Tensions are rising in the Strait of Hormuz, one of the busiest sea trade routes. The disruptions in the movement of ships and the increasing pressure on the Jebel Ali port have raised concerns among traders around the world. In such difficult times, Sharjah, the third largest emirate of the United Arab Emirates (UAE), has taken a big bet. Sharjah is busy attracting Indian manufacturers and logistics companies through its strategic Khorfakkan port. Emirates aims to attract a massive investment of $3 billion from India over the next two years i.e. 2026 and 2027.

Sharjah is expected to receive an investment of $3 billion

The whole scheme is under the hands of ‘Invest in Sharjah’, the official investment agency of Sharjah. The agency’s CEO, Mohammad Juma Al Musharrak, said that he is expecting about $1.5 billion in investment from India this year. After this, an investment of around 1.5 billion dollars is expected next year as well. This figure represents a strong increase of about 15 percent over last year.

Sharjah believes that Indian companies will set up their manufacturing units here and make their export base. This move will give Indian companies direct and easy access to markets not only in the UAE but also in major Gulf countries like Saudi Arabia, Kuwait and Iraq.

India will enter Gulf countries through Khorfakkan port

The main hub of this entire scheme is the Khorfakkan Commercial Terminal. It is the UAE’s only fully commercial port, located on the Gulf of Oman outside the troubled waters of the Strait of Hormuz.

According to Al Musharrakh, normal shipping routes have been affected due to regional tensions, but the port of Khorfakkan is completely safe from this threat. The port is directly connected to major international east-west sea routes. For this reason, there is a lot of enthusiasm among Indian businessmen regarding this location. He believes that this will boost mutual trade between India and the UAE and Indian companies will use Sharjah as a gateway to the entire region.

Companies are leaving Dubai and moving towards Sharjah

The impact of the shipping crisis is now clearly visible on business decisions. According to Invest in Sharjah, inquiries from companies linked to the manufacturing, logistics and transportation sectors have increased rapidly. The highest demand is seen for industrial land near Khorfakkan port. Companies are looking for land to build their factories and warehouses near ports.

Interestingly, many companies are expanding their operations to Sharjah without completely withdrawing their business from Dubai and Abu Dhabi. Al Musharrakh said companies are increasing their presence within the UAE and choosing locations near the Khorfakkan port, so that there are no bottlenecks in the shipment of goods.

Mega preparation to increase container capacity

To meet the growing demand, work has been accelerated on a $2 billion expansion of Khorfakkan Port. The port operator company ‘Gulftainer’ is increasing the capacity of this port in phases.

Currently, the capacity of this port is to handle 35 lakh TEU containers per annum, which is being increased to 50 lakh TEU. A target has been set to take it beyond 1 crore TEU in the long term. The scale of a TEU is the same as a standard shipping container 20 feet long. This expansion plan will make Sharjah a major logistics hub globally, providing safe means for Indian exporters to transport their goods to Arab countries without any maritime barriers.