Capital Goods Made Up 69.3% Of Sharjah’s Total Imports For 2008

Value of Sharjah’s foreign trade-related imports reached over AED40.4 billion in 2008

A recent report by the Sharjah Economic Development Department (SEDD) revealed that capital goods in the emirate of Sharjah made up 69.3% of the emirate’s total imports in 2008, showing an unprecedented growth rate. The report also contained information regarding the size and growth of imports of foreign trade in 2008, and the role of various business sectors in achieving this growth.

According to the report, capital goods form an important constituent of Sharjah’s imports from foreign trade, and "this constituent has had a great influence on the performance of production and service sectors in achieving high growth levels by providing capital goods to the production and service sectors in general, and to conversion industries in particular". This, in turn, results in a high growth rate for exports, in addition to catering for the needs of the local market.

The study reads: "Total foreign trade imports for the emirate of Sharjah have rapidly increased, achieving an outstanding growth rate in 2008. These returns amounted to AED40.4 billion, with a growth rate of 51.3%, compared to AED18.6 billion in 2006 and AED26.7 billion in 2007."

The study reviewed the structural distribution of imports, as well as the size and growth of these returns during the past few years. In 2006, Sharjah’s foreign trade imports amounted to AED18.9 billion, with capital goods coming to AED11.9 billion (63%). In 2007, capital goods comprised 65.9% of the total imports of AED26.7 billion, or AED17.6 billion. In 2008 however, capital goods reached an unprecedented growth rate of 59.1%, reaching AED28 billion and constituting 69.3% of total imports.

The study concluded that the growth rate of capital goods reflects the progress made in this sector – including new technologies – which is now able to cater for the needs of the local market, attract a stronger workforce, and add value to the emirate’s Gross Domestic Product (GDP). This is in line with Sharjah’s vision of implementing economic strategies that will create and develop an industrial sector that is able to compete with the highest international production standards.
 

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