annual - ajman ded
TRANSCRIPT
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Annual Economic Report
Ajman 2019
2
Prepared by:
Department of Planning and Economic Studies - Department of Planning
and Business Development,
Annual Economic Report – 2019
Copyrights and publishing @ Economic Department – Ajman
Government – United Arab Emirates
P.O. Box 870 Ajman - United Arab Emirates
Tel.: 7033888 6 971+ Fax: 6 971+ 7033998
Email: [email protected]
Website: www.ajmanded.ae
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His Highness Sheikh / Humaid Bin Rashid Al Nuaimi A MEMBER OF THE UAE SUPREME COUNCIL – THE RULER OF THE EMIRATE OF AJMAN
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His Highness Sheikh / Ammar Bin Humaid Al Nuaimi CROWN PRINCE OF AJMAN AND CHAIRMAN OF THE EXECUTIVE COUNCIL,
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His Highness Sheikh Ahmed Bin Humaid Al Nuaimi CHAIRMAN OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT – AJMAN
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TABLE OF CONTENTS
10 INTRODUCTION
12 SECTION I: GLOBAL & LOCAL MACROECONOMIC CHANGES
12 1. 1 INTRODUCTION
12 2. 1 ECONOMIC GROWTH IN THE WORLD
13 3. 1 INFLATION IN THE WORLD
13 4.1 FOREIGN DIRECT INVESTMENT FLOWS IN THE WORLD
14 5. 1 GLOBAL TRADE TRENDS
15 6.1 GDP OF THE UAE:
16 7.1 TOTAL FIXED CAPITAL FORMATION IN THE UAE
17 8.1 INFLATION IN THE UAE:
17 9. 1 FOREIGN TRADE IN THE UAE
18 10.1 FOREIGN DIRECT INVESTMENT IN THE UAE
19 SECTION II, LOCAL MACROECONOMIC CHANGES IN THE EMIRATE OF AJMAN
20 1.2 INTRODUCTION
20 2.2 GROSS DOMESTIC PRODUCT (GDP)
21 3.2 SECTORAL STRUCTURE OF GDP:
22 4.2 FIXED CAPITAL FORMATION:
23 5.2 INFLATION:
24 SECTION III: FOREIGN TRADE OF THE EMIRATE OF AJMAN
24 1. 3 INTRODUCTION
25 2. 3 EVOLUTION OF THE VALUE OF FOREIGN TRADE
25 3. 3 TRADE BALANCE OF THE EMIRATE OF AJMAN
26 4. 3 ANALYSIS OF THE VALUE OF AJMAN EXPORTS
27 5. 3 ANALYSIS OF THE VALUE OF RE-EXPORTS FROM THE EMIRATE OF AJMAN
31 SECTION IV, THE MANUFACTURING SECTOR
31 1.4 INTRODUCTION
31 2.4 EVOLUTION OF THE MANUFACTURING SECTOR GROWTH
32 3.4 EVOLUTION OF THE INVESTMENT IN MANUFACTURING INDUSTRIES
33 4.4 EVOLUTION OF THE NUMBER OF INDUSTRIAL ESTABLISHMENTS
35 5.4 MANPOWER IN INDUSTRIAL ACTIVITIES
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38 SECTION V: TOURISM SECTOR
38 1.5 INTRODUCTION
38 2.5 CONTRIBUTION OF THE TOURISM SECTOR TO THE EMIRATE’S GDP
40 3.5 INVESTMENT IN THE TOURISM SECTOR
40 4.5 HOTEL ESTABLISHMENTS IN THE EMIRATE OF AJMAN
41 5.5 VISITORS
42 6.5 HOTEL NIGHTS
44 7.5 HOTEL OCCUPANCY RATES
46 SECTION VI: THE REAL ESTATE SECTOR
46 1.6 INTRODUCTION
46 2.6 CONTRIBUTION OF THE REAL ESTATE SECTOR TO THE EMIRATE’S GDP
47 3.6 INVESTMENT IN THE REAL ESTATE SECTOR
48 4.6 REAL ESTATE TRANSACTIONS
48 5.6 BUILDING PERMITS AND COMPLETION CERTIFICATES
50 6.6 REGISTERED LEASE CONTRACTS
52 SECTION VII: THE FINANCIAL ACTIVITIES AND INSURANCE COMPANIES
52 1.7 INTRODUCTION
52
2.7 CONTRIBUTION OF FINANCIAL AND INSURANCE ACTIVITIES TO THE EMIRATE’S ECONOMY.
53 3.7 INVESTING IN FINANCIAL AND INSURANCE ACTIVITIES
53 4.7 BANKING FACILITIES
54 5.7 DEPOSITS AND LOANS BANKING
55 6.7 INSURANCE COMPANIES SECTOR
55 7.7 INSURANCE POLICIES
55 8.7 INSURANCE PREMIUMS AND COMPENSATIONS
58 SECTION VIII: WHOLESALE AND RETAIL TRADE
58 1.8 INTRODUCTION
58
2.8 CONTRIBUTION OF THE WHOLESALE AND RETAIL TRADE SECTOR TO THE EMIRATE’S GDP
59 3.8 INVESTMENT IN THE WHOLESALE AND RETAIL TRADE SECTOR
59 4.8 LICENSES OF ECONOMIC ACTIVITIES PRACTICES
62 5.8 LICENSING MOVEMENT INDEX
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LIST OF FIGURES
SECTION I: GLOBAL AND LOCAL MACROECONOMIC CHANGES
Figure 1-1 WORLD ECONOMIC GROWTH RATES P. 12
Figure 1-2 ANNUAL INFLATION RATES P. 13
Figure 1-3 FDI INFLOWS P. 14
Figure 1-4 GROWTH RATES OF THE WORLD TRADE VALUE P. 15
Figure 1-5 NON-OIL GDP AT CONSTANT PRICES P. 15
Figure 1-6 NON-OIL GDP SECTORAL STRUCTURE P. 16
Figure 1-7 GROSS FIXED CAPITAL FORMATION P. 17
Figure 1-8 ANNUAL INFLATION RATES P. 17
Figure 1-9 FOREIGN TRADE TRENDS P. 18
Figure 1-10 NET FDI P. 18
SECTION II
Figure 1-2 THE GDP OF THE EMIRATE OF AJMAN AT CURRENT PRICES P. 20
Figure 2-2 GDP GROWTH RATES AT CURRENT PRICES P. 20
Figure 3-2 THE SECTORAL COMPOSITION OF THE GDP OF THE EMIRATE OF AJMAN P. 21
Figure 4-2 FIXED CAPITAL FORMATION IN THE EMIRATE OF AJMAN DURING 2014-2018
P. 21
Figure 5-2 SECTORAL STRUCTURE OF FIXED CAPITAL FORMATION P. 22
Figure 6-2 ANNUAL INFLATION RATES IN THE EMIRATE OF AJMAN P. 22
SECTION III
Figure 1-3 EVOLUTION OF THE VALUE OF THE DIRECT FOREIGN TRADE OF AJMAN DURING 2014-2018
P. 25
Figure 2-3 EVOLUTION OF THE DEFICIT VALUE IN THE DIRECT TRADE BALANCE OF AJMAN DURING 2014-2018
P. 25
SECTION IV
Figure 1-4 EVOLUTION OF THE ANNUAL GROWTH RATE OF THE MANUFACTURING INDUSTRIES SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S AVERAGE (2014-2018)
P. 31
Figure 2-4 RELATIVE DISTRIBUTION OF INVESTMENTS ON INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018
P. 32
Figure 3-4 RELATIVE DISTRIBUTION OF FOREIGN INVESTMENTS ACCORDING TO THE INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018
P. 33
Figure 4-4 EVOLUTION OF THE NUMBER OF INDUSTRIAL LICENSES IN THE EMIRATE OF AJMAN DURING (2014-2018)
P. 33
Figure 5-4 RELATIVE DISTRIBUTION OF THE UAE'S SHARE OF INDUSTRIAL LICENSES IN 2017
P. 34
Figure 6-4 RELATIVE DISTRIBUTION OF INDUSTRIAL LICENSES IN THE EMIRATE OF AJMAN ACCORDING TO THE MOST IMPORTANT ACTIVITIES IN 2018
P. 34
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Figure 7-4 RELATIVE DISTRIBUTION OF INDUSTRIAL ESTABLISHMENTS LICENSES IN THE EMIRATE OF AJMAN ACCORDING TO THE HEADCOUNT IN 2018
P. 35
Figure 8-4 RELATIVE DISTRIBUTION OF WORKERS ACCORDING TO THE INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018
P. 35
Figure 9-4 RELATIVE DISTRIBUTION OF UAE NATIONAL WORKERS ACCORDING TO THE INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018
P. 36
SECTION V
Figure 1-5 ANNUAL GROWTH RATE OF THE GDP OF THE TOURISM SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE (2014-2018)
P. 39
Figure 2-5 EVOLUTION OF THE VISITOR'S SHARE OF THE GDP OF THE TOURISM SECTOR IN THE EMIRATE OF AJMAN (2014-2018)
P. 39
Figure 3-5 ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR THE TOURISM SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE AVERAGE (2014-2018)
P. 40
Figure 4-5 EVOLUTION OF THE NUMBER OF HOTEL ROOMS AND HOTEL APARTMENTS IN THE EMIRATE OF AJMAN (2012-2017)
P. 41
Figure 5-5 EVOLUTION OF THE NUMBER OF GUESTS / VISITORS TO THE EMIRATE OF AJMAN (2014-2018)
P. 41
Figure 6-5 RELATIVE DISTRIBUTION OF THE NUMBER OF VISITORS TO THE EMIRATE OF AJMAN ACCORDING TO NATIONALITY DURING 2018
P. 42
Figure 7-5 EVOLUTION OF THE NUMBER OF HOTEL NIGHTS IN THE EMIRATE OF AJMAN (2014-2018)
P. 42
Figure 8-5 AVERAGE NUMBER OF HOTEL NIGHTS SPENT BY A VISITOR IN AJMAN COMPARED TO DUBAI (2014-2018)
P. 43
Figure 9-5 AVERAGE SHARE OF HOTEL NIGHTS SPENT BY VISITORS ACCORDING TO NATIONALITY IN AJMAN DURING 2015 AND 2018
P. 43
Figure 10-5 RELATIVE DISTRIBUTION OF THE NUMBER OF HOTEL NIGHTS IN THE EMIRATE OF AJMAN ACCORDING TO NATIONALITY DURING 2018
P. 44
Figure 11-5 EVOLUTION OF THE OCCUPANCY RATES OF HOTEL ROOMS AND HOTEL APARTMENTS IN THE EMIRATE OF AJMAN IN 2015 AND 2018
P. 44
SECTION VI
Figure 1-6 THE ANNUAL GROWTH RATE OF THE GDP OF THE REAL ESTATE SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE AVERAGE FOR THE UAE (2014-2018)
P. 47
Figure 2-6 ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR THE REAL ESTATE SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S AVERAGE (2014-2018)
P. 47
Figure 3-6 EVOLUTION OF THE NUMBER OF REAL ESTATE SALES TRANSACTIONS REGISTERED IN THE EMIRATE OF AJMAN DURING 2014-2018
P. 48
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Figure 4-6 EVOLUTION OF THE VALUE OF REAL ESTATE TRANSACTIONS IN THE EMIRATE OF AJMAN DURING 2014-2018
P. 48
Figure 5-6 EVOLUTION OF THE NUMBER OF BUILDING PERMITS ISSUED IN THE EMIRATE OF AJMAN DURING 2014-2018
P. 49
Figure 6-6 EVOLUTION OF THE NUMBER OF COMPLETION CERTIFICATES ISSUED IN THE EMIRATE OF AJMAN DURING 2012-2017
P. 49
Figure 7-6 EVOLUTION OF THE NUMBER OF LEASE CONTRACTS REGISTERED WITH THE AJMAN MUNICIPALITY DURING 2014-2018
P. 50
Figure 8-6 RELATIVE DISTRIBUTION OF THE NUMBER OF LEASE CONTRACTS REGISTERED IN AJMAN (BY NATIONALITY) DURING 2018
P. 51
SECTION VII
Figure 1-7 ANNUAL GROWTH RATE OF THE GDP FOR FINANCIAL AND INSURANCE ACTIVITIES IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S AVERAGE (2014-2018)
P. 52
Figure 2-7 ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR FINANCIAL AND INSURANCE ACTIVITIES IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S AVERAGE (2014-2018)
P. 53
Figure 3-7 EVOLUTION OF THE NUMBER OF LOCAL AND FOREIGN BANK BRANCHES IN THE UAE DURING THE 2014-2018
P. 54
Figure 4-7 EVOLUTION OF THE VALUE OF DEPOSITS AND LOANS BANKING IN THE EMIRATE OF AJMAN DURING 2014-2018
P. 54
Figure 5-7 RELATIVE DISTRIBUTION OF THE NUMBER OF INSURANCE POLICIES ACCORDING TO THE BRANCHES ISSUED IN THE EMIRATE OF AJMAN DURING 2018
P. 55
Figure 6-7 RELATIVE DISTRIBUTION OF THE VALUE OF UNDERWRITTEN PREMIUMS ACCORDING TO THE BRANCHES IN THE EMIRATE OF AJMAN DURING 2018
P. 56
Figure 7-7 EVOLUTION OF THE UNDERWRITTEN PREMIUMS AND PAID CLAIMS ACCORDING TO THE INSURANCE BRANCHES IN THE EMIRATE OF AJMAN DURING 2018
P. 56
SECTION VIII
Figure 1-8 THE ANNUAL GROWTH RATE OF THE GDP FOR THE WHOLESALE AND RETAIL TRADE SECTOR IN THE EMIRATE OF AJMAN COMPARED WITH THE GROSS OF THE EMIRATES (2014-2018)
P. 58
Figure 2-8 ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR THE WHOLESALE AND RETAIL TRADE SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S AVERAGE (2014-2018)
P. 59
Figure 3-8 THE RELATIVE DISTRIBUTION OF THE LICENSES IN FORCE IN THE EMIRATE OF AJMAN ACCORDING TO THE TYPE DURING 2018
P. 60
Figure 4-8 THE NUMBER OF NEW LICENSES ISSUED IN THE EMIRATE OF AJMAN DURING THE YEARS 2017-2018
P. 60
Figure 5-8 THE TOP 10 ACTIVITIES FOR WHICH NEW LICENSES WERE ISSUED IN THE EMIRATE OF AJMAN DURING 2018
P. 61
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Figure 6-8 THE TOP 10 NATIONALITIES REQUESTING NEW LICENSES ISSUED DURING 2018 COMPARED TO 2017
P. 61
Figure 7-8 LICENSING MOVEMENT INDEX IN THE EMIRATE OF AJMAN DURING THE YEARS 2017 AND 2018
P. 62
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Introduction
The economic report of Ajman emirate 2018 reviews the most important
economic developments that the emirate's economy has witnessed in the
various macro-sectoral areas during the last five years (2014-2018), in light of
the available data on the economy of the emirate of Ajman.
