Sharjah records strong business expansion and investment growth in 2025.

Sharjah economic growth 2025 shows strong business expansion

Kavya Pillai
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Kavya Pillai
Kavya Pillai is a subeditor and journalist at StrongYes Media, covering UAE HR news, corporate leadership movements, and the region’s leadership pulse. Trusted to run a...
5 Min Read

Hamad Ali Abdullah Al Mahmoud, Chairman of the Sharjah Economic Development Department and member of the Sharjah Executive Council, said the emirate achieved a major economic milestone in 2025.
He noted that the results reflect the strength of the local economy, the steady growth of the business environment, and Sharjah’s rising position as a competitive and sustainable economic hub in the United Arab Emirates.

Al Mahmoud added that the department delivered qualitative progress in service development and customer experience by building an integrated system centred on customer needs. These efforts also improved institutional efficiency and supported long-term economic sustainability.

Rising number of businesses and diversified economic base

Sharjah recorded 84,443 economic establishments in 2025, highlighting continued progress toward diversification supported by flexible laws and pro-growth government policies. Business indicators showed strong momentum. Total issued and renewed licences grew 7%, while new licences rose 34% and renewals increased 4%, reflecting active investment and expanding commercial activity.

Home-based licences led growth at 57%, followed by e-commerce licences (50%) and professional licences (42%). Commercial licences increased 30%, while industrial licences rose 17%, underlining the emirate’s broad investment opportunities.

Geographically, Sharjah City remained the main hub with 8,800 licences and 30% growth.
The Central Region grew 40%, while the Eastern Region recorded the highest rise at 68%, led by Khorfakkan with 126% growth.

Digital transformation and AI-driven government services

Al Mahmoud said digital transformation now extends beyond technology into operational thinking and service design. The department introduced advanced digital platforms, modernised core systems, and deployed artificial intelligence to speed up services and improve communication with customers.

A key milestone was the AI-powered commercial name issuance service, which simplifies procedures, reduces processing time, and proposes regulation-compliant business names.

The launch of the Instant Licence service in July 2025 further accelerated setup for investors.
Since launch, 1,165 instant licences have been issued through a network of 18 service centres across the emirate.

International certifications and sustainability governance

The department secured two new global ISO certifications, bringing the total to 12. These include ISO/IEC 42001:2023 for AI management systems, a first at both Sharjah and national levels, and ISO 44001:2017 for collaborative business relationship management.

Al Mahmoud said the certifications reflect strong governance, responsible AI adoption, and commitment to global best practices in economic management.

Strong investor confidence and sector growth

Foreign-owned licences grew 18% overall, with issued licences up 25% and amended licences up 16%, signalling investor confidence in Sharjah’s stability.

The e-commerce sector expanded rapidly with 33% growth, supported by flexible regulation and fast digital services. Industrial activity also remained steady, with total industrial licences rising 8% and new industrial licences up 17%.

Consumer protection, inspections, and service quality improve

During 2025, the department conducted 262,615 inspection visits and handled 16,627 commercial protection complaints. Consumer complaints fell 3%, while service-agent complaints dropped 2%, indicating stronger compliance. Complaint resolution reached 97%, demonstrating efficient supervision and effective consumer protection. Customer satisfaction with department services climbed to 96.8%, based on internal surveys.

Emiratisation, talent development, and community initiatives

Emiratisation within the department reached 97%, reinforcing the focus on national talent. The department honoured 116 employees for excellence and delivered 310 training programmes across technical, professional, and student development areas.

Community initiatives included free business-centre offices for UAE nationals and GCC citizens, the “Aoun Service” for elderly citizens, and the Young Economist training programme for employees’ children.

Sharjah strengthens regional and global economic position

The department expanded integration with 42 government entities to streamline procedures and data exchange. It also recorded 91 participations in global exhibitions, conferences, and investment forums to promote Sharjah’s opportunities.

Al Mahmoud concluded that Sharjah is advancing toward a diversified, smart, and sustainable economy driven by innovation, governance, and skilled national talent.
He said the achievements of 2025 mark the beginning of a more ambitious phase in the emirate’s development journey.

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