Sharjah is targeting $3 billion in investment from Indian companies over 2026 and 2027 as disruptions to shipping through the Strait of Hormuz increase interest in Khorfakkan Port on the Gulf of Oman.
The emirate expects Indian manufacturers, logistics companies and other businesses to expand their operations in Sharjah and use the UAE as a gateway to markets across the wider Gulf region, including Saudi Arabia, Kuwait and Iraq.
Mohamed Juma Al Musharrkh, CEO of Sharjah FDI Office (Invest in Sharjah), said the emirate is targeting around $1.5 billion in Indian investment this year and a further $1.5 billion in 2027.
“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,” Al Musharrkh told ET.
Khorfakkan Port Gains Strategic Importance
Khorfakkan Commercial Terminal is the only fully commercial terminal in the UAE located outside the Strait of Hormuz. Its location on the Gulf of Oman gives it direct access to international east-west maritime shipping routes without requiring vessels to transit the Strait.
Al Musharrkh said the port is attracting interest from companies seeking to establish or expand operations in the UAE.
“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.
The port’s position has become more relevant amid disruptions affecting shipping routes in the region and constraints around access to Jebel Ali.
Manufacturing and Logistics Demand Rises
Invest in Sharjah, the emirate’s official foreign direct investment office under the Sharjah investment and development authority Shurooq, said enquiries have increased from companies in manufacturing, logistics and transportation.
“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,” Al Musharrkh said.
According to the official, some companies operating from Dubai and Abu Dhabi are also expanding their UAE footprint closer to Khorfakkan Port.
“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.
Khorfakkan Port Expansion
Khorfakkan Port is undergoing a phased expansion led by operator Gulftainer. The programme is intended to increase annual container-handling capacity from 3.5 million TEUs to 5 million TEUs.
The port has a longer-term strategic target of exceeding 10 million TEUs of annual container-handling capacity, supporting Sharjah’s efforts to develop Khorfakkan as a regional logistics and trade gateway.
