Rise in Local Demand on Goods and Services: The income per capita in Sharjah and the UAE in general is regarded as being among the highest in the world. This reflects the high standards of living of the majority of the population. The government also provides free services in the health, education and social welfare sectors.

These factors have strengthened the purchasing power of the population, and consequently led to a rise in local demand on goods and services. There is an encouraging environment for investment in various projects that produces such services and goods. The population is also growing at a fast pace, which means demand will also continue to rise in the future.

Merits of Investment in Sharjah : Custom duties imposed on imports are nominal, not exceeding five per cent. It has to do with the custom tariffs of the Arab Gulf Cooperation Council (AGCC) that came into effect on January 1, 2002.

Ports in Sharjah offer additional advantages to investors, like warehousing facilities that allow investors to store their goods for free for up to two months

Sharjah enables investors to have restriction-free commercial and financial transactions, including the transfer of all their profits and capital or conducting other exterior financial dealings

Guarantee of private investment liberty, with total exemption of taxes, including income taxes

Fast procedures when licensing various trade, industrial and professional activities

Merits of Investment in the Industrial Sector : The Sharjah Chamber of Commerce and Industry leads the way in extending full support to local industries. It provides technical consultation in the preparation of feasibility studies, and moves on to back operational phases through a special industrial development section, which also conducts fields studies and evaluations. Proposals to improve performance are also taken up by the chamber which seeks to eradicate obstacles and find appropriate solutions to any problems

The policy of the Sharjah Government in setting high-performance structural and service foundations to boost industrial activity. The industrial area of around 40 square meters has been divided into 16 districts, each of which subdivided to accommodate a certain industrial area. The industrial area makes up some 40 per cent of the total area of Sharjah, and has residential units for laborers and modern road networks linking it with ports and airports

The Sharjah Chamber of Commerce and Industry has set up a model industrial area, including infrastructure projects for utilities. It also has a site for a mosque, car parking lots and a branch office of Sharjah Municipality

Reduced costs of industrial production. Labor and accommodation costs are low compared with other emirates (by around 35 per cent). The Sharjah Government is also working on providing utilities at reasonable prices, as it shoulders 70 per cent of the actual costs of energy and water production

Sharjah is committed to the application of internationally recognized specifications and measurements on manufactured products. This is an important advantage for new investors especially in the industrial sector, as they would not face any obstacles in marketing their products outside the UAE

Labor Wage Levels in Sharjah : Sharjah has a sufficient workforce of all technical specializations at competitive wages. Laborers are provided with living necessities and accommodation at reasonable costs that suit labor budgets.

Financing Investment Projects, Especially Industrial : Banks and some specialized financial institutions in the UAE provide finance to various economic activities, like commercial and investment activities. Financing mechanisms differ according to the bank. Loan policies in industrial projects provided by commercial banks are different from those provided by specialized banks like the Emirates Industrial Bank.

Commercial Banks : Lending policies in these banks are based on priorities and interest rates that they fix by themselves. For instance, the interest rate charged by these banks on loans given to industrial projects did not exceed 14 per cent till the end of 2000. Guarantees and required documents differ from bank to bank, as conditions vary. Investors can negotiate deals or directly make their inquiries at banking institutions.

Emirates Industrial Bank : The UAE government has established the Emirates Industrial Bank to finance industrial projects in the public and private sectors where national contribution is at least 51 per cent. The bank finances industries , whose economic feasibility it is convinced. Finance is provided through loans or by a contribution to the capital invested in the project. In the latter case, the projects that get the finance are those which are considered as important for industrial development in the country.

Before granting the loans, the bank conducts feasibility studies as well as technical research on the proposed industrial project. Clients are presented with an expert evaluation that helps them with upgrading the efficiency of their projects. The evaluation incorporates feasibility studies, financial and engineering analyses, marketing research and legal consultancy.

Legal and Organizational Frame Work of Investment in Sharjah

Investment in Sharjah is based on legal and organizational principles within the following frameworks:

First: Local, through the application of laws and local orders issued by the Ruler of Sharjah.

Second: Federal, through the application of federal laws issued by the President in line with constitutional provisions.

Third: Sharjah enables investors to have restriction-free commercial and financial transactions, including the transfer of all their profits and capital or conducting other exterior financial dealings.

The Legal and Organizational Framework in the Light of Local Orders in Sharjah

First: Professional and occupational business by non-UAE national in accordance with local order no (1) of 1991:. It is practiced through two legal ways:

Individual establishments provided that the users of an establishment are not more than five persons.

Companies whose business is governed by the federal civil transaction laws no (5) of 1985, in articles 683 and 690.

Second: Economic Activities by Non-UAE Nationals in Sharjah, in Accordance with Local Order No (1) Of 1992:

• Trade Activities
• Industrial Activities
• Agricultural Activities

Trade Activities:

Non-UAE nationals are allowed to practice trade activities through individual establishment with a local service agent who enables the expatriate to complete procedures required by local departments, without being financially responsible.

Industrial Activities:

The local order allows non-UAE nationals to practice industrial activities through an individual establishment with a local service agent, and with the following conditions:

• The industrial project is not listed under provisions of the federal industrial law no (1) of 1979
• The project should be of high technology or serve the industrial development objectives of the emirate.
• The licensing commission also stipulates the inclusion of a feasibility study on the project concerned.

