Ajman’s Top Business Trends in 2022
Ajman is the smallest of the seven emirates, covering roughly 259 square kilometers (0.3 percent of the UAE’s total territory excluding the islands). Despite featuring sandy beaches, the craggy Hajjar mountain range dominates the landscape. Even though Ajman is modern and offers modern services and facilities, it has managed to retain its historic charm.
Ajman is located in the northern portion of the United Arab Emirates, on the shore of the Arabian Gulf. It is strategically located in the middle of the Emirates of the UAE and runs between the emirates of Sharjah and Umm Al Quwain, and is 16 kilometers long.
Ajman is only 36 km away from the Emirate of Dubai, and it is adjacent to the Emirate of Sharjah.
In 2011, the population was expected to be around 262,186, according to the census book ‘Ajman in Figures published by the Secretariat General of the Executive Council of the Emirate of Ajman. Emiratis make up 16% of the group. In 2017, Ajman’s population was estimated to be 504,846 people.
As of 2010, the estimated population of UAE nationals in the emirate of Ajman, according to the Federal Competitiveness and Statistics Centre, was:
According to the Ajman Annual Economic Report 2014, the emirate of Ajman’s economy rose by 5% in 2013, with GDP rising from AED15,690 billion in 2012 to AED16,441 billion in 2013. However, the contribution of different economic sectors to realized growth varies.
In comparison to 2012, the construction, real estate, business services, and financial corporation sectors increased at an annual rate of 8%, which was greater than the emirate’s average growth rate. Furthermore, the wholesale and retail trade and repairing services expanded at a 6% annual pace in 2013 compared to 2012.
As a result, the emirate’s GDP climbed to 21,008 billion dollars in 2019. Ajman Port and Ajman Free Zone are two important participants in the emirate’s economic development.
Ajman Media City Free Zone is a recently developed free zone in the Ajman city of UAE. Exporting to over 65 countries, the Free Zone’s companies make up approximately 20% of the UAE’s overall industrial units, with some 256 industrial companies operating from the zone. With the capacity to accommodate 1500 companies and serving over 1,000 vessels a year, Ajman Port and Ajman Free Zone are major contributors to the emirate’s economy.
Ajman Free Zone (AFZ) revealed the results of its technology sector operating performance in 2021, reporting a considerable increase of 21% over 2020. Over 550 registered enterprises in the sector are now housed in the business hub. The favorable increase in results implies that overseas investors and technology businesses are becoming more confident in Ajman Free Zone sector offers. Furthermore, the sector’s continued expansion demonstrates Ajman Free Zone’s determination to contribute to Ajman’s technological advancement.
According to an official statement, the free zone will play a key role in technical breakthroughs and upgrades in line with the UAE’s strategy for the next 50 years. Meanwhile, the free zone has focused on developing automation programs to help businesses accelerate their digital transformation launch new initiatives and products such as the artificial intelligence robotics hub, a one-stop-shop for entrepreneurs, entities, and SMEs looking to explore new business opportunities that can connect with professionals in the field and learn new skills.
Here are some of the exciting and thriving businesses Ajman Media City offers in 2022.
The tourism industry is given considerable attention in the Emirate of Ajman. In 2012, the government of Ajman formed the Department of Tourism Development as part of its attempts to emphasize the Emirate’s tourism sites’ importance and position. The tourism sector was identified as a targeted and priority economic sector in Ajman Vision 2021 in 2014.
The tourism sector is one of the interrelated economic sectors, and therefore it contributes to the support and growth of some economic sectors directly and that of other sectors indirectly. The contribution of this sector to the GDP of Ajman during 2019 was about 3.6%.
Real Estate Sector
The real estate sector is one of the important economic sectors in the economy of the Emirate of Ajman. It is characterized by its forward and backward linkages. This sector contributes more than a quarter of the GDP of the Emirate of Ajman, as its contribution during 2019 amounted to about 31.9%.
Due to the lower real estate prices and rents in Ajman compared to Dubai and Sharjah, the demand for real estate in Ajman increased, whether from residents of the UAE or Gulf investors, which prompted many real estate developers to establish real estate projects with different services, in response to the growing real estate demand in it, especially in light of the low supply and the increase in tourism and housing density in the Emirate.
In addition, this demand increased as a result of the billions of dirhams spent by the government of Ajman during the last five years in constructing modern roads and bridges and finding entrances to the Emirate of Ajman, which made many residents prefer living in Ajman due to the ease of traffic within it and the easy access to the neighboring emirates.
Financial Activities and Insurance Companies
Financial and insurance activities are among the important economic activities in the economy of the Emirate of Ajman, and their annual contribution to the Emirate’s GDP amounted to about 3.6% during 2019. The value of their output amounted to about AED 1026 million in 2015, which increased to AED 1171million in 2019, with an average annual growth rate of about 3.4% during this period.
Among its various flourishing industries and sectors, the automobile sector is a thriving one and an important pivot for future growth. As a prominent center for automotive vehicle export and re-export to the Middle East and North Africa (MENA) region, Ajman is home to the world leaders in mobility. This is for a variety of reasons.
The strategic location and proximity to neighboring countries—from the Middle East and Africa to Southeast Asia and India—come first, followed by advanced infrastructure, ease of doing business, favorable policies, available industrial space, and the existing and growing local demand for luxury vehicles.
Food and Beverage Sector
This is undoubtedly the most popular and easiest business to start in the kingdom due to its historical importance and inflow of tourists. There are over 430 Food and Beverage companies involved with the production and distribution of edible goods in the Ajman Free Zone.
The Food and Beverage industry contributes significantly to the country’s economy, especially across its many segments, including packaging, processing, production, transporting, and distributing edible goods from the factory/farm to restaurant chains and related outlets.
Since the tourist ratio has increased, this sector has progressed rapidly and contributes majorly to the GDP of the kingdom. It’s a quite profitable business to start and own in Ajman.
Business IT is very well encouraged in the kingdom, and there has been a rise in demand for digitalization over the years, so the business of IT has seen a positive shift. Moreover, many industries, i.e., hospitality, insurance, healthcare, banking, etc., are looking for digitalized solutions to engage with end-users. As a result, the demand for software houses and IT services increases daily.
Health Care Sector
The Healthcare sector has also seen rapid growth, particularly during the pandemic. Pharmaceutical manufacturers and importers have also seen growth in the business. As a result, and due to the government’s support towards this sector, overall increased business activity is seen in this category.
- How to set up business in Ajman?
Starting a business in Ajman is not that complicated, and it’s very easy. If someone aims to have a company set up in Ajman Media city, they can easily do this without even paying a visit to the Ajman Media City Free Zone. You will have to get the work visa & permit (depending upon the nature of business) from the government, and then you can easily start and run your business in Ajman.
- What are the most profitable businesses in Ajman?
Businesses like real estate, hoteling, healthcare, retail, food & tourism have shown remarkable growth and have been profitable entrepreneurs.
- Is getting Freelance Visa Ajman expensive?
Although getting a freelance Ajman Visa may seem expensive, there are different packages out there that you can consider depending upon the budget you have.
- Will I get the Tax cut on my business?