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Ahmed Obaid Al Qaseer: Sharjah has become the preferred destination for businesses and the industrial capital of the region.
Mohammad Juma Musharh: In a post-COVID world, investment in technology is outpacing all other industries.
- Sharjah has more than 60,000 SMEs and startups
- 6 professional free zones, 33 industrial zones and strategic locations
- Sharjah continues to grow amid devastating pandemic sweeping the globe
- Attracted FDI worth $220 million in 2020
- 60% growth in FDI projects in Q3 and Q4 2020
- In 2020, foreign direct investment helped create 1,117 new jobs
- Tourism investment to reach $20.3 billion by 2027
- Investment Opportunities for Aquaculture and Seaweed Farming Facilities
- Investment opportunities in waste recycling and waste-to-energy systems
- Professional vocational colleges and future upskilling and innovation labs are investment opportunities in human capital and innovation
- Sharjah has invested $1.5 billion annually in education and research, and the industry shows great growth potential
- Sharjah is home to more than 35% of the manufacturing sector in the UAE, giving it an edge in the manufacture of industrial components and automation of industrial hardware through emerging technologies such as the Internet of Things, robotics and drones.
The Sharjah Foreign Direct Investment Office (Investing in Sharjah) recently released FDI future trends and industry potential The report identifies seven high-potential industries that are driving qualitative and sustainable strategic investment in the emirate and enhancing the emirate’s competitiveness in the global economic and investment landscape.
The report was prepared in collaboration with a wide range of government departments and private sector entities in the UAE and in collaboration with PricewaterhouseCoopers Middle East. Backed by real-time performance statistics, the report details that despite a sharp drop in global investment inflows since the onset of the Covid-19 pandemic, Sharjah remains an attractive destination for key sectors such as health and wellbeing, transport and logistics, culture and tourism strong FDI destinations, agri-food technology, green technology, human capital and innovation, and advanced manufacturing.
Sharjah and UAE’s world-class infrastructure, stability are key factors making it a leading FDI hub in the region
The report noted that Sharjah and the UAE’s business-friendly environment, backed by modern legislation, future-proof infrastructure, a highly qualified workforce, and more than 60,000 SMEs and start-ups, are key factors in increasing their FDI attractiveness. For Sharjah in particular, six specialized free zones and 33 industrial zones, strategic locations, and global connectivity via sea, land and air routes and ports in the Gulf of Oman and Arabian Gulf have once again demonstrated the emirate’s attractiveness as a gateway to the GCC and the wider region, with a GDP of US$1.6 trillion (AED5.88 trillion).
The report highlighted that the UAE is one of the most open and investor-friendly economies in the world, attracting significant foreign investment over the past few years, noting that Sharjah has leveraged the UAE’s global reputation to cement its position as the preferred FDI in the country. destination of the region.
Success at the height of the Covid-19 pandemic
Against the backdrop of the devastating pandemic sweeping the world, Sharjah managed to attract FDI worth US$220 million (AED808 million), including foreign direct investment in the third and fourth quarters compared to 2019 Direct investment projects grew by 60%, minimizing the financial impact on their economy, which led to the creation of 1,117 new jobs. The strong growth trajectory during Covid-19 reflects the high performance of the ICT sector, which recorded a growth rate of 55.6%, followed by the food and agriculture sector at 49.7%, the life sciences sector at 47%, and finally, Logistics and distribution, up 46.2%.
Industry performance and future outlook
Health and Wellbeing
Per capita health spending in the UAE in 2019 was recorded at US$1,643 (AED6,035), and the country’s pharmaceutical industry is forecast to grow by 7.3% per annum to reach US$4.7 billion (AED17.26 billion) by 2024. All of this means that the potential for Sharjah to benefit from FDI in these industries is enormous.
Sharjah’s health and wellbeing sector is poised to witness an increase in foreign investment due to an aging population, overall population growth and medical advancements. According to the Medical Tourism Index, the UAE is one of the top 10 global healthcare destinations with an additional positive impact.
Within this sector, the Sharjah Investment Report highlights the largest investment opportunities in three key sub-sectors: pharmaceuticals and precision medicine to manufacture bespoke medical products using the emirate’s strong infrastructure; specialist healthcare facilities, including elderly care and rehabilitation centres; and health and Medical tourism, as the emirate is recognized as the preferred low-cost destination for medical tourism in the region.
Transportation and Logistics
Strategically located at the junction of East and West, with one coastline each in the Arabian Gulf and the Gulf of Oman, Sharjah has been the preferred gateway into the region for those seeking a shorter route from Australia’s Far East and South Asia. and Africa. The emirate has ripe FDI opportunities in mobility and logistics, especially after securing legislative support, with 43 percent of its 2021 annual budget earmarked for developing and improving infrastructure, including roads.