The report is issued this year amid growing international and regional
developments, and volatility in international economic relations, including the
commercial conflict between China and America and a number of western
countries ،and the painful travail Britain went through as part of its exit from
the European Union in what is known internationally as "Brexit". The
geopolitical changes and developments in the region have also had their
significant effects on the region in general and the emirate's economy in
particular.
The report indicated that the emirate was able, despite the developments
mentioned above, to forge ahead with outstanding results in other than
economic fields. The gross domestic product (GDP) at current prices on
average during the last five years increased by 3.8% annually. Foreign
investment continued to flow at acceptable rates.
The emirate's economic performance results were positive thanks to the
government's sound and wise vision, represented by His Highness Sheikh /
Humaid bin Rashid Al Nuaimi "may God protect him," member of the Supreme
Council and Ruler of the emirate of Ajman.
The report is divided into eight sections, the first of which is devoted to
global macroeconomic changes and in the UAE, the second section deals with
the most critical local macroeconomic changes in the emirate of Ajman, and the
following sections (the third to the eighth section) dealt with detailed economic
developments in the emirate of Ajman, respectively: Foreign Trade,
Manufacturing Industries, Tourism, Real Estate, Financial and Insurance
activities, and the last Wholesale and retail trade.
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THE FIRST SECTION:
GLOBAL AND LOCAL MACROECONOMIC CHANGES
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SECTION I
GLOBAL AND LOCAL MACROECONOMIC CHANGES
1-1 INTRODUCTION:
This section provides an overview of the most significant global macroeconomic
changes until the end of 2018, in both developed countries and developing countries,
which will deal with economic growth in the world, as well as inflation, FDI flows, and
global trade trends, as well as a look at the most critical macroeconomic changes in
the UAE during the last five years on GDP and fixed capital formation, as well as
inflation and foreign trade.
1 .2 ECONOMIC GROWTH IN THE WORLD
The global economy during 2017 and 2018 reached a relative recovery in economic
growth rates, particularly in 2017, which witnessed extraordinary growth over the past
years. On the other hand, growth rates in 2018 declined slightly from 3.8% to 3.6%,
after the growth momentum weakened, Particularly during the second half of this year.
This indolence came as a result of many factors, including the intensification of global
trade conflicts between the United States of America and many of its trading partners,
notably is the protectionist trade war with China and the European Union countries.
Moreover, macroeconomic pressures in Argentina and Turkey, and turmoil in the auto
industry in Germany (due to the application of strict environmental conditions), non-
expansionary credit policies in China, and limiting quantitative expansion policies in
European countries have also contributed to reducing economic growth estimates for
this year.
3.6 3.4 3.4 3.8 3.6
2.1 2.31.7
2.4 2.2
4.7 4.3 4.6 4.8 4.5
2.7 2.4
5.3
1.8 1.4
2014 2015 2016 2017 2018
Figure No. (1-1): Global economic growth rates %The World Advanced economies Emerging and developing countries Countries of the Middle East and North Africa
15
Source: IMF: Global Economic Outlook, 2019.
The rate of economic growth in developed countries, especially in the Eurozone Area,
slowed more than expected due to the combination of a group of factors that adversely
affected the momentum of economic growth in these countries; including the decline
in consumer and investor confidence in most of these countries, especially in Italy,
which witnessed sharp declines in investment rates. Fears of an undisciplined and
unexpected exit of England from the European Union have intensified. In some other
developed countries, such as Japan, the economic growth momentum has been
significantly weakened due to the natural disasters that the country witnessed in late
2018.
At the level of emerging and developing countries, China's growth rates had
decreased noticeably due to the protectionist pressures that its exports faced from the
United States. The decline in economic growth rates in the Middle East and North
Africa countries was also extensive, and it may be one of the most substantial decline
in the world due to the region's geopolitical developments that have negatively
affected its growth factors.
3.1 INFLATION IN THE WORLD
The global inflation rate increased slightly in 2018, to about 3.6%, compared to 3.2%
in the previous year. Inflation rates in developed countries remained below 2% during
the two mentioned years due to the decline in primary commodity prices and weak
domestic demand growth rates. Developing and emerging countries witnessed a slight
increase in inflation rates between 2017 and 2018 from about 4.3% to 4.8%.
In the Middle East, the inflation rate increased significantly in 2018, reaching about
8.7%, compared to nearly 3% in 2017, because some of these countries witnessed
3.22.8 2.8
3.23.6
1.4
0.30.8
1.7 2
4.7 4.74.3 4.3
4.85.5
4.23.6
3
8.7
2014 2015 2016 2017 2018
Figure No. (1-2) Annual inflation rates %
16
the exchange rate liberalization and reform programs that reduced the support
provided to many commodities, including the basic ones.
Source: International Monetary Fund, previous reference.
4.1 THE WORLD'S FDI FLOWS
Inward flows of Foreign Direct Investment (FDI) at the global level witnessed a
significant decline in 2018 compared to 2017, by 200.2 billion dollars, and a declining
percentage of 13.4%, reaching around 1.3 trillion dollars only. The flows in the year
2018 were at their lowest level since the financial crisis in 2008. This is due to the
decline in the average annual growth of flows in the past ten years, which did not
exceed one percent, against the growth rate of those investment flows of 8% annually.
Between the year 2000 and 2010 and 20% during the 1990s.
West Asia and North Africa's countries witnessed a growth of 5% in 2018, contrary to
the global trend, due to the economic reforms that some Region's countries have
witnessed. These reforms contributed to attracting new investments, which replaced
the US investments, as happened in the rest of the world's regions and countries.
Among the reasons for the decline during the past year was the tax reform that the
administration of US President Donald Trump applied in 2017 to encourage American
companies across the world to return their profits to the United States. Therefore,
American capital witnessed a reverse migration after years of searching for a free-tax
haven outside the USA to avoid the high tax rates on profits in America. Consequently,
the United States of America witnessed Foreign Direct Investment inflows of about
252 billion dollars and ranked first in the world in this regard. China came in second
(139 billion), Hong Kong third (116 billion), then Singapore (78 billion), and the
Netherlands fifth (70 billion). The United States has maintained its first place among
countries, while Asia has secured its first place among the continents as the most
attractive source to investment.
1,357
2,0341,919
1,4971,297
677 729 656 691 706623
1,269 1,198
759557
56 61 64 65 68
2014 2015 2016 2017 2018
Figure No. (3-1) the inflow of FDI (billion dollars)
17
Source: World Investment Report 2019, UNCTAD
5.1 GLOBAL TRADE TRENDS
The growth rate of the value of global trade slackened slightly to about 10% in 2018
compared to 11% in 2017, after these observations witnessed various declines before
2017. Most regions of the world witnessed several declines in growth rates, excluding
Western Asia and North Africa region. These countries have maintained steady
growth rates during the two mentioned years at the level of 10%.
In connection with the volume of foreign trade, the year 2018 witnessed a perceptible
decline in the volumes of this trade due to trade conflicts between the United States
of America and some other countries, including China and the European Union. The
trade conflicts have resulted in weakening the growth rates of global trade to about
3.5% in 2018 compared to 4.8% in the year 2017, and from 3.8% of the trade volume
of developed countries to about 3.6% only between the years 2017 & 2018. West Asia
and North Africa region witnessed a negative decline in trade volume growth rates by
-1%, compared to positive growth of about 1% in the previous year.
Source: UNCTAD, previous reference
2014 2015 2016 2017 2018
The world 0% -13% -3% 11% 10%
Eveloping countries 0% -12% -5% 12% 11%
Emerging countries -8% -31% -10% 23% 17%
Advanced countries 1% -12% -1% 9% 9%
Arab countries in asia and north africa -4% -19% -7% 10% 10%
FIGURE NO.( 4-1) THE GROWTH RATES OF THE GLOBAL TRADE VALUE
18
6.1 GROSS DOMESTIC PRODUCT (GDP) IN THE UNITED ARAB EMIRATES:
The UAE's GDP reached 1.44 billion dirhams at constant prices in 2018, with a growth
rate of 1.7%. On the other hand, the non-oil GDP of the United Arab Emirates
increased by 1.3% in 2018 compared to 1.9% in 2017, with a substantial increase in
the growth rates during the year despite the decline in economic performance in most
regions and the world. This increase came as a result of the strength and diversity of
the UAE's economy that enabled it to withstand the consequences of these
developments and proceed steadily and strategically towards increasing the value of
non-oil GDP year after year.
Source: Federal Authority for Statistics and Competitiveness The UAE enjoys a diversified economy in terms of sectoral distribution of non-oil GDP,
and the stability of this relative distribution significantly during the five years between
2014 and 2018, where the construction and real estate sectors still dominate about
20% of non-oil output at constant prices, followed by a Trade sector about 17%. The
manufacturing and financial services sectors each reached between 11% and 12% of
this output.
The UAE follows a sustainable strategy and applies economic policies that lead to the
expansion of the economic and production structure by implementing a series of
initiatives and activities which increase dependence on non-oil sectors and enhance
902,011
947,766
978,697
997,764
1,010,344
Figure (5-1) Non-oil GDP at constant prices
2014 2015 2016 2017 2018*
19
its contribution to the UAE’s GDP. Such an approach has enabled it to achieve
sustainable development outside the oil’s constraint, which is characterized by the
fluctuation of its global prices that impacts this sector's contribution to the GDP.
To maintain the momentum of growth despite the fact that regional and global turmoil
in the economic and non-economic fields, local and federal governments launched a
set of stimuli, especially in the last quarter of 2018, to facilitate supporting non-oil
growth, and consistent with the UAE Vision 2021. Among these were Initiatives
Several federal ministries have reduced fees for a wide range of their services.
Government accelerators have been activated to expedite the issuance of regulatory
and legislative frameworks in the economic field, in addition to many local initiatives,
including the launch of the Abu Dhabi’s stimulus program worth 50 billion dirhams,
and Dubai’s costs reduction of doing business, and Ajman companies exempting from
violations’ fees for the non-renewal of licenses, besides other enormous other
initiatives that cannot be all listed in here.
Source: Federal Authority for Statistics and Competitiveness, previous reference
7.1 TOTAL FIXED CAPITAL FORMATION IN THE UAE
The total fixed capital formation of the UAE's non-oil sectors in 2018 reached about
251 billion dirhams, compared to 255 billion dirhams in 2017, with a decline of nearly
2%. The ratio of capital formation to GDP reached about 22% in 2018 compared to
23% in the previous year, and about 26% in 2014, reflecting the high efficiency of fixed
capital in realizing economic growth at the UAE level.
