Sharjah’s gross domestic product grew by 5.2 per cent last year, driven by economic diversification efforts that are aligned with the emirate's development strategy.
The emirate registered Dh136.9 billion ($37.2 billion) in GDP earnings last year compared with Dh130.1 billion in 2021, Sharjah's Department of Statistics and Community Development said on Tuesday.
The DSCD data is based on a survey of independent agencies and the government sector.
“The preliminary estimates for 2022 indicate a positive economic performance in the emirate,” said Sheikh Mohammed Al Qasimi, chairman of DSCD.
“The economic diversification of the emirate has been a driving force behind the growth that we are currently witnessing, which aligns with the emirate’s development plans.”
The non-oil sector also posted a 5.2 per cent increase in 2022, bringing the total to Dh133.4 billion, compared with Dh126.8 billion the previous year, according to DSCD estimates.
Sharjah has been experiencing strong growth after its government took several measures to support businesses and residents to mitigate the effects of the Covid-19 pandemic.
The emirate introduced Dh1 billion of economic stimulus measures in 2020 in response to the economic challenges caused by the global crisis, which included the waiving, reduction or cancellation of certain government fees and charges.
In December, Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, approved a Dh32.2 billion budget for 2023 that prioritises spending on infrastructure, capital projects and economic development.
The 2023 budget aims to achieve financial sustainability and enhance the emirate’s economic competitiveness.
About 35 per cent of the budget will be allocated to infrastructure and capital projects, 34 per cent to economic development, 28 per cent to salaries and 23 per cent to social development, the Sharjah Finance Department said at the time.
In terms of government revenue, operational revenue represents 69 per cent of the total budget for 2023, an increase of 11 per cent from last year's levels. Capital revenue constitutes 11 per cent of this year’s budget.
Sharjah’s wholesale and retail trade sector, as well as the repair of motor vehicles and motorcycles were the most significant contributors to GDP last year at 24 per cent, the DSCD data showed. This was followed by manufacturing sector at nearly 17 per cent.
Real estate activities ranked third at nearly 9.7 per cent, highlighting the sector’s role in “providing investment opportunities” in the emirate, the DSCD said.
The construction sector, meanwhile, contributed 9 per cent of the emirate’s GDP, reflecting the role of this sector in “achieving urban development and infrastructure” in the emirate.
Sharjah has been aggressively expanding its portfolio in a number of areas including real estate, tourism, aviation, technology and health care.
The emirate earlier this month approved plans for a new healthcare and research district. The Jawaher Boston Medical District project will establish an integrated network of healthcare systems in the emirate, featuring hospitals, laboratories, and research and development centres.
Sharjah is also ramping up its focus on adventure and eco-tourism with a number of new projects.
Khor Fakkan, on the UAE’s east coast, for example, will be home to one of the biggest developments with the opening of a new adventure park next year, the Sharjah Investment and Development Authority revealed during Dubai's Arabian Travel Market last week.
Work on Sharjah International Airport’s terminal expansion will also start in mid-2023, with completion expected in 2026, to meet rising travel demand, the emirate’s airport authority chief Ali Al Midfa said in March.
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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The Year Earth Changed
Directed by:Tom Beard
Narrated by: Sir David Attenborough
Stars: 4
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
