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Combining Cultural heritage with business Competitiveness
Sharjah
Suppcover-1212_Sharjah.indd 1 03/04/2013 10:20
April/May 2013 www.fDiIntelligence.com 1
CONTENTS
OVERVIEW
02Economic free zones, political stability and diversification have fuelled development and growthin Sharjah – the emirate now accounts for one-third of the UAE’s manufacturing sector – but its
government has further plans to maximise its appeal to international investors. Barbara Njau reports.
INTERVIEW
05Sharjah’s organic growth strategy has shielded it from the negative repercussions of the global economicdownturn, the chief executive of Sharjah’s investment and development authority, Shurooq, tells fDi,
leaving its officials free to solve infrastructure problems that were threatening to limit the emirate’s growth.
AVIATION
06While the airports of Dubai and Abu Dhabi have focused on long-haul flights for wealthy passengers,Sharjah’s smaller international airport has acquired a reputation for speed and efficiency while carving
out a niche for short-haul flights aimed at middle-class travellers.
TOuRISm
09Sharjah is positioning itself as a safe, family-friendly holiday destination and is anticipating increaseddemand, particularly at the high end of the travel and leisure sector.
SECTORS
10Marine and air freight services, wastemanagement and education are just some of the areas in which Sharjahis leading the way not only in the United Arab Emirates, but throughout the whole of theMiddle East.
fACTfIlE
12A guide to the key data and useful information regarding Sharjah.
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2
OVERVIEW
Sharjah’ssuccessstory
A s night falls, the white-washed walls of the Al Majazmosque comes to life, as
floodlights in the building’s crevicesilluminate the last few visitors filter-ing through its doors and on to thefreshly manicured grounds of the AlMajaz waterfront. Overlooking theCorniche Al Buhaira road in centralSharjah, the intricate Islamic archi-tecture of the Al Majaz mosque lendsit an imperial yet unmistakablyArabic presence. Close to themosque’s grounds, Western chainrestaurants, including TGI Friday’sand Tim Hortons, line the man-
made Khalid Lagoon. The waterfront encapsu-lates the delicate balance that Sharjah strikesbetween upholding its conservative Islamicheritage and taking a contemporary approachto doing business.
With more than 600 mosques dottedaround the city, the Islamic flavour of theemirate of Sharjah is ever present. Located afew kilometres from the Al Majaz mosque isthe city’s architectural centrepiece, the AlNoor mosque, which is revered by locals forthe beauty of its Turkish-inspired design. It isreligious landmarks such as these that haveenabled Sharjah to carve out a distinct iden-tity within the United Arab Emirates as oneof its foremost Islamic destinations.
Regional profileFor its efforts, Sharjah has garnered a host ofaccolades including being crowned the Capitalof Islamic Culture in 2014 and the Capital ofArab Tourism in 2015, by the Organisation ofthe Islamic Conference. However, just acrossthe Khalid Lagoon on the Al Majaz waterfront,a growing number of high-rise glass buildingsand towering skyscrapers hosting manufactur-ing, hotel and real estate companies reveal thatSharjah has also worked to integrate modernbusinesses into its development.
“When you visit, you immediately knowthat you are in Sharjah,” says Khalid Jasim AlMidfa, director-general of Sharjah’s Commerceand Tourism Development Authority.“Sharjah has existed for more than 500 years
and it was always a thriving city. It is wellknown for its culture and its heritage.”
Sharjah is one of seven emirates that makeup the UAE, and its geographical positioningat the heart of the country has enabled it todevelop a reputation as one of the region’strading hubs. Its strategic ports of Kalba,Khorfakkan and Dibba along the east coastof the UAE made it a draw for seafaring vesselscoming in from the Indian Ocean, and its loca-tion along the Persian Gulf have attractedmerchants and Bedouins from the desert inte-rior, who travelled to its souks to trade spices,livestock and handicrafts.
Sharjah crystallised its historic reputationas one of the Gulf’s routes of commerce whenin 1932 the UK Royal Air Force opened theregion’s first airport in the city, to serve as anoutpost for commercial flights between theUK and India.
“People think that because we have beenunited as the UAE for just 41 years, there wasno history beyond that, but that is not true –Sharjah has always been a major centre,”says Mr Al Midfa.
DoingbusinessThe emirate has engaged in a considerablemodernisation drive to renew its appeal tointernational investors through diversifyingits industries. Although the UAE accountsfor 10% of the world’s proven oil reserves,Sharjah holds just 1.5 billion barrels of oil.The government sought to industrialiseSharjah’s economy from the 1980s toreduce its reliance on oil, and the emiratehas experienced considerable success indiversifying its economy.
Yet a large part of Sharjah’s success canalso be attributed to its affiliation with theUAE, a country that has developed a reputa-tion among international investors for itseconomic and political stability. Despite expe-riencing considerable setbacks during the2008 financial crisis, observers have main-tained that the country managed the effectsof the downturn astutely, and its ability toavoid the 2010 Arab Spring uprisings whichaffected the political stability of some of itsneighbours further boosted its status as one
Economic frEE zonEs,political stability anddivErsification havEfuEllEd dEvElopmEntand growth in sharjah –thE EmiratE now accountsfor onE-third of thE uaE’smanufacturing sEctor –but its govErnmEnthas furthEr plans tomaximisE its appEal tointErnational invEstors.BarBara Njau rEports
www.fdiintelligence.com april/may 2013
3
of the Middle East’s safe havens. Thus beingpart of the ‘UAE Inc’ has crucially boostedFDI into Sharjah.
