Welcome to Economic Impact, conversations from Emirates Development Bank (EDB), the key financial engine for economic development and industrial advancement of the UAE. In each instalment CEO Ahmed Al Naqbi leads insightful discussions with change-makers and thought-leaders in the UAE to learn how they’re contributing to the nation’s economy and realising the UAE’s economic ambitions.
This time we’re joined by the chief executive officer of ‘Invest in Sharjah’, the emirate’s investment promotion agency and a strategic partner for global investors looking to grow their business in the emirate.
Mr Mohamed Al Musharakh is a man with a mission to promote doing business in Sharjah internationally and helping foreign investors to set up in Sharjah.
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Speaker 1: HOST
Speaker 2: GUEST
00:00:00 INTRO V/O
“This is Economic Impact...Conversations from Emirates Development Bank”.
00:00:01 Speaker 1
A’Salaam A’laikoom and welcome to Economic Impact. This time we're joined by the Chief Executive Officer of Invest In Sharjah, the Emirate’s Investment Promotion Agency and a strategic partner for global investors looking to grow their businesses in the Emirate of Sharjah. Our guest is a man with a mission to promote doing business in Sharjah internationally and helping foreigners invest, to set up in Sharjah.
00:00:24 Speaker 1
Mr. Mohamed Al Musharakh, it's a pleasure to welcome you to Economic Impact. Thank you very much for joining…
00:00:28 Speaker 2
Thank you. Thank you, Ahmad, and thank you for having me in your podcast today.
00:00:33 Speaker 1
I appreciate that. Thank you.
00:00:34 Speaker 1
Mohammed, if we can start, maybe if I can just ask you a bit about yourself, your background, the journey that led you to where you are today, being essentially the champion of foreign direct investment for the Emirate of Sharjah.
00:00:47 Speaker 2
Well, I started my career actually in 2006 at the International Affairs Department of Sharjah Chamber of Commerce and Industry.
00:00:56 Speaker 1
OK.
00:00:56 Speaker 2
And I think, Ahmad, that paved the way for me being the CEO of Invest In Sharjah today.
00:01:04 Speaker 2
As I started interacting with the international business community since I started my career…
00:01:11 Speaker 1
Since the very beginning.
00:01:12 Speaker 2
…exactly in 2006, right and being a graduate of international affairs from the American University of Sharjah, I think also gave me that…
00:01:25 Speaker 2
…more international exposure.
00:01:30 Speaker 2
So, since the beginning I was involved in trade missions, travelling, promoting the UAE and the Emirate of Sharjah internationally, hosting a lot of international events in in the Emirate of Sharjah. And I think that was the beginning of…
00:01:49 Speaker 2
…the promotion world and the international business world that I'm today in.
00:01:56 Speaker 1
Ma’ashallah. Amazing. Just something that crossed my mind. Was there ever a mission that you were sent on that really stands out in your mind? I'm sure, maybe in the early days, there must have been something that really made you love what you do today. Was there something like that, maybe a mission or a delegation that you were part of?
00:02:13 Speaker 2
I think one of the first, missions have been towards a UAE exhibition in Singapore and that was the first business trip that I've ever been to, and I think that shaped what I'm doing currently and I learned a lot. I got exposed to a lot of entities that were participating back then, especially the Chambers of Commerce. I don't think at that time the UAE had any…
00:02:49 Speaker 2
…er, Investment promotion agency like what we have today, and Sharjah, Dubai and Abu Dhabi, so the chambers used to do more of the promotion work at that time. So, I have interacted with the Chambers of Commerce from all around the UAE.
00:03:08 Speaker 2
The free zones at that time, used to play a pivotal role in attracting a lot of investments to the free zones. But I think the chambers also with the International Affairs Department, they have used to act as the investment promotion agencies for each emirate…
00:03:28 Speaker 2
Er, the other day now there is always this debate between Chambers of Commerce…
00:03:35 Speaker 1
Right.
00:03:35 Speaker 2
…and FDI officers after the creation of the FDI offices. But I think now everyone just knows their mandate where the…
00:03:48 Speaker 2
…FDI offices are attracting the investments and the investors and after the setup, the Chambers of Commerce help them to well establish in the UAE and then from the UAE, they go international as an Emirati company.
