Sharjah is home to some of the UAE’s largest banks, along with a healthy insurance sector. Local government and corporate entities are also active in the debt and Islamic bond markets, while 2023 saw Sharjah launch a sustainable financial services framework that sets the rules for future green bond issuances. At the same time, the emirate has a fast-developing start-up and financial technology (fintech) scene, aided by the UAE’s overall strategies to encourage digital finance, as well as Sharjah’s own underscoring of the importance of innovation, education and training.
Structure & Oversight
As one of the UAE’s seven emirates, financial institutions that operate in Sharjah are subject to federal and local rules and regulations. The country is home to two major international financial centres, the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM); these free zones are independent common law jurisdictions and are exempt from civil and commercial UAE law.
As Sharjah does not possess its own capital markets, government and corporate entities within the emirate tend to use those in Dubai and Abu Dhabi instead. The Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) both have financial institutions from Sharjah listed on them. Dubai is also home to Nasdaq Dubai, on which the government of Sharjah listed a $750m sukuk (Islamic bond) facility in September 2023.
At the federal level, there are two basic regulatory laws governing the onshore financial sector: the main banking law – Federal Decree Law No. 14 of 2018 – and the Emirates Securities and Commodities Authority (SCA) Law No. 4 of 2000. The first sets out the structure and responsibilities of the Central Bank of the UAE (CBUAE), which is the main supervisory and regulatory authority for Sharjah’s banks and other financial sector institutions. The second law established the functions and duties of the SCA, which governs the financial markets, listed companies and brokers on a federal level. It also supervises the self-regulating ADX and DFM.
ADGM, meanwhile, is governed by the regulations of the Financial Services Regulatory Authority (FSRA), while the DIFC and Nasdaq Dubai are governed by the Dubai Financial Services Authority (DFSA).
The CBUAE, SCA, FSRA and DFSA all issue periodic rulings and updates to their regulatory frameworks. Banks are mandated by law to be public joint stock companies and thus listed, meaning they must also keep abreast of guidelines and rulings of the DFM and ADX.
In addition, the UAE government, via the Emirates Investment Authority, is entitled to a 5% stake in each locally incorporated bank. Many local banks operating in the UAE have much larger government ownership, however, often via sovereign wealth funds. In Sharjah, the two largest banks – Sharjah Islamic Bank (SIB) and Bank of Sharjah – both have Sharjah Asset Management as a shareholder, with the entity acting as the government’s investment arm, while Invest Bank also has a majority government stake.
Sharjah Asset Management operates within the Sharjah Finance Department (SFD), which is a key government body. The SFD acts on behalf of the emirate’s government when it comes to issuing bonds and sukuk.
With financial institutions on the reserved list under new regulations allowing 100% foreign ownership in the UAE, local banks still have to be at least 60% owned by national shareholders, although no one person can own more than 5% without CBUAE approval. There are no limits for foreign ownership, but the national ownership requirement means foreign ownership of locally incorporated banks cannot in practice be greater than 40%.
Central Bank
The CBUAE’s Supervision Department manages the sector on a day-to-day basis and issues banking licences and sets minimum capital requirements, among other duties. The CBUAE also ensures the UAE’s banks follow Basel III, with Basel IV implementation plans forthcoming. However, some elements of Basel IV have already been put into place, such as the standardised approach for counterparty credit risk.
As of August 2023 Tier-1 capital was mandated to be 8.5% of risk weighted assets (RWA), with a common equity tier 1 of 7%. Total capital, as the sum of Tier-1 capital and Tier-2 capital, had to be at least 10.5% of RWA under Basel III. In addition, there was a mandatory capital conservation buffer of 2.5%, meaning an effective capital adequacy ratio of 13% of RWA.
The CBUAE also has under its supervisory umbrella an independent anti-money laundering (AML) outfit, the UAE Financial Intelligence Unit. In October 2023 the Financial Action Task Force (FATF), the global body that monitors and assesses AML compliance, announced that the UAE had made significant progress in introducing compliance measures within agreed upon timelines. On-site visits were carried out in order to facilitate prompt removal from the FATF grey list and increased monitoring, where it had been placed in March 2022.
The CBUAE has also announced plans to establish an ombudsman unit for the financial sector, known as Sanadak, that will be a consumer complaint resolution mechanism to supplement and extend the remit of the Consumer Protection Department.
