Top Reasons to Choose Ajman for Your Business Setup – Novus

Top reasons why You should choose Ajman for business setup in UAE

Ajman, among the UAE emirates, has rapidly grown, emerging as a top choice for global investors and entrepreneurs seeking opportunities for business setup in the UAE. A multitude of businesses from diverse industries have established themselves in Ajman, capitalizing on the potential of local and regional markets.

Large corporations and multinationals, especially in energy and manufacturing, are drawn to invest and operate in Ajman. The favorable investment climate, ample room for expansion, and a strategic location connecting to key business hubs in Dubai and Sharjah contribute to this interest.

Ajman boasts modern infrastructures, including ports, roads, industrial zones, and transport systems, providing a strong foundation for businesses. The Emirates offers essential facilities and services, such as reliable power, quality medical care, and advanced telecom services, enhancing its appeal to investors and entrepreneurs.

With a steady increase in foreign direct investment (FDI) in Ajman, the emirate has proven to be a global business hub. As per the latest FDI reports, Ajman’s business-friendly environment and diverse opportunities have contributed significantly to its rising stature in the global business landscape.

 

Benefits of Starting A Business Setup in Ajman

• Corporate tax exemption
• Low startup costs
• Import Export
• Ajman free zone and offshore
• Foreign ownership
• Repatriation of capital
• Strategic location
• Complete ownership
• Corporate bank account opening
• Economical
• Feasible visa options
• Low labor cost

Strategic Location and Connectivity

Ajman’s strategic location is a key driver for businesses seeking a competitive edge in the global market. Situated just 30 minutes away from the international airports of Dubai and Sharjah, Ajman serves as a gateway for businesses looking to tap into diverse markets. Its central location minimizes logistical challenges, making it an ideal choice for companies engaged in import and export activities.

According to recent trade data, Ajman’s strategic location has contributed to a notable increase in the volume of goods imported and exported through the emirate, affirming its pivotal role in global trade networks.

Connectivity to Key Markets in the UAE and Beyond

Ajman’s connectivity extends beyond its borders, linking businesses to key markets not only within the UAE but also globally. The seamless integration of Ajman into the broader UAE infrastructure ensures accessibility to major cities, fostering an environment where businesses can thrive.

 Analysis of transportation and connectivity metrics reveals that Ajman’s strategic location has significantly reduced transportation costs for businesses, enhancing their competitiveness in the market.

The Ajman free zone stands out as one of the best locations for importing and exporting various goods. Beyond its logistical advantages, the free zone offers a range of services and facilities that cater to the diverse needs of businesses.

Recent industry surveys highlight the Ajman free zone as a preferred location for companies engaged in international trade. The ease of doing business and robust infrastructure contribute to its reputation as a strategically sound choice for business setups.

Business-friendly regulations and incentives

Ajman offers business-friendly regulations and incentives for entrepreneurs. The Ajman Free Zone Authority (AFZA) provides a range of benefits such as 100% foreign ownership, 100% repatriation of capital and profits, and zero personal and corporate income taxes. Additionally, businesses in Ajman enjoy affordable energy costs, streamlined administrative procedures, Corporate tax exemption, and access to a skilled workforce. These regulations and incentives make Ajman an attractive destination for setting up and growing businesses.

Strategic Hub: Ajman’s Prime Location

Ajman’s prime location in the United Arab Emirates makes it a strategic hub for business, trade, and tourism. Situated along the Arabian Gulf, Ajman is in close proximity to major ports and airports, facilitating international trade and commerce. Additionally, its connectivity to neighboring emirates and strategic location along key transportation routes make it an ideal base for companies looking to establish a presence in the region. With its modern infrastructure and strategic positioning, Ajman offers a compelling proposition for businesses seeking to expand their operations in the Middle East.

