7 promising sectors that define the map of future investments in Sharjah

The report "Future Directions for Foreign Direct Investment and Sectors Potential" issued by the Sharjah Foreign Investment Office "Invest in Sharjah" identified seven main sectors in the emirate that have high investment potential and the ability to attract quality and sustainable capital and raise Sharjah's competitiveness in the global economic scene and on the global investment map .

The report, which was prepared in cooperation with the relevant institutions and bodies in the emirate and the consulting and auditing company PwC Middle East, clarified that the seven sectors are: health care, social welfare, transportation, logistics, culture, tourism, agricultural and food technology, green technology and capital. Human innovation, advanced manufacturing.

The report confirmed the presence of many factors that support Sharjah’s attraction to investments, foremost of which is the well-established investment environment supported by modern and stimulating legislation, in light of the emirate’s advanced infrastructure that keeps pace with the future and its continuous rise in innovation levels and the emirate’s embrace of young talents and the presence of more than 60,000 small and medium projects in it .

The report noted that Sharjah's possession of 6 free zones and 33 industrial zones, and its strong connection with the world through modern sea and air ports, enhances the emirate's flexibility, stability and ability to overcome global economic challenges and consolidates its position as a gateway to the markets of the Arab Gulf region, whose GDP is 1.6 trillion dollars "5.88 trillion dirhams." ".

He pointed out that the UAE in general is one of the best and most open economies for investors, which enabled it to attract high volumes of foreign direct investment over the past years, pointing out that Sharjah is taking advantage of this distinguished position to enhance its attractiveness to attract more foreign capital.

The report stated that despite the circumstances of the Covid-19 pandemic, whose repercussions affected all parts of the world, during the year 2020, Sharjah succeeded in attracting foreign direct investments worth $220 million (808 million dirhams), while the projects of these investments increased by 60 percent in the third quarter. And the fourth of the same year compared to 2019, and contributed to the provision of 1,117 jobs, bypassing the epidemic and its economic impacts, to reflect the great confidence that foreign investors place in Sharjah.

The strong growth in the year of the epidemic came with the support of 4 main sectors in the emirate, led by the communications and information technology sector with 55.6%, then food and agricultural industries 49.7 percent, then life sciences 47 percent, then distribution and logistics services 46.2 percent, which reinforces the importance of these vital sectors. in times of crisis.

According to the report, Sharjah has a great opportunity to benefit from the growth in the health sector in the country, which is estimated at $4.7 billion (AED 17.26 billion), and its annual growth will reach 7.3 percent until 2024, especially with the per capita spending on the health sector in the country reaching $ 1643 "6035 dirhams" in 2019, which is the year before the pandemic.

Thanks to the high average age of the emirate's residents, the increase in the population and the development of health care services, the sector is expected to witness a significant increase in investments directed to it, with particular benefit from the UAE's position and position among the top 10 international destinations for medical tourism.

The report identified three main investment opportunities in the sector in Sharjah, the first of which are pharmaceutical manufacturing, precision medicine specialized in bio-tissue and medical products designed specifically for the customer, the second is specialized medical care institutes such as centers for providing care for the elderly and rehabilitation centers for patients, and the third is medical tourism in the emirate, which can benefit from relatively lower costs compared to the prevailing prices in the region.

The report noted that the emirate, thanks to its strategic location and its possession of ports on the Arabian Gulf and the Gulf of Oman, has become a gateway to the markets of the Gulf region and a faster access point to the markets of East and South Asia, Australia and Africa. Its budget is in 2021 to develop and improve infrastructure including roads.

The report dealt with the investment opportunities offered by Sharjah in the sector, noting that smart transportation solutions provided by hyperloop trains, smart electric mobility vehicles and electric charging solutions, in addition to automating charging processes with artificial intelligence and robots, as well as establishing cooling facilities dedicated to perishable goods such as vegetables and medicines, all constitute opportunities. Promising in this growing sector at the level of the UAE, which is likely to reach 30 billion dollars (110 billion dirhams) by 2025.

The report expected that the size of the tourism and travel sector in Sharjah would reach $20.3 billion (74.5 billion dirhams) by 2027, based on growing tourist attractions, new hospitality and entertainment projects, government investments in tourism infrastructure projects, in addition to the growth rates of the hotel sector in 2019. The year before the pandemic, which amounted to 5%, as well as hotel revenues in the same year, amounting to 156 million dollars (573 million dirhams), especially in light of the rapid recovery that the sector has witnessed since last year.

He stressed that the emirate is rich in various natural landmarks, which has enhanced its importance as a growing destination on the list of film producers and photographers, and that this diversity provides investment opportunities in the tourism sector to launch projects of mountain activities, desert adventures, or even beach and marine activities, noting that the emirate includes many natural and historical places that can be visited. For investment, which is distributed over its various cities and transformed into eco-tourism projects.