Islamic Banks & Fintech
Islamic banks operating in Sharjah and the UAE are subject to the Higher Sharia Authority (HSA). The body has the power to determine the rules, general principles and standards for Islamic finance of all kinds, while also undertaking oversight of Islamic banks’ own internal sharia supervisory committees. The HSA also has the task of promoting the UAE as a global Islamic financial leader.
In terms of fintech, the CBUAE, SCA, FSRA and DFSA are cooperating in efforts to establish guidelines for the segment in artificial intelligence, big data analytics, biometrics, cloud computing, blockchain and application programming interfaces. New regulations and codes of conduct were ongoing in all of these areas as of late 2023. In November 2020 the CBUAE Fintech Office was launched to help develop and implement a strategy for this key and emerging segment.
The Virtual Assets Regulatory Authority (VARA) also has charge over virtual asset issuance in Dubai, which is of relevance to Sharjah-based virtual asset issuers, as they may look to their neighbouring emirate to provide a platform. VARA also has the world’s first, tailor-made virtual assets regulatory regime.
The UAE Banks Federation, established in 1982, is the sector’s professional body, and in 2023, had a total of 57 members consisting of national and foreign banks and special status members.
Emiratisation
The banking sector is subject to the country’s Emiratisation policy, which obliges banks and other businesses to increase the proportion of Emirati nationals working for them over a specific period. The target for the banking sector is 45% Emirati nationals by 2026, with an additional target of 30% for senior executive roles. In 2022 a further goal of 3500 new jobs for Emirati citizens in banking by 2026 was added by the CBUAE, which also regulates the Emiratisation policy for entities in the financial sector. The policy has been labelled a success by the central bank, which announced in June 2023 that in 2022 the proportion of Emiratis working in the banking sector reached 33.2%, This was a trend reflected throughout the economy: the number of Emiratis employed by private entities increased by 11% year-on-year (y-o-y) in the third quarter of 2023.
Banks and other financial institutions operating in the emirate are subject to federal tax and company law. In terms of the former, the Ministry of Finance issued and enacted Federal Decree Law No. 47 of 2022, establishing a 9% corporate tax rate in the UAE for the first time, effective June 1, 2023. The tax creates a lower limit of taxable income of Dh375,000 ($102,000).
Federal Decree Law No. 32 of 2021 is an update from the previous 2015 law, and obliges banks and other UAE-registered companies to assess their status and bring practices and procedures into compliance with the new law’s requirements in areas such as corporate governance, security and corporate rescue.
Sustainable Finance
As part of the global effort to tackle climate change, the UAE has set a 19% greenhouse gas emissions reduction target for 2030 and created the UAE Net Zero by 2050 strategic initiative. The year 2023 marks the UAE’s hosting and presidency of the international COP28 UN Conference on Climate Change, with 2023 also declared the Year of Sustainability by the federal government.
Within this context, in February 2023 the SFD launched Sharjah’s Sovereign Sustainable Financing Framework. This sets out the emirate’s plans for enabling the financing of projects in Sharjah aimed at meeting those emissions targets. Green, social and sustainable bonds, sukuk and loans are seen as the way to do this, with the framework laying the ground rules for such sustainable financial instruments. These rules ensure that when such instruments are issued in and by the emirate, they also meet the UN Sustainable Development Goals requirements. This includes second-party opinion of any issuance – provided by international credit ratings agency Standard & Poor’s Global Ratings – as well as post-issuance verification.
Moving ahead with the framework, in February 2023 the government of Sharjah – via the SFD – issued a $1bn, 6.5% sustainable note, due November 2032. This was the GCC’s first sustainable sovereign bond. Further issuances are also likely, as Sharjah finances the energy transition, as well as the financial legacy of its Covid-19 pandemic budgetary expansion (see Economy chapter).
Sector Players
In the UAE as a whole, at the end of the second quarter of 2023 there were 22 locally incorporated banks functioning through some 493 branches. The UAE banking sector also has six GCC banks, operating through six branches, and 22 other foreign banks, operating through a further 66 branches.
While many of these local and foreign banks maintain branches and provide online services across the country, Sharjah itself is dominated by two major lenders – SIB and Bank of Sharjah. As of the second quarter of 2023 SIB was the only Sharjah-headquartered bank among the top-10 UAE banks by asset size. The two are complemented by two other listed Sharjah-based banks, Invest Bank and United Arab Bank (UAB).
