Sharjah attracts AED 7.74 billion in FDI as project growth accelerates across manufacturing and consumer sectors

Sharjah | EcoPulse24

Sharjah records 45% jump in foreign investment projects during 2025

Sharjah strengthened its position as one of the UAE’s fastest-growing investment destinations in 2025 after attracting AED 7.74 billion in foreign direct investment and recording a sharp increase in project activity, according to data released by Invest in Sharjah.

The emirate recorded a 45% year-on-year increase in foreign direct investment project numbers, reaching 142 projects in 2025 compared with 98 projects in 2024, while capital investment rose 8.8% and job creation increased 25.7%.

The projects generated 5,673 new jobs during the year, reflecting expanding investor activity across multiple sectors tied to manufacturing, consumer demand, logistics and industrial development.

Sharjah said approximately 75% of investment projects have already moved into operational execution, signaling a transition from announced investment commitments toward active economic output and production activity.

Consumer-facing sectors led investment activity, with food and beverages accounting for 28% of total projects, followed by consumer products at 20%. Additional investment flows targeted logistics, industrial equipment, business services, manufacturing and technology sectors, highlighting the emirate’s broadening non-oil economic base.

The data also showed continued international diversification of investment sources, with inflows originating from India, Italy, the United Kingdom, the United States and regional markets, reinforcing Sharjah’s role as a cross-market investment and industrial platform within the Gulf region.

Across the broader economy, Sharjah recorded a total of 331 domestic and foreign investment projects during 2025 with combined investments reaching AED 12.8 billion and supporting nearly 11,900 jobs.

Sharjah FDI Performance - 2025

EcoPulse24 Analysis

Sharjah’s latest investment figures highlight an increasingly important shift within the UAE economy: foreign capital is moving beyond traditional real estate-driven activity toward industrial, logistics and consumer-linked sectors tied directly to the real economy.

The composition of projects is particularly important. Strong investment concentration in food, consumer products, logistics and manufacturing indicates that investors are targeting sectors linked to domestic consumption, regional trade flows and supply-chain resilience rather than purely financial or speculative activity.

The operational execution rate is also a significant signal. In many emerging markets, announced investment commitments do not always translate into productive assets on the ground. Sharjah’s ability to move 75% of projects into operational status suggests stronger implementation capacity and more effective conversion of capital inflows into measurable economic activity.

From a macro perspective, the data reflects the broader Gulf economic diversification cycle currently underway across the UAE and Saudi Arabia, where governments are increasingly prioritizing industrial development, logistics infrastructure and sustainable non-oil growth engines.

The diversity of investment origins is equally notable. Capital inflows from Europe, Asia and regional markets indicate that Sharjah is positioning itself as a multi-directional investment gateway capable of serving manufacturing, trade and regional distribution networks simultaneously.

The emphasis on production-oriented sectors also aligns with broader global shifts in supply-chain restructuring and regional manufacturing localization following years of geopolitical and logistics disruptions.

Over time, this trend could strengthen Sharjah’s role within the UAE economy as a complementary industrial and logistics hub alongside Dubai’s financial ecosystem and Abu Dhabi’s energy-driven investment model.