00:04:04 Speaker 1
Fantastic. That leads very nicely into the next question I had in my mind. So, Invest In Sharjah is a relatively new entity. How long has it been since it's been established?
00:04:15 Speaker 2
So, Invest In Sharjah. It was established in 2017.
00:04:21 Speaker 1
2017, OK.
00:04:24 Speaker 2
Yes, as part of Sharjah Investment and Development Authority…
00:04:26 Speaker 1
OK.
00:04:26 Speaker 2
So, Invest In Sharjah used to be a department with Sharjah Investment and Development Authority, but after joining WIPA, which is the World Investment Promotion Agencies, we have looked at different agencies and the best practices that they have in different countries around the world and we decided to give this department….
00:04:52 Speaker 2
…Erm, an identity which is a new name…
00:04:58 Speaker 1
Mmm
00:04:59 Speaker 2
…that is called Invest In Sharjah and to, to make it as a stand-alone department or entity by itself…
00:05:06 Speaker 1
Great.
00:05:07 Speaker 2
…and focus on investment promotion.
00:05:09 Speaker 1
Right. So that was, the question I was about to ask is what is the mandate? So, focus on promoting investments in Sharjah is there, is there specific objectives or KPIs within a certain number of years or is it very much open and year by year it evolves?
00:05:25 Speaker 2
I mean, erm, we start…the mandate actually started as an investment promotion generally to attract investments into the emirate and to help in promoting Sharjah internationally.
00:05:40 Speaker 1
OK.
00:05:40 Speaker 1
We wanted the name of Sharjah to be more visible for international investors and the business community around the world.
00:05:49 Speaker 2
We have very good offerings especially in specific sectors like the manufacturing sector, for example, the education sector, the tourism sector, maybe more on the family tourism and adventure tourism and eco-tourism. Currently, we are focusing a lot on technology…
00:06:12 Speaker 1
Mm-hmm.
00:06:13 Speaker 2
…especially after the launching of Sharjah Research and Technology Park…
00:06:16 Speaker 1
Mm-hmm.
00:06:17 Speaker 2
…and, of course, the Entrepreneurship Center, Sheraa…
00:06:20 Speaker 2
And the other mandate is to support these investors who come to the emirate. So, we give the advice for investors, we give this free advice…
00:06:32 Speaker 2
Right.
00:06:33 Speaker 2
…for international investors who want to invest in specific areas, or in specific sectors,
00:06:40 Speaker 2
So, we guide them where to go, whether it's a free zone or to open a mainland…
00:06:46 Speaker 1
Right.
00:06:47 Speaker 2
…company. And if it is a free zone, which free zone to go to, you know, in Sharjah we have six different free zones…
00:06:54 Speaker 1
Right, right, right.
00:06:55 Speaker 2
…we have SAIF zone, which is attached to the Airport and they are mainly focusing on logistics sector, for example, and light manufacturing. And then we have a Port Free Zone, which is Hamriya Free Zone, focusing more on Heavy Industries, and manufacturing and oil and gas, for example.
00:07:16 Speaker 2
Right.
00:07:17 Speaker 2
And then we have these small specialized free zones, like the Media City, the Research and Technology Park. Then we have the Sharjah Publishing Free Zone as well and…
00:07:29 Speaker 1
Right.
00:07:30
…last but not least, the Sharjah Healthcare City.
00:07:34 Speaker 2
So, we try to help the investor on where to set up his or her company.
00:07:40 Speaker 1
So, you act as advisors in many ways?
00:07:42 Speaker 2
Exactly. Exactly.
00:07:43 Speaker 1
You’re advisors. So, that's fantastic. I mean, and I'm, I'm hoping that, Insha’Allah, the audience that listens to this, that any of them that are thinking about setting up or establishing a business in the UAE looks into this and potentially also speaks to you.
00:07:54 Speaker 1
What's the easiest way to get in touch with you? I'm assuming there's a website, there must be a website, yeah…
00:07:57 Speaker 2
Definitely we, we have a website, we have a chat put on the website where you can reach us 24/7 and then we are available also on all social media platforms, we are active on LinkedIn especially to serve the business community.
00:08:16 Speaker 1
If they needed face to face conversation, let's say they really wanted to get into the nitty gritty details. Would it be possible for them to schedule appointments with any of the people in your Invest In Sharjah?