“The UAE was a little more shielded fromthe regional turbulence [of the Arab Spring]and Sharjah benefited from this,” says BryanPlamondon, senior manager at industry andcountry forecasting firm IHS Global Insight.“Being within the UAE also enabled Sharjahto offer certain incentives that other countriescould not offer, such as tax incentives. Sharjahhas free zones where tax-free incentives areoffered to companies, and the government ofSharjah subsidises utility costs, making it veryattractive for [investors].”
Being part of the confederation, Sharjah’sgrowthmodel has in some ways mirrored thatof the UAE. The interconnected nature ofSharjah’s infrastructure, which is also evidentin other parts of the country, has boostedinvestment in the emirate’s sectors andShurooq, its investment agency, contends thatSharjah has maintained a solid growth rate.Between 2002 and 2009, Sharjah’s GDP grewat a compound annual growth rate of 13.3%,and official figures from Shurooq show thatits GDP, following the financial crisis, rapidlygrew from Dh60bn ($16.3bn) in 2009 toDh89bn in 2012. Sharjah’s growth has beenprincipally driven by small andmedium-sizedenterprises (SMEs), which have interests acrossthe manufacturing, real estate and business
services sectors. The emirate hosts more than45,000 SMEs, and its GDP this year is expectedto expand to more than Dh101bn.
Free zonesSharjah’s economic growth is showing nosigns of slipping, and for Marwan Jassim AlSarkal, the CEO of Shurooq, its free zoneshave enabled the emirate to differentiate itselfas one of the leading industrial centres in theUAE. “His Highness [Sheikh Sultan binMohammed Al-Qasimi III] has [worked] todevelop Sharjah as a very strongmanufactur-ing [hub],” says Mr Al Sarkal. “We have SharjahAirport International Free Zone [Saif] andHamriyah Free Zone, as well as 21 industrialzones inmainland Sharjah. The airport freezone is [oriented towards] light industry andservices, and Hamriyah is for heavy industry.”
Offering a plethora of incentives, includingcomplete foreign ownership of companies, aswell as exempting corporate firms from importand export duties, income taxes and commer-cial levies, Sharjah’s free zones have been adraw for foreign firms. The government’s focuson developing its manufacturing capacitythrough its free zones enabled Sharjah todeepen its manufacturing base, and todaySharjah’s manufacturing activity represents33% of the entire UAE’s manufacturing sector.
While Saif, which was established in 1995,hosts more than 5500 companies, including
EmIRatEPROFIlE
UAE
City ofSharjah
SharjahPopulation: 946,000area: 2600 sq km
Total GDP: Dh89bn ($24bn)
Largest sector: Manufacturing% of GDP: 19%
source: ministry of Economy (2008)/shurooq
april/may 2013 www.fdiintelligence.com
Sharjah skyline: “When you visit, you immediately know that you are in Sharjah”
4 www.fdiintelligence.com april/may 2013
Sharjah haSalWayS been amajor centre
the Germany-based Lufthansa Airlines and theUK-based technology company 3M, HamriyahFree Zone, which started operating in 1998,serves more than 5000 companies from 152countries. The free zones have also facilitatedthe flow of capital into other sectors, includ-ing mining and quarrying, which combinedrepresent 13% of Sharjah’s GDP, and realestate and construction, which account for17% and 8% of GDP, respectively.
“The basic idea of the free zone was inte-gration – we have worked to integrate the sec-tor with the services that are required to sup-port it, and we look at the supply chain that isrequired to make it successful,” says SaudSalim Al Mazrouei, director of commercialaffairs in Hamriyah Free Zone Authority. “Welook at the industry as a whole, and we try andbring those related industries to service it, sothey can develop together.”
Business bottlenecksA common gripe among the city’s businesscommunity is that, while Sharjah’s geographi-cal centrality makes it well connected to therest of the UAE, the absence of a developedpublic transportation network has resulted ina critical problem of traffic. Snaking queues of
cars along some of Sharjah’s arterial highwayshave become a common feature of afternoonsin the city, as Sharjah’s roads serve those thatlive in Sharjah, as well as those that work inneighbouring emirates.
“Sharjah is the only emirate whichshares borders with most of the otheremirates,” says Mr Al Midfa. “For example,people who live in Sharjah and work inDubai, and others who live in Ajman andwork in Abu Dhabi, all have to pass throughSharjah. There is no other way.”
In addition, an undersupply of electricity,combined with a high demand from electricalgoods such as air conditioners duringSharjah’s sweltering summers, has led topower blackouts in parts of the city – anissue that Mr Al Sarkal at Shurooq says isa “weakness we cannot deny”.
Road toprogressNevertheless, the Sharjah government hasworked to address these challenges. Accordingto officials, construction is already under wayto further expand the UAE’s main highway,the Mohammed Bin Zayed road which con-nects all of the seven emirates, and the comple-tion of this project by the end of 2013 willdivert traffic away from Sharjah by providingan alternative route for commuters.
