INVEST in SHARJAH United Arab Emirates MESSAGE from CEO
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INVEST IN SHARJAH united arab emirates MESSAGE FROM CEO Sharjah is the industrial centre, cultural capital and education hotspot of the United Arab Emirates. Its diversified economy and carefully considered approach to investment and development have guided Sharjah through challenging economic times and laid the foundations for future growth. As the Investment and Development Authority of Sharjah, Shurooq is leading the continued transformation and economic diversification of the emirate. We strive to create a business- friendly environment in Sharjah by identifying new investment opportunities across different sectors, developing breathtaking destinations and managing some of the emirate’s most recognisable landmarks. Savvy investors and entrepreneurs will be impressed by the opportunities and recognise the tremendous potential that Sharjah offers. I invite you to take a closer look at the fundamentals driving the emirate forward and to explore the many ways we can work together to transform Sharjah into a shining beacon, an inspiration to the business world. H.E. Marwan bin Jassim Al Sarkal CEO, Shurooq Sharjah Investment and Development Authority 3 SHARJAH: PROSPEROUS & PROGRESSIVE 8 Sharjah at a Glance 10 Cultural and Industrial Hub of the UAE 12 Flourishing Economy 13 Favourable Regulatory Environment 14 Talented Workforce 16 Prominent Centre of Trade 18 Exciting Events 20 Striking Landscapes INVESTMENT OPPORTUNITIES: EXPANDING HORIZONS 24 Promising Sectors 28 Travel & Leisure | Hotels 32 Travel & Leisure | Restaurants 36 Travel & Leisure | Passenger Carriers 42 Transport & Logistics | Marine & Air Freight 48 Healthcare | Healthcare Services 52 Healthcare | Pharmaceuticals 58 Environment | Renewable Energy 62 Environment | Energy Efficiencies SHUROOQ: FACILITATING BUSINESS 68 About Shurooq 71 Guarantee of Excellence 72 Development Portfolio sharjah city 4 5 sharjah: prosperous & progressive khalid lagoon, sharjah city 6 7 SHARJAH AT A GlANCE geography area 2,590km2 (third largest emirate in UAE) location Bordered by Oman, Arabian Gulf and Indian Ocean Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, neighbouring emirates Umm Al Quwain time zone UTC / GMT +4 economy demographics 88,689 M AED population 829,730 (2010) sharjah gdp (2012 forecast) population 1% / year 73,785 AED growth gdp per capita (2005-2010) strait of hormuz (2009) median age 25 +13.3% economic cagr (2002-2009) languages arabian gulf Arabic (English business licence distribution (2009) languages sharjah indian widely spoken) qatar dubai sharjah city 84% of establishments ocean literacy rate 92% abu dhabi khorfakkan 5% of establishments kalba 4% of establishments currency uae dhaid 6% of establishments currency UAE Dirham oman currency code AED ksa arabian gulf indian ocean currency conversion 3.67 AED = 1 USD dibba abu musa profile education (2011-2012) official name Sharjah university of sharjah 10,833 students sharjah khorfakkan The Cultural seer bu american university of sharjah (aus) 5,578 students Capital & also known as nuair Industrial Hub island skyline university 800 students of the UAE the sharjah higher colleges of technology 3,250 students Constitutional government type kalba monarchy v H.H. Dr. Sheikh free zones infrastructure Sultan bin - Hamriyah Free Zone airport Sharjah Int’l Airport Mohammed - Sharjah Airport Int’l Free Zone - Port Khalid ruler Al Qasimi, UAE - Healthcare City Supreme Council port(s) - Hamriyah Port Member and Ruler - Khorfakkan Port of Sharjah 8 9 CulTuRAl ANd INdustrial Hub OF the uAE heart of sharjah hamriyah port Sharjah is widely recognised both as Under the patronage of H.H. Dr. Sheikh From children’s playgrounds at the new A testament to the emirate’s pro-business a leading industrial hub and as a centre Sultan bin Mohammed Al Qasimi, Al Majaz Waterfront and a variety of environment, logistics infrastructure for arts and culture. This seemingly Sharjah’s cultural scene has flourished culinary options at Al Qasba to traditional and available labour force, Sharjah’s contrasting combination reflects the since its designation as UNESCO’s celebrations in the Heart of Sharjah manufacturing sector represents 33% emirate’s holistic and balanced approach “Cultural Capital of the Arab World” heritage district, there is a noticeable of the UAE’s total manufacturing sector to economic and social development. in 1998. Today, it is home to nearly upward trend in the emirate’s overall and has more than 1,444 registered It is a position attained through the a quarter of all of the UAE’s museums quality of life. establishments. Manufacturing is an understanding that the creation of and to seminal international and regional important linchpin of the emirate’s On the other end of the spectrum, human-centric soft programming in events such as the Sharjah Biennial 2 overall economy and contributes to conjunction with the development and the Sharjah International Book 18 industrial zones spanning 15km approximately 19% of the annual GDP. of physical assets and infrastructure Fair. And new events are being added bordering Dubai serve as the heart of is critical to the rise of a vibrant and to Sharjah’s social calendar every day. the UAE’s manufacturing sector. economically sustainable emirate. 