11%
21%17%
12%
39%
12%
20%17%
12%
39%
ManufacturingIndustries
Building& construction Trading Financial services others
Figure (6-1) the sectoral structure of non- oil GDP
2014 2018
20
Source: Federal Authority for Statistics and Competitiveness, previous reference.
8.1 INFLATION IN THE UAE
The UAE’s inflation rate increased in 2018 by 3.1%, after reaching about 2% in the
previous year. This increase is due to the application of the value-added tax on a
group of different goods and services, in addition to the excise tax on some products
that have a negative impact on human health, such as tobacco, smoke, and
beverages, which began to be applied in the previous year, which resulted in
increasing of the prices at record rates during the year reaching About 57%.
Source: Federal Authority for Statistics and Competitiveness, previous reference.
The prices of the housing, water, and electricity decreased by 3.1% at the Country level, due
to the sluggish demand for different real estate units in various areas. While clothing prices
increased remarkably by 15.1% during the year due to the rise in raw materials for this sector
and transportation services by 11% due to the increase in fuel prices.
253,842
258,267 256,617
255,219
251,098
2014 2015 2016 2017 2018*
Figure No. (7-1) Total fixed capital formation (million dirhams)
2.4
4.1
1.62.0 3.1
2014 2015 2016 2017 2018
Figure No. (8-1) Annual inflation rates %
21
9.1 FOREIGN TRADE IN THE UAE
The value of non-oil foreign trade in 2018 amounted to 1.63 trillion dirhams, compared
to 1.61 trillion dirhams in the previous year, with a growth rate of about 1% compared
to 3% in 2017. The decline in the growth rate of foreign trade was mainly due to the
decrease in the value of imports by 4%. While non-oil exports increased at record
rates of about 12%, and by 8% for re-exports, as shown in the figure below. The
country's non-oil exports reached about 13% of the total value of foreign trade,
compared to 12% in the previous year. Re-exports contribute about 29% of foreign
trade (27% in 2017), which confirms the emirate's position as a leading global and
regional trading endpoint and platform.
Source: Ministry of Economy
Thanks to its position, the UAE was able to maintain acceptable growth rates in the
field of foreign trade, despite the adverse consequences of trade protectionism and
raging trade conflicts between some world countries, especially between America and
China, which are two of the country's strategic partners in the trade field.
The UAE adopts Economic and Trade Openness’s policy by establishing prolific
commercial partnerships with various countries and on all continents of the world, and
developing a map of trade cooperation with promising global markets, for maintaining
its prominent position as a distinguished and influential player in the field of foreign
trade for commodities and services.
Many international reports have shown that, since 2007, the country has become on
the list of the 20 most significant exporting countries globally, and since 2013 it has
occupied the first place in the Arab world. In this regard, strategic initiatives and
projects that support the country's commercial standing have continued to be
implemented, including hosting the Dubai Expo 2020, as well as local investment
3%
-4%
2%1%
-4%-6%
17%
5%
-3%
12%
3%
-8%
-4%
11%
8%
2%
-3%
1%3%
1%
2014 2015 2016 2017 2018
Figure No.( 9-1) foreign Trade Trends%
Imports Non-oil Imports Re- Export Foreign Trade
22
projects directly related to this vital sector, including the announcement of building a
"Dubai Wholesale City" in the first quarter of 2016, which is considered The largest
global wholesale city in the world.
10.1 FOREIGN DIRECT INVESTMENT IN THE UAE
The net inflow of foreign direct investment into the country at the end of 2018 reached
about 38.5 billion dirhams, compared to 38.1 dirhams in 2017, with an annual growth
of about 1%, despite the decline in investment flows this year, as indicated in the first
part of the report.
At the end of 2018, the Foreign Investment Law was approved, where it allows non-
citizens to own property in some sectors and economic activities up to 100%, and
grant ten-year visas to the private sector. The issuing of this law was mainly to create
the appropriate climate and to encourage foreign investment in the country to
consolidate its regional position in this field.
Source: Federal Competitiveness and Statistics Authority
40,633 31,382 35,250
38,052 …
2014 2015 2016 2017 2018
Figure No. (10-1) Net Foreign Direct Investment (Million Dirhams)
23
THE SECOND SECTION:
LOCAL MACROECONOMIC CHANGES IN THE EMIRATE OF AJMAN
24
2.1 INTRODUCTION
This section analyzes the local macroeconomic changes in the emirate of Ajman. It
will deal with the development of the GDP and its sectoral structure, followed by an
analysis of the total investment development in the emirate by scrutinizing the gross
fixed capital formation data. The section concludes with the development of the
inflation rate.
2.2 GROSS DOMESTIC PRODUCT (GDP)
The GDP of the emirate of Ajman in 2018 reached about 20 billion dirhams at current
prices, with a growth rate of about 3.6% compared with 2.9% for the non-oil GDP at
current prices at the Country level, and with 3.1% in 2017. The value of the GDP at
current prices has continued to grow. The escalation in recent years, albeit at different
rates from year to year, reflecting the strength of the emirate's economy in light of the
unusual fluctuations that the region witnessed during these years.
Source: Federal Authority for Statistics and Competitiveness
The trends of the economic growth rate in the emirate are in line with the level of non-
oil GDP growth in the Country (as shown in the figure below). The average rate during
the last five years of the emirate reached about 4%, compared with about 4.5% at the
Country level. This confirms how far the economic growth of the emirate is associated
with the rest of the emirates and impacted by the same nature and direction of local
and regional economic variables.
Source: Federal Authority for Statistics and Competitiveness
17,23817,948
18,72119,307
19,998
2014 2015 2016 2017 2018*
Figure (1-2) the GDP of the Emirate of Ajman at current prices
(Million dirhams)
2014 2015 2016 2017 2018*
عجمان 4.8% 4.1% 4.3% 3.1% 3.6%
الدولة 7.9% 5.4% 2.9% 3.6% 2.9%
Figure (2-2) GDP growth rates at current prices
25
3.2 SECTORAL STRUCTURE OF GDP:
The manufacturing industries sector in the emirate of Ajman dominates the structure
of the GDP, as it contributed more than a third of the value of this output during the
last five years, and it is one of the highest contributions at the Country level, in which
the average contribution of the sector reached about 12% of the non-oil output.
The construction and real estate sectors were second in place with a rate of around
21%, which is similar to the rate at the Country level. The trade sector came as the
third sector in contributing to the GDP, at a rate that ranged between 12 to 13% during
the understudied period, compared to 17% at the Country level in 2018.
As can be noted, there have been no major changes in the sectoral formation of the
GDP during the last five years, which reflects general stability in the structure of the
emirate's economy, and the contribution of economic sectors to the annual economic
growth. The economic diversification rate of the emirate between 2014 and 2018
remained at about 36%.
4.2: THE CONTRIBUTION OF ECONOMIC SECTORS TO THE GROWTH OF THE GDP:
The economic sectors' contribution share to achieving the growth of the gross
domestic product in the emirate of Ajman in 2018 differed from the year 2014, as the
percentage of the contribution of some sectors increased, while the contribution of
some other sectors decreased. Table No. (1-2) shows the percentage of the main
sectors' contribution to the growth of Ajman's GDP at current prices during 2014 and
2018.
Table No. (1-2)
Economic sectors ’contribution ratio to the growth of Ajman's GDP during 2014 and 2018
2018 2014 SECTOR
33%
22%
13%
4%
28%
34%
21%
12%
5%
29%
0%
5%
10%
15%
20%
25%
30%
35%
40%
ManufacturingIndustries
Building&construction
Trading Financial services others
Figure (2-3) the sectoral composition of the GDAof the Emirate of Ajman
2014 2018
26
39% 20% Manufacturing Industries
14% 21% Construction & Buiding
12% 3% Public administration and defense; Compulsory social security
7% 14% Wholesale and retail trade; vehicles Repair
4% 3% Transportation and storage
4% 1% Education
4% 2% Accommodation and food service activities
3% 8% Financial and insurance activities
2% 6% Professional, scientific and technical activities
-1% 9% Real estate activities
12% 13% Other sectors
100% 100% Growth of GDP at current prices
Source: Calculated by Ajman Department of Economic Development, using national
accounts data issued by the Federal Competitiveness and Statistics Authority, United
Arab Emirates, 2019.
As per Table (1-2), it is obvious that the most prominent sectors have increased their
contribution to the growth of GDP of the manufacturing industries, from 20% in 2014
to 39% in 2018. The public administration and defense increased from 3% in 2014 to
12% as a result of the increase in the government's role in employment, as well as the
education sector from 1% in 2014 to 4% in 2018. Building and construction were the
most prominent sectors whose contribution to GDP growth has declined from 21% in
2014 to 14% in 2018 due to the decline in performance in the sector in the past years.
The wholesale and retail trade sector, vehicle repair from 14% to 3%, financial
activities from 8% in 2014 to 3% in 2018, and Real-estate businesses from 9% in
2014. The afore-mentioned achieved a 1% deflation in 2018, which confirms the decline
in the relative importance of the contribution of the sectors related to real estate activity
contributed to the growth of the emirate's GDP.
2.5: FIXED CAPITAL FORMATION:
The value of the total fixed capital formation of the emirate of Ajman in 2018 reached
about 4.9 billion dirhams, with a growth rate of about 2.9%, compared to a negative
decline of the Country of about 2%. However, this growth rate remains lower than that
27
achieved in previous years, which reached about 3.1% in 2017, but reached its peak
in 2018, as the rate reached approximately 8.5%. The ratio of fixed capital formation
to GDP at current prices maintained its value between 24% and 25% during the period
understudied, which reflects stability in the productivity of fixed capital, which is close
to the rates achieved at the Country level, ranged from 22% to 23% during the same
period.
Source: Federal Authority for Statistics and Competitiveness
The sectoral structure of fixed capital formation differs from the structure of the GDP
of several respects, the most important of which is the real estate and construction
sector's control that reached about 22% of the capital formation in 2018, with a relative
decrease from the level of 2014, which reached nearly 24%. The manufacturing
industry's contribution sector reached about 12% of this formation, which is
significantly less than its contribution to the GDP, which is more than one-third, as
previously indicated in this report. The contribution of the tourism sector, in its two
parts, consisting of accommodation, restaurants, and entertainment activities, is
evident, its contribution to capital formation increased from about 10% in 2014 to
nearly 12% in 2018. It is also obvious that the contribution from the electricity and
water sector to capital formation was large a nd reached nearly 14% during the period
understudied.
4,0464,390 4,617 4,758 4,894
2014 2015 2016 2017 2018*
Figure No. (4-2) Fixed capital formation in the Emirate of Ajman during 2014-2018
One million dirhams
12%
22%
14%12%
40%
12%
24%
14%10%
40%
الصناعات التحويلية الانشاءات والعقارات الكهرباء والمياه السياحة أخرى
Figure No. (5-2) sectoral structure of fixed capital formation
Source: Federal Authority for Statistics and Competitiveness
2018 2014
28
Source: Ajman Center for Statistics and Competitiveness
6.2 INFLATION:
The annual inflation rate in the emirate of Ajman in 2018 reached about 4.4%,
compared with about 3.1% at the Country level, and 2.5% with the previous year. The
increase in the emirate's inflation rate by 1.9 percentage points compared to the
previous year is due to the implementation of value-added tax and excise tax since
the beginning of this year in the emirate and at the Country level.
Source: Ajman Center for Statistics and Competitiveness
In 2018, most of the items in the consumer basket used to calculate the cost of living
index rose. Consequently, the group of beverages and tobacco increased by 52%
compared to 18% in the previous year. The group of transport services, recreation,
and culture groups increased by more than 13% in 2018. Concerning food and
beverages, the inflation rate increased by more than 4.4% compared to 4.2% for the
previous year. The housing group was the only component of the consumer basket
whose inflation rate decreased by about 3.3% in 2018 compared to a decline of 0.12%
in the previous year due to the estate sector developments, which impacted its
performance.
1.5%
3.0%
0.5%
2.5%
4.4%
2014 2015 2016 2017 2018
Figure No. (6-2) Annual inflation rates in the Emirate of Ajman
29
THE THIRD SECTION:
THE FOREIGN TRADE OF THE EMIRATES OF
AJMAN
30
SECTION III
THE FOREIGN TRADE OF THE EMIRATES OF AJMAN
1.3 INTRODUCTION
The emirate of Ajman is located in the heart of the UAE, and it currently depends on
its major port in exporting and importing various products. Due to insufficient depth of
the current Ajman's port and it is not prepared to receive giant container ships, UAE
launched in 2017 a plan to establish a new port to be executed in Al-Zorah, located in
the north of the current port. Besides, it will contain a wharf of 500m length and a
bridge of 3 km length and 12m depth to handle ships' loads of five thousand
containers, which is five times bigger than the one reaching Ajman port at present.