Additionally, Mr Al Midfa maintains thatrather than investing in a costly metro system,Sharjah’s government will look to emulateTurkey’s success in establishing a bus trans-portation system.
“Sharjah wants a metro bus that goesthrough the city and reaches the Rashidiyametro station on [the outskirts of] Dubai,”says Mr Al Midfa. “Turkey’s metro bus runs ona special lane in the middle of the city’s roadsin Istanbul, and it handles 600,000 passengersa day. It costs less than a metro [train] system,and it will significantly alleviate traffic con-gestion in Sharjah.”
Sharjah has experienced success in placingitself on the global investment maps of inter-national businesses. Time will tell whetherthe government’s diversification drive willenable it to relive its heydays as one the UAE’scentral hubs of trade. ■
sharjahOVERVIEW
elevated status: Sharjah’s ports have attracted merchants for centuriesand are still a crucial contributor to the emirate’s economy
SharjahQ&A
Sharjah’S organic growth Strategy haS Shielded it from thenegative repercuSSionS of the global economic downturn, thechief executive of Sharjah’S inveStment and development authoritytellS fDi, leaving itS officialS free to Solve infraStructure problemSthat were threatening to limit the emirate’S growth
Moving into the fast lane
QIn what ways, if at all, wasSharjah affected by the 2008
global financial crisis, and howtied are you to the economic cli-mate elsewhere in the UnitedArab Emirates [UAE]?
AThe whole UAE is connected withthe federal law, so whatever the
federal government is setting whenit comes to rules and regulation, isimplemented in all seven emirates.We do believe that in the comingyears the economy [will recover] butit will not be as it used to be in 2007or 2008. We will have a steadiergrowth; fewer ups and downs.
Sharjah is one of the only emir-ates, and perhaps the only city inthe whole GCC [Gulf Co-operationCouncil] region, that was not highlyaffected by the downturn, whichwas thanks to the leadership andthe commitment to developing ina very organic way. If there is goingto be high growth in the future,Sharjah is definitely going to bene-fit from that, but we believe insteady growth. His Highness DrSheikh Sultan believes in havingdiversified growth that dependson different economic sectors.
It is a long-term vision, ratherthan a short-term strategy. That issomething that makes Sharjah differ-ent from other cities around the GCC.All the emirates complement eachother. We benefit out of Dubai as theybenefit out of us. Dubai, Sharjah and
Ajman are seen as basically one cityrather than three different cities. It isonly the road network that tells youwhat is Dubai and what is Sharjah.
QWhat are some of the weak-nesses you have identified
when it comes to doing businessin Sharjah?
ATraffic is a challenge that everyinvestor is facing currently. For
business you need a very good roadnetwork. The federal governmenthas assigned that a major [road] net-work in Sharjah is going to be soldand new arteries within Sharjah willbe developed soon. Easing traffic andimproving connectivity will have amajor impact on the economy.
Most of new Sharjah is developedout of the city, which reduces stresson the current road network. We inShurooq [Sharjah’s investment anddevelopment authority] are workingvery closely with the Sharjah trans-portation authority to come up withdifferent options, such as tramwaysor new networks. But I would say [theroad congestion] is not a weakness, it’sjust a challenge that we need to face.
Also, we cannot deny that there isan issue with electricity that Sharjahhas been facing every summer for thepast three years. It is solved now cur-rently – we have connected theSharjah electricity network with thefederal network. By [June] this year,we will be connected to the whole
Q&A: MArwAn JAssiMAl sArkAl
april/may 2013 www.fdiintelligence.com
federal connectivity so we won’t haveblackouts this year.
QDo you feel that Sharjah’sstrong Islamic identity is
a limiting factor in terms ofattractingWestern businessesand tourists?
ANo, actually. Islam is an iden-tity, it’s not a law. Arabic is
another identity that we would liketo be connected to. Being Islamichas nothing to do with business; atthe end of the day you are lookingfor where to get the best return oninvestment and that is where youare going to choose to invest.
Being Islamic is the identity [that]the government would like to [associ-ate with] Sharjah, but it doesn’t limitSharjah in any way. Sometimes, peo-ple have a bad perception about it –they think if [a place] is Islamic itmight be connected to Saudi Arabia,which, in reality, is not the case. Forus, we are proud to be knownas an Islamic place.People comehere, theywant to feellike they are ina different area.We are aMuslimnation, weneed to beproud ofthat. ■
HisHigHnessDrsHeikHsultanbelieves inHavingDiversifieDgrowtHtHatDepenDsonDifferenteconomicsectors
5
6
SharjahAviAtion
OnadifferentplaneWhile the airportS of Dubai anD abu Dhabi have focuSeD onlong-haul flightS for Wealthy paSSengerS, Sharjah’S Smallerinternational airport haS acquireD a reputation for SpeeDanD efficiency While carving out a niche for Short-haulflightS aimeD at miDDle-claSS travellerS, SayS BarBara Njau
T he first passengers flyingin from Croydon Airport inLondon to the basic Bedouin
settlement in the Persian Gulf in1932 would have likely found ithard to imagine that the UK’s desertoutpost in Sharjah would play sucha pivotal role during the SecondWorld War and beyond.