According to its September 2023 interim financial statements, SIB had total assets of Dh63.4bn ($17.3bn) at that time, while Bank of Sharjah reported total assets of Dh39.5bn ($10.8bn) for the first half of 2023. UAB reported Dh14.7bn ($4bn) for the third quarter of 2023, while Invest Bank’s most recent preliminary results, for 2022, showed total assets of Dh8.8bn ($2.4bn). All four banks are listed on the ADX.
SIB was first established back in 1975 as the National Bank of Sharjah and turned to sharia-compliant banking in 2002. SIB has three fully owned subsidiaries – ASAS Real Estate, Sharjah National Hotels and Sharjah Islamic Financial Services. The bank also has two special-purpose vehicles established for its sukuk issuance programme, SIB Sukuk Company III and SIB Tier 1 Sukuk Company. As of September 2023, the bank had 32 branches, down from 34 in 2022.
The largest proportion of SIB’s investment in Islamic financing is in the form of ijara (leasing). The bank’s interim financial statements shows this product responsible for Dh18bn ($4.9bn) out of the bank’s Dh31.9bn ($8.7bn) in total net investments in Islamic financing. Murabaha (cost-plus financing) products, then accounted for a further Dh13.1bn ($3.6bn), with istisna’a (deferred delivery), qard hasan (interest-free lending) and credit card receivables making up the balance. Government departments and authorities were SIB’s largest customers for Islamic financing investment products, with 37.6% of the total; followed by real estate entities, with 28.1%; and individuals, with 12.1%.
SIB’s largest shareholder is Sharjah Asset Management, with 28.5%; followed by Kuwait Finance House, with 18.2%; and Sharjah Social Security Fund, with 9.1%. Around 44% of the company’s shares were free float at year-end 2022. The bank also increased the upper limit for foreign shareholdings from 25% to 40% in February 2022. The bank was given a “BBB+” long-term issuer default rating grade with a stable outlook by credit ratings agency Fitch Ratings in April 2023 in recognition of the bank’s solid governmental support and systemic importance to the emirate. Fitch calculated that the bank accounted for around 1.6% of the UAE banking system’s total assets at the end of 2022.
Local Banks
Bank of Sharjah was established in 1973 when it was one of only five banks in the UAE. The bank has a number of subsidiaries, including Emirates Lebanon Bank and BOS Real Estate Egypt, based in Lebanon and Egypt, respectively. The bank has 100% ownership of UAE free zone companies BOS Real Estate, BOS Capital and EL Capital, while it is also the sole owner of Cayman Islands-based BOS Funding, BOS Repos and BOS Derivatives. Other 100% ownerships include Borealis Gulf and Polyco General Trading, along with several holding companies. It owns 90% of Muwaileh Capital.
The bank has eight branches located in Abu Dhabi, Al Ain, Dubai and Sharjah. Bank of Sharjah has two major shareholders – Sharjah Asset Management, which holds a 39.25% stake, and the Abu Dhabi-based United Al Saqer Group, which holds 9.27%. The remaining holdings are free float or minor shareholders.
In May 2023 Fitch gave Bank of Sharjah a long-term issuer default rating of “BBB+”. This reflected the bank’s strong support from the emirate and from the UAE as whole, with this to some extent counterbalancing the bank’s exposure to economic and political volatility in Lebanon via Emirates Lebanon Bank. Indeed, some 16% of Bank of Sharjah’s consolidated assets at the end of 2022 were in its Lebanese subsidiary. With the Sharjah bank subject to International Accounting Standard (IAS) 21 and IAS 29, which deal with hyperinflation and transactions in foreign currencies, Emirates Lebanon Bank‘s position in the hyperinflationary Lebanese economy has had a negative impact on Bank of Sharjah’s overall balance sheet for the last three years. Fitch noted, however, that Bank of Sharjah continued to benefit from a stable customer base in the emirate and the UAE, with good liquidity and a high capital adequacy ratio.
UAB was incorporated in 1975 as a joint venture between Emirati investors and French bank Société Générale. It carries out both conventional and Islamic banking operations, the latter through a dedicated Islamic window. The bank has six branches around the UAE, and has a strategic alliance with Qatar’s Commercial Bank, which owns 40% of UAB. Other major shareholders include Sheikh Faisal Sultan Salem Al Qassimi, with an 11.13% stake; Al Majid Investment, with 10.79%; Sheikh Sultan Saqr Sultan Salem Al Qassimi, with 5.2%; and Al Wathba National Insurance, with 5%. Since May 2019 UAB has also had a “BBB+” longterm issuer default rating from Fitch, which was most recently affirmed in April 2023.