The plan was also to establish a 500,000 M2 land station for storing containers in
addition to the development of other logistic services. The emirate of Ajman is working
on converting its new port to a key regional container port that contributes to
supporting Ajman economy and achieve its desired sustainable development.
2.3 EVOLUTION OF THE VALUE OF FOREIGN TRADE
In 2018, the total value of the direct foreign trade of the emirate of Ajman reached
about 6.7 billion dirhams. It fell back by 12.1% from 2017 due to the unstable political
and economic conditions in the region, which led to the decline of all direct foreign
trade elements of the emirate of Ajman. The following figure (1-3) shows the evolution
of the value of direct foreign trade of the emirate of Ajman during the period 2014-
2018.
Source: The Annual Statistical Book of the Emirate of Ajman, various issues.
8.8 8.6 7.5 7.6 6.78.3
-1.9
-13.6
2.5
-12.1
2014 2015 2016 2017 2018
Figure No. (1-3)
The Evolvment of the value of the direct foreign trade of the Emirate of Ajman during
2014-2018
Gross Direct Foreign Trade Growth Average
Billion
1 The direct foreign trade of the emirate of Ajman means the foreign trade data achieved through Ajman port. However, such data does
not accurately reflect all foreign trade transactions related to the emirate, especially concerning exports and re-exports. A large part is
currently done from other emirates' ports within the country, due to a deep drop of the Ajman's current port, which caused the hampering
of receiving large vessels.
31
3-3 TRADE BALANCE OF THE EMIRATE OF AJMAN:
Direct trade balance of Ajman suffers permanent deficit as of 2014, exceeded AED five (5) billion per annum throughout the last five years due to the rise of import value over export value, where most exports of Ajman are made by ports in other nearby emirates. Besides, many imports are made for consumption in different emirates of the Country, not only in Ajman without registering it as a re-export operation. Figure No. (2-3) indicates the Development of the deficit value of the direct trade balance of Ajman during the period 2014-2018.
Source: It was calculated using the Annual statistical book data for the Emirate of Ajman, various issues
4.3 ANALYSIS OF THE VALUE OF AJMAN EXPORTS
Exports value of Ajman in 2018 reached nearly AED 1464,2 million1, of the annual rate of
9,2% of its value in 2014 in accordance with certificates of origin issued by Ajman Chamber
of Commerce and Industry. Hereunder the geographical distribution of Ajman exports as per
the top ten countries receiving the exports as well as commodity distribution as per the top ten
commodities exported from Ajman during 2018.1
1-4-3 GEOGRAPHICAL DISTRIBUTION OF AJMAN EXPORTS:
The value of exports of Ajman to the top ten countries reached AED 899 million in 2018,
representing 61,4% of total value of commodities exported this year, almost equivalent to two-
thirds of the value of exported commodities from Ajman. The following table No. (1-3)
indicates these countries and the value of exports provided to it by Ajman as well as its relative
weight out of total Ajman exports:
1 It was calculated as per the certificates of origin, by excluding the certificates of origin directed to UAE in accordance with the statements of 2017.
4982 5423 5357 5337 5591
2014 2015 2016 2017 2018
Figure No. (2-3)
The evolution of the deficit value in the direct trade balance of the Emirate of
Ajman during 2014-2018
Million AED
32
Table No. (1-3
The top 10 countries receiving exports from Ajman in accordance with certificates of origin during 2018.
Relative weight Value
Country S. of Ajman Gross export (In million-AED )
15.5% 227.4 Saudi Arabia 1
12.2% 179.3 Egypt 2
6.7% 98.3 India 3
6.7% 98.3 Kuwait 4
4.1% 60.3 Federal Russia 5
3.5% 51.3 Yemen 6
3.3% 48.6 Iran 7
3.2% 46.7 Italy 8
3.2% 46.2 Oman 9
2.9% 42.6 Bahrain 10
61.4% 899.0 Total
Source: Calculated from the certificate of origin data issued by the Ajman Chamber of Commerce and Industry, 2019.
Table No. (1-3) indicates that most countries receiving exports from Ajman in 2018 are
Arabian countries. Kingdom of Saudi Arabia is considered to be the major country that
received exports in 2018, with a relative importance of 15,5%, followed by Egypt, which ranked
second, as it received 12.2% of Ajman exports. While India, Kuwait came in third place, with
a share of 6,7% for each.
2. 4. 3 COMMODITY DISTRIBUTION OF AJMAN EXPORTS:
Ajman export value reached more than ten commodities out of UAE of AED 1161.1 in 2018, representing 79,3% of the total commodities exported this year. The following table No. (2-3) indicates commodities and the percentage of contribution of each to Ajman's total exports to outside the UAE.
33
Table No. (2-3) The top 10 commodities exported from Ajman to outside the UAE, according to the certificates of origin during 2018
Relative
weight Value
Commodity S. of Ajman
Gross export
(In million
Dirham)
19.2% 281.5 Food industry products, beverages, tobacco and manufactured tobacco substitutes
1
15.4% 226.1 Live animals and products of the animal kingdom 2
14.3% 208.9 Metals and articles 3
13.0% 190.4 Vehicles, planes, ships, and similar transport equipment
4
6.7% 97.5 Products of the chemical industries and allied industries
5
4.6% 67.9 Metal products 6
2.2% 31.6 Plastics and Articles 7
1.4% 20.9 Kingdom Plant Products 8
1.3% 19.8 Pastes of wood or cellulosic materials; Paper or Cardboard.
9
1.1% 16.7 Textile materials and articles 10
79.3% 1161.1 Total
Source: Calculated from the certificate of origin data issued by the Ajman Chamber of Commerce and Industry, 2018.
Table No. (2-3) shows that the products of the food, beverage and tobacco industry ranked first in the exports of the emirate of Ajman outside the United Arab Emirates, with a relative importance of 19.2% of the emirate’s total exports in 2018, while live animals and products of the Animal Kingdom came in second place, with a relative importance of 15.4%. Minerals and their products came in third place with a relative importance of 14.3%.
5.3 ANALYSIS OF THE RE-EXPORTS VALUE FROM THE EMIRATE OF AJMAN
According to the statement of certificates of origin issued by the Ajman Chamber of Commerce
and Industry, the value of re-exports from the emirate of Ajman reached about 2,123.3 million
dirhams in 2018.Below is the geographical distribution of the top 10 countries that Ajman re-
exported to, as well as the commodity distribution according to the top 10 commodities that
were re-exported from the emirate of Ajman during 2018.
1.5.3 THE GEOGRAPHICAL DISTRIBUTION OF RE-EXPORTS FROM THE EMIRATE OF AJMAN
The value of re-exports from the emirate of Ajman to the top 10 countries reached
about 1634.7 million dirhams in 2018, which represents about 77% of the total value
of commodities re-exported in this year, that is, more than three quarters of what was
34
re-exported. Table No. (3-3) shows these countries, the value of re-exports to them
from the emirate of Ajman and their relative weight in the total re-exports during 2018:
Table No. (3-3)
The top 10 countries re-exported to from Ajman according to the certificates of origin during 2018
Relative weight Value
Commodity S of Ajman Gross
export (In million Dirham)
19.20% 407.3 Kingdom of Saudi Arabia 1
11.20% 238.7 Sultanate of Oman 2
10.00% 212.3 Kuwait 3
6.40% 136.7 Angola 4
5.80% 123.7 Ethiopia 5
5.10% 109 Egypt 6
5.10% 107.4 Yemen 7
5.00% 105.7 Jordan 8
4.80% 101.5 Bahrain 9
4.40% 92.4 Sudan 10
77.00% 1634.7 Total
Source: Calculated from the certificate of origin data issued by the Ajman Chamber of Commerce and Industry,
2019.
Table (3-3) shows clearly that most of the countries that were re-exported from Ajman are
Arab countries. The Kingdom of Saudi Arabia is the largest country to which re-exports were
made in 2018, with a relative importance of about 19.2%, followed by the Sultanate of Oman
in second place, which received about 11.2% of Ajman's exports. Kuwait came in third place,
with a share of about 10%.
2.5.3 COMMODITY DISTRIBUTION FOR RE-EXPORT FROM THE EMIRATE OF AJMAN
The value of re-exports from the emirate of Ajman for the top 10 commodity groups reached
about 782.7 million dirhams in 2018, which represents about 35.4% of the total commodities
exported in this year. Table No. 3-4 shows the major products, and the percentage of each’s
a contribution to the total of exports of the emirate of Ajman outside the UAE:
35
Table No. (4-3)
The top 10 commodity groups re-exported from Ajman to outside the UAE according to the certificates of origin during 2018
Relative
weight Value
Commodity S. of Ajman
Gross export
(In million
Dirham)
1.90 % 305.5 Ordinary metals and articles 1
1.90 % 90.1 The products of the chemical industries or allied industries
2
1.20 % 82.1 Plastics and articles thereof; Rubber and articles 3
1.00 % 60.7 Vehicle, planes, ships, and similar transport equipment
4
35.40 % 60.4 Wood and articles; 5
1.90 % 50.6 Textile materials and articles of these materials 6
1.90 % 43.0 Natural or cultured pearl, precious or semi-precious stones, precious metals, base minerals.
7
1.20 % 41.5 Kingdom Plant Products 8
1.00 % 26.6 Live animals and products of the animal kingdom 9
35.40% 22.1 Food industry products; Drinks; Liquids; Tobacco and manufactured tobacco substitutes
10
1.90 % 782.7 Total
Source: Calculated from the certificate of origin data issued by the Ajman Chamber of Commerce and Industry, 2019.
Table No. (4-3) shows that ordinary minerals and their articles ranked first in re-exports from the emirate of Ajman during 2018, with a relative importance of 13.8% of the emirate’s total exports in this year, while the chemical industries and related industries came in second place, with a relative importance of 4.1%. While, plastics and articles were in third place, with a relative importance of 3.7%.
36
THE FOURTH SECTION:
THE MANUFACTURING SECTORS
37
SECTION IV
THE MANUFACTURING SECTOR
1.4 INTRODUCTION
The manufacturing industries sector is one of the most important economic sectors in the
emirate of Ajman and the most contributing to the emirate's Gross Domestic Product (GDP).
During the period 2014-2018, its contribution rate reached more than a third of the annual
GDP, and it is also one of the five sectors targeted in Ajman Vision 2021 which was launched
in 2014, when Ajman Industrial strategy put the increase of the share of the high-added-value
industries within the core priorities thereof upon developing the industrial sector, as the
development of such sector contributes in achieving many of the positive economic effects on
the emirate's economy, due to the sector's front and back bindings.
This section explores the development of the manufacturing industries sector in Ajman during
2014-2018, the sector's contribution to GDP, the development of industrial licenses, and their
distribution according to the most important industries and owners' nationalities. In addition,
it will deal with workers in the industrial sector and their distribution according to industries
and nationality. It concludes with the investments in this sector, and their distribution according
to industries and nationality.
2.4 EVOLVEMENT OF THE MANUFACTURING INDUSTRIES SECTOR GROWTH
The output value of the manufacturing industries sector reached nearly 6.72 billion Dirhams
in 2018, at an annual growth rate during the period 2014-2018 of 4.1%, which is almost close
to the growth rate of the output for the same sector in the Country, as it reached 4.2% during
the same period. Figure No. (1-4) clarifies the Development of the growth rate of the GDP of
the manufacturing industries sector in Ajman compared to the Country’s growth rate during
the period 2014-2018.
6.5
1.11.4
4.8
7.8
2.73.8
1.7
3.04.2
0.0
2.0
4.0
6.0
8.0
10.0
2014 2015 2016 2017 2018
Figure No. (1-4)
Development of the annual growth rate of the manufacturing sector output in the emirate of
Ajman compared to the Country’s growth rate (2014-2018).
UAE Ajman%
Source: Calculated by the Ajman Department of Economic Development, using the national accounts data
issued by the Federal Competitiveness and Statistics Authority, United Arab Emirates, 2019.
38
Figure No. (1-4) shows that the annual GDP growth rate of the manufacturing sector rose as of 2016 in both the UAE and the emirate of Ajman, with the growth rates varying between them. This growth is due to the extreme interest in the industrial sector, which is deemed one of the five targeted economic sectors in Ajman 2021’s vision. This sector is the major economic sector contributing to the economic growth of the emirate during 2018, as it solely contributed to 39% of the GDP growth achieved this year.
3. 4 EVOLVMENT OF INVESTMENT IN MANUFACTURING INDUSTRIES
The total value of investments in manufacturing industries in the emirate of Ajman reached 1.95 billion dirhams at the end of 2018, while their value reached about 1.79 billion dirhams at the end of 2014, with an average annual growth rate of 2.1%, during this period. The top 10 industrial groups at the end of 2018 formed 88.9% of the total investments in the emirate of Ajman's industrial sector. The activity of the manufacturing of non-metallic materials products ranked first, with a relative importance of 18%, followed by the manufacturing of rubber and plastic products with a relative importance of 15.7%. The mineral products industry came in third place with a relative importance of 13.2%. Figure No. (2-4) shows the relative distribution of investments on the most significant industrial activities in the emirate of Ajman during 2018.