Initially established as ImperialAirways’ staging post, in a region thatwas then known as the Trucial Coast,Sharjah was used as an airbase and arest house for British passengers com-ing in from London, who were boundfor India. Yet for the duration of theSecond World War, Sharjah’s airportbecame one of the Royal Air Force’schief points of operations in theMiddle East, and the airportremained a significant nucleus ofactivity for the UK until its departurein 1971, when the region’s newlyindependent states renamed thecountry as the United Arab Emirates.
Although the airport has sincebeen relocated to the outskirts ofthe city of Sharjah, and the AlMahatta Museum today stands as amonument in its place, Sharjah’spast as the UAE’s first air hub laidthe foundations for what is now agrowing aviation industry.
Airport expansionSharjah has worked to develop itselfas one of the UAE’s aviation hubs,and the expansion of SharjahInternational Airport has enabledthe emirate’s aerospace sector tobecome one of the drivers of its econ-omy. According to Shurooq, Sharjah’sinvestment and development author-ity, the emirate accounts for 10% ofall passenger traffic that enters inthe UAE, and the city’s airport hasbeen the main conduit for this.
“The aerospace industry is one ofthe pillars of the economy,” says AdelAli, the CEO of Sharjah’s airline, Air
Arabia. “The [emirate’s leaders]played a big role in recognising thatto move Sharjah forward, it reallyneeded a good air transport link. Asa result, we have witnessed that inthe past 10 years, the airport hasmoved from [handling] 300,000 peo-ple a year, to about 7.8 million peo-ple per year. There is the infrastruc-ture to support all these people andI believe aviation will continue togrow, as long as the city is growing.”
According to Shurooq, SharjahInternational Airport is consideredto be one of the UAE’s aviation gate-ways, and it is the country’s leadingcargo hub. Being smaller than theinternational airports in Abu Dhabiand Dubai, this gives Sharjah a keyadvantage that is often cited by localofficials: the ease and speed at whichpassengers pass through the airport.
According to Marwan Jassim AlSarkal, the CEO of Shurooq, travellerswithin the UAE are increasingly look-ing to Sharjah International Airportas a more convenient place fromwhich to travel, particularly for short-haul flights. “This is by far the mostefficient airport in the region,” hesays. “You go through Sharjah airportand you are [outside] in 20 minutes.”
AirArabia’s growthSharjah’s aviation industry hasundergone a significant transforma-tion in the past decade, and this ismainly down to its flagship carrier,Air Arabia, which was established in2003. In a region where air travelwas traditionally seen as the pre-serve of the privileged elite, AirArabia quickly grew to become theMiddle East and north Africa’s firstand largest low-cost carrier. Createdto serve the region’s middle classes,Air Arabia’s success stemmed fromits focus on offering leisure travel-lers cheaper flight alternatives. Theefficiency of operating in Sharjah
International Airport, combinedwith the airline’s customer-orientedethos, led its business to go frombeing worth $15m in 2003 to $1.2bnin 2012. Today the airline operates afleet of 30 aircrafts across 65 inter-national destinations.
“Pre-Air Arabia, the travel busi-ness in the Middle East was verymuch [oriented to] the wealthy,”says Mr Ali. “The assumption wasthat everyone in the Gulf must bewealthy, which is not necessarily thecase. It is another ordinary part ofthe world where there exists a mid-dle class that needs less expensivetravel [alternatives]. Air Arabiachanged the dynamics of air travelto make it affordable, and it createda market that was not there before,for everyone to travel.”
Rather than copying the strategyof neighbouring Dubai, which devel-oped its Emirates Airlines on a moreconventional business model thatcharged a price premium for theperks of its comforts onboard,Sharjah differentiated itself throughadopting a low-cost carrier businessmodel. In addition, Air Arabiafocused on travelling to destinationswithin the Middle East, north Africaand the Indian subcontinent, thusthe target market was short-haul lei-sure travellers, as opposed to conven-tional carriers that looked to interna-tional long-haul business travellers.
“In the Middle East, there are anumber of conventional airlines,”says Mr Ali. “As a result, having abudget airline differentiated us, andit was the right decision at the time.Sharjah identified travel and tourismas one of the areas it wanted to grow.To do that, aviation becomes critical,as it brings in the people. Sharjah willalways remain different and that isgood. We would rather attract the seg-ment of the market that wants speedand travel, without wasting time.” ■
www.fDiintelligence.com april/may 2013
SHARJAH’SFASTGROWINGECONOMYWith the third fastest level of growth in the UAE,Sharjah presents many opportunities for investorsin sectors as diverse as environment, transportationand logistics, travel and leisure, and healthcare
Strategically located between Europeand the Far East and also between theCommonwealth of Independent Statesin the north and Africa in the south,Sharjah is the only Gulf Co-operationCouncil hub with direct access to theGulf and Indian Ocean, offering a gate-way to 160 countries, including 2 billionpeople. It is also the only emirate to share aborder with all six of the other emirates thatmake up theUnited Arab Emirates.
