Sharjah's economy strategy powers record-breaking FDI surge

07/10/2025 02:59 AST

Sharjah is rewriting the playbook on economic development in the region, choosing a path that blends industrial strength, cultural capital, and human development to drive foreign direct investment (FDI). In the first half of 2025, the emirate recorded a staggering 361 per cent increase in FDI, reaching $1.5 billion - up from $325 million in the same period last year.

While many regional economies are pivoting toward digital and service-based sectors, Sharjah is doubling down on its industrial and manufacturing base. "A resilient economy is a diversified one, but it must be built on a foundation of tangible value creation," Invest in Sharjah CEO Mohamed Juma Al Musharrakh told Khaleej Times. Sharjah's industrial sector, which hosts 35 per cent of the UAE's factories and contributes nearly one-third of the country's total manufacturing output, is being positioned not as a legacy sector but as a future-ready engine of growth.

The emirate's recent FDI projects reflect this shift, with investments flowing into advanced manufacturing, medical devices, renewable energy components, and agri-tech. These sectors not only create high-skilled jobs but also foster innovation and export-led growth. "We are seeing a global re-evaluation of supply chain resilience, and Sharjah is perfectly positioned to be a regional and global hub for light assembly and logistics," Al Musharrakh added.

But Sharjah's economic strategy goes beyond factories and infrastructure. Cultural investment is playing a pivotal role in shaping the emirate's global identity and attracting talent. "The ROI on our cultural investments is measured in talent attraction, tourism revenue, and brand equity," said Al Musharrakh. With accolades such as UNESCO World Book Capital and the recent designation of Faya Paleolandscape as a World Heritage Site, Sharjah has become a magnet for intellectuals, designers, and innovators - key drivers of the modern knowledge economy.

This cultural momentum has translated into tangible economic benefits. Sharjah's tourism sector has seen consistent growth, driven by cultural, eco, and experiential tourism. Flagship events like the Sharjah International Book Fair (SIBF), International Government Communication Forum (IGCF), and Sharjah Investment Forum (SIF) attract high-net-worth individuals and globally mobile audiences, boosting sectors from retail to real estate.

Sharjah's emphasis on human capital is another cornerstone of its FDI strategy. Through initiatives like the Sharjah Investors Services Center (SAEED), Invest in Sharjah is actively facilitating partnerships between incoming investors and local talent. "Human capital is the ultimate currency of a modern economy," said Al Musharrakh. "We track the quality and skill-level of opportunities being created, ensuring that investment demands are matched by a capable and evolving talent pool."

Policy reforms have also played a critical role in Sharjah's investment appeal. The emirate has streamlined regulations, introduced 100 per cent foreign ownership in select sectors, and elevated standards for transparency. These investor-centric initiatives have helped Sharjah build a reputation as a "risk-off" destination where capital finds resilient returns.

International exposure is further amplifying Sharjah's investment narrative. The emirate is set to host the 29th WAIPA World Investment Conference in October, alongside its own Sharjah Investment Forum. These platforms enable direct dialogue between global investors, government officials, and local innovators, resulting in strategic deals and cross-border partnerships. "We proactively showcase Sharjah's appeal and its capability to convene global capital flows," said Al Musharrakh.

The socio-economic impact of this FDI boom is already visible. In H1 2025, Sharjah saw a 45 per cent rise in job creation, with over 2,500 new positions added. SME growth has accelerated, particularly in business services and F&B sectors, with business services witnessing a 500 per cent increase in project activity and a 1,100 per cent boost in employment.

Looking ahead, Al Musharrakh envisions a future-ready economic model that merges culture, innovation, and sustainability. "Our strategy is not only to enhance financial returns, but also to generate legacy value for all stakeholders," he said. With a balanced approach to growth, Sharjah is positioning itself as one of the most adaptive and forward-looking investment destinations in the region.

Khaleej Times