Invest Bank was also incorporated in 1975 and has two branches in Sharjah, and one each in Dubai and Abu Dhabi. It also had a branch in Lebanon, which it began liquidating in 2022 due to that country’s ongoing financial crisis. Invest Bank also has a fully owned free zone subsidiary, Alfa Financial Services, located at the Sharjah Airport International Free Zone. The principle – and majority – shareholder is the government of Sharjah, which holds a 50.07% stake, while the other significant shareholding belongs to International Private Group, with 7.75%. In November 2022, with CBUAE approval, the bank management began finalising legal moves to address financial malpractices at the bank that had taken place prior to 2019. This should lead to a strengthening of the bank as the consequences of these actions are dealt with and redress granted.
Performance
With the CBUAE obliged to follow the US Federal Reserve and hike interest rates in recent years as part of global efforts to deal with inflation following both the pandemic and the post-Russian conflict with Ukraine, banks across the UAE have seen a recent, corresponding rise in interest income. This has helped balance sheets impacted by the downturn resulting from the pandemic, as has a return to more normal levels of economic activity overall. Indeed, the UAE has experienced strong GDP growth in recent years, with CBUAE figures showing real GDP expanded by 7.9% in 2022. Preliminary results from Sharjah’s Department of Statistics and Community Development show that the emirate’s GDP grew by 5.2% that year.
In contrast with many of its neighbours, Sharjah’s economy is also heavily non-oil based. Indeed, some 96% of the emirate’s GDP comes from non-oil and gas sources. Financing manufacturing, industry, retail and hospitality is therefore a critical part of the banking sector’s business in Sharjah. The emirate is home to more than 35% of the UAE’s total manufacturing industry and around 60,000 small and medium-sized enterprises (SMEs), according to Invest in Sharjah, a government investment promotion agency.
Asset Growth
For SIB, the 2022-23 period was one of strong asset and deposit growth. At the end of 2022 total assets stood at Dh59.1bn ($16.1bn) and by September 2023 grew by 7.3% to reach Dh63.4bn ($17.3bn). Investment securities grew 81.9% over the same period, to Dh8.4bn ($2.3bn), while investment in Islamic financing grew 3.9%. Customers’ deposits were up 14.4% over the nine months, while net operating income, before impairment charges, was up 28.7%. The bottom line saw a 34.9% rise in net profit for the period, from Dh568.6m ($154.8m) to Dh767.3m ($208.9m).
As for Bank of Sharjah, results for the first half of 2023 showed assets had grown since the end of 2022, from Dh37.4bn ($10.2bn) to Dh39.5bn ($10.8bn). On an annualised basis, net operating income rose slightly, from Dh221.7m ($60.3m) in June 2022 to Dh226.9m ($61.8m) in June 2023. Net interest income, however, shrank from Dh226.3m ($61.6m) to Dh99.2m ($27m) over the same period, with a major decline in income on investment largely responsible for this.
The bank also spent much effort over the period dealing with the fallout from its subsidiary Emirates Lebanon Bank’s exposure to Lebanon’s economic crisis. With the support of the CBUAE and Lebanon’s central bank, Banque du Liban, Emirates Lebanon Bank was recategorised as “held for sale” as part of Bank of Sharjah’s strategic effort to delink and deconsolidate. In June 2023 Bank of Sharjah’s board of directors approved the delinking, which should positively impact the bank’s overall 2023 financial results. In 2022 the bank achieved an overall net profit of Dh245m ($66.7m), up from Dh224.9m ($61.2m) the previous year.
UAB saw its assets grow, from Dh14.1bn ($3.8bn) at the end of 2022 to Dh14.7bn ($4bn) in the first nine months of 2023. The bank’s interest income nearly doubled over that period, from Dh349.6m ($95.2m) to Dh615.7m ($167.6m), along with net profit, which went from Dh119.1m ($32.4m) to Dh209m ($56.9m). Income from the bank’s Islamic financing products also increased over the nine months, from Dh45.7m ($12.4m) to Dh50.2m ($13.7m). Bank officials put the robust performance down to lower-than-expected credit losses and improved operating performance.
