Sharjah's Economy Poised for 2025 Boom
The economy of Sharjah is in excellent condition and could grow even further, potentially reaching a 7.5% increase by 2025, according to a leading official of the United Arab Emirates (UAE). The expected growth is attributed to smarter economic policies, greater economic integration, and foreign investments in key sectors. This announcement was made during the Sharjah Ramadan Majlis 2025 event, attended by numerous high-ranking officials.
Foundations of Economic Growth
Sharjah's economy currently stands at around $45 billion and achieved a 6.5% growth in 2023, which was 3.5 percentage points higher than the global average. The leading official highlighted that the automotive and vehicle parts trade accounts for 24% of the emirate's economy, while agriculture contributes 19%, manufacturing almost 17%, and the broader food ecosystem approximately 17% to the economy.
Reasons behind the growth include smarter economic policies aimed at fostering closer cooperation between the private sector and the state. The government aims to protect key sectors such as manufacturing, trade, agriculture, and environmental protection. Safeguarding and developing these sectors could contribute to the economy achieving a 6.5-7.5% growth by 2025.
The Role of the Real Estate Market
The real estate market also plays a significant role in Sharjah's economic development. According to the leading official, the real estate market could experience substantial growth by 2025, partly due to the active development efforts by private sector investors who are actively developing the region. The role of real estate developers and private investors is crucial to keeping Sharjah attractive to foreign investors.
The Growth of Foreign Trade
Foreign trade is a vital part of Sharjah's economic strategy. In 2024, the UAE's foreign trade grew by 14% compared to the previous year, which was seven times faster than the global average. Sharjah's foreign trade achieved an 8.1% increase during the same period. This growth provides opportunities for the private sector to leverage various trade agreements and markets.
The UAE's Minister of Foreign Trade emphasized that Sharjah attracts numerous companies through the "Invest in Sharjah" initiative, as well as the activities of the Sharjah Investment and Development Authority (Shurooq) and the Sharjah Research, Technology and Innovation Park. Incentives and market opportunities offered under the Comprehensive Economic Partnership Agreements (CEPAs) make the region appealing to companies.
The Role of the Private Sector
Closer cooperation between the private sector and the state is critical for future growth. The government's aim is to understand the connections and dependencies within supply chains and to develop more effective policies based on feedback from the private sector. This collaboration can help ensure that Sharjah's economy continues to develop dynamically.
Summary
Sharjah's economy is in excellent condition and is expected to grow further by 2025 according to current trends. Smarter economic policies, foreign investments, real estate market developments, and foreign trade growth all contribute to the possibility of the emirate's economy achieving a 7.5% growth. Closer cooperation between the private sector and the state ensures that Sharjah remains attractive to investors and achieves sustainable economic development.
