The UAE is central to global transport and logistics operations. Ajman’s proximity to the larger emirates of Dubai and Sharjah and the extensive transport facilities therein have made the emirate an increasingly popular place to live and invest among international investors in recent years. Ajman’s transport infrastructure includes an extensive bus network and direct connectivity to the new Etihad rail system. The emirate is also becoming a dynamic business, trade and logistics centre, with the unveiling of new public-private partnership (PPP) regulations in December 2022 signalling the government’s intention to work with private sector players to develop Ajman’s infrastructure. A continued focus on expanding the emirate’s road networks and with a new seaport and international airport in the offing, a strong pipeline of large-scale transport infrastructure development initiatives could see increased inflows of private finance enter Ajman in the coming years.
Structure & Oversight
The Ajman Transport Authority (ATA) oversees public transport in the emirate, which includes bus, taxi and abra (water taxi) services. The ATA also provides vehicle registration, driving licence issuance and renewal and vehicle permit services, most of which can be accessed through the Transport Authority app or the AjmanOne app. Digitalisation of services is a core component of the emirate’s drive to establish sustainable practices, as is promoting the use of public transport systems, with an increasing number of bus routes being established to connect the emirate’s main residential, commercial and recreational locations.
The Ajman Municipality and Planning Department (MPDA) is the primary government authority concerned with infrastructure development in the emirate, making it instrumental in the construction, maintenance and enhancement of transport systems and networks (see Construction & Real Estate chapter). The department’s efforts to formulate long-term urban planning strategies carry a central focus on improving road networks and implementing sustainable transport initiatives to help improve public services and logistics capabilities.
Developments
Ajman’s government is targeting the expansion of the emirate’s tourism offerings and increasing visitor numbers, and in June 2023 the ATA signed a memorandum of understanding with the Ajman Department of Tourism Development. By aligning their departmental strategies and goals, the two authorities will implement digital systems in transport and tourism facilities, while working closely to strengthen civil aviation networks and bilateral ties and agreements, with the overall goal of boosting activity in Ajman’s transport and tourism sectors.
The emirate’s Department of Ports and Customs (DPC) was formed in 2011 to regulate maritime and Customs activities in Ajman. The DPC works to boost Ajman’s international trade by adhering to international best practices and streamlining business processes. Implementing sustainable practices, supported by advanced technologies, throughout the maritime and Customs sector is central to its remit.
Daily operation of the emirate’s main commercial port, Ajman Port, is carried out by global terminal and logistics operator Hutchison Ports, which manages 53 ports across 24 countries. The DPC and Hutchison Ports Ajman work closely to improve and expand Ajman’s maritime trade. Both the DPC and Hutchison Ports headquarters are situated in Ajman Free Zone (AFZ), as is Ajman Port. Free Zones Authority of Ajman is therefore another influential entity in Ajman’s logistics activities and is central to attracting international and private investment into the emirate.
Etihad Rail regulates and manages the UAE rail network, the freight arm of which is complete and operational. Connecting the seven emirates by rail provides a boost to national transport and logistics capacities, and with the GCC’s most extensive national rail network, the UAE and Etihad Rail are integral components to the development of the GCC rail network, with recent progress seeing the formation of the GCC Railway Authority in June 2022.
The closest international commercial airports to Ajman are Sharjah International Airport (SIA) and Dubai International Airport (DIA), which are situated 10 km and 21 km from the capital city Ajman, respectively. The General Civil Aviation Authority oversees and regulates the UAE aviation sector, while the Dubai Civil Aviation Authority and the Department of Civil Aviation Sharjah oversee emirate-level aviation activities in line with federal initiatives and strategic goals.
Strategic Importance
The federal government’s We the UAE 2031 strategy presents a development roadmap for the country and its economy, setting milestones that should keep the UAE on course to meet the targets of long-term development plans such as the UAE Energy Strategy 2050. Multiple We the UAE 2031 goals, such as boosting non-oil exports, driving tourist trade and doubling GDP rely heavily on the development of national transport and logistics networks, systems and capabilities. According to the UAE’s Ministry of Energy and Infrastructure, the government invested Dh11.8bn ($3.2bn) in infrastructure development during the 2018-23 period, with Dh5.2bn ($1.4bn) spent on roads, dams and waterways. A number of the individual emirates are implementing their own transport-related strategies, and while Ajman has yet to formulate a specific transport strategy, Ajman Vision 2030 – its overarching development agenda – contains a strong focus on mobility, sustainable infrastructure development and strengthening business and logistics ecosystems. In 2023, 39% of Ajman’s Dh2.9bn ($789m) public spending budget was allocated to infrastructure development. Details of the 2024 budget are not available, but the announcement of the 2025 budget saw infrastructure again allocated 39% of a total budget of Dh3.7bn ($1bn). Additionally, a new trade and logistics zone, Ajman NuVentures Free Zone, launched in November 2024, while AFZ experienced 18% net growth in the first half of 2024, with the zone’s proximity to Ajman Port and the development of key road networks influential in attracting new companies. Multiple sustainable transport initiatives are under implementation in Ajman, and the ATA announced in October 2024 that Ajman’s public taxi fleet had been successfully overhauled and now comprises only eco-friendly vehicles (see analysis).
