Sharjah is witnessing an unprecedented boom in foreign direct investment (FDI) this year, recording a 44 percent year-on-year rise in the number of projects and attracting $140.6 million in capital investment during Q1 2024 alone, the CEO of Sharjah’s FDI Office told Arabian Business.
This exponential FDI surge comes on the heels of a remarkable year in 2023, which recorded a 2,064 percent increase in capital expenditure on greenfield FDI projects, said the CEO, Mohamed Al Musharrakh. This figure also accounted for 19 new projects that secured a total investment of $2.75 billion and created more than 1,500 jobs.
“We are glad to report that this positive trend has carried over into 2024, with Q1 recording a notable increase in FDI activity compared to the same period in 2023,” Musharrakh told Arabian Business.
The positive momentum in FDI has continued into the first quarter of this year, as the emirate witnessed an increase in FDI projects to 23, up from 16 in Q1 last year. Notably, greenfield FDI projects saw even more impressive growth, doubling from 5 to 10 new projects in the same comparative period.
“Capital investment has also shown comparative growth, with $140.6 million in Q1 2024, which is above the amount last year, which sets a pace that is very likely to surpass the $2.75 billion in capital investment for 2023,” he added.
Sharjah’s thriving economy and investors
In 2023, Sharjah’s GDP grew by a staggering 6.5 percent and the city’s investment and development authority, Shurooq, has seen its global appeal rise significantly across a range of sectors over the past year.
“The emirate’s 6.5 percent GDP growth in 2023 has further boosted its appeal to top businesses and investors who continue to leverage the emirate’s robust infrastructure, diversified economy, and its success in developing future-focused sectors to attain continued success,” said Shurooq’s CEO, Ahmed Al Qaseer.
According to the Department of Statistics and Community Development (DSCD), Sharjah’s GDP reached approximately AED145.2 billion in 2023, up from AED136.4 billion in 2022.
The non-oil sectors have been particularly strong, growing by 7.1 percent to reach AED142.5 billion in 2023. The ‘wholesale, retail trade, repair of motor vehicles and motorcycles’ sector led the way, contributing 24 percent (AED34.8 billion) to the total GDP output. Manufacturing and construction sectors also made significant contributions, collectively adding AED72.5 billion to the economy.
Notably, the ‘agriculture, forestry, and fishing’ sector recorded the highest growth rate at 19.1 percent, followed by the ‘accommodation and food services’ sector at 17.5 percent growth, and the ‘financial and insurance’ sector, which saw a 12.3 percent increase.
Currently, more than 65,000 foreign firms operate in Sharjah, underscoring the emirate’s growing attractiveness to international investors.
“Shurooq has been riding this wave of successful growth, expansion, and economic prosperity for over a decade, alongside envisioning and realising projects and initiatives that have contributed to the emirate’s economic growth,” added Al Qaseer.
The continued growth in FDI and the diversification of Sharjah’s economy suggest a positive outlook for the emirate’s economic future.
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