Background
Sharjah is one of the emirates of the United Arab Emirates (UAE). It covers an area of 2,600 sq km (1,003 sq m) and has a population of over 800,000 making it the third most populous emirate. The emirate of Sharjah comprises the city of Sharjah and other minor towns such as Kalba, Dibba Al-Hisn and Khor Fakkan.
Sharjah is felt by commentators to have achieved the right balance between striving forward with economic development and respecting its unique cultural heritage; are welcomed by ornate minarets, green parks and dhows, the traditional ships of the region. Sharjah is the only emirate with ports on the Gulf and the Indian Ocean, thus occupying a crucial axis at the hub of global trade routes, ensuring its place as a centre of international commerce.
Economy
Sharjah is a thriving economy yet has managed to maintain its rich cultural heritage. It accounts for 47 per cent of industrial Gross Domestic product (GDP) in the United Arab Emirates and this is a position it looks set to maintain thanks to its well-developed free trade and specialised industrial zones, serviced by an integrated transport system and highly-developed infrastructure.
Education is seen as a high priority in Sharjah, with the leader Sheikh Sultan's commitment to this evident in the science foundation, two universities and seven museums that have opened over the past decade. Sharjah’s construction and real estate sectors are also booming, as is the tourism industry, capitalising on Sharjah's natural and historical assets.
Sharjah's economy is also growing off the back of a robust manufacturing sector which contributes almost half of the UAE's industrial capacity. There are also close international trade relations and a well-developed infrastructure. Indeed, Sharjah has been a major contributor to the UAE's economic success since it came into being 37 years ago, with record economic growth in 2007 seeing Sharjah's economy expand by 19.9 per cent from $9.5bn to $11.6bn, according to Sharjah Economic Development Department (SEDD).
A key factor in this success has been the creation of the 10m-sq-metre Hamriyah Free Zone, which was constructed in 1995 and is home to 1100 companies. Projects such as this are attracting overseas investment; indeed, this is one of the only places in the UAE that permits 100 per cent foreign ownership of businesses and properties, as well as complete import and export tax exemption. Foreign investors are also attracted by relatively low prices of energy and water, kept at affordable rates by large government subsidies and the low cost of land in Sharjah which, although rising, remains much cheaper than neighbouring Dubai. Sharjah is focusing more and more on public-private sector partnerships and has, in recent years, increasingly been moving to remove unnecessary red tape to encourage trade and investment. On the international trade stage, Sharjah is forging closer links with Pakistan, China and South Africa.
Investment climate and opportunities
Sharjah is growing fast and there are opportunities for exporters and investors in a broad raft of sectors. The investment climate is strong - the economy, backed by sizeable oil revenues, has weathered the economic storm well and is now looking to attract private development capital in increasingly large amounts from the West.
In general industry Sharjah homes to 45 of the UAE’s industrial activities and contributes 40 per cent of industry-derived contribution to GDP. Sharjah’s geographical position makes it a transport hub, which it capitalises upon through a well-developed infrastructure. This means Sharjah is in the middle of one of the fastest-growing regions in the world as well as being in close proximity to central Asia, the Indian Subcontinent and Africa - a potentially mammoth market base. The emirate has created a stable economic and political environment and introduced investor-friendly policies to encourage private enterprise. In terms of size of industrial segments, fabricated metals and equipment works are key sectors, making up nearly a quarter of all industrial establishments; these are followed by chemical and plastics products producers and wood products.
In construction Sharjah is home to countless towering construction cranes. The property market is in rude health and Sharjah possesses the most high-profile property market among the Northern Emirates, with demand driven by a growing population, a shortage of residential property and relatively low rents. The Emirate last year passed additional legislation opening up property rights to Arabs who are not from GCC countries.
In energy, Sharjah has attracted foreign and domestic investors into its energy sector and for decades local companies have worked in competition and cooperation with internationals such as BP. Much of this strategy is because Sharjah possesses only a small fraction of the UAE's substantial hydrocarbons reserves. Yet Sharjah consumes a lot of energy - it is home to around 40 per cent of the industries based in the UAE. The emirate's government has enlisted the help of BP to develop a national energy plan, running until 2025, which is expected to emphasise the importance of diversifying supply and boosting renewable energy capacity.
