SCC tackles key economic challenges

Focus on economic development and investment landscape
Following the publication of earlier statements by the session’s initiators, the current coverage includes further contributions from members who requested to speak. The session, held in the presence of the Department of Economic Development, covered a broad range of topics including consumer protection, the distribution of commercial activities, applicable fees and regulations, and the challenges faced by small and medium-sized enterprises—all within the framework of enhancing the emirate’s competitiveness and ensuring sustainable economic growth.

Consumer protection and women’s services
Council Member Her Excellency Sheikha Al-Dhanin raised a series of inquiries directed at the Department of Economic Development, focusing on the monitoring procedures used to ensure the credibility of promotional discounts offered by shops and businesses. She questioned how the department ensures consumers are protected from deceptive or misleading practices, and what measures are taken when violations are identified. She also enquired about the mechanisms in place to monitor promotional draws organised by businesses, and the extent to which these comply with established legal standards. Al-Dhanin stressed the importance of regular oversight to ensure transparency and safeguard consumer rights.
In line with her interest in improving commercial services for women, Al-Dhanin brought up the recurring issue surrounding the profession of “women’s tailoring.” She called for female-only staff to be assigned to this service, while allowing male tailors to remain in roles related to cutting and sewing, in order to preserve privacy and enhance customer trust.

Al Reyami addresses industrial regulation and sector saturation
Council Member His Excellency Hamad Abdullah Al Reyami posed a question regarding the current state of the "scrap and used goods" market in the Sixth Industrial Area. He enquired about the department’s plans to regulate and rehabilitate this market in accordance with safety, environmental, and economic standards—efforts that would contribute to improving the business environment and maximising economic benefit.
He also asked about the initial steps being taken to relocate industrial facilities to the industrial zone in the city of Dibba Al-Hisn. Furthermore, he discussed the department’s efforts to conduct field studies through specialised teams to analyse market realities and various commercial sectors. Al Reyami sought clarification on how these studies guide investors toward saturated sectors or areas needing growth and expansion. He also questioned the department’s stance on addressing the dense concentration of restaurants and cafés in the Muwaileh area, and whether investors are being encouraged to consider alternative business activities.

Al Nuaimi outlines Sharjah’s economic vision and planning needs
During the session discussing the Department of Economic Development’s policies, His Excellency Dr Abdullah Belhaif Al Nuaimi, Chairman of the Sharjah Consultative Council, delivered a comprehensive intervention outlining the emirate’s economic vision in light of current and future challenges. He referenced the strategic direction of the United Arab Emirates and the wise vision of His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah who places human wellbeing and societal development at the heart of all progress.
Al Nuaimi emphasised that Sharjah, with its strong economic foundations and longstanding history of balanced growth, requires a comprehensive review of its economic planning pillars. He stressed the need for a clear future vision based on accurate performance indicators and designed to remove obstacles to sustainable development. He particularly highlighted the importance of addressing inflexible policies and fees that hinder the business environment, stating that government policies should be designed to empower both citizens and investors—not burden them with fees and administrative complexity.


Referring to official data submitted to the Council, Al Nuaimi noted the scale of the challenges facing the local economy. He asked about the department’s long-term economic vision, the indicators and benchmarks used to shape it, and the strategies in place to counter negative trends that have caused some sectors to decline and led to capital exiting the emirate. He called for clarification on the department’s actions to address and resolve these issues, in a manner that ensures economic continuity, enhances the business climate, and aligns with the leadership’s development goals and the expectations of the emirate’s communities.

Al Dhuhouri addresses concerns over consumer protection
For his part, Council Member His Excellency Mohammed Ahmed Al Alawi Al Dhuhouri raised a number of questions related to consumer protection. He pointed to ongoing complaints from citizens and residents about unjustified price hikes on certain goods and services, as well as clear price discrepancies between shops. Al Dhuhouri questioned the role of the Department of Economic Development in regulating markets and enhancing oversight of commercial establishments to ensure compliance with established standards. He stressed the need for increased inspection campaigns and consistent enforcement of violations to protect consumers and curb commercial exploitation. He called for the activation of the Consumer Protection Department and the establishment of permanent frameworks to protect consumer rights in the emirate.
Al Dhuhouri also addressed the challenges facing shop owners in the city of Dibba Al-Hisn, who are experiencing stagnation in commercial activity due to high municipal and Department of Economic Development fees. He questioned the department’s stance on this issue and whether there are plans to review these fees or offer facilitations to encourage economic activity in the area.
In a related context, he referred to complaints raised by holders of "Itimad" (home business) licences regarding late renewal fines. These licences are primarily held by Emiratis running small-scale operations from their homes. He asked whether the department intends to exempt this group from such fines or, at the very least, grant them a grace period to ease the burden and support their continuity in the market.

