The UAE’s economic development drive sees significant financing being channelled into infrastructure development, with Ajman – the smallest of the seven emirates – witnessing increased activity in the construction of commercial, residential and tourism-related facilities. Indeed, the construction sector was the third-highest contributor to the emirate’s GDP in 2023, aided by the robust performance of the construction sectors in neighbouring emirates.
Ajman’s central location in the UAE and easy access to Sharjah and Dubai make it an appealing destination for investors. Its location is complemented by flexible, favourable business and investment legislation, access to finance for commercial and residential property buyers, and a range of ownership models that facilitate 100% foreign property and land ownership.
Structure & Oversight
The Ajman Municipality and Planning Department (MPDA) oversees urban development and spatial planning activities within the emirate. The MPDA’s activities and strategic direction are aligned with the goals of Ajman Vision 2030, an overarching plan for sustainable development and improved quality of life. Those goals in turn align with national development plans such as We the UAE 2031 and the UAE Energy Strategy 2050. The latter sets a national target of achieving net-zero carbon emissions by 2050, with the construction and real estate sectors central to driving progress towards that goal in light of their energy-intensive nature. Ajman Vision 2030 goals see the MPDA working to enhance infrastructure and provide sustainable mobility solutions through forward-thinking urban management, sustainable construction practices and the implementation of geospatial systems powered by smart technologies.
The Ajman Department of Land and Real Estate Regulation (ADLRER) was established by Federal Decree Law No. 7 of 2017 to absorb the duties of both the Land Department and the Real Estate Regulatory Agency, which are now both defunct. The restructuring came as part of the government’s drive to stimulate increased private and international investment inflows, with more streamlined and efficient real estate sector governance and services key to achieving that. The ADLRER is responsible for executing real estate development projects and formulating initiatives to promote the sector internationally. Among other organisational duties, the department is responsible for enhancing real estate regulation and legislation. In February 2024 the department hosted the Ajman Real Estate Investment Exhibition, which brought the signing of 336 deals worth a combined value of Dh195.8m ($53.3m).
Legislation
Ajman’s property ownership laws were updated in 2008 as the local government sought to entice investment. Since 2008 non-GCC nationals have been able to purchase and own property on a freehold basis. Leasehold arrangements are also available on 99-year terms and a lower upfront cost, but without the security, rights and continuity of investment offered by freehold agreements. UAE and GCC nationals are able to purchase property in all areas of the emirate, while ownership for non-GCC nationals is restricted to specific zones. Non-GCC nationals are permitted to purchase property with freehold ownership in high-end locations such as Ajman Downtown, Ajman Corniche, Emirates City and Al Zorah.
All UAE construction contracts are issued and carried out in accordance with the Civil Transactions Law, which was promulgated in 1985 and is referred to as the Civil Code. Construction projects and activities are also subject to regulation by national labour and public tender laws – the latter is incorporated into Financial Order No. 16 of 1975. The Civil Code provides blanket specifications for all contracts entered into under UAE jurisdiction. Significant among the Civil Code provisions related directly to construction projects is Article 880, which states that contractors and architects are liable for any faults and defects found in the structures they design and build. Standard contracts are formulated in line with those proffered by the Swiss-headquartered International Federation of Consulting Engineers (FIDIC), with different specifications and rulebooks applying to different types of construction. FIDIC contracts range from short-form contracts for projects valued less than $500,000 to more complex contracts such as public-private partnerships for infrastructure development. Construction contracts are also subject to federal value-added tax, income tax and corporate tax legislation (see Economy chapter). Key challenges cited by active players in the UAE construction market relate to decennial liability and contractual breach; the insolvency and bankruptcy of contracted parties; disruption, delay and force majeure; the challenges of the liquidation of performance bonds; liability limitations; and the suspension of both works and good faith agreements. While UAE construction law aligns with international best practices, foreign investors and contractors are advised to engage a third party experienced in negotiating the UAE legislative landscape before entering the country’s construction market.