Source: Ministry of Energy and Industry, Industry Sector, 2019.
As per the nationality of investors in industrial activities by end of 2018, UAE citizens
ranked first, as their share reached about 78% of the total investments, while the share
of investors from the Gulf Cooperation Council (GCC) countries was only about 2%,
and the remaining percentage, which reached 20%, were foreigners’ investments of
different nationalities.
Manufacture of metallic ores
products, 18.0%
Manufacture of rubber
and plastic products,
15.7%
Manufacture of metal
products, 13.2%
Manufacture of food &
beverages, 9.3%
Paper and paper
products industry, 9.2%
Chemical industry
and their products
7%
Industry of wood and wood
products, 4.5%
Industry of petroleum
refining products…
Basic metal industry, 4.0%
Furniture Industry, 3.7%
Other industries, 11.3%
FIGURE NO. (2-4)RELATIVE DISTRIBUTION OF INVESTMENTS ON INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018
39
Foreign investments focused mainly on eight (8) activities, with relative importance
reaching 78% of their total investment in the manufacturing sector. The metal products
industry ranked first and received 19.2% of the investments. The food and beverage
industry came second with a relative importance of 13.1%. At the same time, the wood
and wood products industry ranked third, with a relative importance of 8.3% of the
total industrial foreign investments.
Source: Ministry of Energy and Industry, Industrial Sector, 2019.
4.4 THE EVOLVEMENT OF THE NUMBER OF INDUSTRIAL ESTABLISHMENTS
The total number of industrial licenses registered with the Ministry of Industry and Energy for
the emirate of Ajman reached about 883 licenses by the end of 2014. The number rose to 970
licenses by the end of 2018, with an average annual growth rate during this period of 2.4%.
Figure No. (4-4) shows the development of the number of industrial licenses in the emirate of
Ajman during the period (2014-2018).
Source: Calculated from Ministry of Energy and Industry data, 2019.
Manufacture of metal products, 19.2%
Manufacture of food and beverages, 13.1%
Industry of wood and wood products, 8.3%
Basic metal industries, 7.8%
Industry of petroleum refining products, 7.6%
Manufacture of rubber and plastic products, 7.2%
Manufacture of metallic ores products, 6.9%
The garment industry, 6.5%
Other industries, 23.4%
figure (3-4)
Relative distribution of foreign investments, according to ajman's industrial activities during 2018.
883 907 933 952 970
4.1%
2.7%2.9%
2.0%1.9%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
0
250
500
750
1,000
2014 2015 2016 2017 2018
Figure No. (4-4)
The development of the number of industrial licenses in the emirate of Ajman during the period (2014-2018)صة
رخ
40
Figure (4-4) shows that the number of industrial licenses was constantly increasing from 2014
to 2018, but its annual growth rate was constantly declining from 2012 to 2017 where the
growth rate of industrial licenses reached its highest value in 2014 as it reached 4.1%, then it
began to decrease to reach 1.9% in 2018. The decrease in demand for industrial licenses was
due to instability factors witnessed in the region, which led to a decrease in external demand
for local products, as more than three quarters of Ajman's exports are considered to be
Industrial exports according to data of certificates of origin. In 2017, the emirate of Ajman
maintained its third rank among the emirates of the country in terms of the number of industrial
establishments licenses, with 970 industrial licenses.
Figure (5-4) shows the relative distribution of the UAE's share of industrial licenses in 2017.
Source: Statistical Manual 2019, Ministry of Energy and Industry, United Arab Emirates, 2019.
Concerning the distribution of the industrial licenses according to its activities in 2018, the rubber and
plastic products industry activity ranked first with a relative importance of 14.2%, and the metal
products industry activity ranked second with a relative importance of 13.6%. The mining non-metal
ores products industry ranked third with a relative importance of 8.6%. Figure (6-4) shows the relative
distribution of industrial licenses in Ajman according to the most important activities in 2018, where
licenses were limited to ten industrial activities with a relative importance of nearly 83.1%
.2019المصدر: وزارة الطاقة والصناعة، قطاع الصناعة،
Most of the industrial sector establishments operating in the emirate of Ajman are characterized by
being Micro and small, according to the Council of Ministers' definition, as 89.9% of these
Dubai, 40.1%
Sharjah, 25.4%
Ajman, 14.5%
AUH, 8.3%
RAK, 5.5%
Um Al Quwain…Fujairah, 1.5%
Figure (5-4)
The Relative Distribution Of The UAE's Share Of Industrial Licenses In 2017
Manufacture of rubber and
plastic products, 14.2%
Manufacture of metal products,
13.6%Manufacture of metallic ores
products, 8.6%
Chemical industry and their
products, 8.4%
Manufacture of food and
beverages, 8.2%
The garment industry; 7.0%Furniture Industry, 6.7%
Paper and paper products
industry, 6.0%
Industry of petroleum refining
products, 5.5%
Industry of wood and wood
products, 4.9%
Other industries, 16.9%
FIGURE NO. (6-4)The Relative Distribution of Industrial Licenses in The emirate of Ajman According to the Most Important Activities In 2018
41
establishments have fewer employees than 100 workers. Figure (7-4) shows the relative distribution of
industrial establishments’ licenses in Ajman according to the number of workers in 2018.
Source: Ministry of Energy and Industry, Industrial Sector, 2019.
5.4 THE MANPOWER IN INDUSTRIAL ACTIVITIES
The number of workers in the activities of manufacturing industries Ajman reached about
40,048 workers in 2014. Their number increased to 42,452 workers in 2018, with an annual
growth rate of 1.5% during that period.
In 2018, workers in manufacturing industries focused mainly on eight (10) activities, whose
share reached nearly 82.9% of the total workers in manufacturing industries. Most of these
industrial activities are characterized as labor-intensive activities with low skills and low
added-value. Ready-made clothes activity ranked first with the number of workers reached
11177 workers with a relative importance of 26.3%. While the mineral products industry came
in second place, and the number of employees reached nearly 4966 workers, with a relative
importance of 11.7%. Industrial in the emirate of Ajman in 2018. Concerning the manufacture
of mineral products, it came in second place, and the number of workers in it reached about
4,966 workers, with a relative importance of 11.7%. The non-metallic mineral products
industry ranked third with a relative importance of 9.5%. Figure No. (8-4) shows the relative
distribution of workers according to the industrial activities in the emirate of Ajman in 2018.
from 1 to 9, 11.6%
from 10 to 49, 68.0%
from 50 to 99, 10.3%
more than 99…
FIGURE (7-4)
the relative distribution of industrial establishments’ licenses in Ajman according to the number of workers in 2018
The garment industry, 26.3% Manufacture of metal products, 11.7%
Manufacture of metallic ores products, 9.5%
Manufacture of rubber and plastic products,
7.2%
Industry of wood and wood products,
6.3%
Manufacture of food and beverages
6%Paper and paper products industry, …Chemical industry and their …
Basic metal industries, 4.0%
Furniture Industry, 3.6%
Other industries, 17.1%
Relative distribution of workers according to the industrial activities in Ajman in 2018
Source: Ministry of Energy and Industry, Industrial Sector, 2019.
42
With regard to the industrial activities which are the highest in number of labors during
2018, the machinery and equipment manufacture industry came first, as the number
of workers in this activity increased by 18%, whereas Chemical and its products
industry came second, and the number of workers increased in this activity by 12.6%.
The Recycling industry came third, and the number of its employees increased by
10.6%.
in connection with the relative distribution of the nationality of workers in the
manufacturing industries sector in 2018, the share of non-citizens reached about
98.7% of the total workers in this sector, while the percentage of citizens of the United
Arab Emirates reached nearly 1%, and the percentage of citizens of the Gulf
Cooperation Council countries reached about 0.3 %. This percentage reflects the
unattractiveness of the industrial sector for UAE citizens working in the emirate of
Ajman at present because most of the factories are classified as micro and small, as
mentioned before.
Almost 88.4% of the citizens working in the manufacturing industry sector are forming
seven (10) industrial activities as per 2018 statistics. The manufacture of metal
products is the most significant one, employing nearly 20.8% of UAE nationals. It is
followed by the industry of Rubber and Plastic Products, which attracted almost 17.1%
of UAE nationals—followed by the food and beverage industry, which comes the third
place with a relative importance of 8.6%. Figure No. (9-4) clarifies the relative
distribution of National workers according to industrial activities in the emirate of
Ajman during 2017.
Source: Ministry of Energy and Industry, Industry Sector, 2019.
Manufacture of metal products, 20.8%
Manufacture of rubber and plastic products, 17.1%
Manufacture of food and beverages, 8.6%
Industry of wood and wood products, 8.1%
Manufacture of metallic ores products, 7.2%
Chemical industry and their products, 6.9%Industry of petroleum refining products, 6.7%Furniture Industry, 5.3%
Other transportation equipment
industry, 4.2%
Paper and paper products
industry, 3.5%
Other industries, 11.6%
FIGURE NO. (9-4)Relative distribution ofUAE national workers according to the industrial activities in the emirate of Ajman in 2018
43
THE FIFTH SECTION:
THE TOURISM SECTOR
44
SECTION V
THE TOURISM SECTOR
1.5 INTRODUCTION
Ajman is located on the coast of the Arabian Gulf, and it has a beach that extends for about
16 km. The emirate also has areas of tourist attraction, as its beaches are characterized by
beauty and fine sand and clear blue water, and tourists have wide opportunities for fishing
trips, as well as safaris to the desert, oases and mountain climbing especially in Masfout and
Manama. The city of Masfout includes the regions of Muzairah and Sabbagh. The area is
famous for agriculture as it has fertile soil, spacious valleys, and a mild climate, which have
made it the center of tourism. Additionally, the high mountains such as Dfatta mountain, and
Laishen mountain, White mountain, add more magic to this wonderful mountain region. It is
also famous for its spacious valleys such as Valley of Ghalfa, Alsoamr, Masfoot and Khnfariah
and the Valley of Defdaa. There are other towers such as Al-Murabba, Manama Citadel, and
others. Ajman National Museum, which established in 1775, is an architectural masterpiece
and an attraction destination for visitors of the emirate consists of 16 rooms that embody all
aspects of life in the past such as hunting, agriculture, weapons, manuscripts, games, folk
costumes, old cuisine, and its belongings, popular art tools, public markets, and old
professional crafts.
The emirate of Ajman pays special attention to the tourism sector, as the government of Ajman
established the Tourism Development Department in 2012 as part of its endeavor to boost
the status and importance of the tourist sites available in the emirate. In 2014, the tourism
sector was listed within the targeted economic sectors of priority in Ajman Vision 2021.
This section observes the development of the tourism sector in Ajman during the time period
2014-2018, where the sector's share in the emirate's GDP will be addressed in comparison to
the average of the Country for the same sector, the tourism share of the GDP of the tourism
sector, the growth of the number of rooms of hotels and hotel apartments, growth of the
number of guests and hotel nights, the visitor's share of tourist nights, and hotel occupancy
rates.
2.5 CONTRIBUTION OF THE TOURISM SECTOR TO THE EMIRATE'S GDP
The tourism sector is one of the multi-networked economic sectors, and therefore it contributes
to the support and growth of some economic sectors directly and to the others indirectly. The
annual rate of this sector's contribution to the GDP of Ajman during the period 2014-2018
reached about 3.4%. The Figure (1-5) shows the growth rate of the GPD of the tourism sector
in the emirate of Ajman compared to the rate of growth of the same sector in the Country
during the period (2014-2018) where the average annual growth rate of GDP of this Sector
reached about 3.9% during this period, which is more than the average annual growth rate of
GDP of this sector for the UAE, which reached 1.4% during the same period.
The tourism sector includes both accommodation and food services, arts, entertainment and recreation activities in
accordance with the broad concept of tourism.
45
Source: It was calculated by the Ajman Department of Economic Development, using the national accounts data issued by the Federal
Competitiveness and Statistics Authority, United Arab Emirates, 2018
It is evident from the previous figure that the growth rate resulting from the Tourism Sector in
the emirate of Ajman declined during the period 2014-2017, but it increased again in 2018 to
reach 4.8%, and it exceeded the growth rate of the output of the same sector in the country,
which achieved 0.4% this year.
Regarding the visitor’s share of the GDP of the Tourism Sector in the emirate of Ajman, it
increased from 706 dirhams per tourist in 2014 and to 1094 dirhams per a tourist in 2018, with
an annual growth rate of 11.6%. This increase is mainly due to the rise in the number of nights
spent by visitors in the emirate of Ajman in 2018 compared to 2014.
