Dubai: Sharjah’s shift to a non-oil economy has significantly boosted the UAE’s economic resilience and is well placed to support the UAE’s $150 billion foreign investment goal by 2031, according to Minister of Economy Abdulla bin Touq Al Marri.
The Minister said during his keynote address at the 7th edition of the Sharjah Investment Forum, which began on Wednesday, that with nearly 96 per cent of Sharjah's economic activity driven by non-oil sectors, the emirate has capitalised on diverse foreign direct investment opportunities and reaping substantial benefits.
“Sharjah has been able to revive its economy from the repercussions of the pandemic, with an economic growth of 4.8 per cent in 2021 and 5.2 per cent in 2022,” said the Minister. “In addition, the emirate’s GDP last year recorded a growth of 6.5 per cent, equivalent to Dh145 billion ($39.5 billion), with all sectors witnessing positive growth,” he added.
According to the Minister, Sharjah's growth has been driven by agriculture, fishing, accommodation, food services, and financial activities.
Moreover, its focus on diversity – supported by six specialised free zones, flexible investment options, and opportunities in manufacturing, trade and creative industries - has strengthened its global investment position.
Geopolitical challenges
The Minister also said that the UAE has all the necessary tools to overcome current economic uncertainties, price fluctuations, and geo-economic fragmentations, referring to the unrest in the region. He said, “Our national economy is not immune to these challenges. However, we believe our country has all the necessary tools to confront them.”
The Minister said the UAE remains committed to open economic policies, increasing integration into the global trading system, and enhancing the competitiveness of the country’s investment environment. “These pillars are essential to building a knowledge-based economy and maintaining flexibility and adaptability in the face of current and future challenges,” he stated.
Committed to free trade agreements
Al-Marri also said that several legislative developments and economic policies adopted by the UAE, including the amendments to the commercial companies’ law and updates to visa and residency systems, have helped the country retain its status as a global hub.
He explained that free trade agreements with India, Indonesia, and Turkey have opened new horizons that include a fifth of the world's population. “Today the country's non-oil sector accounts for about 74 per cent of the total GDP, which embodies the extent of progress in economic diversification,” he stated.
Efforts paid off
With these efforts, the average growth rate of the UAE economy has reached 5 per cent. “Moreover, in the first quarter of this year, non-oil GDP grew by 4 per cent year-on-year – despite geopolitical tensions in our region and global uncertainty,” he added.
The country’s non-oil foreign trade hit a new record level of Dh1.4 trillion ($382 billion) in the first half of 2024, up 11.2 per cent year-on-year, with non-oil exports growing by 25 per cent.
“Moreover, the number of commercial licenses has doubled since the renewal of the Companies Law, reaching a record level of 900,000 commercial licenses – around 107,000 of which are in Sharjah,” he stated.
The UAE attracted nearly $31 billion in foreign direct investment inflows in 2023, and outward foreign direct investment inflows amounted to $22 billion, reflecting the increasing impact of the country’s global investment.
Tourism investment
The UAE has also maintained its ranking among the top 10 tourist destinations in the world, attracting more than 12 million visitors annually.
“I believe Sharjah and the UAE have promising investment opportunities in tourism sectors and activities. We have a national target to attract tourism investments worth Dh100 billion over the next seven years, in light of the National Tourism Strategy 2031,” said Al Marri.
With these achievements, Al Marri said that the UAE remains steadfast in its focus on diversifying its economy, boosting technology and AI, and creating a competitive business environment through strategic partnerships and flexible policies. “By the next decade, the goal is to build a knowledge-based economy, targeting sectors like space, renewable energy, fintech, and AI,” he stated.
The Sharjah Investment Forum (SIF 2024), organised by the Sharjah FDI Office (Invest in Sharjah), kicked off on Wednesday. The event will shape ‘A Futuristic Vision for Smart Economies’ through over 100 sessions, including keynote addresses, dynamic panel discussions, and interactive workshops.