The only economy in the Middle Eastwhere no single sector contributes more thanone-fifth of its GDP, Sharjah is in the enviableposition of having the highest level of diversifi-cation in the region. Sharjah is also the thirdfastest growing economy in the country andhas already attracted almost a quarter of theUAE’s business establishments.
Sharjah registered a compounded annualgrowth rate of 6% between 2008 and 2010,demonstrating resilience during the globalfinancial crisis. This strength can be attributedto the emirate’s economic stability due to thediversity of its economy, its strong manufac-turing base and its abundance of small andmedium size companies.
SHUROOQ DRIVES SHARJAH’S GROWTHEstablished in 2009, the Sharjah Investmentand Development Authority (Shurooq) is dedi-cated todevelopingSharjah througha rangeofquality projects in an effort to encourage bothdomestic and foreign investment. Shurooq’sstrategy is to promote the emirate’s numerousopportunities, sophisticated infrastructure, andadvanced transport networks that allow easyaccess to local and globalmarkets.
What sets Shurooq apart is its focus onmaintaining Sharjah’s cultural integrity.Shurooq was created to achieve social, cul-tural, environmental and economic develop-ment on the basis of Sharjah’s distinct Araband Islamic identities. All development pro-jects adhere to this principle. Shurooq alsoworks to adopt the highest internationalstandards by providing quality services thathelp attract investors from the region and theworld, and provide facilities and incentives tohelp overcome obstacles to investment.
INVESTING IN SHARJAHCompanies setting up in Sharjah can obtainsignificant cost advantagesnot generally avail-able internationally, including no foreign
exchange control; competitive import duties;competitive labour costs from a skilled, multi-lingual workforce; competitive energy costs;competitive real estate costs; competitivefinancing costs; high levels of liquidity; no cor-porate profit or personal income tax; and100% repatriation of capital and profits.
Shurooq has identified four key sectorsthat offer the greatest business potential inSharjah and theability tomeet thedemandsofother sectors.
ENVIRONMENTSharjah has the largest waste managementand treatment factory, making it an ideal mar-ket for the environmental technology andequipment sector, in addition to self-innova-tion in the area of green technology.
TRANSPORTATION AND LOGISTICSThe emirate’s logistics service sector has wit-nessed remarkable growth due to Sharjah’sstrategic and geographical location, whichplays an important role with the ports, in addi-tion to the convenient location of the freezones and its excellent infrastructure. In 2011the volumeof the transport and service sectorstood at Dh3.1bn ($844m), a figure that isexpected to double in the next five years toreach Dh6.23 billion in 2016, supported bySharjah’s strong industrial sector.
TRAVEL AND LEISUREThe unique diversity of cultures, heritage andentertaining activities that distinguish Sharjahmake the travel and leisure sector a key part ofthe emirate’s economy. In addition, Sharjahoffers as pristine beaches, magical mountainsand desserts. In 2011, Sharjah’s tourism andtravel market stood at Dh1.1bn and isexpected to reach Dh1.49bn in 2016, with theaccompanying increased demand for luxuryhotels, international brand restaurants, familyand sports activities. The tourism and travelsector is also expected to grow further withseveral tourist projects being undertaken.
HEALTHCARESharjah registered roughly 3.3 million visits toits medical clinics and hospitals in 2010. Withyoung people constituting the largest age cat-egory in the emirate’s demographic, growth ofthe healthcare sector in the long run is a cer-tainty. His Highness Sheikh Dr Sultan BinMohammad Al Qasimi has also set up SharjahHealthcare City as amedical free zone author-ity by Emiri decree.
Sponsored by
SPOTLIGHTONSHARJAHADVERTISEMENTFEATURE
At the heart of the United Arab Emiratessits a culture capital, internationallyacknowledged for its rich heritage, loveof art and commitment to education.
With its visionary leadership, Sharjahclaims a special place on the world map as anemirate with an exciting story to tell.
Every year this emirate,whichwas recentlynamed the Capital of Islamic Culture for 2014,attracts a host of renowned authors, artists,publishers, educators andmedia professionals,who contribute to Sharjah’s success story.
Since 1982, Sharjah International BookFair has occupied amajor space in the interna-tional publishing calendar and is rankedamong the five largest book fairs.
The first airport in the entire Arab Gulfregionwas built in Sharjah in 1932. Port Khalid,the first operational container terminal in theArab Gulf region, was built in 1975. In 1942Sharjahwas the first emirate to provide educa-tion for women. Today the Sharjah MedicalExcellence Cluster facilitates the largest inte-gratedmedical system in theMiddle East.
With all its achievements, Sharjah has a lotmore to offer. Two years ago, His HighnessSheikh Dr Sultan bin Muhammad Al Qasimi,UAE Supreme Council Member and Ruler ofSharjah, entrusted the Sharjah Media Centreto tell the story of the emirate that hosts 19%of the overall population of theUAE.
Since then the centre positions itself asthe speaker and listener on behalf of Sharjahon the local, regional and international medialandscapes.
The centre envisionsmaintaining an envi-ronment that allows for the continuousadvancement of a meaningful and multisideddialogue, revolving aroundSharjah and includ-ing all stakeholders involved in the media andcommunication spheres.
EMBRACING BEST PRACTICEIn December 2012, Sharjah Media Centre cre-ated a central communication function, whichacts as a key reference for government com-munication in Sharjah, making the emirateone of the very few cities in the Arab world toembrace international best practices.
