Skip to content Skip to Search
Skip navigation

Private sector to propel Sharjah’s economic growth

Sharjah airport. S&P says the emirate's fiscal deficits are expected to narrow gradually over 2024-2027 Wam
Sharjah airport. S&P says the emirate's fiscal deficits are expected to narrow gradually over 2024-2027

Global ratings agency S&P has affirmed Sharjah’s rating at “BBB-/A-3” and maintained a stable outlook, citing strong private-sector activity as a key driver of economic growth.

The emirate, one of seven that makes up the UAE, is expected to average 2.8 percent growth between 2024 and 2027, supported by manufacturing, construction, transport, and trade sectors. 

Sharjah’s economy grew by 4.6 percent last year thanks to the government’s capital expenditure and strong performance in the largest economic sectors such as wholesale and trade, manufacturing, construction and real estate, as well as transport.

However, the emirate’s economy is relatively diverse and not directly reliant on hydrocarbon exports. The GDP per capita, which remains moderate globally, is forecast to strengthen to $22,000 in 2024 from $19,000 in 2020.

Fiscal deficits are expected to narrow gradually over 2024-2027, owing to the government’s revenue-enhancing measures, the UAE-wide implementation of corporate tax, and favourable economic growth prospects.

The net government debt is likely to stabilise at 54 percent of GDP by 2027 due to the government’s gradual fiscal consolidation efforts.

After rising steadily over the past five years, the emirate’s interest costs will remain high, averaging close to 30 percent of government revenue through 2027, S&P said.

Latest articles

Shoppers choose vegetables in Istanbul; inflation means people are spending on essentials

Turkish retailers’ confidence wavers as inflation bites

Confidence is falling among Turkish retailers, according to a survey from the country’s statistics agency Turkstat. Shoppers have been scaling back on big-ticket purchases, spending instead on basic consumer goods as inflation piles pressure on household incomes. May’s business confidence report, released by Turkstat on June 24, showed sentiment in the retail sector at its […]

Water is handed out to pilgrims in Mecca. Hundreds of pilgrims without a Hajj permit died during extreme heat last week

Egypt shuts down 16 travel companies after Hajj tragedy

Egypt has withdrawn the operating licences of 16 travel companies for organising unlicensed Hajj trips to Saudi Arabia. A statement from the Egyptian government said the companies would be prosecuted and fined, with the funds used to compensate pilgrims’ families for their loss.  Hundreds of Egyptians were among 1,301 people who died of exposure to […]

A floating production unit in Israel's Karish gas field in the eastern Mediterranean. Carlyle is creating a new oil and gas company to manage the field

New Carlyle entity to manage East Med gas projects

Carlyle, the Nasdaq-listed private equity company, is creating a new oil and gas company to manage recently-acquired assets in the Mediterranean hydrocarbons market. The new as yet un-named entity will be led by former BP CEO Tony Hayward and will manage a portfolio of gas-weighted exploration and production assets in Italy, Egypt and Croatia, according […]

Spinneys plans to open another 12 stores in Saudi Arabia by 2028

Spinneys opens first Saudi supermarket in Riyadh

Spinneys has opened its first supermarket in Saudi Arabia and is planning a further 12 stores in the country by 2028. The UAE supermarket operator listed on the Dubai Financial Market last month and raised AED1.38 billion ($375.7 million) from its initial public offering, which was oversubscribed almost 64 times. The first Spinneys in Saudi […]