Moreover, Ajman’s strategic location provides easy access to a diverse market and a growing consumer base, enhancing opportunities for businesses to thrive and expand their reach in the region. The favorable business environment, coupled with government support and various incentives, further strengthens Ajman’s position as an attractive destination for investors and entrepreneurs. As a result, Ajman continues to witness an influx of businesses across various sectors, contributing to its status as a thriving economic hub in the UAE. With its forward-looking approach and conducive business environment, Ajman is poised to continue its growth trajectory and emerge as a key player in the global business landscape.

• Proximity to Key Markets: Dubai, Sharjah, and Northern Emirates
• Accessibility and Transportation Infrastructure
• Business Advantages Derived from Strategic Location

Low-Cost Labour

One of the advantages of setting up a business in Ajman is the low-cost labor available in the emirate. According to the Ajman Statistics Centre1, the average monthly wage of workers in Ajman was AED 4,569 in 2020, which is lower than the national average of AED 5,5442. Moreover, Ajman offers a skilled and diverse labor force, with workers from various nationalities and backgrounds. You can easily find qualified workers for your business, whether you need engineers, technicians, managers, or salespeople.

In addition to the low-cost labor, Ajman also provides the top-notch infrastructure to support your business operations. The emirate has a robust network of roads, ports, and airports, connecting you to local and regional markets. It also has modern facilities, such as industrial zones, warehouses, and office spaces, equipped with the latest technology and amenities. Investing in Ajman can provide you with the resources you need to build and grow your business successfully.

Cost-effective business setup options

Ajman offers cost-effective business setup options for entrepreneurs. The emirate is known to provide competitive costs for company formation, affordable office spaces, and low operational expenses. Moreover, the Ajman Free Zone and the Ajman Media City Free Zone offer attractive packages for startup businesses, including cost-effective trade licenses and flexible leasing options. As a result, Ajman is an ideal destination for entrepreneurs looking to establish a business while keeping costs to a minimum.

Some of the data and statistics that support this claim are:

• Ajman’s general trading license costs AED 35,150, which is lower than other Emirates in the UAE.
• Ajman Free Zone offers trade licenses starting from AED 11,500, which include benefits such as 100% foreign ownership, zero corporate and personal income tax, and no currency restrictions.
• Ajman Media City Free Zone offers trade licenses starting from AED 8,500, which include benefits such as multiple business activities under one license, 100% repatriation of capital and profits, and access to state-of-the-art facilities.
• Ajman’s GDP grew by 3.4% in 2020, despite the challenges posed by the COVID-19 pandemic. The main contributors to its economic growth were the manufacturing, construction, and wholesale and retail trade sectors.
• Ajman has a strategic location that allows businesses to tap into markets in the Middle East, Asia, Europe, and Africa. It also has a robust infrastructure, including top-notch seaports, airports, and road networks.

Supportive government initiatives for business growth

Ajman offers various government initiatives to support business growth. The Ajman Free Zone Authority, for instance, provides benefits such as 100% foreign ownership, tax exemptions, and easy access to regional markets. Additionally, the Ajman Department of Economic Development offers streamlined processes for business registration and licensing, enabling a hassle-free setup experience. These initiatives aim to attract and facilitate business investments, making Ajman an ideal location for your business setup.

Some of the data and statistics that support this claim are:

• Ajman Free Zone Authority was established in 1988 and is one of the oldest and largest free zones in the UAE.
• It hosts over 9,000 companies from more than 145 countries, covering various sectors such as trade, industry, and services.
• Ajman Department of Economic Development was established in 1998 and is responsible for regulating and developing the economic sector in the emirate. It offers various services such as issuing trade licenses, registering commercial names, and providing economic reports and studies.
• Ajman Statistics and Competitiveness Center was established in 2017 and is the main source and reference for statistical affairs in the emirate. It provides accurate and up-to-date data and information to support the decision-making system of the government and the private sector.
• Ajman has launched several initiatives to enhance its competitiveness and attractiveness for business, such as the Ajman Pay system, which is a unified smart digital payment gateway that facilitates transactions and payments for government services4. Ajman also offers incentives and exemptions for investors, such as reducing the fees for issuing and renewing trade licenses by 50%.