The following figure (2-5) shows the development of the tourist share of the GDP of the
tourism sector in the emirate of Ajman during the period 2014-2018.
Source: It was calculated by Ajman Department of Economic Development, using:
- National accounts data issued by the Federal Competitiveness and Statistics Authority, United Arab Emirates, 2019.
- Ajman Tourism Development Department, Statistical Bulletin, Various issues.
11.2
2.30.1
2.6
0.4
6.34.8
3.9
2.2
4.8
0.0
5.0
10.0
15.0
2014 2015 2016 2017 2018
Figure No. (1-5)
Annual growth rate of the GDP of the tourism sector in the emirate of Ajman compared to the Country (2014-2018)
UAE AJMAN
%
706
1220 1190 12121094
2014 2015 2016 2017 2018
FIGURE (2-5)
The evolution of the visitor's share of the tourism sector in the emirate of Ajman (2014-2018)
AED/TOURIST
46
3.5 INVESTMENT IN THE TOURISM SECTOR
The Gross value of Fixed Capital Formation for the tourism sector in Ajman reached nearly
397 million dirhams in 2014. It rose to 563.4 million dirhams in 2018, with an annual growth
rate of 9.1% during this period. It is higher than the average of the Country, as it reached 3.4%
during the same period, which reflects the high demand for tourism investments in Ajman.
Figure No. (3-5) shows the development in the rate of growth of Fixed Capital Formation for
the tourism sector in Ajman compared to the Country gross during 2014-2018.
- .
Source: Calculated by the Ajman Department of Economic Development, using the national accounts data issued by the Federal Competitiveness and
Statistics Authority, United Arab Emirates, 2019
Figure (3-5) shows the downward trend of the growth rate in the fixed capital formation of the
UAE and Ajman's tourism sector. The emirate of Ajman's maximum growth rate in 2015
reached an annual growth rate of 28%, due to the opening of two large hotels in the emirate
this year, The Fairmont Ajman Resort and Ewan Ajman Suites Hotel 2, with investments,
exceeded 270 million dirhams. Despite this decline, the growth rate remained in the emirate
of Ajman in 2017 and 2018 above the average growth rate of the country, which confirms the
increase in the demand for tourism investments in the emirate of Ajman (as mentioned earlier),
due to the various advantages that characterize the emirate.
5.4 HOTEL FACILITIES IN THE EMIRATE OF AJMAN
Ajman is distinguished by providing different levels of hotel facilities, which are suitable for
different levels of tourists, as there are five-star luxury hotels and even one-star hotels,
besides excellent and regular hotel apartments. Such options encourage tourists to stay in
the emirate because Hotels are affordable to every visitor. The total number of hotel facilities
in Ajman reached 39 in 2018, with two more facilities from the year 2016. Figure No. (4-5)
shows the development of the number of hotel rooms and hotel apartments in Ajman during
the period 2014-2018
11.8
4.85.1
2.3 1.3
6.6
28
4.3 4.0 2.2
0.0
10.0
20.0
30.0
2014 2015 2016 2017 2018
Figure No. (3-5)
Annual growth rate of fixed capital formation for the tourism sector in the emirate of
Ajman compared to the state average (2014-2018)
UAE AVERAGE AJMAN
%
47
Source: - Ajman -Ajman Annual Statistical book 2019.
Ajman Tourism Development Department, Tourism Statistics Bulletin, Various issues.
Figure No. (4-5) shows that the number of hotel rooms and resorts increased between 2014
and 2018 at an annual growth rate of 8.7%. The hotel apartment rooms were raised by a rate
of only 1.5% during the same period 2014-2018, indicating an increased rapid demand for
hotel rooms. These hotels offer higher levels of luxury for visitors than hotel apartments.
5.5 VISITORS
The number of visitors /guests to Ajman took a rising trend from 2015 until 2018,
moving up from 509.7 thousand visitors in 2015 to 632.3 thousand visitors in 2018,
with an average annual growth of 5.5%. Despite this rise, it did not reach the same
level as in the period 2014. Figure No. (5-5) shows the development in the number of
guests and hotel nights in Ajman during 2014-2018.
Source: Ajman Tourism Development Department, Statistical Bulletin, various issuesا
1145 1301 12031397
1215
18472053 2112 2257
2579
0
500
1000
1500
2000
2500
3000
2014 2015 2016 2017 2018
Figure No. (4-5)
Evolution of the number of hotel rooms and hotel apartments in the emirate of Ajman (2012-2017)
No of Room Hotel/ Furnisher Apartment No of Room Hote / Resorts
840.6
509.7 542.9 544.4632.3
41.6%
-39.4%
6.5%0.3%
16.1%
-50.0%-600.0
-300.0
0.0
300.0
600.0
900.0
2014 2015 2016 2017 2018
Figure No. (5-5).
Evolution of the number of guests / visitors to the emirate of Ajman (2014-2018)
Visitors No Growth RateThousand
48
Concerning the nationality of visitors to the emirate of Ajman in 2018, the UAE nationals from
other emirates ranked first with a relative importance of 25.9% of the total number of visitors.
Visitors from Asian and African countries ranked second with a relative importance of 22.4%.
Other Arab countries ranked third with relative importance amounting to 14.7%. GCC
countries ranked fourth with a relative importance of 12.4%. Figure No. (6-5) shows the
relative distribution of visitors according to nationality in 2018.
Source: Calculated from data of Ajman Tourism Development Department, Statistical Bulletin, 2018 .
5.6 HOTEL NIGHTS
The number of hotel nights in the emirate of Ajman has been taking an increasing trend since
2014, moving up from 895.8 thousand nights in 2014 to 1570.3 thousand nights in 2018, with
an average annual growth rate of 15.1%. Figure No. (7-5) shows the evolution of the number
of nights. Hotels in the emirate of Ajman during the period 2014-2018.
Source: Calculated from data of Ajman Tourism Development Department, Statistical Bulletin, 2018 .
UAE, 25.9%
ASIAN & African Countries, 22.4%
Other Arab countries, 14.7%
GCC, 12.4%
European countries, 10.3%Russia, 12.3%
American & Australian countries,
2.1%
FIGURE NO. (6-5) Relative distribution of the number of visitors to the Ajman as per nationality during 2018
895.8
1392.41279.0
1418.51570.3
39.7%
55.4%
-8.1%
10.9%10.7%
-20.0%
0.0%
20.0%
40.0%
60.0%
-500.0
0.0
500.0
1000.0
1500.0
2000.0
2014 2015 2016 2017 2018
( 7-5)شكل رقم
Evolution of the number of hotel nights in the emirate of Ajman (2014-2018)
Hotel Nights # Growth Rateلف
أ
49
The increase in the number of hotel nights at a greater rate than the increase rate in the
number of visitors reflects the desire of visitors to stay for a longer period during a single visit,
as the visitor's share increased from 1.1 nights per visitor in 2014 to 2.5 nights per visitor in
2018 (as shown in Figure (8-5)). This is an indication of an increase in the tourism attraction
of the emirate, and this increase occurred due to the plans that developed and implemented
by the Department of Tourism Development to revitalize the tourism sector in the emirate, and
despite the increase in the visitor's share of hotel nights in the emirate of Ajman in 2018
comparing to 2014, it is still lower than the average achieved in the emirate of Dubai during
the same period, as it reached in 2018, around 3.5 nights per visitor. Figure No. (8-5) shows
the average of visitor's share of hotel nights in the emirate of Ajman compared with the emirate
of Dubai, during the period from 2014-2018.
Source: - Ajman: Calculated by the Department of Economic Development in Ajman, using the statements of the Ajman Tourism
Development Department, the statistical bulletin, various issues.
Dubai: Annual Economic Report, Department of Economic Development, Dubai, various issues
The improvement in the stay length rate of visitors in Ajman is due to the increase in the
average number of nights of visitors from Expat nationalities. The Russian visitors ranked first
during the years 2016 and 2017, the stay length rate of the Russian visitor rose from 2.9 nights
in 2015 to 5.4 nights in 2018. Figure No. (9-5) shows the average visitor's share of hotel nights
per nationality in Ajman during 2015 and 2018 .
.
3.8 3.6 3.6 3.5 3.5
1.1
2.72.4 2.6 2.5
0.0
1.0
2.0
3.0
4.0
5.0
2014 2015 2016 2017 2018
Figure No. (8-5)
Average number of hotel nights spent by a visitor in Ajman compared to Dubai (2014-2018)
DUBAI AJMANلة ر / لي ائ ر
2.9
3.9
2.7 2.53.2
2.41.6
5.4
3.92.9
2.2 1.9 1.7 1.4
0.0
2.0
4.0
6.0
8.0
Russia European countries American countries (and Australia) Asian and African countries Other Arab countries Gulf Cooperation Council countries UAE
Figure No. (9-5)Average visitor share of hotel nights according to nationality in Ajman during the years 2015 and 2018
2015 2018Night /Visit
Source: Calculated by the Department of Economic Development in Ajman, using the data of the Ajman Tourism Development
Department, the statistical bulletin, separate issues.
50
Concerning the distribution of the number of hotel nights per nationality in 2018, the Russian
nationality is ranked first with relative importance 26.8%, then Asian and African countries
with relative importance of 20.3%, followed by European countries with a relative importance
of 16%. Figure No. (10-5) shows the relative distribution for the number of hotel nights in the
emirate of Ajman per nationality during 2018.
Source: Calculated from data of Ajman Tourism Development Department, Statistical Bulletin, 2018 .
By comparing and analyzing what was stated in Figures (6-5) and (10-5), the great importance
of the Russian and European market for tourism in Ajman, becomes evident. Although their
share of the total number of visitors decreased by 12.3% and 10.3%, they still represent great
importance in the total number of hotel nights, with a relative importance of 26.8% and 16%.
This indicates that more promotional efforts should be exerted to attract more visitors from
these two nationalities in particular.
7.6 PERCENTAGES OF HOTEL OCCUPANCY
The percentage of hotel business in the emirate of Ajman increased during 2018, due to the
promotional efforts exerted by the Department of Tourism Development in the emirate. Figure
(11-5) shows the development of the percentage of rooms & apartments hotel occupancy in
the emirate of Ajman during 2015 and 2018.
Source: Department of Tourism Development, Ajman, 2019.
Russia, 26.8%
Asian and African countries,
20.3% European countries, 16.0%
UAE, 14.3%
Other Arab countries, 11.5%GCCC, 8.6%
American countries (and …
FIGURE NO. (10-5) relative distribution for the number of hotel nights in the Ajman per nationality during 2018
61%68% 66%
24%
67%78%
66%
49%
0%
20%
40%
60%
80%
100%
Hotels Hotel Apartments Furnished Apartments Resorts
Figure (11-5)
The development of the percentage of rooms & apartments hotel occupancy in the Ajman during 2015 and 2018
2015 2018
It is clear from Figure (11-5) that hotel apartments are the most occupied, whether in 2015 or
2018, and that resorts are the least occupied, as the percentage of their occupancy reached only
49% in 2018, which is a very low percentage. This reflects the need to develop an effective action
plan to increase the percentage of its buisness.
51
THE SIXTH SECTION:
THE REAL ESTATE SECTOR
52
SECTION VI
REAL ESTATE
1.6 INTRODUCTION
Ajman is strategically located in the middle of the UAE, as it is only 36 kilometers away from
Dubai, and it is adjacent to Sharjah. Whereas the real-estate prices and rents in Ajman are lower
than Dubai and Sharjah, the demand to real- estate therein increased whether by residents or
by Gulf investors; the matter which motivated many real-estate developers to establish real-
estate projects, rendering distinguished services, in order to fulfill the increasing real-estate
demand therein, especially, in the light of the decrease in the real-estate offered for sale and
the increase of tourism movement in addition to the population density in the emirate. This
demand was the result of the billions of Dirhams spent by Ajman’s government to establish
modern roads and bridges in addition to finding new entrances to Ajman, the matter which
made many residents prefer to live in Ajman due to the ease of traffic therein and easy access
to neighboring emirates.
This section discusses the change of the real-estate sector contribution to the growth of
Ajman’s economy. Then, it discusses the evolution of investments in the real-estate sector and,
after that, the real estate’s transactions in terms of the number and value of transactions.
Additionally, the present section discusses the number of building permits and real-estate
completion certificates. This section concluded by providing an analysis of the lease contracts
registered in the emirate and the nationality of its holders.
2.6 REAL-ESTATE SECTOR CONTRIBUTION TO THE EMIRATE’S GDP
The Real-Estate Sector is one of the important economic sectors in Ajman and is
characterized by being interlinked, whether the front or back bindings. This Sector contributes
to more than one-fifth of Ajman's GDP, with the average percentage of 21.5% during the period
2014-2018.
