Market Update: Sharjah posts 34 percent surge in new business licenses in 2025 – Full Analysis

Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Sharjah posts 34 percent surge in new business licenses in 2025 – Full Analysis.

Total issued and renewed business licenses in Sharjah increased by 7 percent in 2025.

The Sharjah Economic Development Department announced on Monday its results for 2025, which marked a pivotal milestone in the department’s journey, reflecting the strength of the local economy and the growth of the business environment in the emirate, further reinforcing Sharjah’s position as a competitive and sustainable economic hub.

Hamad Ali Abdullah Al Mahmoud, Chairman of the Sharjah Economic Development Department and Member of the Sharjah Executive Council, stated that during 2025, the department achieved significant qualitative results in developing services and improving customer experience by building an integrated system centered on customer needs, enhancing institutional efficiency and supporting the sustainability of the local economy.

He confirmed the presence of 84,443 economic establishments in Sharjah, noting the emirate’s continued progress towards economic diversification through supportive laws and government legislation that encourage development.

Sharjah business base expands

The chairman revealed that total issued and renewed business licenses in Sharjah increased by 7 percent in 2025. Newly issued licenses recorded notable growth of 34 percent, while renewed licenses grew by 4 percent, reflecting the vitality of economic activity and the expansion of the business base.

Home-based licenses led growth with a 57 percent increase, followed by e-commerce licenses at 50 percent and professional licenses at 42 percent. Commercial licenses grew by 30 percent and industrial licenses by 17 percent, highlighting the emirate’s diversified economic base and wide investment opportunities.

In terms of geographical distribution, Sharjah City continued to lead with 8,800 licenses issued, marking a 30 percent growth. The Central Region recorded 40 percent growth, while the Eastern Region achieved the highest growth rate at 68 percent. Notably, the Khorfakkan branch registered a remarkable 126 percent increase, clearly demonstrating the success of the emirate’s balanced development strategy.

Al Mahmoud affirmed that Sharjah’s industrial sector maintained steady growth, with total industrial licenses rising by 8 percent. Newly issued industrial licenses increased by 17 percent, while renewed licenses grew by 7 percent, further strengthening Sharjah’s attractiveness as a supportive industrial environment for investment.

Foreign-owned licenses grow 18 percent in 2025

Regarding national licenses, newly issued licenses increased by 12 percent, while renewed licenses grew by 2 percent, bringing overall growth in national licenses to 3 percent. These indicators reflect the vitality of economic activity in Sharjah and the rising demand for establishing national businesses, highlighting the attractiveness of the investment environment and its role in supporting business growth.

With respect to foreign ownership, foreign-owned licenses recorded overall growth of 18 percent, with issued licenses rising by 25 percent and amended licenses by 16 percent, demonstrating foreign investors’ confidence in the stability and flexibility of Sharjah’s economy.

The e-commerce sector also continued its rapid expansion, with e-trading licenses recording overall growth of 33 percent. Al Mahmoud emphasized that the department is keeping pace with this shift through flexible regulatory frameworks and fast digital services that support entrepreneurs and the digital economy.

Key initiatives to support growth

To support the commercial sector and enhance Sharjah’s appeal to local and regional investors, the department implemented several qualitative initiatives and projects to simplify business procedures. Among these was the launch of the “Instant Licence” service, which is issued within one working day and enables investors and entrepreneurs to obtain a commercial license immediately without the need to submit a memorandum of association or a lease contract during the first year. The instant license allows investors to begin operations without delay, helping to accelerate processes, shorten the customer journey and increase economic growth rates in the emirate.

The department also launched the “Elite” initiative, a specialized service for a selected group of leading commercial companies in the emirate, aimed at strengthening their role in the local economy and creating an environment of motivation and recognition for best practices within the private sector.

In 2025, the department also organized several meetings with investors and entrepreneurs as part of its “Sharjah Economic Development Majlis” initiative, with the participation of company owners, investors and entrepreneurs from various sectors. These efforts aim to strengthen Sharjah’s position on the economic map, develop all sectors in the emirate in line with the highest quality standards and global best practices, and support the sustainability of the various economic sectors.

The department also introduced the “Aoun Service”, a community service designed to deliver the department’s services directly to elderly Emirati citizens at their locations through a trained field team, ensuring comfort and enabling them to complete their transactions easily without the need to travel.

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Department’s Emiratization rate hits 97 percent in 2025

In terms of Emiratization, Al Mahmoud stated that the Emiratization rate within the department reached 97 percent, reflecting its commitment to qualifying national talent and empowering them to lead economic development.

To enhance institutional excellence, the department honored 116 employees, marking a 20 percent increase, through the Outstanding Employee of the Month Award program in recognition of their contributions to improving organizational performance and fostering a culture of excellence.

A total of 310 training programs were implemented, including internal and external courses, Human Resources Department programs, specialized, field and voluntary training, as well as summer training for students from various educational institutions. The department also launched the “Young Economist” initiative, a training program for employees’ children, reflecting its vision of empowering society starting with the family, strengthening positive values that support sustainable economic development, fostering innovation and financial responsibility among children, and preparing them to become active members of the future workforce.

Al Mahmoud noted that customer satisfaction with the department’s services reached 96.8 percent, based on internal surveys measuring satisfaction levels. These results confirm the department’s commitment to continuously improving services provided to the public, investors and partners.

He concluded by emphasising that Sharjah is moving forward in building a diversified, smart and sustainable economy driven by innovation, supported by sound governance, and founded on qualified national talent. He stressed that the 2025 results represent a new starting point for a more ambitious phase in the emirate’s economic development journey.