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In a landmark address at the 7th Sharjah Investment Forum, UAE Minister of Economy Abdulla bin Touq Al Marri highlighted the pivotal role of Sharjah’s thriving non-oil economy in bolstering the UAE’s economic resilience and attracting foreign investment. With the UAE setting an ambitious target of $150 billion in foreign investment by 2031, Sharjah’s diversified economic landscape is poised to play a crucial role in achieving this goal.

Sharjah’s Economic Transformation

Sharjah has successfully pivoted away from oil dependency, with an impressive 96% of its economic activity now stemming from non-oil sectors. This strategic shift has not only fortified the emirate’s economy but also significantly contributed to the UAE’s overall economic strength. Al Marri shared some compelling statistics that underscore Sharjah’s economic prowess:

• 4.8% economic growth in 2021
• 5.2% growth in 2022
• 6.5% GDP growth in 2023, equating to Dh145 billion ($39.5 billion)

Key Growth Drivers

The Minister identified several sectors as primary contributors to Sharjah’s economic success:

1. Agriculture
2. Fishing
3. Accommodation
4. Food services
5. Financial activities

Sharjah’s Investment Ecosystem

Sharjah’s appeal to global investors is multifaceted, featuring:

• Six specialised free zones
• Flexible investment options
• Opportunities in manufacturing, trade, and creative industries

This diverse portfolio has significantly enhanced Sharjah’s position in the global investment landscape.

UAE’s Economic Resilience

Despite regional geopolitical challenges and global economic uncertainties, Al Marri expressed confidence in the UAE’s ability to navigate these hurdles. He emphasised the nation’s commitment to:

1. Open economic policies
2. Increased integration into the global trading system
3. Enhanced competitiveness of the investment environment

These pillars, according to Al Marri, are fundamental in building a knowledge-based economy and maintaining economic flexibility.

Legislative Developments and Free Trade Agreements

The UAE has implemented several key initiatives to maintain its status as a global hub:

• Amendments to commercial companies’ law
• Updates to visa and residency systems
• Free trade agreements with India, Indonesia, and Turkey

These agreements have opened new markets, encompassing a fifth of the world’s population.

Economic Milestones

The Minister shared several impressive economic indicators:

• 5% average growth rate of the UAE economy
• 4% year-on-year growth in non-oil GDP in Q1 2024
• Non-oil foreign trade reached Dh1.4 trillion ($382 billion) in H1 2024, up 11.2% year-on-year
• Non-oil exports grew by 25%
• 900,000 commercial licenses issued nationwide, with 107,000 in Sharjah alone

Foreign Direct Investment

The UAE’s attractiveness to foreign investors remains strong:

• $31 billion in FDI inflows in 2023
• $22 billion in outward FDI flows

Tourism Sector Prospects

Al Marri highlighted the UAE’s position among the top 10 global tourist destinations, attracting over 12 million visitors annually. He outlined an ambitious target:

“We have a national target to attract tourism investments worth Dh100 billion over the next seven years, in light of the National Tourism Strategy 2031.”

Future Focus

Looking ahead, the UAE is committed to:

1. Diversifying its economy further
2. Boosting technology and AI sectors
3. Creating a competitive business environment through strategic partnerships and flexible policies

The ultimate goal, as stated by Al Marri, is to build a knowledge-based economy by the next decade, focusing on sectors such as:

• Space
• Renewable energy
• Fintech
• Artificial Intelligence

Conclusion

As the Sharjah Investment Forum 2024 unfolds, it’s clear that Sharjah’s non-oil economy is not just thriving but playing a crucial role in the UAE’s broader economic strategy. With its diverse investment opportunities and robust growth, Sharjah is well-positioned to contribute significantly to the UAE’s ambitious $150 billion foreign investment goal by 2031.

The forum, organised by the Sharjah FDI Office (Invest in Sharjah), promises to further shape ‘A Futuristic Vision for Smart Economies’ through over 100 sessions, including keynote addresses, panel discussions, and interactive workshops. As the UAE continues to navigate global economic challenges, Sharjah’s success story serves as a beacon of economic diversification and resilience.