S&P expects an acceleration in Sharjah's GDP growth in the coming years. Antonie Robertson/The National
S&P expects an acceleration in Sharjah's GDP growth in the coming years. Antonie Robertson/The National

S&P maintains BBB+/A-2 Rating forSharjah amid growth expectations



S&P Global Ratings has affirmed its BBB+/A-2 credit rating for Sharjah on expectations that the emirate's economy will recover in the next three years thanks to a deficit reduction programme and added investment related to Expo 2020.

"We expect an acceleration in GDP growth in 2018, based on the increased economic activity in the real estate and construction sectors and the spillover effects of rising investment in nearby Dubai in relation to its World Expo 2020," said the rating agency, which held its outlook for the emirate's economy as stable.

The emirate's economy is expected to average 2 per cent growth a year from 2018 to 2021, S&P predicted. Sharjah's government has yet to disclose its own GDP growth forecasts for the coming year.

"In our view, the economic structure of Sharjah displays a relatively high degree of diversity, particularly compared with most Gulf Cooperation Council sovereigns." The agency noted that Sharjah's manufacturing sector contributes 17 per cent of the emirate's GDP while real estate, wholesale and retail trade, and financial services all account for more than 10 per cent of GDP.

_____________

Read More:

______________

Plans for a trio of real estate projects worth Dh2.7 billion (US$734 million) to be built in Sharjah were unveiled by the emirate's ruler last week. The three mixed-use projects - Maryam Island, Kalba Waterfront, and Palace Al Khan - are the first to be developed by Eagle Hills Sharjah Development, a partnership between the Sharjah Investment and Development Authority (Shurooq) and Abu Dhabi-based real estate developer Eagle Hills.

S&P said that it didn't think the diplomatic rift between the UAE and Qatar would derail Sharjah's growth trajectory and that the emirate would benefit from rising oil prices. The rating agency in November raised its Brent oil price forecast by 10 per cent to $55 per barrel for 2018, amid expectations of growing crude oil demand and that Opec and other producers will continue to cut production beyond March.

"At this stage, we expect the diplomatic rift with Qatar will only have a limited impact on the UAE, including Sharjah," the agency said.

"We understand that some of the Qatari gas supply to the UAE is allocated to Sharjah Electricity and Water Authority. We expect the Dolphin pipeline from Qatar to the UAE will remain open, absent a further significant escalation in regional tensions."

Separately, S&P Global Rating also affirmed the 'A/A-1' rating of Ras Al Khaimah on expectations that the emirate's economy, like Sharjah's, would improve in the next three years. The rating agency said that it had a stable outlook on the emirate because it has low debt and a strong fiscal position. "We expect that the Emirate of Ras Al Khaimah will continue to record fiscal surpluses and maintain its low debt level," the agency said.

"The stable outlook reflects our expectation that RAK's economic performance will improve gradually over the period to 2021, supported by a recovery in domestic demand regionally and a high level of capital spending in the larger Emirates."

S&P said it was expecting GDP growth to average 2.5 per cent from 2018 to 2021. The emirate's government has yet to share its economic forecasts for the year ahead.

The specs

Engine: 3.0-litre flat-six twin-turbocharged

Transmission: eight-speed PDK automatic

Power: 445bhp

Torque: 530Nm

Price: Dh474,600

On Sale: Now

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

Avatar%20(2009)
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EJames%20Cameron%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ESam%20Worthington%2C%20Zoe%20Saldana%2C%20Sigourney%20Weaver%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
'Saand Ki Aankh'

Produced by: Reliance Entertainment with Chalk and Cheese Films
Director: Tushar Hiranandani
Cast: Taapsee Pannu, Bhumi Pednekar, Prakash Jha, Vineet Singh
Rating: 3.5/5 stars

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Emiratisation at work

Emiratisation was introduced in the UAE more than 10 years ago

It aims to boost the number of citizens in the workforce particularly in the private sector.

Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers

The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension

President Sheikh Khalifa has described Emiratisation as “a true measure for success”.

During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development

More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics

The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens

UAE citizens will be given priority in managerial positions in the government sphere

The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens