Accounting for 18.8% of Ajman’s GDP, the emirate’s industrial sector spans a wide range of activities, from food packaging to artificial intelligence (AI) and robotics. In recent years, this priority sector has experienced consistent growth, driven by a strong entrepreneurial spirit and innovation. Leveraging its strategic location with proximity to two international airports, as well as a seaport on one of the world’s key waterways – the Gulf – and a modern highway network, Ajman is now embarking on a major new phase of expansion in its manufacturing and high-tech industries.
Meanwhile, the emirate benefits from being a part of one of the most dynamic economies in the world – the UAE. The country saw an average annual industrial growth rate of 2.5% between 2012 and 2022, significantly above the MENA region’s average of 1.5%. Ajman Free Zone (AFZ), dedicated industrial areas and a business-friendly regulatory environment contributed to substantial expansion, with a 14% year-on-year (y-o-y) rise in new industrial and commercial licenses in the first six months of 2024. As the emirate continues to move forwards with Ajman Vision 2030 and the Ajman Chamber Strategy 2024-30, along with Operation 300bn – the UAE’s industrial strategy – the industrial sector is positioned to thrive, driven by both traditional manufacturing and emerging industries focused on digital technology and AI.
Structure & Oversight
As one of the UAE’s seven emirates, Ajman’s industrial sector is subject to both federal and local laws and regulations. At the federal level, industry comes under the supervision of the Ministry of Industry and Advanced Technology (MIAT). The ministry was established in July 2020 via a merger of the previous Ministry of Advanced Technology, the Emirates Authority for Standardisation and Metrology, and the industrial sector team from the federal Ministry of Energy and Infrastructure. The MIAT now consolidates all the industry responsibilities that were previously divided among these entities, streamlining regulatory oversight and fostering more efficient governance. At the emirate level, Ajman Department of Economic Development (AJDED) is the main supervisory and regulatory body, also responsible for local development planning and strategy. AJDED has sections for issuing licences, export development, foreign direct investment (FDI) promotion, trade control, consumer protection and several other specialities.
Two other local governmental bodies are the Ajman Municipality and Planning Department (MPDA) and the Department of Digital Ajman. The former works on the sustainable development of the emirate’s infrastructure, while the latter is the lead agency for the digital transformation of government structures in Ajman – including those entities responsible for industry. The MPDA takes a proactive approach to its mandate, organising frequent meetings with industrial and manufacturing entities to help drive sustainability forwards. In October 2024, for example, it held a workshop focusing on industry and the UAE’s overall sustainable development goals.
In terms of infrastructure, Ajman – as with the other Northern Emirates, Fujairah and Ras al Khaimah – is part of the Etihad Water and Electricity (EWE) network. This means power and water for industrial activities are supplied by this federal body, rather than a local network, as in Abu Dhabi or Dubai. Prior to 2020 EWE was known as the Federal Electricity and Water Authority. Another key structure in the emirate is the Ajman Chamber. Established in 1977 as the Ajman Chamber of Commerce and Industry and expanded in scope in 2018 and 2024, it was renamed as the Ajman Chamber in July 2024. It has responsibilities in the commercial, industrial and agricultural spaces, coordinating and promoting Ajman’s business activities. It also works with other chambers around the UAE and internationally.
Industrial Zones
Another important body is Free Zones Authority of Ajman (FZAA), established in 2021 to consolidate the emirate’s free zones under a single governing body. This includes AFZ and Ajman Media City Free Zone, with FZAA setting strategic plans and policies, issuing regulations, licences and approvals, as well as promoting the zones and working towards the establishment of new ones. AFZ is one of the UAE’s oldest industrial zones, created in 1988. The zone offers approximately 867,000 sq metres of facilities space, along with over 530 warehouses and 7000 offices, and features a total of 22 clusters dedicated to a range of industrial and commercial activities.
AFZ is home to approximately 9000 companies across a wide array of industries. According to data from the FZAA website, the largest sector is construction-related trades, with 800 companies, followed by food and beverage, which hosts over 430 businesses. The advanced technology and robotics sector includes more than 400 organisations, while jewellery has 361 companies, and general trade is represented by 230. The textiles industry is made up of 320 companies, and both media-related industries and health and beauty products each account for around 200 companies. Other sectors include chemicals with 128 companies, automotive with 96, marine engineering with 90, oil and gas with 70, paper and packaging with 45, and agri-business with 20. This broad spectrum of fields underscores the zone’s dynamic business environment.
The zone offers 100% foreign ownership, capital repatriation, tax benefits and one of the lowest start-up costs in the UAE, beginning at Dh5555 ($1512). AFZ provides free business support, finance, banking and insurance services, as well as access to health and sports facilities through its AFZ+ service. As of 2022 the largest investor groups in the zone are from India, followed by Russia, Pakistan, Egypt and France.
