Sharjah eyes $3 billion Indian investment as ports shift amid Hormuz disruption

Dubai: With shipping routes through the Strait of Hormuz severely disrupted and access to Jebel Ali constrained, Sharjah is betting on the $2 billion expansion of Khorfakkan port on the Gulf of Oman to draw Indian manufacturers and logistics companies, targeting $3 billion in inward investments from India in 2026 and 2027, according to a top official of Sharjah's investment authority.

Sharjah, the UAE's third-largest emirate by area after Abu Dhabi and Dubai, expects Indian companies to start setting up their production and export bases there as a gateway to the wider region including Saudi Arabia, Kuwait, and Iraq, among other Gulf countries.

"We are looking at around $1.5 billion of investment from India this year and another $1.5 billion next year. That represents an increase of around 15% from the previous year," Mohamed Juma Al Musharrkh, CEO, Sharjah FDI Office (Invest in Sharjah), told ET.

He said that Sharjah's Khorfakkan Port, which is outside the Strait of Hormuz, is drawing significant interest from companies setting up businesses in the country. "Khorfakkan Port is a gateway to the region and is strategically located for trade with India and other markets. I think this will definitely increase trade between India and the UAE. A lot of Indian companies will start using the UAE and Sharjah as a gateway to the region," he said. Khorfakkan Commercial Terminal is the only fully commercial terminal in the UAE located outside the Strait of Hormuz.

Invest in Sharjah is the official foreign direct investment (FDI) office operating as part of the Sharjah investment and development authority (Shurooq) to attract global business and drive economic diversification in the emirate. Al Musharrkh noted that with the Khorfakkan port gaining prominence after the regional conflict, the emirate is drawing significant interest from manufacturers.

"We are getting a lot of enquiries, especially in the manufacturing, logistics and transportation sector. There is huge demand for land next to Khorfakkan. Companies are increasingly interested in industrial land, especially in the locations close to the port," he said. He added that increasingly companies are also expanding operations from Dubai and Abu Dhabi to Sharjah due to the Khorfakkan port, which lies outside the affected zone, helping bypass the regional shipping disruptions and offers direct access to major international east-west maritime shipping lanes.

"I wouldn't say that companies are shifting from Dubai or Abu Dhabi, but there are some expansions. Companies are expanding within the UAE and choosing to be located closer to the Khorfakkan port," said Al Musharrkh.

The Khorfakkan Port is undergoing a phased expansion by operator Gulftainer to scale its annual container handling capacity from 3.5 million TEUs to 5 million TEUs, with a long-term strategic target exceeding 10 million TEUs.

One TEU represents the volume of a standard 20-foot long shipping container.