For Invest Bank, recent years have seen sustained efforts to reduce the bank’s losses – these stood at Dh129.4m ($35.2m) at the end of 2022 – and build its liquidity and capital base. In the third quarter of 2021 a team of advisers and experts came together with the bank’s board and the majority shareholder, the government of Sharjah, to put together a capital plan. The framework was approved in April 2023 and involves a five-year strategy for de-risking the balance sheet. This includes a government of Sharjah guarantee of Dh3bn ($816.6m), the bank’s accumulated losses being written off and a Dh2.6bn ($707.7m) rights issue. The bank is also reorganising as a digital bank, more closely tied to the government and government-related enterprises.
Insurance
The CBUAE has had authority over the insurance and takaful (Islamic insurance) sectors since 2021. Prior to this, the Insurance Authority was responsible, but the authority was merged with the CBUAE following Federal Decree Law No. 25 of 2020. In November 2023 a new law took effect that codified the transfer of oversight to the central bank and established a new unit for resolving complaints brought against insurance companies. The CBUAE now has the task of developing the sector and ensuring adherence to strict solvency guidelines. These were initially set by the Insurance Authority’s Financial Regulations for Insurance Companies and Takaful Insurance Companies in 2014. The laws established a minimum guarantee fund, solvency margins, solvency capital requirements and certain data transparency obligations. All insurers in Sharjah and elsewhere in the UAE are also required to adhere to the Insurance Core Principles of the International Association of Insurance Supervisors.
The Insurance Authority’s merger with the CBUAE also led to the issuance of a new takaful regulation in 2022. The stipulations established the HSA as the body responsible for issuing standards of sharia compliance in the insurance sector, as well as general rules for takaful companies that have operations in the UAE.
In addition to national regulations, insurers are required to adopt International Financial Reporting Standard (IFRS) 17. The standards increase financial reporting obligations and move away from previous accountancy practices in favour of enhanced risk mitigation. Its implementation has had a short-term impact on insurers’ performance indicators across the GCC, where the transition to IFRS 17 is being widely implemented. Yet, while the region saw a 3% y-o-y decrease in revenue of its listed insurers in the second quarter of 2023 as an impact of the IFRS 17 transition, in the UAE total revenue for insurers jumped some 15% y-o-y, to Dh3.8bn ($1bn), in the first half of 2023.
The insurance and takaful sector is also subject to Emiratisation rules. The UAE insurance sector has a target of 30% Emirati employees and employers by 2026, as well as a target of 1500 new jobs overall for UAE nationals. In 2020 the figure was 12.7%, with 1183 nationals working in the sector. For citizens of the UAE, the government provides health and medical services free of charge, with this the case for public sector employees, including the Sharjah Police, their parents, and people aged 55 and over at University Hospital Sharjah. In addition, under Federal Decree Law No. 13 of 2022, a compulsory unemployment insurance scheme has been introduced across the UAE that applies to both citizens and residents, and for the public and private sectors. Insurance is obtained via a central website and provided by a pool of national and foreign companies.
Insurance Providers
In 2022 the UAE insurance sector had 50 conventional insurance companies and 12 takaful players. The majority of these were headquartered in Dubai or Abu Dhabi, with Abu Dhabi National Insurance Company (ADNIC) the largest Emirati insurer, reporting total assets of Dh7.1bn ($1.9bn) in the first half of 2023. As individual emirates have their own national insurance companies, in Sharjah that entity is Sharjah Insurance Company (SICO). Established in 1970 by royal decree, it was the first such company to be established in the emirate. Listed on the ADX, it reported total assets of Dh287.8m ($78.3m) in the second quarter of 2023. SICO has its headquarters in Sharjah, as well as companies in Dubai and Ajman.
In terms of insurance services revenue, SICO’s largest line of business is motor and engineering, accounting for Dh4.6m ($1.24m) in the first half of 2023. This figure was followed closely by fire, with Dh4.3m ($1.18m), then marine, with Dh517,534 ($141,000). Other lines of business accounted for Dh1m ($274,000) in revenue during the same period. SICO also offers group life insurance and personal accident insurance, but these remain more marginal lines of business as citizens enjoy the benefits of a national health insurance system.