Permits
The MPDA issues building permits for Ajman-based projects. Applications are made online through the government’s Amar portal. Applications are submitted along with the payment of service fees, which, in most cases, is Dh500 ($136). The service fee for private residential or agricultural structures is Dh50 ($13.61). Full permit fee payment takes place upon approval of the application. Permit fees for private residential or agricultural buildings are set at Dh3.5 ($0.95) per sq metre, while for all other buildings, the cost is Dh6 ($1.63) per sq metre. The minimum permit fee for all building classifications is Dh200 ($54.44). Various other fees apply to insurance and licensing for building upgrades and alterations, while the cost of a technical report is Dh1000 ($272). In July 2024 Ajman’s government introduced a new building classification system, the purpose of which is to ensure that all buildings and structures in the emirate align with international standards and regulations.
Visa Incentives
The UAE Golden Visa was introduced in 2019 and updated in 2022 to attract highly skilled, high-net-worth foreign nationals to work, invest, study and buy property in the UAE. The programme is encouraging increasing numbers of foreigners to reside and purchase real estate in the country. At the local level the government’s strategic marketing of Ajman as a place offering high quality of life and a less crowded business ecosystem than Abu Dhabi, Dubai and Sharjah, alongside its efforts to enhance business processes and create more investment opportunities, is also making a positive impact.
Each category of the Golden Visa initiative requires specific criteria, with the real estate investor offering or residence by investment programme proving popular. Under a minimum investment of Dh2m ($544,000), either as a cash purchase or a mortgage agreement, foreign investors can obtain a 10-year visa and residency permit. Visa incentives are also being applied to stimulate the uptake of new commercial premises. The Ajman NuVentures Centre Free Zone offers 48-hour residency visa approval or status change, among other incentives, to qualifying investors.
Performance & Size
Driven by national and emirate-level economic development agendas and their focus on housing and infrastructure development, the construction sector was the third-highest contributor to Ajman’s GDP in 2023, totalling around Dh36bn ($9.8bn) at current prices. Construction activities accounted for 16.4% of the total, or approximately Dh5.9bn ($1.6bn), roughly the same value as in 2022. Real estate activities, meanwhile, accounted for 12.6% of nominal GDP in 2023, with a value of Dh4.6bn ($1.3bn) – representing 6.2% growth, and making it the fourth-largest sector of the economy. The two sectors contributed a combined 29% to GDP, with a total value of approximately Dh10.4bn ($2.8bn). Construction contracts awarded in the emirate during the first half of 2023 exceeded Dh3.7bn ($1bn), representing growth of 95.5% and 77% over the same periods in 2021 and 2022, respectively. In addition, the number of building licences issued in Ajman rose from 2405 in 2018 to 6540 in 2023, an increase of 172%.
The Federal Competitiveness and Statistics Centre reported that, with the exception of 2020, the UAE construction workforce expanded every year during the 2013-22 period, posting 35.2% total growth, with annual expansion of 5.5% and 8.1% in 2021 and 2022, respectively. Exact figures on the size of the construction workforce are unavailable. However, the Ajman Chamber announced that 5218 of its 41,854 registered establishments in 2023 belonged to the emirate’s construction sector, whereas a total of 678 operated in the real estate sector.
According to the ADLRER, the total number of real estate transactions in Ajman during 2023 rose by 43% to 11,474 with a value of Dh16.9bn ($4.6bn). Growth continued into 2024, with the number of Ajman real estate transactions expanding year-on-year (y-o-y) by more than 33% to 7178 during the first half of the year, reaching a value of around Dh9bn ($2.4bn). Foreign investors accounted for 5139 of the transactions. Meanwhile, foreign investment in Ajman’s real estate sector reached just over Dh6bn ($1.6bn) during the first half of 2024, an 88% y-o-y increase over the same period in 2023. The emirate is divided into sectors and neighbourhood districts, with each of the Al Yasmeen, Al Zahia and Al Helio 2 districts registering the highest transaction values during the first six months of 2024, whereas the eastern sector accounted for the highest volume of real estate transactions, followed by the southern and northern sectors. Additional sectors include the city centre, Al Zorah, northern and middle east in Ajman, as well as the Manama and Masfout sectors outside of Ajman.
