

This is further supported by the UAE’s global ranking as one of the top destinations for new FDI, ranking second worldwide in 2023 with 1,323 projects. Notably, Sharjah has also advanced to the fifth fastest-growing city in attracting foreign direct investment in 2023. Additionally, Dubai ranked second, Abu Dhabi fifth, and Sharjah seventh in the Middle East and North Africa startup ecosystem, according to the 2024 Global Startup Ecosystem Report released by Startup Genome and the Global Entrepreneurship Network.