His Highness Sheikh Dr. Sultan bin Mohammad Al Qasimi, Member of the Supreme Council and Ruler of Sharjah yesterday issued Emiri Decree no. 58 of 2017, establishing Shurooq Holding Company SOAG, a public joint stock company formed in the Emirate of Sharjah and wholly owned by Sharjah Investment & Development Authority (Shurooq). The new holding company is expected to play a leading role in developing large scale projects in Sharjah’s key economic sectors. The new company’s capital and the appointment of a board of directors have not yet been announced.
Formed in 2009, Shurooq is the driving force behind the transformation of Sharjah. Its role to identify, evaluate and drive key development projects, whilst facilitating local and foreign direct investment in Sharjah has evolved markedly over the past eleven years. Today, Shurooq is responsible for a rich portfolio of master-planned tourism, industry, heritage and infrastructure projects supporting Sharjah’s economic development.
Shurooq’s deal-flow has increased significantly over the past few years with the authority announcing a string of high-profile tourism resorts and destinations over the past two years including the opening of Mleiha Archaeological & Ecotourism Project, the launch of AED 2.47 billion (US$ 0.7b) of Sharjah projects via it’s joint-venture property developer Omran Properties and the development of a number of high profile hotel and resort properties under the new Sharjah Collection hospitality brand.
Headquartered in Sharjah city, the new Shurooq Holding Company will be able to open branches or representative offices inside or outside the emirate. As a commercial entity, the company will also be well-positioned to generate revenues, source local or foreign investment, make local or foreign investments and secure financial or credit facilities.
According to the royal decree the purpose of the new company includes the following:
1. to invest its money inside and outside the country in the manner it deems appropriate.
2. implementing, developing and managing projects of all types and investing in them individually or in partnership inside and outside the country.
3. to conclude partnerships, agreements and contracts necessary for the performance of the company’s business with natural and legal persons inside and outside the country.
4. to establish companies, projects and institutions of all kinds and contribute to them inside and outside the emirate.
5. to borrow funds or obtain financial and credit facilities and to invest such funds. In so doing, they may provide their assets, assets and revenues as collateral for this purpose, opening, closing, managing and operating the accounts and taking any other measures that are consistent with the company’s objectives.
6. any other functions or competencies determined by the Company’s Board of Directors.
The new company is to be exempt from the application of the Federal Companies Law pursuant to the provisions of Federal Law No. 2 of 2015 regarding commercial companies. The new company will also be exempt from all local government taxes and fees.
The Ruler also issued issued Emiri Decree No 57 of 2017, amending Emiri Decree No 2 of 2009 on the establishment of the Sharjah Investment and Development Authority (Shurooq). The amendment now allows Shurooq to establish different types of companies inside or outside the emirate of Sharjah.
The decrees are both effective immediately and details will be published in the Government of Sharjah’s Official Gazette. Meanwhile, the procedures of registering Sharjah Holding Company will be carried out in accordance with the applicable legislation.
Source: WAM, Government of Sharjah Shurooq