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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.

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