Sharjah’s gross domestic product grew by 5.2 per cent last year, driven by economic diversification efforts that are aligned with the emirate's development strategy.
The emirate registered Dh136.9 billion ($37.2 billion) in GDP earnings last year compared with Dh130.1 billion in 2021, Sharjah's Department of Statistics and Community Development said on Tuesday.
The DSCD data is based on a survey of independent agencies and the government sector.
“The preliminary estimates for 2022 indicate a positive economic performance in the emirate,” said Sheikh Mohammed Al Qasimi, chairman of DSCD.
“The economic diversification of the emirate has been a driving force behind the growth that we are currently witnessing, which aligns with the emirate’s development plans.”
The non-oil sector also posted a 5.2 per cent increase in 2022, bringing the total to Dh133.4 billion, compared with Dh126.8 billion the previous year, according to DSCD estimates.
Sharjah has been experiencing strong growth after its government took several measures to support businesses and residents to mitigate the effects of the Covid-19 pandemic.
The emirate introduced Dh1 billion of economic stimulus measures in 2020 in response to the economic challenges caused by the global crisis, which included the waiving, reduction or cancellation of certain government fees and charges.
In December, Sheikh Dr Sultan bin Muhammad Al Qasimi, Ruler of Sharjah, approved a Dh32.2 billion budget for 2023 that prioritises spending on infrastructure, capital projects and economic development.
The 2023 budget aims to achieve financial sustainability and enhance the emirate’s economic competitiveness.
About 35 per cent of the budget will be allocated to infrastructure and capital projects, 34 per cent to economic development, 28 per cent to salaries and 23 per cent to social development, the Sharjah Finance Department said at the time.
In terms of government revenue, operational revenue represents 69 per cent of the total budget for 2023, an increase of 11 per cent from last year's levels. Capital revenue constitutes 11 per cent of this year’s budget.
Sharjah’s wholesale and retail trade sector, as well as the repair of motor vehicles and motorcycles were the most significant contributors to GDP last year at 24 per cent, the DSCD data showed. This was followed by manufacturing sector at nearly 17 per cent.
Real estate activities ranked third at nearly 9.7 per cent, highlighting the sector’s role in “providing investment opportunities” in the emirate, the DSCD said.
The construction sector, meanwhile, contributed 9 per cent of the emirate’s GDP, reflecting the role of this sector in “achieving urban development and infrastructure” in the emirate.
Sharjah has been aggressively expanding its portfolio in a number of areas including real estate, tourism, aviation, technology and health care.
The emirate earlier this month approved plans for a new healthcare and research district. The Jawaher Boston Medical District project will establish an integrated network of healthcare systems in the emirate, featuring hospitals, laboratories, and research and development centres.
Sharjah is also ramping up its focus on adventure and eco-tourism with a number of new projects.
Khor Fakkan, on the UAE’s east coast, for example, will be home to one of the biggest developments with the opening of a new adventure park next year, the Sharjah Investment and Development Authority revealed during Dubai's Arabian Travel Market last week.
Work on Sharjah International Airport’s terminal expansion will also start in mid-2023, with completion expected in 2026, to meet rising travel demand, the emirate’s airport authority chief Ali Al Midfa said in March.
Emirates exiles
Will Wilson is not the first player to have attained high-class representative honours after first learning to play rugby on the playing fields of UAE.
Jonny Macdonald
Abu Dhabi-born and raised, the current Jebel Ali Dragons assistant coach was selected to play for Scotland at the Hong Kong Sevens in 2011.
Jordan Onojaife
Having started rugby by chance when the Jumeirah College team were short of players, he later won the World Under 20 Championship with England.
Devante Onojaife
Followed older brother Jordan into England age-group rugby, as well as the pro game at Northampton Saints, but recently switched allegiance to Scotland.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
HAJJAN
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Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
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