In April of 1981, His Highness Dr. Sheikh Sultan Bin Mohammed Al-Qasimi, member of the Supreme Council, Ruler of the Emirate of Sharjah, issued the Amiri Decree No.18 establishing "The Economic Department", and thus founded the first local economic department in the history of the United Arab Emirates. This Department was to take over the local authority for the application of federal laws related to economic affairs, as well as the application of local decrees and orders related to the economy of the Emirate. According to the decree mentioned above;the Department was established and included the following sections:

Commercial Registration Section
Companies Section
Planning, Research and Statistics Section
In 1997, His Highness Dr. Sheikh Sultan Bin Mohammed Al-Qasimi member of the Supreme Council, Ruler of the Emirate of Sharjah, issued an Amiri Decree for establishing the Industrial Development Department.

In 1999, His Highness Dr. Sheikh Sultan Bin Mohammed Al-Qasimi member of the Supreme Council, Ruler of the Emirate of Sharjah, issued the Amiri Decree No. 5 for the establishment of the Economic Development Department. In accordance with the decree, the Economic Development Department and the Industrial Department were merged in the new department "Economic Development Department" which takes over the planning and implementation of economic development projects, as well as the preparation of laws and regulations, strategic plans and issuance of commercial, industrial and service licenses in addition to all the permits needed for those licenses and control over all the economic firms in the Emirate of Sharjah.

In 2002, His Highness Dr. Sheikh Sultan Bin Mohammed Al-Qasimi member of the Supreme Council, Ruler of the Emirate of Sharjah, allowed the promulgation of Law No.1 to organize the Economic Development department, which includes the goals and functions of the Department.