The newly established GovernmentCommunication Unit facilitates governmentcommunication and encourages uniformmessages across Sharjah’s governing bodies.
Building on the ruler’s passion towardscreating bridges of communication with hispeople and the rest of the world, in Februarythe Sharjah Media Centre hosted the secondGovernment Communication Forum, bring-ing together prominent leaders, such asTurkey’s prime minister Recep TayyipErdoğan; former UN secretary general Kofi
Annan; former secretary general of the ArabLeague Amr Moussa; and former US ambas-sador to the UN Andrew Young, to engage indialogue and share best practices in govern-ment communication.
In his opening speech Mr Erdoğanacknowledged the effort of Sharjah in reach-ing out to the world: “We live in a world wherecommunication technology has shrunk theplanet into a global village, and yet the world ismore divided than ever before...We shouldremember that at the heart of every effectivecommunicationarewords that are sincere andtruthful, which originate from the heart of itsspeakers and reach the hearts of its listeners...”
His Excellency SheikhSultanbinAhmadAlQasimi, chairman of Sharjah Media Centre,said: “And with this spirit Sharjah is committedto continue to be a platform that promotesdialogue between governments and theirpeople and one that encourages sharing ofexperiences from around the world in govern-ment communication.”
“SHARJAH IS COMMITTED TOCONTINUE TOBEA PLATFORMTHAT PROMOTESDIALOGUEBETWEENGOVERNMENTAND ITS PEOPLE”
Sponsored by
REACHINGOUTSharjah is reaching out to the rest of the world withthe formation of the Sharjah Media Centre, responsiblefor telling the world the emirate’s success story
SPOTLIGHTONSHARJAHADVERTISEMENTFEATURE
9
SharjahTourism
april/May 2013 www.fDiIntelligence.com
Good, clean fun: Sharjah is building a reputation for being safe and family-friendly
Sharjah IS poSItIonIngItSelf aS a Safe, faMIly-frIenDly holIDayDeStInatIon anD ISantIcIpatIng IncreaSeDDeManD, partIcularlyat the hIgh enD of thetravel anD leISure Sector,SayS BarBara Njau
A luxury focus
The sun’s rays illuminate KhalidJasim Al Midfa’s already beam-ing face, as he leans forward in
his seat to talk facts. Based on theninth floor of the headquarters ofSharjah’s Commerce and TourismDevelopment Authority, the glasswalls of Mr Al Midfa’s office overlooka panoramic view of leafy parks andgrand mosques, standing alongsidehigh-rise towers and crane-filled con-struction sites in central Sharjah.
The emirate has developed aunique identity as a modern metrop-olis but retains its well-establishedcultural heritage. From the Al HisnFort, which was built in 1820 as theformer domicile of the ruling AlQasimi family, to the Blue Souk,which is the city’s largest tradingbazaar for goods ranging from goldand silverwares to handmade carpetsand handicrafts, Sharjah’s Arabic her-itage is its main selling point when itcomes to attracting tourists.
Alternative destinationFor Mr Al Midfa, the director generalof Sharjah’s Commerce and TourismDevelopment Authority, Sharjah isincreasingly serving a need amonginternational travellers that wantholiday alternatives to conventionalcity breaks. “The problem is thatwith most people wherever they go,the product [they find] is the same,”says Mr Al Midfa. “They find a shop-ping centre with the same outlets,so it becomes a bit routine and theydo not experience anything new.We have experienced a growingdemand, especially from theGermans, who [want to experienceour] cultural heritage.”
Well known within the UnitedArab Emirates as having some of the
strictest codes on public conduct andalcoholic consumption, Sharjah hasused this to its benefit, positioningitself as a safe and family-friendlydestination. Sharjah has developed amix of activities for tourists seekingalternatives to the high octane paceof city life, whether it be in one ofthe galleries lining the Al Qasbacanal in central Sharjah, or atSharjah’s beach resorts.
“Sharjah has been able to differ-entiate itself by being more familyoriented,” explains Mr Al Midfa.“Sharjah is a ‘dry’ state, whichmeans we do not have any alcoholor nightclubs here because when itcomes to security, families do notwant these activities. We have iden-tified a niche and we have focusedon offering things that are notoffered in the rest of the region,[including] museums, a wildlife andaquarium centre, and a lot of festi-vals, which is unique here.”
Expected growthThe travel and leisure sector hasbeen one of Sharjah’s significantsources of revenues. Shurooq, theSharjah investment and develop-ment authority, predicts this sector,which is currently worth Dh1.2bn($33m), could become a Dh1.5bnindustry by 2016. Playing host to arange of global hotel chains, includ-ing the US-based Hilton Hotel andRadisson Blu, and the UAE-basedRotana Hotel, Sharjah has investedin its luxury hotel market. Indeed,
demand has been on the rise ashotel occupancy rates are expectedto grow at a rate of 6.2% between2013 and 2016, according to officialgovernment estimates.
“We see a growing demand, [espe-cially] from the Germans who arelooking for five-star properties andhigh-end services,” says Mr Al Midfa.“We are preparing ourselves for thisdemand by passing on this messageto entrepreneurs, to construct newprojects to serve the market.”