Public Spending & Demand Drivers
Of the Dh64.1bn ($17.4bn) in the UAE’s 2024 federal budget, 4%, or Dh2.6bn ($707.7m), was allocated to infrastructure development and economic resources. The 2025 federal budget was announced in October 2024, with a public spending allocation of Dh71.5bn ($19.5bn). Both the share and value allocated to the infrastructure development and economic resources sector were slightly lower than in 2024 for the UAE, at 3.6% and Dh2.58bn ($702.5m), respectively.
Details on the 2024 Ajman government budget are unavailable. However, the public spending breakdowns for 2023 and 2025 illustrate a focus on infrastructure development. The budget for 2023 was Dh2.9bn ($794.8m) and for 2025 was Dh3.7bn ($1bn), both of which were the largest totals at the time of their announcements. Infrastructure, community facilities and environment-related developments were allocated 39% of the public spending budget in both years.
Indeed, the government’s focus on sustainable infrastructure development is key to its drive to improve the business environment and attract investment. Thus, the transport, ICT, housing, commercial and utilities sectors and subsectors will continue to see significant construction activity during the coming years. The announcement of Ajman Vision 2030 in March 2024 brought news of the government’s modernisation plans in developing urban and green spaces, cultural facilities, public beaches and rural areas, as well as by constructing a new Dh1bn ($272.2m) maritime port (see Transport & Logistics chapter).
The tourism sector is among those being strategically harnessed to help drive economic growth in the emirate. Established hospitality venues – including the Ajman Hotel, which built 13 new ocean-facing luxury villas, among other facilities, during 2024 – are bolstering offerings. Meanwhile, the construction of new hotels, villas, apartments and attractions appears likely to gather momentum moving forwards. Ajman Vision 2030 sees the government planning the redesign and development of the Ajman Corniche along the coastline, and the implementation of its Dh1bn ($272.2m) Emirates Villages project in the mountainous region of Masfout, as well as the construction of multiple arts and cultural venues and destinations.
Key Contracts
In September 2024 Ajman’s government signed a memorandum of understanding with China National Electric Engineering, a subsidiary of government-owned Sinomach Group. Starting in 2025, this partnership will support the emirate in investing up to Dh5bn ($1.4bn) into bolstering its transport and manufacturing infrastructure, modern industries and local value chains.
In October 2024 UAE data centre and cloud services provider Khazna Data Centres announced that it had engaged Laing O’Rourke, a UK-based engineering and construction firm and contractor, to build the UAE’s largest data centre powered by artificial intelligence in Ajman. Meanwhile, UAE-based Proarc Architects and Engineering Consultants was named as the project’s architect of record. Once operational, the data centre will span 100,000 sq metres and carry a capacity of 100 MW. The project is set to cost approximately Dh1bn ($272.2m) and take 15 months to complete.
Mortgages
According to the IMF, GDP reached $514.1bn at current prices in 2023. Meanwhile, according to the Central Bank of the UAE, active mortgage loans in the country were equal to 5.5% of GDP in 2023, representing an 8.3% increase from the previous year.
In Ajman, mortgage registration with the ADLRER has been rising since 2019 when 934 mortgages were registered. Following that, the figure rose annually, increasing to 1138 in 2020, followed by 1293 in 2021, 1350 in 2022 and 1928 in 2023. Those figures reflect an average annual increase of 26.6% from 2019-23. Figures for the first half of 2024 indicate that another significant expansion in the number of mortgages is expected, with 1205 transactions carried out during this period, carrying a value of Dh1.8bn ($489m).