Agricultural Activities:

Local order no (1) of 1992 allows non-UAE nationals to work in agricultural activities. However, the following conditions apply:

• The project should contribute to land cultivation or the use of water resources.
• It should increase agricultural and cattle production.
• In all cases, individual establishments set up in accordance with the local order should have local service agents.

Approval of Activities Required:

1. Ministry of Information: Printing presses, video shops, bookshops, computer programs,silk screen, advertisement and publicity, TV production, concert organization
2. Ministry of Education and Youth: Private institutes and schools, sport training centers, sports services company.
3. Ministry of Health: Private hospitals, clinics, pharmacies, drugstores, optics and lenses fixing,drugs,medicines, herbs and cosmetics importing firms, fitness, health and massage centers, sports training centers.
4. Ministry of Agriculture and Fisheries: Farms, trading of fodder, plants,organic composts, pets, and birds, trading of imported fishes.
5. Ministry of Economy: Accountants, Insurance & Re-insurance,Companies and branches of foreign companies.
6. Justice Department : Advocate offices, legal translation.
7. Traffic Committee: Transportation, rent a car ,sewage.
8. Police Directorate: Gold Trading, Banks, Stamps and Key making, Karate and weight lifting training centers, used furniture selling & buying shops.
9. Central Bank: Banks, Stock dealing companies, Stock market.
10. Civil Defense: Baby’s equipment, items and materials companies, factories.
11. Civil Aviation: Travel & Tourism, Air Cargo and Customs Clearing, Air Transportation companies, flying training, aero survey, crafts renting.
12. Sea Ports: Shipping and Customs Clearing, Navigation, Ships Maintenance & Marine Engineering, Ships Catering, Marine Transport, Ships Agensts, Ships Trading.
13. Ministry of Communication: Wire and wireless trading and maintenance.
14. Ministry of Higher Education: University services, private universities.
15. Ministry of Labor and Social Affairs: Baby Nurseries, manpower and servants recruitment.
16. Awqaf: Pilgrim and omrah, Holy Koran education and memorization charity centers.
17. General Post Office: Express mail & Courier services.
18. Sharjah Electricity & Water Authority:  Gas pipes connection, water wells drilling.
19. Central Finance: For Foreign banks.
20. The Sharjah Chamber of Commerce and Industry: Organizing of exhibitions.
21. Planning and Survey Department: farms at some areas license for surveyors.
22. Etisalat: Contracting companies specialized in Etisalat works.
23. Human Services: Trading of equipment and devices for the handicapped.
24. Health Section, Municipality: Licenses for foodstuff and body fitness.
25. Pest Control : Insects ,buildings cleaning.
26. Finance Section in Municipality: In case of hiring locations at Municipality markets.
27. Environment Section in Municipality: Trading of chemicals, factories, workshops.

SCCI & BRANCHES

The Sharjah Chamber of Commerce and Industry was formed in 1970 by His Highness the Ruler of Sharjah. It aim has been to take part in organizing economic life and support trade, industrial and professional sectors at all levels in cooperation with other local departments in the interest of the country.

The Chamber has been keen to include nationals and expatriates as well as companies and establishments involved in these activities. It has felt the need to catch up with the economic developments of the UAE.

It was natural that change in the Chamber’s services and activities had to take place with the progress made by the country. The new Chamber law no 1 of 2003 was issued to include rules and regulations as well as legal frameworks aimed at achieving the Chamber’s objectives.

The service of the Chamber had been expanded to include all the cities of the emirate. The Chamber now has three branch offices besides the main office. The branch offices are located in Khorfakkan, Kalba and Al Dhaid. There are also two offices, one at the model Industrial Area and the second at the premises of the Department of Economic Development in Sharjah city.

The Chamber seeks to cooperate with government agencies and other chambers of commerce and industry in the country, which are part of the UAE Chamber. It works closely with them to facilitate contacts and cooperation with other associations at Arab and international levels with the aim of achieving the goals of the members and of seeking higher standards of functioning.

As the Chamber enters its fourth decade of operations, it feels proud of the achievements that have been made realized so far. The Chamber has taken part in the organization of commercial, industrial and professional affairs and presented suggestions on economic projects and legislation having to do with all aspects of the economy, besides being a main player in the gathering of data and statistics and the study of ways to further boost economic activities.

The role of the Chamber has also been extended to protect the interests of its members and introduce them to economic players inside and outside the UAE as well as facilitating their transactions.

The transactions include attestation of certificates of origin and source, bills, guarantees, financial capabilities and authentication of signatures. The Chamber has also sought to resolve disputes by amicable means in addition to actively taking part in setting trade standards, appointing experts and representatives to study commercial and industrial issues and participating in conferences and exhibitions in many parts around the world. The Chamber also receives economic delegations and sends teams to other countries to boost cooperation, besides opening trade centers and holding trade shows in foreign markets.

The Chamber cooperates with all agencies and trade chambers in the UAE and abroad with the aim of serving its members and developing economic relations.

Branches

• Al Dhaid
• Khorfakkan
• Kalba
• Chamber’s branch at the Department of Economic Development
• Chamber’s branch in the model Industrial Area