The zone also features dedicated areas for AI and robotics, e-commerce and freelancers – fostering collaboration among like-minded companies and entrepreneurs within its business ecosystem. A key advantage of the zone is its proximity to Ajman Port, which handles around 1000 ships annually, as well as to Sharjah and Dubai airports – Dubai remained the world’s busiest by February 2025 with approximately 4.8m seats, according to global travel data provider OAG. Additionally, AFZ is well connected to other emirates via a fast highway network, including Fujairah on the Arabian Peninsula’s Indian Ocean coast.
Business Growth
Ajman is home to the Al Jurf Industrial Area, which consists of three zones along its northern border with Umm Al Quwain. These zones are well-connected by highways to Abu Dhabi, Dubai and Sharjah, and other Northern Emirates, Fujairah and Ras al Khaimah. Al Jurf hosts a mix of industrial, commercial and residential units. In 2024 there were approximately 48 licensed industrial companies in Jurf 1, 27 in Jurf 2, and one in Jurf 3, according to AJDED.
All three zones are involved in import and export businesses, but each zone has a distinct focus. Jurf 1 mainly hosts businesses in automotive services, catering to a range of related industries. In contrast, Jurf 2 and Jurf 3 are primarily home to companies engaged in construction, decor and painting, supporting a variety of sectors within these fields. Additionally, the Ajman Industrial 1 and 2 zones, located near the southern border with Sharjah, had 56 and 54 industrial licences in 2024, respectively. These zones focus on industries such as electrical and mechanical repair, as well as women’s ready-made clothing in Ajman Industrial 1. Meanwhile, Ajman Industrial 2 specialises in textiles and ready-to-wear clothing.
Global Connectivity
The Ajman industrial sector is a regional centre for exports and re-exports of industrial products, with Iraq and Saudi Arabia the two most prominent destinations, followed by Kuwait, Turkey and Ethiopia. As a part of the UAE, Ajman benefits from the international treaties and agreements established by the country as a whole. These encompass membership in the GCC, the Organisation of Islamic Cooperation, the UN and its affiliates, and the World Trade Organisation.
In addition, this gives Ajman the advantage of a range of comprehensive economic partnership agreements (CEPAs) between the UAE, and other countries and entities designed to facilitate faster and broader access for industrial companies and exporters to international markets. CEPAs are in place with Australia, New Zealand, India and Turkey. The GCC has also entered into several free trade agreements, including with Singapore, New Zealand and the countries of the European Free Trade Association. By the end of 2024, negotiations for additional agreements were under way with China, the EU, India, Japan and the UK.
Plans & Prospects
In May 2021 the MIAT launched Operation 300bn. The goal is to increase the UAE’s industrial sector contribution to GDP from Dh133bn ($36.2bn) to Dh300bn ($81.7bn) by 2031. The strategy targets 11 industrial subsectors, which are categorised into three high-growth areas: pharmaceuticals, electrical equipment and electronics; advanced manufacturing sectors such as machinery, petrochemicals and plastics; and future-focused industries including hydrogen, medical technology and space. At the core of the strategy is Make it in the Emirates, a campaign that actively encourages both local and international manufacturers to establish operations in the UAE. This initiative is coupled with efforts to localise research and development (R&D), and further enhance industrial standards, metrology and digitalisation.
An essential component of Operation 300bn is the Technology Transformation Programme (TTP), which supports the UAE’s journey through Industry 4.0. The TTP includes the Industrial Technology Transformation Index (ITTI), helping industries assess their overall digital transformation readiness, incorporating AI and developing necessary talent for future economies. Through partnerships with global tech companies and consultancies, the programme offers small and medium-sized enterprises (SMEs) free access to services, such as technology maturity assessments. Industrial businesses in Ajman are eligible to participate in these federal programmes, alongside the emirate’s strategic framework under Ajman Vision 2030 (see Profile).
Transformation Agenda
Ajman Vision 2030, developed by the General Secretariat of the Ajman Executive Council, outlines eight guiding principles, 30 objectives and numerous transformative projects – all of which seek to boost the emirate’s industrial growth. Ajman Vision 2030 prioritises sustainability, inclusion and future readiness, aiming to foster a competitive business environment and attract investment. The private sector is viewed as the key driver of growth, with particular emphasis on high-value-added and knowledge-based industries. The emirate’s strategic roadmap also focuses on attracting inward investment, human capital development and expanding trade infrastructure – including upgrades to the existing port and road networks. A significant project is the Al Zorah Seaport development, designed to increase the draught capacity for larger vessels, enhance trade volumes and improve Ajman’s position in global logistics, directly benefitting manufacturers in the region.
Digitalisation plays a central role in Ajman Vision 2030, enhancing the efficiency and transparency of government services while strengthening the digital capabilities of local businesses. These efforts align with broader initiatives to boost SME capacity, particularly in innovation, productivity and competitiveness. SMEs, which accounted for around 90% of businesses in Ajman in 2020, are crucial to the emirate’s future development. Additionally, Ajman Vision 2030 endeavours to expand exports and diversify trade, leveraging public-private partnerships to unlock new opportunities and further stimulate the region’s economic evolution.
