Key Highlights

• Ajman’s strategic location near Dubai offers seamless global connectivity and lower operating costs for investors.
• Ajman Free Zone’s 100% foreign ownership and tax exemptions drive record business registrations and SME growth.
• The emirate champions innovation with initiatives like the AI Robotics Hub and digital ‘one-click’ licensing.
• Ajman’s diversified economy thrives across manufacturing, logistics, real estate, and education sectors.

As per sources, the emirate of Ajman is still establishing itself as a competitive place to invest in the UAE’s overall economy.

According to the Oxford Business Group’s (OBG) “Ajman 2025″ report, its strategic closeness to Dubai allows for smooth connectivity to international markets while preserving reduced operating costs, making it an appealing base for SMEs and high-growth industries.

“With the help of programs like the Ajman Free Zone and 100% foreign ownership laws, the emirate has shown resilience and growth across key sectors, particularly in manufacturing, real estate, and logistics,” OBG said.

It said that building mixed-use real estate projects and transportation and logistics infrastructure advancements highlight the Ajman government’s dedication to economic growth and diversification.

According to the report, the emirate’s business environment is being further strengthened by simplifying trade procedures through digital solutions and regulatory improvements, and the industrial sector’s growing integration into global supply chains is putting it in a competitive position in international trade.

The emirate also uses its advantageous location to increase its cultural and tourism offerings, further enhancing its appeal as a business and tourist destination.

Ajman’s strategic approach to economic diversification is solidifying its position as a major investment destination, according to Jana Treeck, OBG’s Managing Director for the Middle East.

The emirate is becoming more appealing to investors due to Ajman’s proactive economic strategies, regulatory changes, and infrastructure improvements.

According to him, “Its initiatives to modernize industries and incorporate digital solutions reflect a broader commitment to fostering sustainable and inclusive economic growth.”

The research, which was created in association with the Ajman Executive Council and includes unique perspectives from influential businesses and officials, covers various topics, including manufacturing, ICT, infrastructure, finance, and macroeconomics.

Growth of Free Zones

The free zones in Ajman have played a significant role in drawing in investments and encouraging economic diversification. With advantages like 100% foreign ownership, tax exemptions, and cutting-edge infrastructure, the Ajman Free Zone (AFZ) in particular has experienced significant expansion. Due to these benefits, companies from various industries now choose AFZ as their location.

With more than 1,700 new enterprises joining the free zone in 2021, AFZ recorded a notable increase in the number of registered businesses. This rise reflects investor confidence in Ajman’s economic prospects and the success of its free zone policies.

Emphasis on Technology and Innovation

To promote economic growth, this dedication is demonstrated by creating the AI Robotics Hub within AFZ.  

In line with the UAE’s larger ambition for technological advancement, the center provides a place for business owners and entrepreneurs to look into robotics and artificial intelligence opportunities.

Support for SMEs and Startups

Ajman has taken steps to assist SMEs because it understands how important they are to economic growth. An example of initiatives to offer specialized banking services for startups and SMEs is the collaboration between AFZ and Ruya, an Islamic bank that prioritizes digitalization. This partnership makes financial services easily accessible, allowing companies to run their operations efficiently.

In addition, the ‘one-click’ license issuance mechanism that AFZ introduced has made it easier for business owners to start their enterprises. As a result of this user-friendly strategy, SME registrations have increased, and free zone plans have doubled new business registrations at the end of 2024.

Diversification Across Sectors

With investments in various industries, including manufacturing, logistics, and education, Ajman’s economic policy strongly emphasizes diversification. For example, the number of registered educational enterprises in the education sector in AFZ increased by 17% in 2021. The emirate’s dedication to creating a knowledge-based economy is demonstrated by its expansion.

Ajman has drawn many production facilities in the industrial sector, which helps the emirate’s export endeavors. As of mid-2024, there were more than 800 industrial establishments, indicating a strong industrial foundation that promotes economic stability.

End Note 

Ajman has established itself as a significant investment destination in the United Arab Emirates thanks to its strategic initiatives in creating free zones, embracing technological innovation, and assisting SMEs. 

The emirate continues to draw investors and companies looking for expansion prospects because of its business-friendly atmosphere and dedication to economic diversification. As it expands on these origins, Ajman is positioned to become increasingly important to the local economy.