Private Sector to Propel Sharjah’s GDP Growth Over Next Three Years

UAE, 20 May, 2024 : Sharjah's GDP is set to grow steadily over the next three years, driven by robust private sector activity, according to S&P Global Ratings. The emirate's economy is projected to expand by an average of 2.8% annually from 2024 to 2027. This follows a 4.6% GDP growth in 2023.

Key growth drivers will include the manufacturing, construction, transport, and trade sectors. Real estate demand is also expected to bolster macroeconomic growth. S&P forecasts Sharjah's GDP growth at 2.5% in 2024, 2.7% in 2025, and 3.0% in both 2026 and 2027.

Sharjah's economy benefits from its diversity and relative independence from hydrocarbon exports. The GDP per capita is expected to rise from $19,000 in 2020 to about $22,000 in 2024, reaching $25,000 by 2027. The emirate's population grew by nearly 30% between the 2015 and 2022 censuses, boosting economic potential.

The government deficit is anticipated to narrow modestly to 5.7% of GDP in 2024 as expenditures decrease, despite a slight revenue weakening. Revenue-raising measures include new fees on real estate transactions, waste collection, and sewerage tariffs, alongside higher UAE-wide VAT and a 9% corporate tax on business profits over Dh375,000.

Sharjah's fiscal deficit was slightly higher than targeted in 2023, at Dh8.7 billion (6% of GDP), due to increased capital spending and debt-service costs. However, revenue rose by 11% above the target, supported by land sales and higher collections from economic development and police departments, as well as increased transfers from government-related entities.

Source : www.khaleejtimes.com