Human capital development is a key priority in Ajman Vision 2030, with an emphasis on equipping the local workforce with the skills required for future industries, including AI, robotics and other high-tech sectors. The strategy seeks to position the emirate as a centre for R&D and innovation, contributing to the growth and preparedness of local industries for the future. Among its transformative initiatives is the creation of a government-owned investment authority designed to support strategic sectors, attract FDI, and provide backing for industrial and economic expansion.
In parallel, the Ajman Chamber has rolled out its strategy for the 2024-30 period, which complements the broader goals of Ajman Vision 2030. This blueprint focuses on four core objectives: fostering economic development and entrepreneurship, enhancing the competitiveness of local businesses, attracting investment and achieving financial sustainability. Additionally, the chamber aims to implement innovative practices and digital transformation in its services and operations, ensuring that the emirate’s business environment remains dynamic and forward thinking.
Performance
Non-oil growth has been a key driver of the UAE’s economic success, expanding by 4% y-o-y in the first quarter of 2024 and 4.8% in the second quarter of 2024. Manufacturing was the second-largest non-oil sector, contributing 11.6% to GDP, with growth rates of 1.9% y-o-y in the first quarter of 2024 and 2.4% y-o-y in the second quarter of the same year. Industrial exports saw a rise, increasing by 63% from 2020 to the second quarter of 2024, surpassing Dh190bn ($51.7bn). In December 2024 Osama Amir Mohamed Fadhel, assistant undersecretary for the industrial accelerators sector, reported that the industrial sector’s contribution to GDP had reached Dh205bn ($55.8bn), closing in on the Dh300bn ($81.7bn) target for 2031.
In January 2025 Sultan bin Ahmed Al Jaber, the minister of industry and advanced technology, announced that the industrial sector’s contribution to GDP had grown by 57% since the ministry’s creation in 2020. He praised the success of the Make it in the Emirates initiative, which had attracted Dh20bn ($5.4bn) in new industrial investment. Additionally, the National In-Country Value Programme had generated 2500 new jobs for Emiratis in advanced and service industries. At the same time, the ITTI had conducted assessments of over 500 factories across the UAE.
Ajman has also experienced significant growth in recent years. Preliminary data from the Ajman Statistics Centre indicates that the manufacturing sector’s contribution to GDP made a strong recovery following the Covid-19 pandemic, reaching 18.9% in 2023, a slight increase from 18.4% in 2022. Furthermore, the number of industrial establishments in the emirate grew by 3.8% y-o-y during the first half of 2024, with 800 entities registered by June, compared to 770 in the same period the previous year, according to data from the Ajman Chamber. Jamila Kajoor, director of member relations and support at the Ajman Chamber, attributed this positive growth to ongoing efforts to develop the industrial sector and the increasing appeal of Ajman as a prime location for investment.
Licensing
AJDED reported a 14% y-o-y increase in industrial and commercial licenses in the first half of 2024, with industrial licenses showing a 10% renewal rate – the highest among license types. At AFZ, FZAA reported an 18% y-o-y increase in net profit in the first half of 2024, with a 96% occupancy rate. The advanced technology subsector within AFZ also experienced robust growth, with a 21% increase in companies active in this area between 2020 and 2021.
To further support this progress, AFZ launched its AI Robotics Hub in October 2021, providing a one-stop shop for SMEs, entrepreneurs and R&D specialists. This aligns with both Ajman Vision 2030 and the UAE Strategy for AI 2031, aimed at establishing the UAE as a global AI centre. The hub signed agreements with Action to Action, AI Directions, Huawei Cloud, Nippon and the Project Management Institute to drive AI innovation. Additionally, Ajman University launched its AI Research Centre in June 2021 to help provide local expertise in this evolving technology.
Outlook
Sustainable development of new industries and modernisation of existing ones through technology and innovation is expected to drive Ajman’s economic growth. In line with this focus, the emirate’s Dh3.7bn ($1bn) budget, approved at the end of 2024, allocates significant resources to these objectives. About 20% is earmarked for economic development to strengthen local businesses and attract FDI, while 27% will support enhancing government services, particularly through digitalisation and process upgrades tied to industry.
Meanwhile, developments in transport infrastructure are set to enhance Ajman’s standing as a key trade centre. With a new, deeper water port in the pipeline, alongside upgrades to road and air networks, the emirate’s connectivity is poised to improve. The digitalisation of government licensing and permitting processes is also expected to attract more businesses to Ajman, complementing its reputation as a node for advanced technology industries. As the UAE’s economy continues to expand, with investment increasingly flowing beyond Abu Dhabi and Dubai, Ajman is well prepared to benefit from this shift. Moreover, the emirate’s focus on developing a highly skilled, AI- and digital-ready workforce is set to strategically position it for the next phase of the UAE’s economic transformation – which is set to move further into Industry 4.0 and beyond.
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