Performance & Size
The Covid-19 pandemic caused a decline in the UAE’s transport and storage sector, from Dh88.6bn ($24.1bn) in 2019 to Dh65.9bn ($17.9) in 2020. Since then, it has undergone significant annual expansion, with sector GDP climbing to reach Dh71.9bn (19.6bn) in 2021 and to Dh97.9bn ($26.6bn) and Dh117bn ($31.8bn) in 2022 and 2023, respectively. The UAE’s transport infrastructure construction market is projected by Indian market research firm Mordor Intelligence to witness compound annual growth of 5% for the 2025-30 period.
The value of non-oil exports dipped from Dh689bn ($188bn) in 2019 to Dh618bn ($168bn) in 2020, but by the close of 2023 had rebounded to over Dh1trn ($272bn). Notably, re-exports accounted for 24.9% of total export value in 2023. During the period 2019-23 re-export value grew from Dh457bn ($124bn) to Dh616bn ($168), representing 34.7% expansion.
Modest contributions to current GDP, ranging between 1.5% and 1.9%, during the 2019-24 period suggest Ajman’s transport and storage sector presents significant scope for expansion in the coming years. According to Ajman Statistics Centre, the value of certificates of origin issued in the emirate rose from around Dh5.3bn ($1.4bn) in 2019 to Dh7.5bn ($2bn) in 2023. Re-exports have accounted for the majority of the total value each year in that timeframe, with their value of Dh5.7bn ($1.6bn) in 2023 equating to 76.2% of the total. While total export growth over the period has been robust, there has been a dip in total export value from over Dh9.4bn ($2.6bn) in 2021 to around Dh7.5bn ($2bn) in 2023, presenting an opportunity for the authorities to identify strategies to strengthen and sustain export performance in the years ahead.
Roads & Bridges
As of July 2024 Ajman had over 1100 km of paved roads, according to the MPDA, with 17,029 vehicles registered with the ATA at that time. Enhancing Ajman’s road networks is integral to the government’s drive to boost logistics capabilities and improve the emirate’s business and trade ecosystems.
June 2024 brought the announcement that the MPDA had awarded contracts, at a combined cost of Dh101m ($27.5m), for the As Salam Corridor Improvement Project and the Sheikh Zayed Corridor Development Project to local infrastructure development firm Arabian Integrated Marine Services Group. The projects’ strategic goal is to improve interconnectivity between Ajman’s residential communities and traffic flow around Ajman Industrial Area. The As Salam development sees a stretch of road between Al Mowaihat roundabout and Ajman ring road expanded into a three-lane carriageway, while new service roads and space for parking will be added on either side of the road. The project was set to take 13 months upon announcement and is expected to cost around Dh48m ($13.1m). The Sheikh Zayed Corridor Development Project, located in the Al Helio area, once complete, will expand the existing road between Sheikh Mohammed bin Zayed road and the Ajman border road. It is also set to comprise three-lane carriageways in both directions, with supporting infrastructure being developed on either side of the corridor. It will cost Dh53m ($14.4m) and, at its launch, was expected to take one year to complete.
Furthermore, the MPDA announced in December 2024 that the construction of internal road networks in the Al Mowaihat and Al Rawda areas had been completed. The project saw 10 km of new roads laid in both areas, connecting residential areas with key pieces of infrastructure. The development is expected to stimulate construction projects and other economic activities along these new routes.
Rail
The Etihad rail network stretches from the UAE’s border with Saudi Arabia to its Indian Ocean coast in the emirate of Fujairah and is central to the UAE’s bid to promote sustainable transport solutions. As of December 2024 the network was solely used for freight, with cargo capacity expected to reach 60m tonnes by 2030. Phase one, developed in partnership between Etihad and Abu Dhabi National Oil Company became operational in 2016 with 264 km of track, connecting key inland mining and treatment sites with the seaport in Al Ruwais Industrial City. The remainder of the project was broken down into separate packages to stimulate competitive tendering, with the primary 1200-km network completed in February 2023 at a cost of Dh40bn ($10.9bn). An additional 256-km direct line between Abu Dhabi and Dubai has been in operation since March 2022.
The rail network passes through a range of geographical terrains, requiring the construction of 593 bridges and crossings and nine tunnels, which have a combined length of 6.5 km. The line connects 11 UAE cities and centres of trade, reducing travel time between Abu Dhabi and Dubai to 50 minutes and between Abu Dhabi and Fujairah to 100 minutes.