Recent reports highlight smart mobility solutions, including hyperloop technology, e-mobility and charging infrastructure; automation of freight through the use of emerging technologies such as artificial intelligence, robotics; cold chain facilities that extend the shelf life of produce and other perishables will have the most With the best return on investment, growth in the UAE is forecast to exceed US$30 billion (AED110 billion) by 2025.
Cultural Tourism
The report predicts that investment in Sharjah’s culture, media and tourism will reach US$20.3 billion (AED74.5 billion) by 2027, with the emirate transforming itself into global travel through multi-billion dollar development projects and the government The preferred destination of the user is supported. The forecasts also take into account the report’s findings on the number of hotel guests the emirate hosted in 2019, which increased by 5 percent compared to the previous year. With total hotel occupancy revenue of US$157 million (AED573 million) in 2019, the industry’s post-Covid-19 recovery has also been rapid.
The report also highlights that the emirate’s amazing natural diversity has captured the imagination of filmmakers and commercial producers from around the world. The report further clarifies that Sharjah’s biodiversity and rich local heritage create unique investment opportunities for ecotourism and adventure tourism across the emirate’s regions and cities.
In addition, world-class business and cultural events in the emirate throughout the year are a key factor in attracting tourists, presenting great investment opportunities.
Agri-Food Technology
The IIS-PwC Middle East report states that the UAE agricultural market reached US$626 million (AED2.3 billion) in 2019, with a CAGR of 9.8% in agricultural revenue, with Sharjah expected to be a major contributor to US$1.1 . The UAE agricultural market is expected to reach USD 1 billion in 2024.
In addition to aeroponics, aquaponics, hydroponics, vertical urban farming and plant genomics, there are substantial investment opportunities on the east coast of Sharjah to build aquaculture and seaweed farming facilities, the report noted. The report also highlights opportunities in food processing and packaging, especially with free and industrial zones throughout the emirate, and Sharjah’s strategic location to facilitate exports to neighbouring and international markets.
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The report also revealed that Sharjah has one of the highest potential for green tech investment in the region, with achievements including being named the Middle East’s first ‘Zero Landfill City’, as well as a solar park and a waste-to-energy Bee’ah factory Powers nearly 67,000 homes.
The UAE, which accounts for 19% of GCC solid waste generation, has numerous investment opportunities in clean energy. Furthermore, the UAE solar market is forecast to grow by 15% between 2022 and 2025.
According to the report, investment opportunities in the industry include waste recycling and waste-to-energy systems; clean energy production and storage to harness alternative energy renewable resources including solar energy, hydrogen fuels, biofuels; smart buildings and green buildings.
Human Capital and Innovation
Sharjah invests US$1.5 billion (AED5.5 billion) annually in education and research and has a talent-rich ecosystem of world-class universities and leading innovation centres. The Investing in Sharjah FDI Trends report also noted that opportunities abound for dedicated vocational colleges and future upskilling and innovation labs dedicated to finding cost-effective solutions to complex global challenges.
The education sector in the UAE is expected to grow at an annual rate of 5% through 2024, with some investment opportunities emerging in the early learning and childcare professions as Sharjah nurseries and K-12 programs expand.
advanced manufacturing
In the advanced manufacturing sector, the report shows that the UAE’s additive manufacturing industry is expected to reach US$599 million (AED2.2 billion) by 2025.
Sharjah is home to more than 35% of the UAE’s manufacturing industry, in addition to development for the manufacture of industrial spare parts and components, enabling these projects to tap into the growing GCC market, which is estimated to reach US$10.3 billion (AED37.8 billion) by 2023.
Support creative entrepreneurial projects
The Honourable Ahmed Obaid Al Qaseer, Acting Chief Executive Officer, Sharjah Investment and Development Authoritysaid: “Today, Sharjah has many investment opportunities in various fields, especially in the new economy, advanced industries, tourism, agriculture, innovation, etc. With advanced infrastructure and flexible legislation, the emirate has become the A preferred destination and industrial capital for regional businesses. We look forward to welcoming new companies to Sharjah, which will undoubtedly benefit from the accelerated growth and continued support of creative projects in the UAE and the UAE.”
Mohamed Juma Al Musharrkh, Chief Executive Officer, Sharjah Foreign Direct Investment Office (Invest Sharjah)said: “In a post-COVID world, investment in technology is outpacing all other sectors. The opening of Sharjah’s first 3D printing company in the region marks its competitiveness in advanced manufacturing.”
He added: “Invest Sharjah is keen to attract and promote investment that seeks growth in the emirate’s safe and stable environment. Leveraging our strong relationship between the private and public sectors, we can help investors access incredible investment opportunities, And provide all the required support from ideation to project launch.”
“Our team provides investors with reliable market information and analysis, and shares valuable opinions on each case based on their extensive experience in the field, helping investors make sound and confident decisions. We also have Sharjah investors Service Centre (SAEED), which is a one-stop shop for investors to do business and complete government transactions in Sharjah,” he concluded.
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