Industry & Energy
From The Report: Sharjah 2021
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Benefitting from a low cost base, and well-developed and connected infrastructure, Sharjah has become a key industrial player in the region. Indeed, the emirate is a significant contributor to the UAE’s total manufacturing output, accounting for around one-third of the sector. Meanwhile, in recent years the contribution of hydrocarbons production to GDP has remained comparatively small, representing around 4% of the emirate’s total GDP. This is thanks not only to a push to diversify the economy, but also higher levels of investment in and utilisation of renewable energy sources. This trend has enhanced the role that private service providers and independent power and water producers play in the power-generation segment.

This chapter contains interviews with Hussain Al Mahmoudi, CEO, Sharjah Research Technology and Innovation Park; Khaled Al Huraimel, Group CEO, Bee’ah; Hatem Al Mosa, CEO, Sharjah National Oil Corporation; and Abdulwahab Al Sadoun, Secretary-General, Gulf Petrochemicals and Chemicals Association.

Articles from this Chapter

Overview

Diversified base: Efforts to support non-oil sectors lead to a strong manufacturing environment and focus on renewables
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Industry in Sharjah has benefitted from the emirate’s low-cost base, well-developed and connected infrastructure, and proximity to Dubai and the neighbouring northern emirates. This has resulted in Sharjah becoming a key regional industrial player. Indeed, the emirate is a significant contributor to the UAE’s total manufacturing output, accounting for around one-third of the country’s manufacturing sector. Meanwhile, in recent years the contribution of hydrocarbons production to GDP has remained…

Interview

Innovation ecosystem: Hussain Al Mahmoudi, CEO, Sharjah Research Technology and Innovation Park (SRTIP), on strengthening key areas of the economy through collaboration and entrepreneurship
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Interview:Hussain Al Mahmoudi How can Sharjah and the UAE benefit from high-potential research areas in the coming years? HUSSAIN AL MAHMOUDI: There are five areas that will thrive in 2021 and beyond, generating quick wins, and delivering high strategic and social impact. Two of those areas are closely related to digitalisation. First, the Covid-19 pandemic has shone a spotlight on the importance of e-services and data analysis within government, as well as on the effectiveness and efficiency…

Analysis

Manufacturing reimagined: Logistical and supply chain challenges associated with the Covid-19 pandemic spark a reassessment of historical operations
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With travel restrictions, closed factories and social-distancing measures in place for much of the year, 2020 was particularly challengingforindustrial companiesaround the world. However, despite such constraints,many countries were able to successfully repurpose production to meet needs associated with the Covid-19 pandemic, while others look set to benefit from shifting trends in global supply chains. Early Challenges Industry was affected from the moment Covid-19 began…

Analysis

Accelerated transition: The pandemic has intensified the shift towards renewable energy
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The year 2020 was a dramatic one for the global energy sector, with the Covid-19 pandemic slashing demand for hydrocarbons and upending market norms. Seeing that investment in oil and gas took a hit while renewable energy remained resilient, the pandemic is expected to result in a permanent realignment of the international energy market. Oil Price Crisis Travel restrictions and government-imposed lockdowns designed to halt the spread of Covid-19 had a considerable impact on energy demand worldwide.…

Interview

Brighter days: Khaled Al Huraimel, Group CEO, Bee’ah, on the future of environmental management and sustainability
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Interview:Khaled Al Huraimel How has Sharjah’s environmental sustainability drive evolved during the Covid-19 pandemic, and how can it contribute to a green recovery? KHALED AL HURAIMEL: Since 2010 Sharjah has prioritised waste management and environmental sustainability. Today these policies are evolving to include air quality, energy efficiency, health care technology, sustainable transport and digitalisation. Thanks to previously implemented policies, Bee’ah – a public-private partnership…

Interview

Enhanced supply: Hatem Al Mosa, CEO, Sharjah National Oil Corporation (SNOC), on harnessing the potential of new discoveries
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Interview: Hatem Al Mosa How is Sharjah pursuing its energy security goals amid rising demand for power? HATEM AL MOSA: Managing energy security involves a multifaceted approach that relies on the diversification of supply. In addition to SNOC’s production, Sharjah’s gas supply includes pipeline imports, access to existing liquefied natural gas regasification units and gas from across the UAE. To further strengthen these efforts, SNOC established a gas storage facility, a project that was commissioned…

Analysis

The right direction: Industries not eligible for the green bond market have a new option to fund their shift towards sustainable activities
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As companies look to shift towards more environmentally sustainable operation, those in fossil fuel or heavy-polluting sectors are increasingly turning to transition bonds – a relatively new class of debt instrument used to fund a company’s transition towards reduced environmental impact or lower carbon emissions. They are often issued in large carbon-emitting industries that would not normally qualify for green bonds, such as oil and gas, iron and steel, chemicals, aviation and shipping. In…

Interview

Creating value: Abdulwahab Al Sadoun, Secretary-General, Gulf Petrochemicals and Chemicals Association (GPCA), on the industry’s recent performance and near-term outlook
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Interview:Abdulwahab Al Sadoun How has the GCC petrochemicals industry been affected by the Covid-19 pandemic? ABDULWAHAB AL SADOUN: The health crisis had a significant effect on the petrochemicals industry. In the first half of 2020 demand collapsed and prices plunged, a challenge compounded by supply chain disruptions related to the closure of ports in China and increases in freight rates to as much as three times the market price prior to the Covid-19 pandemic, eroding the profits of producers…