Dr Al Naqbi highlights structural challenges in licensing
His Excellency Dr Ahmed Saleh Al Naqbi raised a set of critical questions shedding light on a number of structural challenges. In his first question, he pointed out the stark contrast between the ease of obtaining a commercial licence when launching a business, and the complexity involved in cancelling one upon exit. He noted that several licensees have reported that cancelling their licences requires the involvement of a notary public and reference to judicial authorities—posing a significant burden and limiting the flexibility of exiting the market.
In his second question, he addressed inappropriate practices observed in some men’s barber shops, where certain individuals behave in ways that breach public decorum and contradict the private nature of these services.
His third question touched on an issue faced by some projects in the Al Haray industrial area, where the department requires a minimum space of 200 square metres to issue a commercial licence. However, some plots granted by the government measure slightly less—specifically 195 square metres—preventing their use for projects despite meeting other qualifying criteria. He asked about the department’s position on this requirement and whether there are plans to reconsider it, enabling the utilisation of these plots and promoting industrial activity, while still adhering to technical and regulatory standards.

Al Hammadi highlights performance monitoring and benchmarking tools
His Excellency Mohammed Ali Jaber Al Hammadi asked whether the department employs mystery shopping as part of its internal auditing system to improve performance and identify weaknesses. He also inquired whether the department conducts benchmarking studies—both locally and internationally—and whether these are documented in a systematic and methodological way to raise operational efficiency.
Al Suwaidi calls for unified inspection procedures
Meanwhile, His Excellency Sultan Saeed bin Dalmook Al Suwaidi raised a question regarding the possibility of unifying inspection procedures across the Department of Economic Development, the municipality, and the civil defence. The aim, he noted, is to ensure regulatory consistency and enhance investor confidence. He also inquired about the department’s role in new investment zones such as Al Jada and other emerging areas within the Emirate of Sharjah.
Al Shamsi proposes licence cancellation relief and tiered fines
Council member Majid Al Darwish Al Shamsi questioned how the Department of Economic Development handles the cancellation of commercial licences in cases where investors have suffered significant financial losses. He asked what solutions are being considered to ease the financial burden on such investors and avoid discouraging them from continuing to invest in Sharjah.
He suggested re-evaluating the high fines imposed on business owners, proposing instead a tiered penalty system that starts with symbolic fines—such as AED 500—and increases with repeated violations. This would strike a balance between upholding regulations and supporting business continuity.
Al Shamsi also questioned the impact of seasonal purchasing power and whether the department could consider granting licence holders and violators an extension until year-end to recover losses during periods of economic upturn. Additionally, he raised the issue of overlapping inspections by various authorities and called for streamlined coordination between the Department of Economic Development, the municipality, and civil defence to prevent repeated inspections that burden investors and to ensure more efficient enforcement.

Al Zarouni warns of the industrial sector’s decline
His Excellency Issa Abdulrahim Al Zarouni began his contribution by referring to the current plans for redesigning the First Industrial Area and neighbouring zones—a move expected to affect over six thousand establishments. These include companies that form the backbone of investment and production in Sharjah, with assets valued in the billions of dirhams. In this context, he questioned the role expected of the Department of Economic Development in facilitating the relocation process for these businesses and ensuring suitable alternatives that preserve their stability and continuity within the emirate. He also asked what support or powers the department requires to keep these strategic investments from moving to other areas outside Sharjah.
In the second part of his statement, Al Zarouni reflected on his previous experience as an inspector and later director of inspection departments at the Ministry of Human Resources. He recalled that Sharjah was once known for its dense industrial activity, which often required inspection support from other emirates due to the high number of factories and industrial establishments. However, he noted a marked decline in recent years, with several businesses relocating to neighbouring regions.
He called for an explanation of the reasons behind this decline and the challenges the department currently faces in retaining major and international manufacturers within the emirate. He stressed the need to consider regional competition and the increasing incentives offered elsewhere to attract industrial investors.

Concerns over social media-based businesses
Al Zarouni raised a question regarding the regulations governing home-based businesses operating through social media platforms. He noted the receipt of repeated complaints from customers affected by such businesses, which take orders electronically and accept payments via personal bank transfers. These businesses often fail to meet delivery deadlines or product quality standards and ignore communication with affected customers, despite multiple reports being filed—amid a lack of clear procedures to address such incidents.

He asked how clear the legal framework is for these activities prior to licence issuance, what regulations are in place to ensure their compliance with professional standards, and what role the Department of Economic Development plays in monitoring such businesses. He also inquired about the procedures available to protect consumers and ensure they can reclaim their rights in the event of service failures.