Restaurants and fine dining haveemerged as another area of opportu-nity for prospective investors.According to Shurooq, the vast major-ity of existing restaurants are concen-trated in six areas around the city cen-tre, thus the government is keen toattract more food and beverage out-lets as demand for restaurant servicesis expected to grow by 4.6% in comingyears. Yet Hussain Al Mahmoudi,director general of the SharjahChamber of Commerce and Industry,is confident in Sharjah’s ability toattract FDI into its tourism industry.
“[The chamber of commerce] isventuring into hospitality and open-ing new hotels to cater to the businesscommunity,” says Mr Al Mahmoudi.“Shurooq is developing many touris-tic projects to attract investors. I havetravelled across the world and when Ilook at the region – it is quite devel-oped. The local government is invest-ing heavily in upgrading the infra-structure and this is stimulatingbusiness opportunities.” ■
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Marine and air freight services,waste ManageMent and educationare just soMe of the areas in whichsharjah is leading the way notonly in the united arab eMirates,but throughout the whole of theMiddle east. BarBara Njau reports
L acking the extensive hydrocar-bon reserves of its neighbourAbu Dhabi, the government of
Sharjah in the United Arab Emirateshas pursued a policy of diversifica-tion in order to safeguard its eco-nomic development. Being the onlyemirate with borders along both thePersian Gulf and the Gulf of Oman,Sharjah has capitalised on its uniquegeographic positioning throughbuilding supportive infrastructurein order to promote the growth of itstransport and logistics industry.
“The UAE is the new ‘silk road’,which connects the East with theWest, and Sharjah is best known forits logistics services,” says BassamSalim El Kheshen, senior sales officerat Sharjah Airport International FreeZone. “Sharjah’s airport is consid-ered to be the largest cargo hub inthe Middle East, and Sharjah’s ports
provide services for imports andexports. The businesses that estab-lish their operations here can reachall markets within hours.”
Marine and air freight servicesThe trade andmanufacturing sectorhas become one of the central pillarsof Sharjah’s economy. According toShurooq, Sharjah’s investment anddevelopment authority, the trans-port and logistics sector was worthDh3.1bn ($844m) in 2011 andDh3.6bn in 2012. Sharjah’s officialspredict that the sector will be worthDh4.1bn in 2013, with themaindriver behind this growth being itsmarine and air freight industry.
Having access to three deep-water ports, and being host to oneof the UAE’s fastest growing interna-tional airports, means Sharjah hasbeen a draw for investors that wishto export goods to the rest of theMiddle East, as well as the Indiansubcontinent. In addition, Mr ElKheshen says that Sharjah has devel-oped an important role for thoseseeking to access markets in Africa,as the emirate is widely consideredto offer a politically stable environ-ment that is business friendly.
“We see many companies com-ing from Africa because of the tax
incentives and [Sharjah’s] locationbenefits, as well as its stability,”explains Mr El Kheshen. “The gov-ernment of Sharjah has invested inits ports, andmany companies arecoming from Africa to establishthemselves here to cater to Africanmarkets, particularly when it comesto construction andmachinery.”Shurooqmaintains that the import-ing and re-exporting of cargo hasgrown considerably, and by theend of 2010more than 6545 tonnesof goods were imported and re-exported through Sharjah’s seafreight services.
Environmental issuesThe UAE has one of the highest percapita waste levels per person in theworld, meaning that environmentalchallenges are verymuch on thefederal government’s agenda, andSharjah has carved out its niche asthe UAE’s pioneer for renewableenergy alternatives. Themove toform Sharjah’s first integratedenvironmental and wastemanage-ment company, Bee’ah, by emiridecree in 2007 enabled the emirateto develop an expertise in sustaina-ble wastemanagement.
“We started Bee’ah to tackle theUAE’s environmental challenges,”
Diversification supreme: Sharjah has developed interests across the sectors, with investment in areas including waste management, and air andsea freight
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Shiningacrosssectors
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sharjahSEctorS
says Khaled Al Huraimel, the compa-ny’s CEO. “In the Gulf, we are thehighest producers of waste per per-son. Two-and-a-half kilograms perday of waste is generated by eachperson, which is one of the highestin the world. That was a problemand we started to build the infra-structure to solve it.”
Since its inception as a public-private partnership between thegovernment of Sharjah and theSharjah City Municipality, Bee’ahhas become the Middle East’s lead-ing environment and waste manage-ment company. In addition to engag-ing in a series of educational andsensitisation initiatives on recyclingwith citizens across the UAE, Bee’ahhas developed the requisite infra-structure to process and recyclewaste, and in 2012 Sharjah rolledout the Middle East’s first residen-tial recycling programme.
“We built a material recoveryfacility, which is the largest in theMiddle East,” says Mr Al Huraimel.“It takes the municipal waste andsegregates it to recover a lot of therecycled material that we sell on. Wehave built a tyre recycling plant, andwe have worked on several projectswith Shurooq. For example, the con-struction of a red tyre track [for jog-gers] in the Al MajazWaterfront wasdone by Bee’ah.”