A number of banks operating in the UAE specialise in providing mortgages to foreign nationals, such as Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Ajman Bank, Dubai Islamic Bank, Emirates Islamic, First Abu Dhabi Bank, HSBC and Standard Chartered. The majority of these banks have branches in Ajman, while other banks and financial services providers cater to the broader mortgage market. While each bank sets its own terms and conditions, most bank and mortgage products require a 15% minimum down payment.
Ajman lenders offer a range of financing products and repayment structures, including fixed, variable, discounted and capped rates. Certain terms apply to all mortgages for foreign nationals. These include the requirement that an applicant must have held a position of employment in the emirate for at least six months, while the self-employed are required to prove company ownership for a minimum of two years. A strong credit history is also important. In terms of the size of loans offered, buyers seeking to purchase properties valued at Dh5m ($1.4m) are able to borrow up to 80% of the total value, whereas investors seeking to secure mortgage properties valued higher than this figure can borrow up to 70% of the total value. A maximum of 65% of a property’s value is available for mortgaging a second property, applicable only to completed developments.
Residential Trends & Prices
According to the ADLRER, as of August 2024 there were 103 active real estate development projects in Ajman – the vast majority of which were residential units, ranging from apartment blocks to mansions. Ajman affords international investors and expatriates a more affordable route onto the lucrative UAE property ladder than do its sister emirates Abu Dhabi and Dubai – a fact that is driving up demand for both commercial and residential property in Ajman. Dubai, in particular, hosts an extremely crowded property market, with a city centre apartment costing Dh24,654 ($6710) per sq metre in January 2025. Meanwhile, in Ajman, apartment prices are Dh16,167 ($4400) per sq metre, according to online cost of living database Numbeo.
Tenancy contracts registered in Ajman by both Emirati and foreign nationals have been on the rise since 2019. During that year, the number of residential tenancy contracts registered by foreign nationals was 53,886, while the number of UAE nationals signing tenancy agreements was 3819. By the close of 2023 those figures had risen to 72,679 and 5420, equating to 34.9% and 41.9% growth, respectively. Due to comparatively low purchase prices, Ajman offers landlords the highest rental yields in the UAE. While the emirate is likely to continue to offer more affordable rents and purchase options than Dubai and Abu Dhabi, increased demand is now translating to increased prices across the board. However, a recent influx of new properties in the market sees some landlords with older properties keeping rents low to retain occupants. Meanwhile, the Ajman government’s decision in May 2024 to follow Sharjah in allowing short-term tenancies adds flexibility to the market and should help drive both leisure and business tourism.
As of December 2024 prominent UAE online property database Bayut.com listed 13,835 residential rental properties in Ajman, with an average annual rental cost of Dh59,675 ($16,200), reflecting an 11% price increase over the preceding six months. The average price of houses for sale in Ajman from a list of 26,918 was Dh1.5m ($408,000) in December 2024, 10% higher than in June that year. Meanwhile, the average asking price for an undeveloped residential plot, from 2083 listings, was Dh1.2m ($327,000) – a 22% y-o-y increase during the second half of 2024.
Commercial
Demand in the UAE’s vibrant commercial real estate market grew by 57% during the third quarter of 2024. The office segment recorded the highest uptick at 72%, while demand for industrial and retail space grew by 53% and 47%, respectively. The Ajman government’s various initiatives to drive industrial and commercial expansion are yielding positive results for real estate uptake. Notably, Free Zones Authority of Ajman announced in January 2024 that it had approved over 5000 new company registrations in 2023 and was aiming to double that figure in 2024. Meanwhile, the Ajman NuVentures Centre Free Zone launched in November 2024, offering office and co-working space to investors, attracted 450 new businesses in its first two months of operation.