Al Zarouni stressed that this discussion stems from a concern for protecting the local economic environment from unregulated practices and maintaining public trust in commercial activity—especially given the increasing reliance on digital platforms for delivering goods and services.

Al Rashidi addresses commercial licence cancellations
His Excellency Salem Mohammed Al Rashidi highlighted the growing phenomenon of commercial licences being cancelled in the Al Madam area. He questioned whether the department has any plans to reach out to the affected licence holders and offer adequate support—such as incentives or extended grace periods—to help them continue their economic activities. He also raised the issue of follow-up by official and legal entities in cases where commercial outlets remain closed for extended periods without operating, noting that this creates a negative impression for potential investors in the area.

Al Rashidi also drew attention to the concentration of consumer-focused businesses in a single area—such as Al Madam—which suffers from a limited customer base, resulting in intense competition and the closure of many projects within their first year of operation. He called for clarification on whether the department possesses accurate statistics on this phenomenon, and what measures it follows to ensure business sustainability and a balanced distribution of commercial activities to strengthen the emirate’s investment environment.

Al Mansouri raises concern over additional fees for credit card payments
His Excellency Ibrahim Juma Al Mansouri raised an important consumer protection issue, pointing to the practice of some commercial outlets charging additional fees—sometimes exceeding 3%—for purchases made using credit cards, under the pretext of covering banking charges.

He affirmed that these practices violate approved payment regulations, which clearly prohibit imposing additional costs on consumers for opting to pay electronically. Al Mansouri urged the Department of Economic Development to clarify the legal standing on this matter and detail the oversight mechanisms in place to prevent such violations. He stressed the need for all commercial outlets to accept credit card payments without imposing extra charges or requiring cash-only transactions.

Al Mahmoud details department efforts in licence cancellation and consumer protection
His Excellency Hamad Ali Abdullah Al Mahmoud, Chairman of the Department of Economic Development in Sharjah, affirmed that the department is working to simplify the process of cancelling commercial licences to match the ease of the initial registration process—fulfilling the principle of facilitating and encouraging business activity in the emirate. He noted that the department is keen to provide a wide range of incentives to support ongoing development across sectors, strengthening both economic and industrial resilience.

Regarding business inspections, Al Mahmoud stated that the department had carried out over 157,310 inspection visits and addressed 16,140 commercial protection complaints. These included 14,450 consumer protection complaints, 801 service agent complaints, and 889 commercial fraud cases, with 99% of these successfully resolved.

Al Khumairi highlights department’s digital transformation 
Meanwhile, Fahad Al Khumairi, Director of the Department, highlighted the department’s digital transformation efforts, which have resulted in a significant increase in the number of services offered on the Sharjah Digital Platform. The department also secured first place in the data governance evaluation among Sharjah government departments.

As for supporting small and medium-sized enterprises, Al Mahmoud confirmed the department’s ongoing commitment to this sector. Last year, the value of funding provided through the “Ruwad” programme reached AED 2.96 million, supporting 14 projects. The programme’s membership also grew to 1,950 members.
As for challenges facing some commercial licence holders—such as the refusal of local banks to open accounts for certain licence types—Al Mahmoud affirmed that the department is working to resolve these issues in coordination with the Central Bank and local banks, to facilitate account openings for affected business owners.
In terms of economic transparency, Al Mahmoud said the department regularly publishes reports that outline key economic indicators, regulatory procedures, and decisions affecting the business environment. Mechanisms are also in place to receive and address both investor and consumer complaints swiftly and effectively.

Focus on economic development in the Eastern Region
On supporting the Eastern Region, Al Mahmoud confirmed that the department places high priority on economic development across all cities and areas of the emirate. In 2023, department branches issued 7,738 new licences—reflecting a 2% growth. The Eastern Region branches accounted for 605 licences, with Khorfakkan branch issuing the highest number at 280.

Regarding digital transformation, Al Mahmoud reiterated that the department has modernised and expanded its digital services, leading to the widest range of offerings yet on the Sharjah Digital Platform, and earning first place in data governance among Sharjah government entities.

Next session details
Before the session was adjourned, Council Secretary General His Excellency Ahmed Saeed Al Jarwan announced that the next session will be held on Thursday, 8 May 2025. It will begin with a parliamentary question by His Excellency Rashid Abdullah bin Howaidin, member of the Sharjah Consultative Council, addressed to the Chairman of the Human Resources Department regarding the employment of Emirati jobseekers. This will be followed by a discussion of the Council’s recommendations concerning the Department of Economic Development in the Emirate of Sharjah.