SHARJAH – 2020 was arguably one of the difficult years in human historical past. The onset of COVID-19 strapped the worldwide economic system on a roller-coaster journey, affecting each lives and livelihoods of individuals worldwide.
On the enterprise facet notably, the pandemic has revealed the resilience of cities like Sharjah, which continued to develop amid disaster by permitting international traders leverage alternatives provided by its various economic system, business-friendly atmosphere and low working prices, amongst different aggressive benefits.
On the finish of 2020, the emirate attracted 24 overseas direct funding (FDI) initiatives value $220 million (AED 808.6 million), as per a Wavteq examine on Sharjah’s FDI annual efficiency. There was a 60 % enhance within the variety of FDI initiatives between Q3 and This autumn. Whereas sure sectors had been impacted, others witnessed exceptional development, providing substantial funding alternatives for companies within the fields of e-commerce, well being and medical analysis, and private protecting gear, amongst others. This enhance in financial exercise in new and rising sectors led to the creation of 1,117 new jobs in Sharjah.
Over the 12 months, Sharjah FDI Workplace (Spend money on Sharjah), the funding promotion workplace working underneath the Sharjah Funding and Improvement Authority (Shurooq), continued to bolster funding exercise in Sharjah with a variety of companies and amenities, together with real-time evaluation of native markets, which helped incoming companies determine appropriate alternatives. Investor confidence in Sharjah continued to develop in 2020, with 24 new funding initiatives value $220 million in 2020.
Reflecting on how IIS rapidly tailored to the volatility that characterised the 12 months, Mohamed Juma Al Musharrkh, CEO of Spend money on Sharjah (IIS), mentioned that 2020 had, “taught us the competitive advantage of adaptability, which will continue to inform the manner in which IIS would leverage future investment trends.”
“The COVID-19 outbreak caused global foreign direct investment (FDI) to shrink by 21%-61%, according to a WAVTEQ’s report. It also states that job opportunities in the medical equipment manufacturing sector increased by 53.4%, and in life sciences by 45.4%, the highest since 2012. Jobs in e-commerce, financial technologies and logistics also grew at a quick pace during 2020,” he added.
Greatest investments in 2021
Al Musharrkh remarked that WAVTEQ had forecast a rise in FDI in numerous important major sectors within the subsequent 12 months, predicting a 74% hike in life sciences, 55.6% in Data and Communications Know-how (ICT), 49.7% in meals and agriculture industries, 46.2% in logistics and distribution, whereas the cleansing know-how business is predicted to develop at a fee of 30.2%. Secondary sectors, together with e-commerce, medical know-how, training know-how, cybersecurity, monetary know-how, and good logistics, is predicted to deliver high-yield funding alternatives for innovation-driven SMEs.
Other than the necessity to enhance funding in future industries, 2020 taught us that we should give attention to SMEs, start-ups and rising innovation-based companies that are the spine of social capital and economic system and have a direct impression on microeconomic indicators, Al Musharrkh mentioned. An evaluation of The International Entrepreneurship Index indicated that international locations with excessive per capita GDP have the next share of entrepreneurial enterprises, he famous.
Discussing Funding alternatives with the world’s largest economies
IIS participated in 14 main native and worldwide occasions and webinars throughout 2020, protecting a variety of sectors corresponding to investments in actual property, know-how, commerce, entrepreneurship, industrial manufacturing, health-tech, agriculture and know-how.
The entity kicked off 2020 with the Sharjah – Korea Enterprise Roundtable in February and subsequently organised 11 digital discussions all year long to discover potential funding alternatives that might leverage markets sooner or later, consistent with the UAE authorities’s efforts to curb the unfold of Covid-19.
The ‘Sharjah Economic Ramadan Majlis’ mentioned the impression of the UAE stimulus plan on financial stability and development and the way it may mitigate the challenges confronted by corporations because of the outbreak of the pandemic. IIS additionally hosted a digital seminar on the way forward for agrotechnology and the function of governments in addressing meals points. One other session tackled the subject of retaining tempo with change and versatile funding developments.
In its capability because the regional director of the MENA chapter of the World Affiliation of Funding Promotion Companies (WAIPA), IIS led a regional members’ assembly which supplied a singular alternative to study from regional funding leaders in regards to the approaches numerous organisations have been taking to beat challenges posed by the pandemic.
The IIS workplace additionally organised a collection of panel discussions and roundtables with a number of worldwide funding leaders and businessmen from South Korea, India, China, USA, Austria, and Italy to discover funding prospects and challenges in addition to to share success tales of overseas companies which have expanded from Sharjah to the regional and international markets.
Via its Sharjah Buyers Providers Centre (Saeed), the workplace gives traders a one-stop high-end enterprise facility with absolutely built-in companies to assist them arrange their companies swiftly and effectively in lower than 60 minutes. To make sure the supply of high quality companies, the workplace has constructed a powerful communication and partnership community with all associated authorities entities, together with Tas-heel, the Notary Public, Emirates ID Authority and the Common Directorate of Residency and Foreigners Affairs.
Concluding their initiatives for 2020, Spend money on Sharjah hosted members of ‘Young Economist Programme’ at a panel dialogue to debate the function of youth in shaping UAE’s financial future, in keeping with the nationwide efforts to nurture younger economists and construct their capabilities.