Another Sharjah-headquartered life and general insurer is Al Buhaira National Insurance (ABNIC). The entity is also listed on the ADX and reported total assets of Dh1.4bn ($381.1m) as of June 2023. The company was established in May 1978 and has branches in Abu Dhabi, Dubai, Al Ain, Fujairah, Ajman and Khorfakkan. ABNIC’s main line of business is medical, with revenue from the line amounting to Dh392.1m ($106.7m) in the first half of 2023. This was followed by motor, with Dh98.7m ($26.9m); fire and general accident, with Dh52.9m ($14.4m); marine, with Dh15.6m ($4.3m); and life, which totalled Dh7.3m ($2m).
In addition to these players, Sharjah is home to the branches of both other Emirati and foreign insurers and takaful companies. Among these are Orient Insurance, National General Insurance, Sukoon Insurance (formerly Oman Insurance), GIG Gulf (previously AXA Insurance UAE), Abu Dhabi National Insurance Company, Al Dhafra Insurance, Al Dawliyah Insurance Services, Al Ain Ahlia Insurance, Alliance Insurance, and Dubai Islamic Insurance and Reinsurance. A wide range of brokers and other insurance services are also available locally.
Insurance Performance
The year 2023 was challenging for insurers. SICO saw its assets and revenue shrink slightly over the six months to June 30. Total assets went from Dh296.8m ($80.8m) at the end of 2022 to Dh287.8m ($78.3m) and insurance revenue fell from Dh10.9m ($3m) in the first half of 2022 to Dh10.4m ($2.8m) in the first half of 2023. Profit fell from Dh15.6m ($4.2m) to Dh8.6m ($2.3m) over the same period. To some extent, the results show the application of IFRS 17, which was used for the first time from January 2023.
ABNIC saw a similar contraction in total assets, which were down from Dh1.5bn ($399.4m) at the end of 2022 to Dh1.4bn ($385.5m) at the end of the first half of 2023. However, the Sharjah-based insurer saw its insurance revenue up, from Dh460.7m ($125.4m) in the first half of 2022 to Dh566.7m ($154.2m) in the first half of 2023. While investment and other income grew, from Dh14.3m ($3.9m) to Dh19.6m ($5.3m) over the two six-month periods, higher insurance service expenses and net reinsurance service expenses gave the company an overall loss of Dh35.9m ($9.8m) in the first half of 2023. Again, the accounting results were calculated under the new IFRS 17 regime.
Fintech Future
Helping Sharjah’s financial institutions cut operations costs and streamline business models, fintech has been embraced by the local sector. It has also been welcomed by the UAE federal authorities and the CBUAE, which announced the Financial Infrastructure Transformation programme in February 2023. The framework consists of nine initiatives, including plans for a new central bank digital currency, the adoption of advanced supervisory technologies by the CBUAE, electronic know-your-customer schemes and the creation of a fintech innovation hub. In January 2023 the CBUAE issued new guidelines for all licensed financial institutions regarding the digital identification systems used to address due diligence obligations.
In August 2023 an agreement was signed between the Sharjah Entrepreneurship Centre and Abu Dhabi’s digital Wio Bank to create a programme under which start-ups at the former receive 90 days of free financial services from the latter. Since 2021 Sharjah Research Technology and Innovation Park has been working with Deep Knowledge Analytics on the longevity industry, which sits at the crossroads of biotech, fintech and insurance technology. Elsewhere, the American University of Sharjah is collaborating with Network International, a leading MENA digital commerce enabler, on the FiEx Fintech Youth Hub to nurture young fintech talent. Sharjah Media City, known as Shams, meanwhile, is partnering with Beehive, a peer-to-peer lending platform to provide cheaper funding to SMEs.
Outlook
Sharjah’s financial services sector exists in a competitive region, with both GCC and UAE having established banking and insurance industries. In this context, Sharjah’s banks and insurers have carved out a dependable and secure local base with the support of the emirate’s government. Sharjah’s economy also offers attractive opportunities for banking and insurance, with its large manufacturing and retail sectors. With many SMEs active in these areas, finding ways to attract more customers is key. This has often been a challenge, however, given the often family nature of businesses and their traditional funding mechanisms outside the formal sector. Sharjah’s banks and insurers will benefit from the UAE’s overall economic growth, with new projects and investments drawing new business. Sharjah also offers a lower-cost solution than Dubai or Abu Dhabi for businesses looking for a footprint in the UAE and is working to attract investors – and thus new customers for its financial services sector.
Read More from OBG