00:08:25 Speaker 2
Sure, sure. So, we have a dedicated team for investment promotion. They can reach out to our investment promotion managers and they act as the consultants for the investors.
00:08:39 Speaker 2
They sit with them, they give them the best advice…
00:08:44 Speaker 1
Hmm.
00:08:44 Speaker 2
…and then also we have another section, which is the support section.
00:08:49 Speaker 1
Right.
00:08:50 Speaker 2
So, and the support what we do is we help also the investor to find the right location for example, once they decide to open a company in Sharjah. So, they want to open a factory for example, we are right, we reach out to landlords…
00:09:07 Speaker 1
Right.
00:09:08 Speaker 2
…and owners of, erm…
00:09:12 Speaker 1
Commercial land.
00:09:12 Speaker 2
…commercial lands, exactly, to help them find the right location within the emirate.
00:09:17 Speaker 1
Fantastic. So, you take the extra step, so to speak, to really connect them with the different stakeholders…
00:09:25 Speaker 2
Definitely
00:09:26 Speaker 1
...that could support them in establishing their business.
00:09:28 Speaker 2
So, sometimes we act as an advisor…
00:09:30 Speaker 1
Yep.
00:09:31 Speaker 2
…sometimes we act as a real estate agents for them…
00:09:34
OK
00:09:35 Speaker 2
and we do all of this free of charge.
00:09:37 Speaker 1
Fantastic. That's fantastic.
00:09:39 Speaker 1
Now, the Emirate of Sharjah, in many ways, at least in my eyes, the way that I see it and I love about it, it's very much a cultural hub for the country. The universities, Mashallah, are top notch, the museums, the culture…you mentioned also the, the eco-tourism. Erm, one little known fact is that about 35% of the manufacturing base of the country is actually located here…
00:10:03 Speaker 2
Yes, yes.
00:10:04 Speaker 1
…also in Sharjah. So, how do you think Sharjah is positioning itself or how? How are you as a part of your mandate positioning Sharjah going into the future? Are you building onto this, let's say existing, erm, positioning of the Emirate or are you also going into maybe other aspects?
00:10:22 Speaker 1
You mentioned different sectors, education, the book publishing or media publishing….a lot of that, I also see as part of the cultural positioning of the emirate. But is there, is that summarized correctly or is there another way that maybe you’re looking to position Sharjah today?
00:10:39 Speaker 2
I think Ahmed, we still position ourselves as the cultural capital of the UAE, but we also say that we are the manufacturing capital of the UAE…
00:10:49 Speaker 2
…since we have around 33% of the whole industries and the UAE, but now we are adding few more sectors like the Agri-Tech, for example. I'm sure you heard about the wheat farm that we have…
00:11:04 Speaker 1
Yes.
00:11:05 Speaker 2
…in Sharjah. His Highness just announced today that there is a new dairy farm…
00:11:11 Speaker 1
Yes.
00:11:12 Speaker 2
…that is established in the same area, which is the central region of Sharjah. And there we are also putting a new university, which is Dhaid University, which will focus on agriculture as well.
00:11:24 Speaker 1
That's amazing.
00:11:25 Speaker 2
So, this is another sector that we are focusing on and entrepreneurship actually is something that is also growing in Sharjah.
00:11:35 Speaker 2
Where we have five different entities that are focusing on entrepreneurship. We have Tijarah 101, that's under the Sharjah Chamber of Commerce.
00:11:47 Speaker 2
We have shared entrepreneurship center Sheraa, which is another incubator, and they have so many programs for entrepreneurs. We have RUWAD, which is mainly focused on UAE entrepreneurs and nationals where they get a lot of fundings and trainings as well.
00:12:07 Speaker 2
Then we have a program which focuses more on women’s entrepreneurship and women’s empowerment and this is under Sharjah Business Women’s Council and then we have a unique program which is called also Tatweer where they develop different capabilities…
00:12:27 Speaker 2
…within the youth that we have in the Emirate of Sharjah and you will see that all the free zones and all the entities that we have are working closely with these five different entities to increase what the ecosystem and to build up the ecosystem for entrepreneurs.
00:12:48 Speaker 2
Whether they are locals or they are entrepreneurs who are coming from out of the country.