According to Bayut.com, the average cost of a plot of commercial land – from a total of 567 listings – in December 2024 was Dh2.7m ($735,000), representing a 40% y-o-y increase over a six-month period. During that same period, the average price of industrial land, from a selection of 107 plots, had risen by 33% y-o-y to Dh5.9m ($1.6m). Meanwhile, from a list of 1428 commercial properties, the average annual rental cost was Dh195,306 ($53,200), reflecting a 5% y-o-y increase during the last six months of 2024.
Building Materials
Building materials news site Aggregates Business forecasts that the building materials market in the UAE is set to expand by 34% from 2021-28 to reach a value of $134bn. Numerous large-scale construction works – such as the redevelopment of Zayed International Airport in Abu Dhabi, the expansion of key areas of Dubai and the multiple transport, tourism, housing and commercial construction projects that are in the pipeline in Ajman and throughout the UAE – present significant opportunities for materials manufacturers and suppliers.
The UAE domestic cement sector is expected to have grown by 3.2% in 2024 to a value of $1.8bn. The UAE was the third-highest cement manufacturer by output in the MENA region in 2022, behind Egypt and Saudi Arabia, with 45m tonnes, according to cement industry consultant A³&Co. At 11m tonnes. The country’s cement consumption was the sixth highest in MENA and the third highest within the Gulf region, behind Saudi Arabia and Iraq. The UAE is a net exporter of cement, with 10m tonnes of exports worth $643m in 2022. The country imported $18.6m of cement the same year. None of the UAE’s 10 cement manufacturing plants are situated in Ajman, but Dubai-based Star Super Cement operates a clinker grinding plant with a capacity of 1.1m tonnes per annum out of the emirate.
The UAE is the second-largest steel producer in the Middle East, with the industry having expanded 600% since 2000. Major players include Emirates Steel, Foulath Holding and Senaat General Holding. However, due to high domestic demand, the country imports most of the steel it consumes. In order to satisfy demand and reduce imports, the UAE is aiming to boost steel production by 60% to a capacity of around 15m tonnes annually by 2030. It is also looking to diversify production, with significant growth witnessed in domestic rebar production and attached value chains.
Aluminium production is another key domestic industry. Emirates Global Aluminium – based in Jebel Ali in Dubai – is the world’s largest producer of premium aluminium and the UAE’s largest non-oil industrial company, accounting for approximately 4% of global aluminium production. Aluminium’s importance to national and global economics is likely to increase moving forwards, owing to its central role in the manufacturing of electric vehicles, solar panels, wind turbines and smartphones. Decarbonisation of this energy-intensive industry is therefore a high priority, with the market’s leading operators working to establish green production practices.
Sustainable Practices
According to market research company Mordor Intelligence, the global green building materials industry will expand from $275bn in 2024 to $433bn in 2029. The utilisation of green building materials in UAE construction projects is increasing, while domestic production is also on the rise. Sustainable building materials sourced from construction waste are being produced in-country, while innovative products such as concrete substitutes, plastic panels and surface materials are being manufactured from natural materials – including dates, date palm, palm tree branches and unrecyclable waste materials. Sustainable construction practices focus not only on the use of green building materials, but also on reducing a building’s carbon footprint and water usage. The Ajman government announced its intention to implement green building methodologies in 2018, with the emirate containing 8335 green buildings as of February 2024.
Outlook
Ajman’s construction and real estate markets present a range of opportunities for international investors looking to enter the UAE building, business and property ecosystems. Favourable investment legislation, well-developed construction materials value and supply chains, high quality of life and optimal location within the UAE are but a few of the benefits afforded to property investors and contractors. While the spillover effects from Dubai’s saturated property market will continue to drive up prices in Ajman, buying or renting within the emirate will remain favourable within the national context. Those trends seem likely also to perpetuate demand for the construction of new residential spaces. Moreover, the Ajman government’s infrastructure development agenda means that a strong pipeline of large-scale developments should present opportunities for foreign investors and contractors through the medium and long term.
