Economy
From The Report: Sharjah 2017
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Among the most diversified economies in both the UAE and the wider GCC region, Sharjah has developed strong manufacturing, tourism and logistics industries, among other non-oil sectors. Against a backdrop of reduced oil prices and lower economic growth, local and federal authorities are working to develop the economy further through a range of measures intended to improve the business environment, attract more foreign investment and bolster government finances. Out of a UAE-wide GDP of Dh1.37trn ($373bn) in 2015, Sharjah’s portion reached Dh85.66bn ($23.6bn), or 6.3% of the total, making it the third-largest economy in the federation after Dubai and Abu Dhabi.

This chapter contains interviews with Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE; Sheikh Khaled bin Abdullah bin Sultan Al Qasimi, Chairman, Department of Seaports and Customs.

Articles from this Chapter

Overview

In high gear: Investment and long-term strategies are helping push continued economic growth
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Among the most diversified economies within both the UAE and the wider GCC region, Sharjah has developed strong manufacturing, tourism and logistics industries, among other non-oil sectors. Against a backdrop of reduced oil prices and lower economic growth, the local and federal authorities are working to further develop the economy through a range of measures intended to improve the business environment, attract more foreign investment and bolster government finances. Growth The value of Sharjah’s…

Interview

Prudent policy: Khalifa Mohammed Al Kindi, Chairman, Central Bank of the UAE, on weathering external challenges
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Interview: Khalifa Mohammed Al Kindi How does the dirham’s fixed peg to the US dollar affect UAE monetary policy? KHALIFA MOHAMMED AL KINDI: The recent wave of dollar appreciation – which is likely to continue with the direction of monetary policy in the US – has forced an appreciation trend of the dirham relative to major trading partners. This has been beneficial in stemming inflationary pressures by reducing the cost of imported goods for consumption and production. In this regard, our…

Interview

Smooth operations: Sheikh Khaled bin Abdullah bin Sultan Al Qasimi, Chairman, Department of Seaports and Customs, on facility upgrades and the unique capacities of Sharjah’s ports
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Interview: Sheikh Khaled bin Abdullah bin Sultan Al Qasimi How has the economic environment changed in recent times, and how are Sharjah’s ports maintaining their competitive advantage? SHEIKH KHALED BIN ABDULLAH BIN SULTAN AL QASIMI: Sharjah Ports Authority adopts a periodic preventive maintenance programme to ensure that our facilities are in a good state to handle ships and receive and store cargo at all times. We also continuously upgrade the facilities in line with changing cargo trends.…

Analysis

Under scrutiny: The government is taking a range of measures to address the deficit
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The government of Sharjah has consistently run small fiscal deficits in recent years. Against a backdrop of falling oil prices, the deficit has outstripped economic growth, generating rising levels of public debt. However, these remain modest as a proportion of economic output. Furthermore, the government has also recently taken a range of measures to reduce the costs of servicing its debt, which should allow for substantial room for it to continue borrowing in the coming years in order to invest…

Analysis

Cash and flow: The government is looking to bring in more FDI
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Against a backdrop of lower global oil prices, Sharjah has recently been taking steps to bolster foreign investment in order to further promote economic diversification. The emirate already benefits from an attractive investment environment, and a range of legislative changes to bolster its appeal have recently been passed or are in the pipeline. Investment Inflows Figures for overall foreign direct investment (FDI) inflows into Sharjah and FDI stocks are not available. However, the total value…