00:12:53 Speaker 1
This is fantastic and we've noticed F&B in Sharjah is actually very big…
00:12:59 Speaker 2
Exactly.
00:13:00 Speaker 1
…and I believe fantastic local entrepreneurs creating local concepts. It's one of those…
00:13:07 Speaker 1
…places where you can have like a real nice incubation of local entrepreneurs starting their own concepts on a very small scale, but quite successful. And then and then expanding out to the rest of the Emirates.
00:13:19 Speaker 1
How much of that do you see in in foreign direct investment? So, I mean being in charge, of course, of Invest In Sharjah I'm sure that you know, part of it is also to look to attract foreign direct investment other than the local, let's say, organic growth of the entrepreneurs in the economy. So, how much do you see in the foreign direct investment and what's the thought there? What's the objectives there?
00:13:41 Speaker 2
I think Ahmed, since we changed some of our ownership rules in terms of properties, which was changed around three years ago where foreigners were allowed to own their properties 100% in some of the areas in the emirate of Sharjah, changed a lot of things and one of them is definitely, as you correctly mentioned, is the retail sector…
00:14:09 Speaker 2
So, we started having new developments. So, we have one of the newest developments, it's called Al Jada by Arada company and that's a joint venture…
00:14:19 Speaker 2
…between a local company and investors, an investor from out of the country. And then we have another unique project in Sharjah which is which is called Maryam Island and then Sustainable City. And we have Alef Group with Al Mamsha project…
00:14:37 Speaker 2
…all of these new projects actually helped the retail sector in general with whether it's F&B or other retail businesses…
00:14:47 Speaker 2
…to see Sharjah as a new market…
00:14:50 Speaker 1
Right.
00:14:51 Speaker 2
…so, we have seen actually a huge demand on location in these specific areas that I have mentioned.
00:15:01 Speaker 2
But if we talk, I mean about other sectors, especially manufacturing. It has been there for so long, but more and more of them are coming. And I think also going back to the real estate, we are getting a lot, a lot, of inquiries.
00:15:18 Speaker 2
For people and international Company who wants to come and make new communities and make new real estate projects in the emirate.
00:15:29 Speaker 1
Amazing.
00:15:30 Speaker 1
So, finally I would like to know just a bit about what are the future plans for Invest In Sharjah? Mashallah, you've done some fantastic things since the inception in 2017, but if you think a little bit further down the road, where would you like to see Invest In Sharjah reach? What are some of the objectives or vision that you have in your mind for it?
00:15:51 Speaker 2
So, I think this year marks a special year for Invest In Sharjah as we reached a new targets in FDI…
00:16:01 Speaker 2
…which is 2.75 billion U.S. dollars…
00:16:05 Speaker 1
Mashallah.
00:16:05 Speaker 2
…of inward investments to the emirate of Sharjah. And this was the 5th globally in terms of increase rate.
00:16:16 Speaker 1
OK. Percentage increase, yes…
00:16:17 Speaker 2
Percentage Increase…
00:16:18 Speaker 1
And the 5th globally as in the 5th city…
00:16:22 Speaker 2
…City, yes…
00:16:22 Speaker 1
…in the entire world.
00:16:23 Speaker 2
Exactly, exactly…
00:16:24 Speaker 1
Wow, Mashallah…
00:16:24 Speaker 2
And the UAE definitely was the…
00:16:26 Speaker 1
Number one.
00:16:27 Speaker 2
…second…
00:16: 28 Speaker 1
Second, OK…
00:16:28 Speaker 2
…globally, yes.
00:16:29 Speaker 1
…globally..
00:16:30 Speaker 2
So I think uh, going further, we hope that we become the first in terms of cities attracting FDI's, although I think three different cities within the UAE ranked in the top five.
00:16:46 Speaker 1
Right. That's fantastic…
00:16:47 Speaker 2
Which is amazing, I think.
00:16:49 Speaker 1
That's fantastic…
00:16:50 Speaker 1
Mohammed, thank you so much for your time today. We wish you the best of luck in the Emirate of Sharjah. The best of luck and the aspirations and the objectives and goals. And, of course, we at EDB will always be working closely with you on those goals. Thank you so much.
00:17:00 Speaker 2
Thank you. Thank you, Ahmad, and thank you for having me with you today.
00:17:04 Speaker 1
Thank you, Mohamed.