The Cornell Baker Program of Real Estate recently welcomed a prominent speaker from his Excellency Marwanjasim Al-Sarkal (UAE) and shared with us the experience leading the transformation and economic diversification of the Sharjah Emirates. Al Sarkal is currently managing director of Chapter 3 LLC and former executive chairman of Sharjah Investment and Development Authority (Shurooq). For 20 years at Shruk, he was the driving force behind investment, cultural growth and Sharjah's development by using real estate development and strategic partnerships to promote Sharjah's transformation. As Managing Director of Chapter 3, he is passionate about driving growth for both institutional and small and medium-sized enterprises (SME) companies, fostering connections for catalyst growth focused on technology, mobility, and the overall future of the region.
United Arab Emirates Map
Sharjah is one of the seven emirates of the United Arab Emirates, located just east of Dubai Emirates. As the third largest emirate in the United Arab Emirates, Sharjah is an important industrial and cultural hub for the country, producing $35 billion in GDP. The Emirates show off a range of exceptional tourist destinations focusing on cultural, history and educational themes. Under the vision of HH Sheikh, under the stewardship vision of Sultan bin Mohammed Al Kashmi and Sheikha Bodhi Bint Sultan al Kashmi and Al Sarkar, Sharjah was crowned as “the capital of Islamic culture” and “a unique and well-known tourist destination.” Furthermore, the Emirate was given honorable recognition by UNESCO as the “cultural capital of the Arab world.”
During Sharjah's early planning and viewing stages, local governments had to brainstorm how real estate could be used as a means of economic diversification and transformation. Emirates' geographical location presents both opportunities and challenges as they had to generate developments that complement Dubai and provide unique tourism experiences that utilize other Emirates products. Not only that, Schluk had to plan for the city, which created unique real estate investment opportunities from that of other Emirates and was the source of pride for the people of Sharjah.
Shurooq has developed three real estate development strategies to meet the aforementioned goals and constraints. The strategy is to (1) target niche products, (2) build transformation icons, and (3) increase the range of products. Furthermore, real estate development based on all three strategies is chosen with reliability and sustainability in mind.
Under Strategy (1), Al Sarkar shared with us how Shurooq can revitalize and rethink existing assets and rethink differentiated hospitality and tourism offerings. Some important examples include Sharjah and the heart of Moon Retreat. Both developments were previously lacking sites that were transformed into unique cultural and environmental effects. These developments are permitted to generate direct and indirect returns rather than capital-intensive, as they harness existing assets. The Kalba Eco-Tourism project is another preserved destination to provide a new sustainable experience for visitors to indulge in the natural offering of Sharjah.
Al Beit Sharjah, a sustainable luxury resort in the heart of Sharjah
Sharjah's House of Wisdom is an iconic monument that redefines the concept of libraries and cultural centres. The monument was constructed under Strategy (2) to build a transformative icon, aiming to promote and facilitate access to knowledge. Built to create spaces that evoke a sense of belonging, the development offers a variety of amenities, including cafes, galleries, book collections, and event spaces.
House of Wisdom
Finally, under Strategy (3), Al-Sarkar also discussed various projects he undertakes to increase Sharjah's product range. One of the most notable projects was Maryam Island, a mixed development of AED 4.5 billion (US$1.2 billion) in downtown Sharjah. Mariam Island's goal was to create a luxury yet affordable reclaimed property development. The 460,000 square metre site includes components such as waterfront residential units, retail stores, 4- and 5-star hotels, and resident beach access.
Mariam Island
Sharjah managed to attract more than $220 billion in foreign investment in 2020. This investment flow was made possible by the aforementioned strategies and policies, such as the real estate-supported economic freedom zone. Dubai has been noted for being a pioneer in the free zone model, offering attractive concessions to foreign companies, as well as several investment incentives, including 100% ownership and zero taxation of subsidiaries.
Before closing his presentation, Al Sarkar reminded us that our goal should not only be developers, but also be an entity that will create transformative change. Al Sarkar plans to explore, learn and create new ideas that inspire those around him, and continue doing so as the managing director of Chapter 3. On behalf of the Cornell Baker program, we thank students for sharing valuable learning opportunities and knowledge about innovative real estate strategies.
