Interview: Hamad Ali Abdullah Al Mahmoud
Which leading industries are attracting foreign investment, and how do you envision their development in the near future?
HAMAD ALI ABDULLAH AL MAHMOUD: Sharjah envisions expanding into the advanced technology, medical, pharmaceutical and renewable energy industries, with an emphasis on clean hydrogen production. Traditional industries like machinery, chemicals, rubber, food and beverage, and electrical and electronic equipment are expected to thrive. Adjacent segments, including car repair, transport and storage, are experiencing rapid growth, supported by a conducive business environment. A stable economic climate, strategic infrastructure investment, and key projects such as Sharjah International Airport, ports and free zones contribute to a flourishing industrial sector.
Anticipated growth is driven not only by external factors, but also by rising demand. The emirate’s commitment to diversity, urban expansion and real estate projects, combined with government incentives, positions Sharjah as a key destination for investors seeking opportunities in various industrial segments.
How can the local private sector further contribute to achieving sustainable economic growth?
AL MAHMOUD: The effectiveness of the licensing system administrated by SEDD is an important factor in economic growth. As of the end of 2022 there were approximately 72,000 active licences covering various industrial, commercial and professional activities. There was an increase of 5% in the total number of licences issued and renewed in 2022 compared to 2021. The demand for new licences increased by 11%, with renewed licences seeing a 4% increase. This rise is particularly evident in commercial, professional and industrial sectors, with increases of 8%, 24% and 9%, respectively. These increments highlight the private sector’s achievement in fostering sustainable economic growth, contributing to Sharjah’s GDP approaching Dh140bn ($38bn). The emirate boasts a robust and diversified economy, expanding by 5.2% in 2022 compared to 2021.
Sharjah has effectively managed inflation, maintaining it below 4% between 2018 and 2023. This success is attributed to the decreasing reliance on oil and gas exports and growing exports of commodities, which partly result from the increased effectiveness of the business licence system. Furthermore, the emirate has created a favourable environment for investors through its free zones, transport facilities, ownership incentives and specialised economic zones. Sharjah has pursued balanced geographical economic development, making Kalba pivotal to agricultural and food industries, and establishing Hamriyah as a centre for the petrochemicals, petroleum and natural gas industries. These initiatives provide opportunities for industrial expansion as well as foreign direct investment.
In what ways has the regulatory framework for investment been adjusted to improve bureaucratic business procedures?
AL MAHMOUD: Keeping pace with global trends, we have focused on improving the quality of services, enhancing the skills of the workforce, adopting advanced technical systems, developing customer service, implementing international business quality standards and establishing flexible regulatory mechanisms. These measures encompass initiatives such as transferring licences directly to customers, supporting service centres for business continuity, enhancing licensing and legal affairs procedures, and empowering external entities like Sharjah Court. The emirate also introduced improvements like No Objection Certificate services and an electronic licensing system. A crucial aspect of our approach is the continuous responsiveness to inquiries, complaints and feedback, ensuring a 100% response rate.
Read More from OBG
