Over Dh11bn Sharjah contracts

New project pipeline shows significant growth prospects in Sharjah with Dh11 billion worth of projects to be awarded in the emirate by the end of this year, according to forecast by Meed.

Major project awarded in Sharjah in the two years to the end of 2013 were almost Dh19 billion, three times the rate of the previous two-year period to the end of 2011.

If Sharjah major contract awards reach Dh11 billion for 2014 that would represent a 25 per cent increase on major contract signings last year.

“Sharjah is just beginning to capitalize on its earlier investments in Hamriyah Free Zone and Khorfakkan,” said Julian Herbert, Director of Meed Projects in the consultancy’s report. “Based on economic growth and growth in the population of the UAE as a whole, this emphasis on the processing of recyclable materials and manufacturing, positions Sharjah well to grow in tandem with the UAE.”

Overall it is currently tracking some 188 active major projects in Sharjah, which are either planned or underway. The total value of these projects is almost Dh60 billion.

The bulk of these contracts are in the power and water, industrial, transport, infrastructure, construction, public works and environment sectors.

Sector projects

In power and water, underway and planned projects total over Dh3 billion. Projects include power generation and distribution and reservoirs and pumping stations.

In other sectors, some of the major projects it said were awarded in the first quarter of 2014 include Dh350 million by Dana Gas for the Zora gas field and some Dh740 million of private sector real estate projects.

Looking further ahead, it has identified almost Dh22 billion of major projects that are already slated to be awarded in Sharjah by 2018 across all sectors. About half of these contracts are expected to be awarded in the construction sector, and a third in transport as Sharjah makes major investments in its infrastructure. The consultancy also pinpointed waste management, recycling and waste-to-energy projects as particular sources of growth.

The report looked at all projects in the emirate with a value of over Dh18.3 million ($5 million).

Sharjah is regarded as the industrial and manufacturing centre of the United Arab Emirates, with 19 industrial zones and two thriving free zones.

At Al Hamriya Freezone, projects worth a total of more than Dh1.5 billion are underway by companies including Lamprell, Quality International, Eversendai Engineering, Emirates Techno Casting, and Hazel Middle East. Al Hamriya Freezone is specialised in bulk and heavy infrastructure.

In addition to heavy industry and trade Sharjah is focused on developing its tourism infrastructure, renewable energies and healthcare sectors.

Sharjah is building new tourist resorts throughout the Emirate and applying to Unesco to list the Heart of Sharjah historical area as a UNESCO World Heritage Site.

Renewable energy sources being used currently include wind and geothermal. Sharjah has also developed Al-Saj’ah as one of the largest waste management plants in the world.

Meanwhile Sharjah recently disclosed that it is nearing completion on 21 projects to mark its year as Islamic Capital of Culture at a value of nearly Dh1.5 billion. The projects include building new universities, monuments, Islamic parks, traditional markets, museums and libraries, as well as scientific and architectural buildings.

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