Image credit: WAM/Website
Sharjah has emerged as the UAE’s fastest-growing emirate for foreign direct investment (FDI) in the first half of 2025, recording a dramatic 361 per cent increase in capital inflows to $1.5bn, compared to $325m in the same period last year. This economic surge has translated into tangible growth across several sectors, expanding the project pipeline, creating jobs, and reinforcing the emirate’s industrial base.
Driven by investor confidence and backed by a clearly defined strategic vision, Sharjah’s performance underscores its positioning as a competitive and reliable investment hub. The latest data confirms the emirate’s successful efforts to channel foreign capital into long-term, sustainable development, a WAM report said.
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The sharp increase in capital investment was matched by a rise in new project activity, with 74 new projects launched in H1 2025, a 57 per cengt increase from 47 projects during the same period in 2024. This expansion is significantly benefiting Sharjah’s production and service-based sectors, which are aligned with the emirate’s vision for a high-value, knowledge-based economy.
Employment also saw a notable boost, with 2,578 new jobs created, a 45 per cent increase from 1,779 in H1 2024. The growth in job opportunities is enhancing purchasing power, strengthening local consumption, and generating momentum for further investments, particularly among small and medium enterprises (SMEs).
Strategic leadership behind economic momentum
Abdallah Sultan Al Owais, Chairman of the Sharjah Chamber of Commerce and Industry (SCCI), attributed the emirate’s strong FDI performance to the visionary leadership of Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah.
“These exceptional results reinforce Sharjah’s reputation as a safe and attractive investment destination,” Al Owais said. “The Sharjah Chamber continues its work to support investors, promote diverse opportunities, and build strategic partnerships with international institutions to attract even more capital into the emirate.”
Ahmed Obaid Al Qaseer, CEO of the Sharjah Investment and Development Authority (Shurooq), highlighted the significance of this growth. “A 361 per cent jump in capital investment and 57 per cent growth in projects in just six months is more than just numbers. It means more jobs, stronger industries, and sustainable value creation for our communities,” he noted.
Al Qaseer also praised the efforts of the Sharjah FDI Office (Invest in Sharjah), describing its role as “pivotal” in aligning global capital with the emirate’s long-term goals of talent development, industrial diversification, and sustainability.
Government alignment fuels sectoral expansion
Hamad Ali Abdalla Al Mahmoud, Chairman of the Sharjah Economic Development Department (SEDD), said the surge in FDI reflects the strength of Sharjah’s economic fundamentals and its ability to pursue excellence and leadership across business sectors.
“This momentum directly supports Sharjah’s vision for smart and sustainable economic development,” he said, noting that the Department will continue to scale its initiatives in line with the emirate’s growth strategy.
Consumer goods and F&B lead investment growth
New data reveals that specific sectors are emerging as front-runners in Sharjah’s transformation journey.
- Consumer products: The sector saw a 53 per cent increase in project count and a 188 per cent rise in capital investment, making it one of the key contributors to Sharjah’s diversified economic portfolio.
- Food and beverage (F&B): With a 112 per cent jump in new projects and a 25 per cent increase in employment, Sharjah is consolidating its role as a regional food security hub.
- Business services: Perhaps the most dynamic performer, the sector experienced a staggering 500 per cent rise in capital investment and an 1100 per cent increase in job creation, underlining its role in supporting a modern, service-oriented economy.
- Industrial equipment: This sector also expanded significantly, with a 100 per cent increase in project count and a 45 per cent increase in capital expenditure, a strong signal of Sharjah’s growing manufacturing base.
Infrastructure, policy, and human capital as growth enablers
The emirate’s success has been underpinned by proactive governance, enabling legislation, and infrastructure that supports enterprise development. The data points to a well-coordinated institutional effort to make Sharjah an attractive long-term investment destination.
A human-centric development vision, one that focuses on empowering talent and driving knowledge-based industries, continues to serve as the cornerstone of Sharjah’s FDI strategy. This foundation has allowed the emirate to translate capital inflows into real economic value and long-term competitiveness.
The multiplier effect of rising FDI is expected to ripple across logistics, education, innovation, and technology sectors, further boosting GDP and increasing the emirate’s global standing. With a clear alignment between public and private sector efforts, Sharjah appears well-positioned to maintain its upward growth trajectory.
Sharjah’s ability to attract high-value investments in H1 2025, and convert them into sustainable economic impact, marks a significant milestone in the emirate’s journey towards becoming a regional leader in diversified, resilient growth.
