Why Sharjah is a Preferred Destination to Set Up a Business in the UAE (2025 Guide)
The United Arab Emirates (UAE) has long been recognized as a global hub for entrepreneurship, and while Dubai and Abu Dhabi often take the spotlight, Sharjah is quickly becoming a preferred destination for setting up a business. Known for its strategic location, affordability, and diverse economic sectors, Sharjah offers unique advantages for startups, SMEs, and foreign investors.
In this blog, we explore the key reasons why business owners are choosing Sharjah as their launchpad in the UAE.
1. Strategic Location Between Dubai and the Northern Emirates
Sharjah is located just 15–20 minutes from Dubai and serves as a logistical bridge between the northern emirates (Ajman, Umm Al Quwain, Ras Al Khaimah) and the southern business centers. This proximity gives businesses access to Dubai’s commercial ecosystem while benefiting from Sharjah’s lower costs.
Close to major airports: Sharjah International Airport and Dubai International Airport
Access to multiple seaports: Port Khalid, Hamriyah Port
2. Affordable Business Setup and Operational Costs
Compared to Dubai or Abu Dhabi, Sharjah offers lower company formation fees, office rentals, and employee visa costs. This makes it especially attractive for:
Freelancers and consultants
Small and medium enterprises (SMEs)
Manufacturing and industrial businesses
E-commerce and service providers
Example: Starting a company in Sharjah Media City (SHAMS) or Sharjah Publishing City Free Zone can cost as low as AED 5,750 annually (no visa).
3. Business-Friendly Free Zones
Sharjah offers multiple specialized free zones that support a range of industries, including:
Sharjah Media City (SHAMS) – Ideal for media, marketing, creative, and IT companies
Hamriyah Free Zone – Great for industrial and manufacturing businesses
Sharjah Publishing City Free Zone – Tailored for publishing, e-commerce, and tech startups
Sharjah Airport International Free Zone (SAIF Zone) – Logistics, aviation, trading
These free zones provide benefits like:
100% foreign ownership
No corporate or income taxes
Full repatriation of capital and profits
Quick business licensing (as fast as 24–48 hours)
Flexi-desk and virtual office packages
4. Diverse Economy & Sectoral Opportunities
Sharjah is not dependent on oil and has actively diversified its economy across key sectors:
Education and research
Manufacturing and logistics
Tourism and culture
Creative industries and publishing
Healthcare and technology
The Sharjah government continues to support new sectors, especially green businesses, fintech, and SMEs.
5. Cultural and Educational Hub
Sharjah is often referred to as the cultural capital of the UAE and is home to several universities, research institutions, and museums. This educational ecosystem attracts young talent and innovation-driven startups, especially in content, education tech, and research.
6. Stable Regulatory Environment
Sharjah provides a business-friendly legal and regulatory environment, supported by:
Transparent government processes
Online licensing and renewal portals
Strong dispute resolution and contract enforcement systems
Residency visa options for business owners and employees
Entrepreneurs can also choose between free zone and mainland setups depending on their target market (UAE vs. international).
7. Supportive Government Initiatives
Sharjah’s government continues to promote entrepreneurship through:
Business incubators and accelerators
SME support programs
Female entrepreneurship initiatives
Export and trade facilitation services
Example: Sharjah Entrepreneurship Center (Sheraa) has helped over 150 startups raise funding and grow locally and internationally.
If you’re looking for a cost-effective, well-connected, and supportive place to launch your business in the UAE, Sharjah is a smart and strategic choice. From startup-friendly free zones to a diversified economic base, Sharjah offers all the key ingredients for long-term business growth.
How We Can Help
At ScaleX Business , we specialise in helping founders and SMEs register companies in Sharjah’s top free zones and mainland. Our team takes care of licensing, visa processing, bank account opening, and office solutions—so you can focus on building your business.
Ready to set up your business in Sharjah?
Get in touch with us today for a free consultation.
