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Sharjah is the third largest emirate in the UAE and one of the popular tourist destinations in the country. This is a peaceful, quiet, quite conservative, and safe pace. The emirate is rapidly developing and being built up. It may be inferior to Dubai in terms of entertainment offerings, but when it comes to comfort, it is certainly on a par. Every year, more and more investors choose this location for financial investments, preferring an emirate with lower living costs, government support for businesses, and promising real estate. We will look into the reasons for Sharjah’s popularity in this article.
Content:
- Reason No. 1. Highly qualified personnel
- Reason No. 2. Favourable business environment
- Reason No. 3. Transport accessibility
- Reason No. 4: Thriving startups
- Reason No. 5. Promising real estate
- Conclusion
Reason No. 1. Highly qualified personnel
A popular destination for expats, Sharjah boasts a young, talented, and multicultural population. The key to attracting such residents has been the emirate’s continued investment in schools and universities. Sharjah invests $1.5 billion a year in education and research, which is more than other countries spend per capita. A total of 47,000 students are educated at the emirate’s University City—most of them will stay to work in Sharjah after receiving their diploma.
Reason No. 2. Favourable business environment
The Sharjah government has taken steps to make the emirate one of the most profitable places to do business in the Gulf. Starting your own business can be done quickly and easily thanks to a variety of Free Zones and the support of the Sharjah Investors Services Center (SAEED).
The emirate’s Economic Development Department (SEDD) is the authority in charge of licensing and registering legal entities in mainland Sharjah. The entire procedure is simplified as much as possible, which is why entrepreneurs choose the emirate to launch businesses and startups. The UAE Commercial Companies Law (CCL) also plays an important role. It was recently amended to allow 100% foreign ownership of businesses in Sharjah. A company registered in the emirate can operate throughout the UAE.
Sharjah has several Free Zones, which are in or near major transport hubs. The emirate prides itself on minimising bureaucracy. Its Free Zones are convenient for businesses. As you know, since June 2023, the UAE has introduced a corporate tax of 9% on annual profits over AED 375,000 ($102,000). However, the Free Zones keep a zero tax rate.
Reason No. 3. Transport accessibility
Sharjah is conveniently located between Dubai and the developing northern regions. It is the only emirate bordering 6 others. Sharjah provides easy access by air, sea, and land to administrative centres in the UAE, the GCC nations, and countries outside the region, which is one of the reasons why the manufacturing sector accounts for 17% of the emirate’s GDP.
The local airport connects the UAE with Europe, Africa, and Asia. The region’s leading airline, Air Arabia, is based here. The emirate is also popular due to its proximity to Dubai International Airport, which is just 28 km away.
Sharjah is home to three seaports, making it the only emirate to have ports on both the Persian Gulf and the Indian Ocean thanks to its exclave near Fujairah.
Reason No. 4: Thriving startups
There are more than 60,000 small and medium enterprises and startups in Sharjah. The emirate is a hub of innovation, with organisations such as the Sharjah Entrepreneurship Center providing multiple levels of support, including business incubators, acceleration programmes, and the annual Entrepreneurship Festival, an event that brings together the world’s most promising innovators.
The location is home to University City and Sharjah Research, Technology and Innovation Park (SRTIP), which host activities linking industry, government, universities, and research laboratories. The emirate implements projects for technology organisations such as Nokia, IBM, and Dell. Important initiatives related to Sharjah’s digitalization and e-transformation, as well as a focus on sustainable development, are the core principles of Sharjah’s culture of innovation.
Reason No. 5. Promising real estate
If you are interested in investing in real estate rather than in business, then this emirate can boast more attractive conditions compared to others. Even though residences are high quality, their prices are significantly lower than those of apartments in Dubai and Abu Dhabi. The average cost of real estate in Sharjah is $208,000, while you can find much cheaper apartments under $100,000.
Freehold areas were established in the emirate only at the end of 2022. In the 3 months since the enactment, the cost of local real estate increased by 15–20%, and the demand for off-plan and completed properties showed a 30% increase. According to experts, the creation of freehold areas will have a positive impact on the popularity of Sharjah. The real estate market in the emirate is more stable and less subject to price volatility than in Dubai, which is worth taking into consideration.
Conclusion
Sharjah is a promising investment destination whose popularity is growing every year. If you are thinking about purchasing real estate in Dubai, you should also consider buying property in this emirate, as local housing has a lower cost and significant prospects for a quick return on investment.
