Sharjah reinforced its position as one of the UAE’s fastest-growing investment destinations in 2025 after attracting Dh7.74 billion in foreign direct investment (FDI), driven by a sharp rise in project numbers, expanding industrial activity and growing investor confidence in the emirate’s diversified economy.
According to data released by the Sharjah FDI Office, also known as Invest in Sharjah, the emirate recorded a 45 per cent year-on-year increase in foreign investment projects during 2025, while capital inflows rose 8.8 per cent from the previous year.
The latest figures, based on data from Financial Times-owned fDi Markets, underline Sharjah’s growing importance as a regional manufacturing, logistics and services hub at a time when investors are increasingly seeking stable, diversified and cost-competitive markets across the Gulf.
Sharjah attracted 142 FDI projects during 2025, up from 98 in 2024. The investments generated 5,673 new jobs, marking annual growth of 25.7 per cent compared with 4,514 jobs created a year earlier.
The emirate’s broader investment ecosystem also showed strong momentum, with total domestic and foreign investment projects reaching 331 during the year, representing combined investments of Dh12.8 billion and supporting nearly 11,900 jobs.
Analysts said the figures reflect Sharjah’s success in positioning itself as a diversified industrial and commercial centre with strong links to regional and global supply chains.
The emirate has increasingly attracted investment into manufacturing, logistics, food processing, technology and business services, supported by competitive operating costs, industrial free zones, integrated transport infrastructure and proximity to major regional markets.
Sheikha Bodour bint Sultan Al Qasimi, chairperson of Sharjah Investment and Development Authority (Shurooq), said Sharjah’s development strategy is focused on balancing economic growth with social and human development.
“Economic development in Sharjah is directly linked to quality of life, the advancement of services and the creation of a stable environment that supports people, society and the economy alike,” she said.
“The emirate’s continued growth across investment indicators reflects a clear development vision that places social and economic impact on a unified path.”
She added that Sharjah’s economic model is creating opportunities for entrepreneurs, young talent and innovation-led businesses while strengthening the emirate’s ability to attract sustainable investments.
The investment breakdown revealed strong momentum in consumer-driven sectors.
Food and beverages emerged as the largest FDI segment, accounting for 28 per cent of total projects, followed by consumer products at 20 per cent, highlighting strong domestic and regional demand trends.
Investments also flowed into business services, industrial equipment, logistics, manufacturing and technology, reinforcing Sharjah’s strategy of broad-based economic diversification rather than reliance on a limited number of sectors.
Industry experts say Sharjah has increasingly benefited from the UAE’s wider push to strengthen industrial production and attract advanced manufacturing investments under national initiatives such as Operation 300bn and the Make it in the Emirates programme.
Sharjah’s extensive industrial base, which includes major free zones such as Hamriyah Free Zone Authority and Sharjah Airport International Free Zone, has continued to attract manufacturers and exporters targeting Gulf, African and Asian markets.
The report showed that around 75 per cent of all investment projects have already moved into operational stages, indicating strong execution rates and faster conversion of announced investments into real economic activity.
Mohamed Juma Al Musharrkh, chief executive officer of Invest in Sharjah, said the latest figures demonstrate growing investor confidence in the emirate’s business environment and long-term economic outlook.
“The indicators of FDI inflows and performance in 2025 reflect Sharjah’s advancement as a reliable investment destination, thanks to the strength of its economic sectors, the flexibility of its regulatory environment, the efficiency of its infrastructure and its ability to attract high-quality projects that align with sustainable growth objectives,” Al Musharrkh said.
He added that the composition of projects reflected a healthy balance between new investors entering the market and existing businesses expanding operations.
The investment mix included 188 domestic investments, 96 projects involving new forms of investment and 47 greenfield projects, highlighting the depth and resilience of Sharjah’s investment ecosystem.
Sharjah also demonstrated broad geographic diversification in investment inflows, attracting capital from key markets including India, Italy, the UK and the US alongside regional investors.
The emirate’s strategic location, access to ports on both the Arabian Gulf and the Indian Ocean, and strong connectivity to regional trade routes continue to enhance its attractiveness for international businesses.
The latest data from fDi Markets places Sharjah among the region’s increasingly competitive investment destinations as Gulf economies accelerate diversification efforts, industrial expansion and infrastructure development to reduce dependence on hydrocarbons and build more resilient long-term growth models.
