Sharjah Free Zones

Sharjah solidifies its industrial position with free zones

Sharjah is home to six free zones

As one of the most diversified economies in the UAE, Sharjah has a strong foundation in industry and manufacturing. Approximately 95.8 per cent of its economic activity was derived from non-oil sectors in 2019, positioning the emirate to absorb much of the impact of the Covid-19 pandemic, according to Oxford Business Group (OBG)’s Sharjah Report 2021.

With limited oil and gas production by regional standards, Sharjah has had to look to other sectors to build a robust and diversified economy. Prominent among these has been industry and manufacturing, and the emirate has emerged as an important Middle Eastern industrial hub, with the sector accounting for around 17 per cent of Sharjah’s GDP and around a third of manufacturing activity in the UAE as a whole.

Sharjah is the UAE’s third-largest emirate, accounting for just over 3 per cent of the country’s territory, and is home to six free zones. The emirate has worked to develop a broad network of free zones and industrial zones to solidify its position as an exporter and re-exporter. More recently, the government has established free zones focused on knowledge-led sectors such as publishing, media, health and education.

Strategically located between Africa, Europe, and Asia, Sharjah is largely considered as the shipping sector of the country. However, much of its industrial activity is concentrated in two free zones that allow for full foreign ownership, namely the Sharjah Airport International Free Zone (SAIF Zone) and the Hamriyah Free Zone (HFZ).

SAIF Zone and the Hamriyah Free Zone are the two major zones in Sharjah

SAIF Zone and the Hamriyah Free Zone are the two major zones in Sharjah

More than 50,000 people work at the HFZ, which is located adjacent to Hamriyah Port, one of the emirate’s three deepwater ports to the north of Sharjah City, and near the emirate of Ajman, which is completely surrounded by Sharjah and the sea. The port is the emirate’s main oil and gas terminal and HFZ, which hosts 6600 companies, is also dominated by hydrocarbons- and petrochemicals-related industries, as well as heavy industry more generally.

HFZ is sub-divided into a zone for small and medium-sized enterprises (SMEs), known as Hamriyah SME Zone, a microbusiness zone (Hamriyah MB Zone) and a logistics zone (Hamriyah Logistics Village). Hamriyah SME Zone, which is 10m sq metres in size, is in turn sub-divided into seven industry-themed areas, respectively focusing on oil and gas, petrochemicals, steel, timber, perfume, construction and maritime-related industries such as ship-building and repair. Businesses located at HFZ have access to the 14-metre deepwater port and the seven-metre inner harbour. The free zone also offers pre-built warehouses, office units and factories for rent and renewable leases of up to 25 years.

And in recent times, the government has taken proactive steps to bring foreign investment to create enormous opportunities for the businesses set up in Sharjah free zones.

 

Sharjah Publishing City

Sharjah Publishing City (SPC) Free Zone provides a convenient option for entrepreneurs to setup a business in the UAE. The free zone offers more than 1,500 business license activities, including publishing, printing, general trading, E-commerce, information technology businesses, and consultancies, with the ability to combine activities from various sectors. One of the free zone’s unique features is that it is authorised to issue a dual license (Mainland and Free Zone). It offers modern office spaces, state-of-the art warehouses and storage areas, as well as co-working spaces and cafes.

 

Hamriyah Free Zone

Established in 1995, Hamriyah Free Zone is an industrial zone in Sharjah that serves as a home to nearly 6,500 businesses from more than 160 countries. Hamriyah Free Zone is an ideal location to set up a business because of its strategic location which provides easy access to global markets. It features world-class facilities such as factories, warehouses, executive office suites and regular offices, in addition to VIP Investors Lounge, Customs office, fully equipped recreational centres, currency exchanges, banks, supermarkets, labour accommodation and the Sharjah Civil Defence station.

 

Sharjah Media City – Shams

Launched in January 2017, Sharjah Media City has creative and media companies from more than 160 countries, with services and offerings that are designed to act as a catalyst for their growth and prosperity. Investors can start a business at the lowest costs and benefit from several visas on a joint office. Multiple business activities are also permitted on the same license. Located 5 minutes from Sharjah International Airport and 15 minutes from Dubai International Airport, Shams seeks to be a global centre of creativity in the region.

 

SAIF ZONE

The Sharjah International Airport Free  (SAIF) Zone is a comprehensive ecosystem that is conducive for all commercial businesses, especially as it provides integrated services and qualified staff who can provide all forms of support to various businesses, to complement its many other facilities and advantages, he added.

SAIF is a commercial and investment destination with state-of-the-art, high-efficiency infrastructure. It offers fast, simple corporate registration procedures, and cost-effective business solutions that make it a haven for companies of all sizes and specialties. The free zone houses thousands of companies and offers various facilities to meet all types of business requirements. Its strategic location adjacent to the Sharjah International Airport and its proximity to other seaports and airports are added advantages.

 

Free Zones in the UAE

Meanwhile, the free zones in Dubai are on track to boost their contribution to the emirate’s gross domestic product to Dh250 billion ($68bn) by 2030, according to Sheikh Ahmed bin Saeed, chairman of the Dubai Free Zones Council.

The economic zones support the growth of existing industries and have created new specialised and dynamic sectors including green, circular and knowledge-based economies, in line with future economic opportunities, Sheikh Ahmed said during the council’s meeting, state news agency Wam reported.

The Free Trade Zones (FTZs) of the UAE have been a veritable opportunity for the country to showcase its development and special area approach. The UAE in the last decade has witnessed a quantum increase in industrial development and one of the most significant and remarkable achievements is the success of Free Zones. Free Trade Zones are established under a special Decree passed by the Ruler of the Emirate in which the Free Zone is created.

Free zones enhance diversified economics and promote sustainability and growth, strengthening Dubai’s appeal as a preferred investment destination, Sheikh Ahmed said.

The UAE has been investing heavily in developing its infrastructure and implementing policy reforms to attract more entrepreneurs and businesses to the country as it seeks to grow its non-oil sector. The UAE Cabinet recently approved new regulations for the entry and residence of foreigners, including amendments to the golden residency programme, green residency, tourist visas and other special visas.

The contribution of the UAE’s non-oil sector to the country’s total economic output rose to 72.3 per cent in 2021, the Federal Competitiveness and Statistics Centre said earlier this month.

To date the Free Zones have been successful in attracting a large number of foreign companies and foreign direct investment. The share of the Free Zones in non-oil exports has increased considerably along with the net exports from the Free Zones.

The UAE Free Zones have been among the strong pillars of the country’s economic performance attracting a lot of foreign investments, creating thousands of jobs, and facilitating the needed transfer of technology into the country. Together, Free Zones account for more than half of the country’s non-oil exports and underpin the UAE’s ranking as the third most important re-export centre in the world.

The Free Zones help in keeping the engine of economic diversification rolling by attracting foreign investment in the private sector, which is central to the region’s overall plan aimed at reducing its economic dependence on oil, while creating employment for its nationals.