Figure No. (1-6) shows the development of the GDP growth rate for the real estate sector in
the emirate of Ajman compared to the growth rate of the same sector in the country during the
period (2014-2018), as the average annual growth rate of the GDP for this sector in the emirate
of Ajman reached about 3.2% during This period, which is higher than the average annual
growth rate of this sector's output in the country, which reached 2.4% during the same period.
The real estate sector includes both construction and building activities and real estate activities i.e. services
related to real estate.
53
Source: Calculated by Ajman Department of Economic Development, using current national accounts data issued by the Federal Competitiveness
and Statistics Authority, United Arab Emirates, 2019
Figure (1-6) shows the downward trend of the annual GDP growth rate for the real estate sector, whether in the state or in the emirate of Ajman, and despite this, the growth rate in the emirate of Ajman has remained higher in the last three years than the state average.
3.6 INVESTMENT IN REAL-ESTATE SECTOR
The total value of fixed capital formation for the real estate sector in the emirate of Ajman reached
about 987.5 million dirhams in 2014, which increased to 1075.5 million dirhams in 2018, with an
average annual growth rate of 2.2% during this period, which is lower than the average for the country,
reaching 5.3% during the same period. Figure No. (2-6) shows the development of the growth rate in
the fixed capital formation of the real estate sector in the emirate of Ajman compared to the total of the
country during 2014-2018.
Source: Calculated by Ajman Department of Economic Development, using national accounts data issued by the Federal Competitiveness and
Statistics Authority, United Arab Emirates, 2019.
From the previous Figure No. (2-6), it becomes clear that the rate of growth in fixed capital
formation for the real estate sector in the emirate of Ajman reached 8%, which is its highest
level in 2014. It began then to decline in the following years, to realize a deflation in the last
two years, which reflects a decrease in investment in this sector, where the rate of deflation
6.9
4.53.5
2.5 2.3
8.2
6.2
2.10.9 0.5
0.0
2.0
4.0
6.0
8.0
10.0
2014 2015 2016 2017 2018
Figure No. (1-6)The annual growth rate of the GDP of the real estate sector in Ajman compared to the average for the country
(2014-2018)
AJMAN UAE
%
17.6
7.2
1.1
18.5
-4.3
8.0 6.1 5.9
-2.6 -0.4
-8.0
0.0
8.0
16.0
24.0
2014 2015 2016 2017 2018
Figure No. (2-6)
Growth rate in the fixed capital formation of the real estate sector in Ajman compared to the total of the country during
2014-2018.
UAE Real Estate Ajman Real Estate%
54
reached 0.4% in 2018. However, this rate is lower than the deflation rate of 4.3% achieved at
the Country level.
4.6 REAL-ESTATE TRANSACTIONS
The total number of real-estate sale transactions in Ajman reached almost 3136 transactions in
2018. Figure (3-6) shows the progress of the number of real estate sales transactions registered
in the emirate of Ajman during the period (2014-2018). The figure clearly shows that the
highest number of real-estate exchange transactions in Ajman was in 2017, which indicates the
increase in the demand for real estate during 2017.
Source: Statistics and Competitiveness Center, Ajman Annual Statistical book, various issues.
As for the value of real estate transactions, it reached approximately 3.5 billion dirhams in
2018, which is the lowest value recorded for real estate transactions in the emirate during the
period (2014-2018).
Source: Statistics and Competitiveness Center, Ajman Annual Statistical book, various issues.
Figure (4-6) shows the downward trend in the value of real estate transactions in the
emirate of Ajman since 2015, as it reached the highest value of transactions in this year,
followed by some decline and reaching its lowest value in 2018.
3161
2621 2681
34043136
0
1000
2000
3000
4000
2014 2015 2016 2017 2018
Figure No. (3-6)
The Development of the number of real estate sales transactions registered in Ajman
during the period 2014-2018
3531.2
5673.4
4506.74805.3
3490.1
0
2000
4000
6000
8000
2014 2015 2016 2017 2018
Figure No. (4-6)
Development of the value of real estate transactions in Ajman
during the period 2014-2018ون درهم ملي
55
5.6 CONSTRUCTION PERMITS AND COMPLETION CERTIFICATES
The index of building permits is one of the crucial indicators that reflects the demand rate for the
building of new units; Thus, when the index goes up, it indicates that newer real-estate units likely
entered the market during a short period. The number of building permits issued from Ajman in 2018
reached 2405, which is lower than previous years. The figure (5-6) shows the development in the
number of building permits in Ajman during (2014-2018). It shows clearly that the highest value of
the number of building permits issued in the emirate of Ajman was in 2014. Some decline occurred in
the following years, which indicates a decrease in the demand for building new real estate units due to
the increase in real estate supply witnessed by the market at present, which led to a decline in real estate
unit values well as their rents.
Source: Statistics and Competitiveness Center, Ajman Annual Statistical book, various issues.
With regards to the number of the Completion Certificates issued from Ajman, which is an indicator
of new real-estate units supplying in the market, these certificates are issued upon the completion of
all the construction and building operations. In 2018, the Completion Certificates number reached
nearly 1,235, which is lower than in 2014 as it had reached 1597. Figure no. (6-6) clarifies the change
in the number of completion certificates issued from Ajman during the period (2014-2018). It shows
that the highest number of the issued completion certificates was in 2015, then a relapse took place in
the following years.
Source: Statistics and Competitiveness Center, Ajman Annual Statistical book, various issues.
3251 31032803
2,910
2405
0
1000
2000
3000
4000
2014 2015 2016 2017 2018
Figure No. (5-6)
The evolution of the number of building permits issued in Ajman
during the period 2014-2018
1597
2188
1662 1792
1235
0
1000
2000
3000
2014 2015 2016 2017 2018
Figure No. (6-6)
The evolution of the number of achievement certificates issued in Ajman during the
period 2012-2017
56
6.6 REGISTERED LEASE CONTRACTS
The index of registered lease contracts is one indicator used to gauge the level of the
real estate market activity and the demand for residency in the emirate. The number of lease
contracts that were registered in Ajman’s municipality reached nearly 57.8 thousand contracts
in 2018, which is higher than in 2014, reaching 28.8 thousand contracts at an annual growth
rate of 19%. The figure (7-6) clarifies the development in the number of lease contracts
registered in Ajman’s municipality (2014-2018). It shows the upward trend of the number of
contracts registered in the municipality since 2014.
Source: Statistics and Competitiveness Center- emirate of Ajman- Ajman Statistical book, 2018, various issues.
Concerning the nationality of the lease contract holders, it is shown in the figure No. (8-6),
which reflects that 93.3% of the lease contracts registered with the municipality were for non-
UAE citizens, while the remaining 6.7% were for UAE citizens.
Source: Statistics and Competitiveness Center, Ajman Annual Statistical book, Various issues.
28.8
42.047.8
53.457.8
0.0
20.0
40.0
60.0
2014 2015 2016 2017 2018
Figure No. (7-6)
The development of the number of lease contracts registered with Ajman Municipality
during the period 2014-2018
Registered lease
contracts for non-UAE
citizens, 93.3%
Registered lease
contracts for UAE
citizens; 6.7%
FIGURE NO. (8-6)
Relative distribution of the number of lease contracts registered in Ajman according
to nationality during 2018
57
THE SEVENTH SECTION: FINANCIAL ACTIVITIES AND INSURANCE COMPANIES
58
SECTION VII
FINANCIAL ACTIVITIES AND INSURANCE COMPANIES
1. 7 INTRODUCTION Financial services and insurance activities are considered to be high added-value activities. This section reviews an analysis of the contribution of financial activities and insurance activities to the emirate’s GDP as well as to the formation of fixed capital, in addition to the number of establishments, the development of the value of deposits and loans banking, and the number of companies in the insurance sector. And insurance documents, then insurance premiums and compensation.
2.7 CONTRIBUTION OF FINANCIAL AND INSURANCE ACTIVITIES TO THE GDP OF THE EMIRATE
Financial activities and insurance activities are among the important economic activities in the economy of the emirate of Ajman. Its average annual contribution to the emirate’s GDP was about 4.5% during 2014-2018, and the value of its output reached about 764.8 million dirhams in 2014, which rose to 902.7 million AED in 2018, with an average annual growth rate of about 4.2% during this period. The following Figure No. (1-7) shows the development of the GDP growth rate for financial
and insurance activities in the emirate of Ajman compared to the Country average during the
period (2014-2018):
Source: Calculated by Ajman Department of Economic Development, using current national accounts data issued by the Federal Competitiveness
and Statistics Authority, United Arab Emirates, 2019
It is evident from the previous figure that the trend of the annual GDP growth rate for financial
and insurance activities is decreasing. The growth rate in Ajman reached 9%, its highest level
in 2014, then declining to reach 2% in 2018. Despite this decline, it achieved an average
annual growth rate of 4.2% during the period (2014-2018) and considered to be one of the
good growth sectors in the emirate of Ajman during the last five years compared to the growth
of the entire emirate's GDP, reaching 3.7% in the same period without a sector Oil. The
average annual growth rate of this sector's output in the country (2014-2018) reached about
4.5%, slightly higher than Ajman.
14.9
8.4
5.1
1.7
4.5
9.0
6.5 5.6
2.9 2.0
0.0
5.0
10.0
15.0
20.0
2014 2015 2016 2017 2018
Figure No. (1-7)
Annual growth rate of GDP for financial and insurance activities in Ajman compared to the
UAE average (2014-2018)
UAE Total Ajman
%
59
3.7 INVESTMENT IN FINANCIAL AND INSURANCE ACTIVITIES
The total value of the Fixed Capital Formation of the financial and insurance reached around
eleven (11) million Dirhams in 2014. And rose to 15.5 million dirhams in 2018 at an annual
growth rate reaching 9% during the same period. It is much higher than the Country’s average,
which achieved an annual rate average of 0.9% during the same period. Figure no. (2-7)
clarifies the development of the annual growth rate for the Fixed Capital Formation of the
financial and insurance activities in Ajman in comparison with the Country’s average during
2014-2018.
Source: Calculated by the Ajman Department of Economic Development, using national accounts data issued by the Federal
Competitiveness and Statistics Authority, United Arab Emirates, 2018.
Figure (27) shows that the growth rate in fixed capital formation for financial and insurance activities in
the emirate of Ajman reached its maximum value in 2015, hitting a 27.3% rate. It started then to go
down during the following years, achieving a growth rate of 2% in 2018, which reflects a decrease in
investment in this sector. With regards to the comparison with the UAE's average growth rate, it is clear
that they are taking the same decreasing trend since 2015. The decline in the growth rate of fixed
capital formation for financial activities and insurance activities is due to the merger of some banks,
which reduced the number of branches to raise operational efficiency, especially in the last two years.
4.7 BANKING FACILITIES
The number of banks operating in the UAE reached 60 banks by end of 2018, including 38
foreign banks, and 22 national banks. Whereas the number of national banks branches
reached 743 by end of 2018, decreasing the number of branches by 3.6% in 2016. The
reduction of the number of local branches was mainly due to the merging of some banks to
increase the operational efficiency of the national banks as, during 2017, the National Bank
of Abu-Dhabi was merged with the First Gulf Bank. Moreover, during the year 2018, there was
talk about the merger of more banks, such as the merger of Abu Dhabi Commercial Bank with
the Union National Bank and the new entity that acquired Al Hilal Bank. Whereas the number
of foreign bank branches reached 80 branches during 2018, decreasing by 2.4% from the
number of branches in 2017. Figure number (3-7) clarifies the development of the number of
local and foreign banks in the UAE during 2014-2018.
9.8
41.7
3.1 -17.6 -148.6
27.3
5.6 2.9 2
-40.0
-20.0
0.0
20.0
40.0
60.0
2014 2015 2016 2017 2018
Figure No. (2-7)
Annual growth rate of fixed capital formation for financial and insurance activities in
Ajman compared to the UAE average (2014-2018)
UAE AJMAN
%
60
Source: Central Bank of the emirates, annual report, Abu Dhabi, various issues.
The number of branches of the banks operating in Ajman reached 23 branches by the end of
2018, representing 2.8% of the total branches operating in the Country in 2018, including 22
branches of the national banks, and one branch of a foreign bank. Regarding the number of
ATMs, their number reached 189 machines distributed throughout the emirate by the end of
2018. Whereas the number of money Exchange centers operating in Ajman and licensed from
the central bank reached 53 centers.
5.7 DEPOSITS AND LOANS BANKING
The total value of the deposits in Ajman banks amounted to 17.1 billion Dirhams in 2014, and
it increased to 21.8 billion Dirhams in 2018 at an annual growth rate of 6.2%. Regarding the
loans, its total value reached 12.5 billion Dirhams in 2014 and increased to 17.2 billion
Dirhams in 2018, at an annual growth rate of 8.3%. The rapid increase in the demand for loans
compared with deposits can be observed; this is shown clearly through the rise in the loan rate
compared with deposits from 72.8% in 2014 to 78.7% in 2018. Figure no. (4-7) clarifies the
development in the value of deposits and loan banking in Ajman during 2014-2018.