Sharjah has gained internationalacclaim for its environmental efforts,with Bee’ah being crowned as the‘BestWasteManagement Companyin theMiddle East’ by the FacilitiesManagementMiddle East Awards in2012. Yet even though the sector iscurrently worth Dh740m, theSharjah government is keen toexpand further in this field, throughattracting FDI into solar energy gen-eration plants andwater desalina-tion projects. With the value of theenvironmental sector expected togrow to Dh780m in 2014 and toalmost Dh1bn by 2016, MarwanJassim Al Sarkal, the CEO of Shurooq,is a firm believer in the sector’spotential for further development.
“By 2015 everything in Sharjahis going to be recycled, and that willmake it the first Arab nation thatrecycles everything,” says Mr AlSarkal. “This is a huge area that isgoing to be developed under a Bee’ahinitiative to attract more companiesthat would like to [work] with it.”
Education opportunitiesThe American University of Sharjah(AUS) has become distinctive withinthe region for both the beauty of itsIslamic architecture, as well as itsrise on global education indices asa centre of academic excellence.Located on the outskirts of Sharjahcity centre, the university hasbecome a significant conduit indeveloping Sharjah’s appeal as aneducational destination for prospec-tive international students.
Created in 1997 by Sharjah’sruler, Sheikh Sultan bin MohammedAl-Qasimi III, who himself was analumnus of the American Universityof Cairo, AUS runs in parallel withthe American education system. Thequality of the university’s techni-cally trained graduates is seen as apositive selling point in the eyes offoreign companies, who are happyto employ local but well-educatedEmirati graduates as a cheaper alter-native to importing costly expatri-ates to run their offices in Sharjah.
“We are the most competitiveuniversity in the UAE in terms ofselecting our students,” saysThomas Hochstettler, vice-chancel-lor at the AUS. “We have establishedourselves as a centre for ecosystemresearch. We have partnered with
BuSineSSeS thateStaBliSh theiroperationShere canreachallmarketSwithinhourS
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the Massachusetts Institute ofTechnology, Columbia University,Oxford University, and the Healthand Sciences University to monitorwaste management, and we arebecoming a major magnet forwaste management in this partof the world.”
According to Mr Hochstettler, theproactive and direct involvement ofSheikh Sultan in supporting thegrowth of the university has donemuch to lift Sharjah’s internationalprofile. Indeed, AUS’s involvement ininternational cultural exhibitions,including the Milan Furniture Fairin 2012, which showcased the uni-versity’s architectural department’sart designs in Italy, has been signifi-cant in placing Sharjah on the globaleducational map.
“The university is becomingincreasingly well known,” saysMrHochstettler. “I have been here forfour years andwhen I first told people[abroad] that I was going to Sharjah,they askedwhere that is. But nowwhen I go back home, I findmorepeople know exactly where it is. Thatis because of the cultural leadershiphere. There is a lot of cultural activitygoing on andwe have really become adestination for peoplewho are inter-ested in culture in the region.”■
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SharjahFactFile
SharjahfactfileecONOMYThe total GDP of the emirateof Sharjah was Dh89bn ($24bn)in 2012.Source: Shurooq
GeOGRaPHYaNDSOciOecONOMY
■ Sharjah covers 2600 squarekilometres.■ Sharjah is the only emirate thatborders all other six emirates thatmake up the United Arab Emirates.■ In addition to Sharjah city, whichlies on the Persian Gulf on the westcoast, the emirate has three regionson the east coast, touching the Gulfof Oman: Dibba Al Hisn, Khorfakkanand Kalba.■ Sharjah’s Gulf of Oman coastlineis 58 kilometres long.■ Sharjah’s population is about 19%of the overall population of the UAE,with 85% of Sharjah’s 946,000residents living in Sharjah city.Source: Ministry of Economy – 2008.
■ Sharjah’s official religion is Islam.■ The official language is Arabic,with English spoken as the mainlanguage of commerce.
GOVeRNMeNt
■ Sheikh Sultan bin MohammedAl-Qasimi III became the ruler ofSharjah in 1972 at the age of 32.He is the 18th ruler of the emirateof Sharjah, following a successionof Al Qasimi rulers since 1600.■ Established in 1927, SharjahMunicipality is the oldestmunicipality in the United ArabEmirates.
iNFRaStRUctURe
air links■ In 1932, the first airport in theArabian Gulf was established inSharjah.■ Sharjah International Airportfeatures five air cargo buildingsthat cover 32,000 square metres.
■ Established in 2003, Sharjah-basedAir Arabia was the first low-costcarrier in the Middle East.■ Central Sharjah is a 15-minutedrive from Dubai InternationalAirport.
Ports■ Sharjah has three ports which coverapproximately 49.5 million squarekilometres.■ Established in 1975, Port Khalidbecame the first container terminalin the Gulf Arab region.■ Today, Port Khalid and theport of Khorfakkan can jointlyaccommodate 5 million containers.
iNDUStRialaNDFReeZONeS
■ Sharjah has 19 industrial areasthat produce more than 48%of the UAE’s total industrialoutput.■ The two free zones in Sharjahcover 28 million square metres. ■Source: Sharjah Media Centre (www.sharjahmedia.ae)
Sharjah city: features bold, modern developments mixed in with traditional architecture
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