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Sharjah’s GDP surges 4.8% to Dh130.5b on thriving non-oil sector

The economic upswing, despite the headwinds posed by the pandemic, was underpinned by Sharjah’s growing status as a regional hub for business, trade, and investments as well as its resilience in adapting to the fast-changing economic landscape of the post-pandemic era

Sharjah’s gross domestic product (GDP) expanded by 4.8 per cent in 2021 to Dh130.5 billion from Dh124.6 billion in 2020, propelled by the emirate’s thriving non-oil sector, according to official data released on Monday.

The economic upswing, despite the headwinds posed by the pandemic, was underpinned by Sharjah’s growing status as a regional hub for business, trade, and investments as well as its resilience in adapting to the fast-changing economic landscape of the post-pandemic era, according to the emirate’s Department of Statistics and Community Development (DSCD).

“Indicators of future growth remain positive for a multitude of sectors owing to the emirate’s agile economic diversification policies and practices,” DSCD said.

Sheikh Mohammed bin Humaid Al Qasimi, Chairman of DSCD, said the exceptional growth Sharjah witnessed in 2021 clearly indicates the success of the emirate’s strategies for sustainable growth and development. “These are based on diversity of market sectors and incomes, balanced growth, and the strategic distribution of development capital.”

“Sharjah’s economy has proved its agility in adapting to far-reaching local and global changes. The numbers highlight the success of the emirate’s integrative strategies guiding both developmental and economic entities in the public and private sectors. As Sharjah continues its developmental journey, DSCD reaffirms its commitment to offering stakeholders a robust source of accurate data and information, which reflects current and future socioeconomic realities,” said Sheikh Mohammed.

Data shows that Sharjah’s trading sector was the most significant contributor to GDP at 23.8 per cent. Transformative industries accounted for 17 per cent, construction 9.3 per cent, and real estate 9.0 per cent, while the government sector contributed to 7.3 per cent in 2021.

The study reveals that wholesale and retail trade as leading the growth charts at 10 per cent while transport and storage sectors registered a 9.5 per cent growth, followed by the accommodation/hospitality and food services at 9.1 per cent. Extractive industries grew by 9.0 per cent and health and social services by 7.6 per cent.

Sector-specific contributions to the GDP include production at Dh240 billion in 2021, compared to Dh228.8 billion in 2020. Workers’ compensation increased to Dh38.8 billion in 2021, compared to Dh36.9 billion in the previous year; and the total value of capital expenditures rose to Dh31.3 billion in 2020.

The 2021 findings are based on a detailed economic study led by DSCD, which featured a thorough review of Sharjah’s macroeconomic data from 2020 and preliminary estimates for the year 2021.

— issacjohn@khaleejtimes.com