He pointed to the importance of trade fairs and live cultural events hosted by Sharjah throughout the year, which play a major role in tourist attractions, which can be invested in profitable projects for investors.

The report touched on agricultural and food production in the country, explaining that the size of the local agricultural production market in the pre-pandemic year 2019 amounted to 626 million dollars (2.3 billion dirhams), with strong annual returns that amounted to 9.8% at the time, and with an ambitious plan by the state to double production to $1.1 billion "4 billion dirhams" by 2024, the sector will be a gateway to many projects that will find a stable in Sharjah.

The report indicated that this vital sector in Sharjah offers many innovative opportunities, as it is possible to establish farms for aquaculture and seaweed that are used in the food industries, especially on the eastern coast of the emirate, in addition to hydroponic, alternative and vertical farming projects, in addition to the opportunities offered by the packaging and food production sector in Sharjah. The existence of various free and industrial zones and the emirate's strong link with foreign markets, which facilitates the export of products.

The report stated that Sharjah is one of the pioneers in the green technology sector and environmental sustainability in the region, and since May 2022 it has become the first city in the Middle East to completely divert waste away from landfills. Carbon is enough to supply 67,000 homes with their electricity needs.

He pointed out that the UAE produces 19 percent of solid waste at the level of the Gulf countries, which means that there are major investment opportunities available in the sector to generate clean energy from waste, and that the country enjoys one of the highest rates of sunny days throughout the year in the world, so it is expected that the growth of The domestic solar market increased by 15 percent from 2022 to 2025.

According to the report, the potential opportunities in the sector in Sharjah are to build factories to re-sort and recycle waste and then send the rest to a waste-to-energy plant, in addition to clean energy storage projects and energy generation projects from clean sources such as hydrogen and solar energy, as well as green building projects and smart buildings It is highly attractive to foreign direct capital.

The report pointed to the importance of education in building generations capable of advancing the economy in its various sectors, pointing out that Sharjah embraces attractive investment opportunities to build specialized professional academies, institutes for building future skills, research laboratories, manufacturing and innovation that work on finding low-cost solutions to complex problems, especially with an investment of $1.5 billion. 5.5 billion dirhams” annually in education and research.

He explained that the education sector in the country is expected to achieve growth of up to 5 percent annually until 2024, which means the need to establish more nurseries, integrated children's centers and schools to keep pace with the demand, which are projects that enjoy a special attraction for investors.

The report "Invest in Sharjah" revealed that the advanced manufacturing sector constitutes the future for the state and the Emirate of Sharjah in particular, estimating the size of the sector in the country at 599 million dollars (2.2 billion dirhams) by the year 2025.

He noted that Sharjah has a strong industrial base locally, represented by the presence of more than 35% of the factories in the country, which gives a strong impetus to any new projects in the sector, such as projects for manufacturing parts and spare parts through 3D printing technologies, projects for manufacturing industrial automation devices and manufacturing smart automation devices. In addition to the manufacture of robots, drones, and others, which allows these projects to benefit from a growing Gulf market, amounting to 10.3 billion dollars (37.8 billion dirhams) by 2023.

His Excellency Ahmed Obaid Al Qaseer, Acting Executive Director of the Sharjah Investment and Development Authority (Shurooq), said: Today, Sharjah is rich in many investment opportunities in various fields, especially within the sectors of the new economy, advanced industries, tourism, agriculture, innovation and others. With a developed infrastructure and encouraging legislation, the emirate has become a prime destination for business. And the capital of industry in the region, and we look forward to welcoming more companies that will definitely benefit from the accelerating growth wheel and the continuous support for creative projects in the emirate and the UAE in general.

For his part, Mohammed Juma Al Musharrakh, Executive Director of the Sharjah Office for Foreign Direct Investment 'Invest in Sharjah', said: "Investments in technology have outperformed all other sectors in the post-Corona era, and Sharjah's announcement of the first 3D printing factory in the region is a clear indication of the emirate's competitive capabilities. in the advanced manufacturing sector.

He stressed that "Invest in Sharjah" is interested in attracting and assisting all kinds of investments looking for growth in a secure environment for stability in Sharjah, as through the distinguished relations that bring the office together with its strategic partners in the public and private sectors, we can connect investors with the best available investment opportunities and secure all support They have them from the idea of ​​the project until its launch.

Al-Musharrekh explained that the Sharjah Invest Office team provides investors with reliable analytical information about the market and the opportunities in it and detailed advice for each case based on their extensive experience in this field, which makes investors able to make their decisions with confidence and reassurance. The investor will make his investment journey in the emirate easier.

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