Dubai: Sharjah, the third largest emirate in the UAE, is a major contributor to the country's economy.
With a gross domestic product (GDP) of Dh76 billion, it hosts more than 46,000 companies that employ thousands of professionals.
The emirate also has one of the UAE's largest industrial clusters. This has helped boost the UAE's industrial production earning the country valuable foreign exchange.
The emirate has been less affected by the global financial crisis.
In an exclusive interview with Gulf News, Hussain Mohammad Al Mahmoudi, Director-General of the Sharjah Chamber of Commerce and Industry (SCCI), elaborates on the emirate's private sector — the main driver of its growing economy. Excerpts:
Gulf News: What was the impact of the global financial crisis on the economy of Sharjah? Is it still growing?
Hussain Mohammad Al Mahmoudi: Despite the impact of the global financial crisis that has affected most global industries and sectors, Sharjah continues to exhibit continuous growth. The emirate has witnessing a 3 per cent growth in GDP in 2009 compared to the figures posted the year before.
How many business establishments are active in Sharjah?
The SCCI recorded a total of 46,000 members in 2009.
Could you give us a breakdown on companies based on categories: Industrial, trade, professional?
The commercial sector dominates a large part of the membership with over 21,998 registered certificates, followed by the professional sector.
The significant increase in registration further affirms Sharjah's status as an integrated city for services. Sharjah is recognised for its industrial sector — being the country's first industrial base and regarded as one of the most important sectors in the Gulf region, especially for small and medium enterprises (SME).
The emirate has registered over 1,447 industrial memberships (excluding those in the free zones) and represent more than one-third of the total number of industrial enterprises in the UAE.
What is the share of the small and medium enterprises (SMEs) in the emirate's private sector?
For small and medium enterprises, the percentage of membership varies from 85 per cent to 90 per cent.
What is the value of Sharjah's gross domestic products?
Sharjah's GDP is currently valued at Dh76 billion. Despite the financial crisis, our economy is growing.
How strong is the industrial base in Sharjah?
Sharjah's economy can be clearly defined by its robust and developed infrastructure. In fact, the presence of excellent and reliable services combined with modern facilities and an equally skilled workforce have become key factors in attracting investments into the emirate. Sharjah's industrial area, which represents about 38 per cent of the country's total industrial segment, offers eight specialised industrial zones/areas. Moreover, SMEs are considered to be the cornerstone of Sharjah's industrial sector.
What is the government doing to attract investment?
The local government aims to attract more business and investments into the emirate. The government is also working to achieve total sustainable development by introducing and implementing various programmes and initiatives that seek to improve not only the services offered by various government offices but also the level of Sharjah's infrastructure.
The Sharjah International Airport is one of the most important air cargo outlets for the region while the Khor Fakkan port's strategic position makes it an important hub for marine cargo operations for both local and international companies. The Sharjah government is currently undertaking major steps to help develop and modernise these two international ports as the export and re-export sectors are main income sources for Sharjah's economy.
Many businesses are easily attracted to Sharjah because of its favourable and advantageous investment policies and the fast, reliable and efficient services provided by the government. Moreover, investors establishing their businesses via special investment projects in a Sharjah Free Zone get the added advantage of registering and going through other set-up procedures faster as compared with other emirates.
Why should investors consider pumping money into Sharjah?
Sharjah also offers great security and stability; positioning itself as a premier investment destination and an ideal place to reside. Over the years, many families have moved to Sharjah and appreciate the facilities and overall quality of life the emirate offers to families.
The increase in families moving to Sharjah has been accompanied by a growth in the retail sector, which is considered to be one of the emirate's main economic sectors. The emirate is home to several shopping centres and other commercial enterprises that provide all the needs of the consumer market.
The local government has also started to implement strategic programmes and initiatives that encourage young business minded entrepreneurs to develop their own investment projects and aid in the efforts directed towards the emirate's development.
What is your organisation doing to improve business environment?
The SCCI has also launched various initiatives and programmes that seek to support the local economy. These programmes include the initiative to support small and medium enterprises; the formation of ‘The Business Groups'; the Annual Sharjah Economic Excellence Award (SEEA); the ‘Shopping Weeks' initiative and the ‘Made in Sharjah' programme. The ‘Made in Sharjah' programme is an integrated promotional system that provides support for local made products and complements the government's policy on economic diversification.
The programme covers nine major areas of development, promotion and advertising of local made products. These areas include the ‘Made in Sharjah' exhibition, the ‘Made in Sharjah' trademark, the promotional plan for the permanent exhibition, a short video documentary entitled ‘Made in Sharjah', the monthly electronic newsletter ‘Made in Sharjah', a special section on commercial.com, the largest commercial website in the Middle East, the exports good directory, a standardised specifications programme and a series of training and rehabilitation programmes currently being implemented by the Chamber in relation to the ‘Made in Sharjah' initiative.
Career growth: Experience and talent
Hussain Mohammad Al Mahmoudi, Director-General of the Sharjah Chamber of Commerce and Industry in the UAE, has come a long way in his career to assume his current responsibilities.
Earlier, he worked with Emirates National Oil Company (Enoc) where he held the position of Corporate Communications Manager, responsible for developing and implanting communications and marketing strategies for Enoc group of companies. He was also responsible for developing Enoc sponsorship strategies and CSR activities.
Then he joined Dubai Internet City (DIC) where he held the position of Director of Marketing responsible for managing the DIC brand. His role entailed developing and implementing strategies that helped Dubai become the ICT hub for the region. He played an instrumental role in launching new company brands such as Knowledge Village, SAMACOM and Datafort. He also was responsible for designing and implementing key events for DIC such as the OECD meeting on telecommunications, Dubai Strategy Forum, the Arab Journalism Award and many others.
Then he joined the Royal Dutch Shell Group of Companies where he was stationed between Dubai and the Netherlands. He held various positions in the Exploration and Development, Gas and Power and Shell Markets starting with Head of External Affairs and Health, Safety and Environment and ending with the position of Senior Adviser New Business Development for the Middle East, Caspian and South East Asia. During his time with Shell he has launched various community projects such as the Emirates Businesswomen Award, The Middle East CSR conference and others initiatives.
Hussain also is the founder and the current Chairman of the Sharjah Tatweer Forum.
He is also the Chairman of the Emirates Business Council for Sustainable Development (Local chapter of the World Council of Sustainable Development).
Hussain has a BA in Economics and Communications from Seattle Pacific University, Washington.
Sharjah Chamber of Commerce and Industry
The Sharjah Chamber of Commerce and Industry was formed via an Amiri Decree issued in 1970 by the Ruler of Sharjah. SCCI assists in the organisation of commercial, industrial and professional initiatives, provides consultation on economic projects and policies, and conducts data gathering and statistical research as related to economic development. The Chamber protects and promotes the interests of its members and introduces them to regional and international corporate, government and special-interest groups. It also encourages greater participation of UAE nationals in economic and commercial development.
