Features

The next big thing

1 May 2007 by business traveller

Sharjah is about to pull the development trigger as the effects of Dubai's success continue to ripple out across the UAE. Real estate, tourism, airline growth, airport redevelopment – the same sectors that put Dubai on the global map are now being targeted with similar zeal in the neighbouring emirate. Yet whereas Dubai has been setting out its international stall over the last 10 years, Sharjah is now quickly erecting one of its own, as befits an emirate that was once happy to sit back and let Dubai get on with it, but now wants a share of the tourism spoils.

The success of Air Arabia, whose net profits jumped from Dhs69.7m (£8.8 million) to Dhs101m (£12.7 million) last year, has undoubtedly helped raise Sharjah's profile. The low-cost airline carried nearly 1.8 million passengers last year, a 54 per cent increase on 2005, and plans to acquire up to 34 more single-aisle planes amounting to an investment of US$2 billion, which will be raised by the airline going public later this year – a first for a Gulf carrier. It currently flies to 32 destinations and is eyeing up booming India and former Soviet Union countries for future growth. The airline commenced daily flights from Sharjah to Ahmedabad in April this year, its seventh Indian destination.

But Air Arabia's positioning and growth present the Sharjah Commerce and Tourism Development Authority (SCTDA) with a curious conundrum: how much is it in the long-term interests of Sharjah, with its clearly defined heritage, 24 museums and abundant sites of cultural interest, to be associated with cheap-and-cheerful budget travel? It's an issue that bears consideration as Air Arabia expands and the airport's transit business continues to boom. The number of transferred passengers increased from 37,771 in the first nine months of 2005 to 99,806 passengers in 2006 – although those figures are still small compared with the overall number of arrivals, which are up by 39 per cent to 996,202.

The Middle East region's low-cost airlines, Air Arabia and Jazeera Airways – which recently switched hubs from Kuwait to Dubai – have secured around 5 per cent of the market and that share is predicted to increase in future as the expatriate population expands and residents demand connections to mid-size cities. Another factor in Sharjah's growth has been its geographical position, which has proved a hit with seasonal operators, who are using it as a launch pad into South Asia, the Indian subcontinent and Far Eastern leisure hot spots.

Whether Sharjah is capitalising on this broadening of the region's aviation market or genuinely believing the time is right to push its own profile more, the emirate has started 2007 in aggressive mood. The SCTDA, keen to convert more of those transits into arrivals, is in the midst of targeting 20 international destinations, emphasising its heritage and family-friendly nature.

The Sharjah name has been heavily promoted in global expos this year, such as those in Istanbul and Berlin – but will the world embrace Sharjah with the same vigour that Sharjah is embracing the world? Sharjah isn't Dubai by any yardstick, something that may be a strength when it comes to pitching to Arab families, but its conservative attitudes to alcohol are unlikely to make it instantly appealing to liberal-minded Europeans.

While Sharjah is never going to end up a Dubai 'mark two', its travel and tourism strategy needs some careful thought. It is clearly tempting to imitate parts of Dubai's success story, but that might backfire. SCTDA General Director Mohamed A Al Noman says the emirate is seeking to develop projects that include the building of 'mega-villages and cities' that will attract visitors from all over the world – which sounds remarkably like what's going on down the highway. But by sticking to its heritage and culture, Sharjah does have a clear point of differentiation.

"Our museums and the Qanat Al Qasba will continue to make Sharjah one of the most attractive sites in the coming few years," adds Al Noman. "The classical Islamic construction style of the emirate helps define Sharjah's identity."

Qanat Al Qasba is a 4,000-hectare cultural, restaurant and leisure destination that is home to a 300-seat theatre, a 1,500m2 arts exhibitions area, canals and Eye of the Emirates, a 60m high observation wheel. Economically, at least, Sharjah has little to worry about – its GDP grew 19 per cent to Dhs42.5 billion (£5.4 billion) last year. The Bank of Sharjah, meanwhile, recorded a cool 23 per cent increase in its profits to Dhs382 million (£48.1 million).

Sharjah International Airport has always been known for its freight services (which rose by 13 per cent last year), but its passenger business is now driving growth. Passenger traffic at Sharjah Airport increased by more than 37 per cent last year, and the facility received more than three million passengers. The overall number of flights increased by just over 14 per cent year-on-year, reaching 44,182 in total, thanks largely to Air Arabia's rapid expansion.