Diverse business opportunities and sectors

Ajman offers a wide range of business opportunities in various sectors, such as manufacturing, logistics, tourism, and trade. The strategic location of Ajman, with its proximity to major ports and airports, makes it an attractive choice for businesses looking to establish a presence in the region. Additionally, the government of Ajman has been actively promoting and supporting diverse industries, providing a conducive environment for business growth and development.

Whether you are in the manufacturing sector or looking to tap into the burgeoning tourism industry, Ajman offers a diverse array of options for setting up and expanding your business.

Some of the data and statistics that support this claim are:

• Ajman’s GDP grew by 5% in 2013, reaching AED 16,441 billion. The main contributors to its economic growth were the construction, real estate, business services, and financial corporation sectors.
• Ajman Free Zone hosts over 9,000 companies from more than 145 countries, covering various sectors such as trade, industry, and services2. It offers trade licenses starting from AED 11,500, which include benefits such as 100% foreign ownership, zero corporate and personal income tax, and no currency restrictions.
• Ajman Media City Free Zone offers trade licenses starting from AED 8,500, which include benefits such as multiple business activities under one license, 100% repatriation of capital and profits, and access to state-of-the-art facilities.
• Ajman Statistics and Competitiveness Center provides accurate and up-to-date data and information to support the decision-making system of the government and the private sector. It also organizes symposiums and events to enhance the role of statistics in achieving sustainable development.
• Ajman has launched several initiatives to enhance its competitiveness and attractiveness for business, such as the Ajman Pay system, which is a unified smart digital payment gateway that facilitates transactions and payments for government services. Ajman also offers incentives and exemptions for investors, such as reducing the fees for issuing and renewing trade licenses by 50%.

Proximity to major airports and ports

Ajman’s strategic location near major airports and ports makes it an ideal choice for businesses. The emirate’s proximity to international transportation hubs ensures convenient access to import and export opportunities, facilitating efficient distribution and transportation of goods. This can lead to reduced logistical costs and faster delivery times for your business, contributing to improved competitiveness and growth potential.

Some of the data and statistics that support this claim are:

• Ajman is located only 25 km away from Sharjah International Airport, which is the third largest air freight hub in the Middle East. The airport handled over 13 million passengers and 570,000 tonnes of cargo in 2020¹.
• Ajman is also close to Dubai International Airport, which is the world’s busiest airport by international passenger traffic and the sixth busiest cargo airport in the world. The airport served over 86 million passengers and 2.5 million tonnes of cargo in 2020.
• Ajman has two ports, Ajman Port and Ajman Creek, which are both managed by the Ajman Port Authority. The ports offer various services, such as cargo handling, ship repair, marine services, and customs clearance. The ports handled over 1.2 million tonnes of cargo in 2020.
• Ajman is also connected to other ports in the UAE, such as Jebel Ali Port, which is the largest seaport in the Middle East and the ninth busiest container port in the world. The port handled over 14 million TEUs (twenty-foot equivalent units) of containerized cargo in 2020.

Quality of life and lifestyle in Ajman

Ajman offers a high quality of life and a relaxed lifestyle, making it an appealing place for business setup. The city provides a balance of modern amenities, serene beaches, and a family-friendly environment. Residents and business owners in Ajman benefit from a cost-effective yet comfortable lifestyle, with easy access to essential services and leisure activities. The vibrant culture, warm climate, and diverse community add to the overall appeal of living and working in Ajman.