10 11 FlOurishing Economy FavouRAblE REGulatory Environment Highly diversified, without over-reliance on any one particular sector, Investors have the option of setting up either an on-shore company through Sharjah possesses a fast-growing economy in comparison to other the Economic Development Department or a Free Zone company with the emirates in the UAE. This has enabled the emirate to weather a challenging Hamriyah Free Zone Authority or the Sharjah Airport International Free Zone global economic climate and post a strong CAGR of 13.3% in GDP (2002- Authority. Additionally, the Government of Sharjah is working diligently to 2009). GDP per capita also increased in recent years by 50% (2005-2009). ensure that the emirate provides a proper regulatory and legal environment conducive to business success. Some of the advantages of doing business in Sharjah include: fast-growing economy free zones 40,227 54,002 60,946 78,264 100,503 - 100% freehold ownership for foreigners 2005 2007 2009 2011 2013 - 100% repatriation of capital & profits - Exemption of import & export duties - 100% tax exemption environment 48,029 65,026 69,064 88,689 113,890 2006 2008 2010 2012 2014 - 100% exemption from all commercial levies - Economical workforce without any employment restrictions sharjah gdp evolution and forecast (aed bn) - Competitive property & warehouse leases - No income tax The emirate’s economic resilience is further fuelled by more than 45,000 on - shore strong small- and medium-sized businesses that benefit from the competitiveness of Sharjah’s supply chain. Entrepreneurs and family - 5% customs duties businesses in manufacturing, real estate, business services and trading - 5% municipal tax play an integral role in the flow of commerce domestically and regionally. - Lower minimum capital requirement compared to other emirates (150,000 AED) - No income tax highly diversified economy strong manufacturing base 25% 19% 33% others manufacturing sharjah 7% 17% financial corporation real estate & business 8% services construction 11% 13% 67% mining & quarrying trade & repairing rest of the uae services sharjah gdp distribution by sector (2010) contribution to uae’s manufacturing sector (2009) 12 13 talented Workforce Sharjah is the third-largest emirate by land mass and one of the most populous. It constitutes almost 20% of the UAE’s population and has experienced exponential growth between 1975 and 2010, increasing from 75,000 residents to nearly 830,000. Furthermore, the fact that the bulk of the population falls within the 25-to-34 age segment is bound to have a positive impact on the future demand for goods and services and represents a healthy pool of talent for the labour market. youthful population multi-cultural graduates 22% 19% others uae 120,000 7% 100,000 30-34 4% syria 35-39 lebanon 80,000 5% 40-44 5% egypt 60,000 iran 25-29 10% 40,000 palestine 13% 20,000 jordan 5% ksa 0 5% 5% india pakistan sharjah population age distribution (2010) top 10 nationalites of aus alumni (2011) In terms of access to a skilled workforce, Sharjah enjoys an unrivalled advantage. Supported by the collection of outstanding higher learning institutions within and around University City, Sharjah produces some of the brightest and most talented graduates in the region. The American University of Sharjah (AUS) alone has an enrolment rate of more than 5,600 undergraduates from 90 countries, pursuing a variety of academic disciplines ranging from business administration, architecture and engineering to fine arts. The talent pool, combined with the cheaper cost of living and labour relative to the neighbouring emirates, allows for a tremendous competitive advantage. american university of sharjah 14 15 Prominent CentRE OF TRAdE geographic Strategically located along the Arabian position Gulf and Indian Ocean, Sharjah is robust international & regional trade established regional trading hub a natural hub for trade and commerce positioned midway between Europe, imports re-exports re-exports total foreign trade flows Africa and the Far East. Domestically, 89.0 Sharjah acts as a gateway to the India 36% Iraq 31% Japan 15% Iran 20% Northern emirates, while its sea and air 67.6 China 8% Afghanistan 6% 60.3 connectivity allow businesses to access Iran 6% Bahrain 5% 57.2 key emerging markets such as India, USA 6% Kuwait 4% 41.6 Iran, Iraq and Saudi Arabia. In 2011, total Germany 3% Qatar 4% 35.3 24.5 24.5 value of trade between Sharjah and Arab France 2% KSA 3% 19.4 16.7 14.7 countries exceeded AED 11.2 billion. Malaysia 2% Tanzania 3% 8.2 UK 2% France 3% Korea 2% Azerbaijan 2% 2006 2007 2008 2009 2010 2011 infrastructure Sharjah is well connected to the trans- top 10 foreign trade partners (2010) sharjah foreign trade evolution (2006-2011 aed bn) emirate and GCC road networks. The Government of Sharjah is consistently working to further expand and enhance its existing infrastructure to enable greater accessibility and faster travel.