Complementing the passenger growth is a Dhs227 million (£28.6 million) airport expansion, which started in January 2005 and will quadruple capacity to eight million. The redevelopment sees new check-ins (up to 40 desks), departures and arrivals lounges, a bigger duty free operation, coffee shops and expanded seating areas. Airline offices will increase from 16 to 40. The Sharjah Department of Civil Aviation has set up Sharjah Aviation Services to support the expansion of the airport. The company is a joint venture of the department and Air Arabia and is responsible for passenger, ramp and cargo-handling services.

Chief Executive Officer of Air Arabia Adel Ali says: "Our customers rightly demand even higher and more efficient levels of service from both Air Arabia and Sharjah Airport. We are confident that Sharjah Aviation Services will help secure that reputation for safe, secure, efficient and customer-focused operations."

Travelling around the city remains a challenge as congestion rises, but Dhs732 million (£92 million) worth of road improvements are in the offing. Work on the second phase of King Abdul Aziz Street and the fifth phase of Al Wahda Street developments will start soon, with the fifth phase of the Wahda Street development focusing on the stretch between King Abdul Aziz Street and Waset Street, and including four junctions.

The three-year project has an estimated cost of Dhs477 million (£60.1 million) and includes a number of bridges and tunnels, which would enable motorists to drive through Sharjah from Etihad Road to Dhaid Road and Sharjah International Airport without stopping at any traffic lights. Another welcome development for motorists is news that the Dubai Metro line is expected to be extended up to the Sharjah-Dubai borders along Al Ittihad Road.

Elsewhere, all eyes will be on the ten-part Nujoom Islands, which will cost Dhs18 billion (£2.3 billion) and cover five million square metres off Hamriyah beach. The islands, due to be built in the next five years, will contain 1,400 villas, 37 residential towers, four five-star luxury hotels and chalets, exhibition halls, a marina, six large malls and an International Business and Finance Centre.

Meanwhile, the Emirates Industrial City, shooting up in the Saja'a district of Sharjah along the Dubai Ring Road, will span 7.7 million square metres. It is divided into eight sectors, accommodating over 3,000 medium and light industrial operations as well as commercial enterprises and residential areas, all linked by internal asphalt roads. The city's proximity to Sharjah International Airport, Khaled Port, and Hamriya Free Zone is designed to win favour with importers and exporters.

Last October, Saudi property development and investment company SNASCO launched the Sharjah Investment Centre, a 3 million square metre mixed-use project on the Emirates Road, also near to Sharjah International Airport and Hamriyah Port. The project includes industrial parks and commercial and residential campuses.

As the tourism boom continues apace in the UAE, Sharjah finds itself in the enviable position of being able to count on its impressive heritage while providing the kind of modern amenities guaranteed to attract ever-increasing numbers of international visitors.

Hospitality on hand

Sharjah is showing it has the room and commitment to grow its hospitality scene, and aims to double its room quota to 10,000 rooms by 2010. Last year saw the opening of the 180-room Holiday Inn Sharjah and six more hotels are coming on stream this year. Istithmar, the Dubai-based investment holding company, has teamed up with the easyHotels group to create a budget hotel that will open in late 2008. Executives in the MICE sector will be targeted more as the emirate's hotel scene expands.

Expo

Expo Centre Sharjah continues to build on its profile as a premier name in industry conferences and exhibitions. The third edition of SteelFab recently saw 2,300 trade visitors on the opening day and an overall 60 per cent increase in visitor numbers on last year. The Gulf Iron & Steel Conference was equally busy, attracting 280 companies from 34 countries. The Sharjah World Book Fair, held last December, hosted 673 publishers and 126,000 titles.

Getting there

There are no carriers flying direct to Sharjah from Europe – however, Dubai is only a 40-minute taxi-ride away (Dhs60/£8.20).

BA, Emirates, Virgin and Royal Brunei all fly direct to Dubai from Heathrow, and Emirates also offers daily services from Gatwick, Birmingham, Manchester and Glasgow.

  • Return fares with Emirates (five flights daily) from Heathrow start at £298 for economy and £1,992 for business class.
  • BA (twice daily) quotes economy returns from £352, with premium economy from £826 and business class from £2,320.
  • Virgin runs one daily service, with fares starting from £327 for economy, £842 for premium economy and £1,866 for business.
  • Royal Brunei has five flights per week, and fares start at £285 for economy and £1,385 for business class (quoted by travelocity.co.uk).

Other options include Air France routings via Paris – return fares from £275 for economy (£1,320 business).

emirates.com, ba.com, virgin-atlantic.com, travelocity.co.uk

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