Sharjah, the third largest Emirate in the UAE, boasts of a diverse economy and is quickly becoming a thriving business hub. Known as the cultural capital of the UAE, it is gaining recognition as an ideal destination for entrepreneurs looking to enter the Middle Eastern market. The city is renowned for its pro-business governance leading to the rise in diverse business opportunities in Sharjah. Continue reading this article to get an insight into the various industries in Sharjah favourable for investment and why you should invest in the Emirate.
Why Start a Business in Sharjah?
There are several reasons to invest in Sharjah, including different key factors that make it an attractive option for businesspeople. The investor-friendly ecosystem, competitive operating costs, and dynamic location attract entrepreneurs across the globe. Let us see why starting a business in Sharjah is a favourable option:
Affordable Costs
Sharjah provides a cost-effective business environment with competitive operating costs including lower expenses related to workspace, utilities, labour, among others. It's much more affordable than all the other Emirates.
Diverse Economy
Sharjah’s economy goes beyond the oil and gas industry in the UAE. There are numerous industries in Sharjah contributing to the non-oil sector such as manufacturing, logistics, education, tourism, healthcare, information technology (IT), to name a few. All these business opportunities in Sharjah contribute to the diversification of the economy.
Free Zones and Industrial Areas
Sharjah is home to multiple free zones and industrial hubs catering to various business sectors. Some popular free zones include Sharjah Media City (SHAMS) free zone, Sharjah Airport International (SAIF) free zone, SRTIP, and Hamriyah free zone.
Emerging Startup and SME Scene
Sharjah creates a safe haven for startups and SMEs and actively supports them through accelerator programmes, incubators, and networking opportunities. This helps entrepreneurs explore various business opportunities in Sharjah.
Cultural and Educational Hub
Sharjah is the cultural hub in the UAE, with a strong focus on arts, innovation, and education. It is ideal for venturing into creative and knowledge-based industries.
Strong Government Policies
Sharjah government focuses on streamlined licensing procedures, transparent regulations, and investor support services. The Emirate invests heavily in research and development (R&D) and cutting-edge technologies.
Sustainability Initiatives
Sharjah focuses on sustainable urban development, clean energy initiatives, and smart infrastructure.
With all these advantages, it is no surprise that investing in various business opportunities in Sharjah has become a popular choice for many entrepreneurs.
What are the Top Business Opportunities in Sharjah?
In recent years, Sharjah has witnessed rapid growth in technology and innovation-based businesses, offering productive ground for business setup in Sharjah. The numerous investment opportunities in Sharjah contribute significantly to the gross domestic product (GDP) of the UAE economy. Here are some of the most promising business ideas in Sharjah:
E-commerce and Online Retail
The surge in internet penetration has led to an increasing demand for online shopping in the UAE. Sharjah is no exception. The process of obtaining an e-commerce license in Sharjah is also simple and straightforward with the right guidance. From fashion and electronics to niche products, e-commerce offers scalable business opportunities in Sharjah for both local and international investors. The emirate’s proximity to major shipping routes helps reduce shipping duration and costs. The advanced logistics infrastructure and warehousing helps in efficient order fulfillment.
Advanced Manufacturing
Out of the many business opportunities in Sharjah, the manufacturing sector contributes significantly to its GDP. The city has now transitioned to advanced manufacturing practices, creating numerous opportunities in the sector. The sector today embraces technologies such as robotics, artificial intelligence (AI), 3D printing, among others to produce advanced products.
Tourism and Hospitality
The tourism and hospitality sector represents one of the best investment opportunities in Sharjah. Known as the cultural capital of the UAE, it offers ample opportunities in leisure, hospitality, food and beverage, luxury retail, entertainment, amusement parks, and other travel-related businesses. From vast deserts to UNESCO heritage sites to natural reserves, businesses into travel planning, heritage tours, boutique hotels, and eco-tourism have a strong potential for success.
Healthcare and Wellness
The healthcare industry in Sharjah is expanding rapidly, and there is increasing demand for clinics, R&D labs, pharma companies, wellness centers, and health-tech solutions. Free zones like Sharjah Healthcare City (SHCC) further offer low entry barriers for healthcare providers.
Green Technology
The Sharjah free zone company formation presents a great opportunity for investors looking to enter the clean and renewable energy sector. The city also contributes to the UAE’s goal to generate 50 per cent of its energy from renewable sources by 2050. Such initiatives encourage opportunities in the green tech sector. The sustainability policies create favourable conditions for sustainability and clean-tech startups.
Education and Training Services
From vocational training centres to language institutes and tech-focused universities, the education industry offers vast business opportunities in Sharjah. In addition, the city is welcoming major international universities to set up their campus. Other than that, the edtech sector is also booming with the digitisation of the city.
Real Estate
The growing population and rising number of businesses have created massive demand in the real estate market. Whether it’s commercial space development or residential property management, this sector remains one of the most profitable business in the city.
Technology and Innovation
Sharjah is investing in innovation and technology by setting up numerous incubators and accelerators that support tech entrepreneurs. It is also encouraging startups and potential investors to invest in fields such as AI, machine learning, blockchain, cryptocurrency, and fintech. With free zones such as Sharjah Research, Technology, and Innovation Park (SRTIP), the government is building a world-class tech ecosystem for entrepreneurs to thrive.
Partner with Commitbiz LLC
Whether you're looking to launch a startup or expand your business, there are varied business opportunities in Sharjah to explore. If you're planning to do business in Sharjah, reach out to trusted consultants such as Commitbiz, who can assist you with company registration, licensing, and compliance. Our experts will make your entrepreneurial journey seamless. Contact us today!
What are the taxes applicable to businesses in Sharjah?
As of June 1, 2023, the UAE has adopted a dual-tier corporate tax system. No corporate tax applies for individuals/businesses with taxable income of up to AED 375,000. However, a 9% tax rate applies on income exceeding AED 375,000 per tax period.
What documents are required for business setup in Sharjah?
For business setup in the city you will need a passport copy, visa (if applicable), business plan, trade name reservation, and license application. Requirements may vary by jurisdiction and business activity.
What types of companies can I register in Sharjah?
You can register a variety of business entities in Sharjah such as LLCs, branches of foreign companies, sole proprietorship, partnership, public shareholding company, and free zone companies, based on your business needs.
What support does the Sharjah government provide for SMEs?
Sharjah supports small medium enterprises (SMEs) with funding programmes, subsidised office spaces, training, and incubation through initiatives like Sheraa and the Sharjah SME Foundation.
What are the main licensing authorities in Sharjah?
The main licensing authorities for mainland companies is Sharjah Economic Development Department (SEDD), and respective free zone authorities like SAIF, Shams, and Hamriyah Free Zones, among others.