Cornell University's Baker Program in Real Estate recently hosted distinguished speaker His Excellency Marwan Jassim Al Serkar from the United Arab Emirates (UAE) to share his experience leading the transformation and economic diversification of the Emirate of Sharjah. His Excellency Al Serkar currently serves as Managing Director of Chapter 3 LLC and is the former Chairman of the Sharjah Investment and Development Authority (Shurooq). During his 20 years at Shurooq, he has driven the transformation of Sharjah through real estate development and strategic partnerships, and has been a driving force for investment, cultural growth, and development in Sharjah. As Managing Director of Chapter 3, His Excellency Al Serkar is passionate about fostering development for both institutional and small and medium-sized enterprises (SMEs) companies, fostering connections for catalytic growth, with a focus on technology, mobility, and the future of the region as a whole.
United Arab Emirates map
Sharjah is one of the seven emirates of the UAE, located east of the Emirate of Dubai. As the third largest emirate in the UAE, Sharjah is the country's key industrial and cultural center, generating a GDP of $35 billion. The emirate boasts exceptional cultural, historical and educational tourism destinations. Under the vision of His Highness Sheikh Dr. Sultan bin Mohammed Al Qasimi and His Highness Sheikh Bodour bint Sultan Al Qasimi and the stewardship of Al Serkal, Sharjah has been honoured as the “Capital of Islamic Culture” and a “Unique and Outstanding Tourism Destination”. Additionally, the emirate has also been awarded the prestigious recognition of “Cultural Capital of the Arab World” by UNESCO.
During Sharjah's early planning and concept stages, the municipality had to brainstorm ways to leverage real estate as a means to diversify and transform the economy. The emirate's geographic location presented both opportunities and challenges, and Shurooq needed to be developed to offer a unique tourism experience that complemented Dubai and leveraged the other emirates' offerings. Not only that, Shurooq also needed to plan a city that would create real estate investment opportunities different from other emirates and be a source of pride for the people of Sharjah.
To meet the aforementioned goals and constraints, Shurooq has developed a three-pronged real estate development strategy: (1) target niche products, (2) build transformative icons, and (3) broaden product range. Moreover, real estate developments based on these three strategies are selected with authenticity and sustainability in mind.
In strategy (1), Al Serkal shared with us how Shurooq is revitalizing and re-envisioning existing assets and coming up with differentiated hospitality and tourism offerings. Some key examples are Heart of Sharjah and Moon Retreat. Both developments were previously underutilized locations that have been transformed into unique cultural and eco-destinations. As these developments leverage existing assets, they are known to be less capital intensive and generate significant direct and indirect benefits. The Kalba Ecotourism Project is another destination that has been preserved to offer new sustainable experiences that allow visitors to enjoy Sharjah’s nature.
Al Bait Sharjah is a sustainable luxury resort located in the heart of Sharjah.
Sharjah House of Wisdom is an iconic monument that redefines the concept of a library and cultural center. Built based on the strategy of building transformative icons(2), the monument seeks to promote and facilitate access to knowledge. Built to create a space that inspires a sense of belonging, the development will offer a range of amenities, including a cafe, a gallery, a book collection and event spaces.
House of Wisdom
Finally, in strategy (3), Al Serkal also outlined various projects that have been undertaken to expand Sharjah's product offering. One notable project is Mariam Island, an ongoing AED 4.5 billion (US$1.2 billion) mixed-development located in Downtown Sharjah. Mariam Island's goal is to create a luxury, yet affordable, regenerative real estate development. The 460,000-square-metre site will include components such as waterfront residential units, retail, four- and five-star hotels, and beach access for residents.
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 real estate-backed economic free zones. Dubai is known for pioneering the free zone model, which offers foreign companies attractive concessions and several investment incentives, such as 100 percent ownership of subsidiaries and zero taxation.
Before concluding his presentation, Al Serkal reminded us that our goal should not just be to be developers, but to be change agents. Al Serkal enjoys exploring, learning and creating new ideas that inspire those around him and intends to continue doing so as Managing Director of Chapter 3. On behalf of the Cornell Baker Program, I would like to thank Al Serkal for providing our students with valuable learning opportunities and knowledge about innovative real estate strategies in Sharjah.