• Ajman ranked 2461st (TOP 26 percent) on the list of the best places to live in the world, and the 4th best city to live in the UAE.
• Ajman’s Quality of Life Index was 170.08 in 2024, which is higher than the global average of 100. The index measures various aspects of life satisfaction, such as purchasing power, safety, health care, climate, cost of living, and pollution.
• Ajman residents were satisfied with 82% on the Quality Dimension, 77% on the Empathy Dimension, 80% on both Assurance and Responsiveness Dimensions, 89% on the Reliability Dimension, and 88% on the Tangible Dimension, based on a survey on the effect of the public healthcare service quality on residents’ happiness.
• Ajman has fire alarm coverage across households of 71%, which is higher than the national average of 60%, based on the government’s drive to improve public safety.
• Ajman has a variety of attractions and activities for residents and visitors, such as the Ajman Museum, the China Mall, the Ajman Corniche, the Al Zorah Nature Reserve, and the Al Naseem Nature Park.

Conclusion: Why Ajman is ideal for your business setup

In conclusion, Ajman is the perfect place for your business setup. It offers a strategic location, a business-friendly environment, and a diverse range of opportunities for entrepreneurs. By setting up your business in Ajman, you can benefit from the accessibility to international airports and seaports, the cost-effective business setup options, the low-cost labor, the top-notch infrastructure, and the high quality of life and lifestyle. Therefore, if you are looking for a prime spot to start or expand your business in the UAE, Ajman is the ideal destination for you.

If you are interested in setting up your business in Ajman, you can contact Novus for more information and assistance. We are a leading business setup consultancy in the UAE, offering comprehensive solutions for your business needs. We have a team of qualified and experienced professionals who can help you with every aspect of your business setup, from choosing the right legal structure and obtaining the necessary licenses to finding the best location and office space to hiring and managing your staff. We also provide ongoing support and guidance to ensure your business runs smoothly and successfully.

We are confident and enthusiastic about helping you set up your business in Ajman. Contact us today and let us help you turn your business vision into reality

FAQ

What is the cost of setting up a business in Ajman?

The cost of setting up a business in Ajman depends on various factors, such as the type of business, the legal structure, the trade license, the office space, and the visa fees. According to Novus Business Setup, the average cost of setting up a business in Ajman is AED 25,000 to AED 35,000.

How to set up business in Ajman?

To set up a business in Ajman, you need to follow these steps:

• Choose a business activity and a legal structure for your company.
• Register your trade name and obtain initial approval from the Ajman Department of Economic Development (DED).
• Apply for a trade license from the DED or the Ajman Free Zone Authority (AFZA), depending on your business location.
• Rent or lease an office space or a warehouse, and get a tenancy contract.
• Apply for membership in the Ajman Chamber of Commerce and Industry (ACCI).
• Apply for a business bank account and a tax registration number.
• Apply for visas and labor cards for yourself and your employees.

How much is a business license in Ajman?

The cost of a business license in Ajman varies depending on the type of license, the business activity, and the location. According to Business Setup Consultants, the average cost of a business license in Ajman is AED 11,500 to AED 35,150. The types of licenses available in Ajman are:

• Commercial license: for trading activities, such as import, export, distribution, etc.
• Industrial license: for manufacturing, processing, packaging, etc.
• Professional license: for service-oriented activities, such as consultancy, education, health, etc.
• E-commerce license: for online trading activities, such as selling goods or services through a website or an app.

How much does it cost to set up business in UAE?

The cost of setting up a business in the UAE depends on various factors, such as the emirate, the free zone, the type of business, the legal structure, the trade license, the office space, and the visa fees. According to Novus Business Setup, the average cost of setting up a business in the UAE is AED 30,000 to AED 50,000.

What is the source of income in Ajman?

The main sources of income in Ajman are:

• Manufacturing: Ajman is home to over 1,000 industrial units, producing various products, such as steel, cement, plastics, textiles, etc.
• Trade: Ajman has a thriving trade sector, with over 12,000 registered companies, dealing in various goods, such as electronics, furniture, food, etc.
• Tourism: Ajman has a growing tourism sector, with over 700,000 visitors in 2019, attracted by its beaches, heritage, culture, and hospitality.