Source: UAE Central Bank, Abu Dhabi, 2019.
869
86
874
86
846
85
771
82
743
80
0
400
800
1200
National Banks Foreign Banks
Figure No. (3-7)
The development of the number of local and foreign bank branches in the UAE
during the 2014-2018 period
2014 2015 2016 2017 2018
17.1 17.0 17.2
19.9 21.8
12.5 13.515.5 16.3 17.2
72.8%
79.8%84.5% 81.8%
78.7%
60.0%
70.0%
80.0%
90.0%
-
10.0
20.0
30.0
2014 2015 2016 2017 2018
Figure No. (4-7)
Development of the value of bank deposits and loans in Ajman during the period 2014-
2018
Deposits Loans percentage loans to deposits
مليار درهم
61
6.7 INSURANCE COMPANIES SECTOR
The number of insurance companies in the UAE reached 60 companies by the end of 2014, and
increased to 62 insurance companies by the end of 2018, including 35 national insurance companies
and 27 foreign insurance companies. The number of branches reached 223 branches in 2014, and rose
to 264 branches at the end of 2018, with an average annual growth rate of 4.3%.
The number of companies practicing all fields of insurance (such as personal insurance, money
generation operations, property insurance, and liability insurance) by end of 2018 around 15 national
companies and two foreign companies. Whereas the number of companies practicing property
insurance and liability insurance only reached 15 national companies and 71 foreign companies. The
number of insurance companies practicing persons insurance and money generation operations only
were only three national companies and nine foreign companies. The number of export credit insurance
companies was only one national company, and all Takaful insurance companies which reached 12
companies are, in fact, national companies. In the emirate of Ajman, six insurance companies engage
in insurance services activities.
7. 7 INSURANCE DOCUMENTS
The total number of underwritten insurance policies in the emirate of Ajman in 2014 reached about
30.8 thousand documents, which rose to 33.4 thousand documents in 2018, with an average annual
growth rate of 2%. The insurance policies of cars and vehicle rank first place. Their number reached
about 23.2 thousand policies with a relative importance of 69.4% in 2018, followed by health insurance
policies with a relative importance of 14.6%. Figure No. (5-7) shows the relative distribution of the
number of insurance policies according to the branches from where they issued in the emirate of Ajman
during 2018.
Source: Insurance Authority, United Arab Emirates, 2019.
8.7 INSURANCE PREMIUMS AND COMPENSATIONS
The total value of the underwritten premiums for various insurance fields in Ajman reached around
98.8 million Dirhams in 2014. Rose to 160.1 million dirhams in 2018, with an average annual growth
rate of 12.8%. The health insurance premiums ranked first in terms of the underwritten insurance
premiums value with a relative importance of 32.7% of the total underwritten premiums in Ajman
during 2018. Cars & vehicles insurance premiums ranked second with relative importance amounting
to 29.7%. In contrast, Individual life insurance ranked third with a relative importance of 18%.
Auto and other vehicle insurance, 69.4%
health insurance, 14.6%
Individual life insurance, 3.1%
Fire insurance, 2.7%
Marine and aviation insurance,
2.4%
Other, 7.8%
FIGURE NO. (5-7)
the proportional distribution of the number of insurance policies according to the
branches issued in Ajman during 2018
62
Figure No. (6-7) shows the relative distribution of the value of underwritten insurance
premiums according to the branches in the emirate of Ajman during 2018.
Source: Insurance Authority, United Arab Emirates, 2019.
Source: Insurance Authority, United Arab Emirates, 2019.
Figure (7-7) shows an increase in the paid claims ration over the underwritten
premiums in both marine and aviation insurance, as this percentage reached 175%,
followed by fire insurance at 131%, and for the rest of the other insurance branches,
the paid claims are less than the underwritten premiums.
Health insurance, 32.7%
Cars and other vehicle insurance, 29.7%
Individual life insurance, 18.0%
Fire insurance, 9.6%
Group life insurance, 1.9%
Engineering insurance, construction and energy,
1.5%Marine and aviation insurance, 0.8%
Other, 5.8%
FIGURE NO. (6-7)
Relative distribution of the value of underwritten premiums according to the branches in Ajman
during 2018
52.447.6
28.8
15.4
3.0 2.3 1.3
9.2
25.833.5
16.720.2
1.9 1.0 2.3 1.8
49%70%
58%
131%
63%42%
175%
19%
0%
40%
80%
120%
160%
200%
0.0
20.0
40.0
60.0
d Cars and other vehicle
insurance
Individual life
insurance
Fire insurance Group life insurance Engineering
insurance,
construction and
energy
Marine and aviation
insurance
Other
Figure No. (7-7)
Develpment of the value of the underwritten premiums and the paid claims as per he
insurance branches of Ajman during 2018
Gross underwritten Premiums Paid Claims Ppercentage of claims paid to underwritten premiums
ون درهم ملي
63
THE EIGHTH SECTION:
WHOLESALE AND RETAIL TRADING
64
SECTION IIX WHOLESALE AND RETAIL TRADE
1.8 INTRODUCTION
The wholesale and retail trading sector is significant and fundamental in boosting economic
growth in Ajman. This sector began to expand in Ajman in the light of the increasing demand
for working and residing in the emirate during the last years. This section discusses the
development of the contribution to the wholesale and retail trading sector in the growth of
Ajman, followed by the development of the investments in this sector. The section concluded
by a review for the development of the number of licenses issued in Ajman for practicing the
economic activities. Finally, it ends with the licensing movement index.
2.8 CONTRIBUTION OF WHOLESALE AND RETAIL TRADING TO THE EMIRATE'S GDP
The Wholesale and retail trading sector contribution percentage to the GDP, throughout the
previous five years, during 2014-2018 reached around 12.3%. The sector's output's annual
growth rate reached about 2.5% during the same period, which is a little higher than the GDP
of the same sector in the country amounted to 2.4% during the same period. The Figure no.
(1-8) shows the development of the growth rate of the GDP of the wholesale and retail trading
sector in Ajman in comparison with the UAE's gross during the period (2014-2018).
Source: Calculated by the Ajman Department of Economic Development, using the national accounts data issued by the
Federal Competitiveness and Statistics Authority, United Arab Emirates, 2019
Figure (1-8) shows the fluctuation of the annual GDP growth rate for the wholesale and retail trade sector in the emirate of Ajman during the period 2014-2018, but it has taken an upward trend since 2016, which is an opposite trend to the trend of the GDP growth rate for the same sector in the country, which has been taken downward trend since the same year (2016). In 2018, it achieved a 0.5% deflation rate in the country compared to 2.1% growth in Ajman.
5.24.2
1.8 2.0 2.1
3.4 3.3
5.9
0.9-0.5
-2.0
0.0
2.0
4.0
6.0
8.0
2014 2015 2016 2017 2018
Figure No. (1-8)
The annual growth rate of the GDP for the wholesale and retail trade sector in Ajman compared
with the Gross of the Emirates (2014-2018)
Ajman UAE
%
65
3.8 INVESTMENT IN THE WHOLESALE AND RETAIL TRADE SECTOR The total value of fixed capital formation for the wholesale and retail trade sector in the emirate of Ajman reached about 192 million dirhams in 2014, and rose to 207 million dirhams in 2018, with an average annual growth rate during this period of 2%, which is higher than the average rate of fixed capital formation of UAE achieving a deflation of 0.1%, Figure No. (2-8) shows the development of the growth rate in fixed capital formation for the wholesale and retail trade sector compared to the UAE average during the period 2014-2018. According to the national accounts, this sector includes the wholesale and retail trade sector. Real estate, of motor vehicles repair and motorcycles.
Source: Calculated by Ajman Department of Economic Development, using current national accounts data issued by the Federal Competitiveness
and Statistics Authority, United Arab Emirates, 2019
Figure (2-8) shows that the growth rate of fixed capital formation in the wholesale and retail trade sector
in the UAE and the emirate of Ajman fluctuated between ups and downs. The growth rate in Ajman
does not follow the same trend as the growth rate in the UAE, achieving its highest growth rate in Ajman
in 2015, reaching 7.3%. It began then to decline to achieve a deflation in 2018 at a rate of 3%. Whereas
in the UAE, it reached its highest growth rate in 2018, of 5% after it had shrinkage of 10.4% in 2017.
4.8 Licenses to practice economic activities
The total number of active licenses in the emirate of Ajman reached about 35,062 thousand permits at
the end of 2018, increasing 8.7% compared to 2017.
Professional licenses came first in terms of the number of active licenses in the emirate of Ajman in
2018, reaching about 17546 licenses.
Figure (3-8) shows the relative distribution of active licenses in the emirate of Ajman according to the
activity type during 2018.
Active licenses mean the total of new licenses issued during the year, licenses renewed during the same year, and licenses that should have been
renewed during the year, but were not renewed.
5.17.3
1.8 2.0-3
3.22.0
3.8
-10.4
5.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
2014 2015 2016 2017 2018
Figure No. (2-8)
Annual growth rate of fixed capital formation for the wholesale and retail trade sector in Ajman
compared to the state average (2014-2018)
AJMAN UAE
%
66
Source: Ajman Department of Economic Development, 2019.
Concerning the new licenses issued in the emirate of Ajman during 2018, they reached about 4,831
licenses, increasing 18% over the number of new licenses issued during 2017. Professional licenses
ranked first with a growth rate of 32%, followed by industrial licenses with a growth rate of 1%.
Regarding commercial licenses, it went downward to 8%.
Figure (4-8) shows the distribution of new licenses issued in the emirate of Ajman during 2017-2018.
Source: Ajman Department of Economic Development, 2019.
Figure (5-8) shows the top 10 activities for which new licenses were issued in the emirate of Ajman
during 2018 compared with 2017.
Commercial, 46.9%
Professional, 50.0%
Industrial, 2.7%Start-up, 0.4%
FIGURE NO. (3-8)
Relative distribution of the licenses in force in Ajman as per the type during 2018
1547 1416
24533233
87
8810
94
0
1000
2000
3000
4000
5000
2017 2018
Figure No. (4-8)
The number of new licenses issued in Ajman during the years 2017-2018
Commercial Professional industrial Start up
ون درهم ملي
67
Source: Ajman Department of Economic Development, 2019.
Figure (5-8) shows that the top 10 activities for issuing new licenses in the emirate of Ajman during
2018 represent about 47% of the number of new licenses issued during this year. This indicates a lack
of high presence in activities for which new licenses were issued in 2018. The building maintenance
activity came first of the activities for which new licenses were issued in 2018. The number of new
licenses issued reached 1137 licenses, an increase of 60% over the year 2017. External cleaning
services came second in the activity of and the number of new licenses issued reached about 189
licenses, with a growth rate of 800%. Whereas, interior design implementation (decoration) came in
third place with 157 licenses and a growth rate of 59%.
Concerning the nationality of investors in new licenses in the Emirate of Ajman during 2018, Figure No.
(6-8) shows the top 10 nationalities applying for new licenses issued during 2018 and comparing them
with 2017
711
21 99187
30132 151 99 133 70
1137
189 157 143 133 124 118 116 103 72
0200400600800
10001200
Figure No.( 5-8) The top 10 activities for which new licenses were issued in the emirate
of Ajman during 2018
2017 2018
68
.2019بعجمان، المصدر: دائرة التنمية الاقتصادية
Figure (6-8) shows that the top 10 nationalities of investors with new licenses issued in the
emirate of Ajman during 2018 represent about 97% of the total number of investors, indicating
the high presence of the number of investors within the emirate of Ajman. This what requires
establishing an organized plan to increase and investors diversify.
5.8 LICENSING MOVEMENT INDEX
The license movement indicator shows the number of canceled licenses for every 100 new
issued licenses. Figure (8-8) shows the license movement index in the emirate of Ajman
during 2017 and 2018.
0
2000
4000
6000
8000
100009129
4942
1412479 158 150 83 59 52 52
Figer No. (6-8) The top 10 nationatities requesting new licenses issued
during 2018 compared to 2017
2017 2018
69
Source: Ajman Department of Economic Development, 2019
.
Figure (8-8) shows that the number of licenses canceled in 2018 reached 16.5 licenses for
every 100 new licenses issued during this year, and the value of this indicator declined during
2018 compared to 2017 by a limited value of 1.3 points. This decline, however, is still within
the safe limits.
Issued license
Cancelled License
0
50
100
2017 2018
100 100
15.2 16.5
Figure No.( 7- 8) The movement of licenses Indicator in the
emirate of Ajman during the years 2017 and 2018
Issued license Cancelled License
70
Annual Economic Report -2019
Copy Right @ Department of Economic Development –
Government of Ajman
United Arab Emirates