According to local media, the first two passenger stations will be placed in Fujairah and in Sharjah, and from there spread throughout the other five emirates. Spanish firm CAF is responsible for the manufacture, supply and maintenance of rolling stock for the passenger service, with trains designed to carry up to 400 passengers at maximum speeds of 200 km per hour and an anticipated annual capacity of 36m passengers once fully operational.
The Etihad rail network is designed to connect with the UAE’s light rail and urban transit networks and, eventually, to the proposed $15bn, 2117-km GCC Railway. Hafeet Rail, a joint venture established between Abu Dhabi sovereign investment entity Mubadala, Oman Rail and Etihad Rail, will oversee the development of a 230-km UAE-Oman railway, which will offer passenger and freight services between the two countries. The GCC railway project is scheduled for completion in 2030 and is expected to catalyse significant economic growth throughout the region.
Air
The UAE’s busiest and largest airport is DIA, with an annual passenger capacity of 115m, servicing 240 destinations and nearly 100 airlines. Total passenger throughput in 2023 reached 87m, a 31% jump from 66.1m the previous year, making it the second-busiest airport in the world. DIA is also among the world’s 10-busiest cargo airports, with an annual capacity of 3.3m tonnes. Freight volume for 2023 stood at 1.8m tonnes, 4.5% lower than in 2022.
Meanwhile, SIA has an official annual passenger capacity of 8m, but having handled in excess of 15m passengers during 2023, the facility is operating over capacity. Terminal expansion works designed to increase passenger handling capacity to a maximum of 25m by 2027, at a cost of Dh2.5bn ($681m), are under way. SIA processed 141,000 tonnes of cargo during 2023, while the 46,284 tonnes processed during the third quarter of 2024 amounted to 32% year-on-year growth over the same period of 2023, suggesting that significant full year expansion is likely.
Plans to build an international airport in Ajman date back to 2007. The proposed facility is designed with the capacity to process 1m passengers and 400,000 tonnes of cargo annually. The project was intended to herald the construction of a broader airport city complex, featuring hotels, restaurants and shopping malls – an approach that has grown in popularity since the pandemic, with developers keen to diversify revenue streams to mitigate the effects of potential economic shocks such as that experienced from 2020-22 during the health crisis. One article published at the original launch of the project masterplan in 2008 was re-issued in August 2024, suggesting that the project could see further development in the coming years.
Maritime
Over 60% of freight bound for GCC countries enters the region through UAE seaports. The country’s 12 commercial trade ports comprise 310 berths and total cargo capacity of 80m tonnes. Dubai’s Jebel Ali Port, which serviced around 14.5m twenty-foot-equivalent units (TEUs) during 2023, is the largest commercial port in the MENA region and the 11th-largest in the world. Abu Dhabi’s Khalifa Port was launched in 2012 and was MENA’s first semi-automated port and has a 7.8m TEU capacity. Khalifa Port replaced Zayed Port as Abu Dhabi’s primary cargo port, with the latter now geared towards cruise tourism. Mina Rashid Port in Dubai is another of the UAE’s key cruise ports. The UAE introduced new maritime regulation in 2023 – effective as of end of March 2024 – to better align the country’s international maritime trade activities with international best practices. Important features of the new law see increased protections for traders and more stringent vessel registration protocols introduced.
Ajman Port houses a 1250-metre quay and provides break bulk and roll-on/roll-off services. The launch of Ajman Vision 2030 brought the announcement that a new maritime port will be built in the emirate’s Al Zorah district. The development will significantly boost Ajman’s container-handling capabilities, enabling it to service larger vessels, and is an important component in the drive to boost trade and enhance the emirate’s business and logistics infrastructure.
Public marine transport comes in the form of traditional wooden boats, known as abras, providing an alternative means of passenger transport in Ajman. Four stations are located along the emirate’s coastline at Ajman Fish Market, Al Rashidiya, Al Zawra, Musherief and Safia. Large abras can hold 25 people, while smaller abras can accommodate 15 people.
Urban Transport
A significant announcement with regard to the government’s drive to embed sustainable transport practices and solutions came in October 2024 when the ATA announced that the emirate’s entire taxi fleet had been converted to ecofriendly vehicles. The number of taxi trips taken in Ajman has risen in recent years, with approximately 6.4m trips in the first six months of 2024, marking a 23% increase over the first half of 2023, which saw 5.2m trips. The number of passengers serviced by the Ajman taxi fleet peaked in 2019 at 29.5m. Notable growth has been recorded in the years since, with 18.9m taxi users in 2020 rising to 22.3m in 2023, and then 12.8m users in the first six months of 2024.
ATA bus services comprise the internal transport network, which operates inside Ajman’s borders, and the inter-city service, which operates routes between Ajman and sister emirates. The number of lines and buses in operation has dipped in recent years. In 2021 the internal transport network comprised nine lines and 26 buses, whereas in 2023 the corresponding numbers were six and 19, respectively. Five intercity routes ran from Ajman in 2021, one more than the four offered in 2023. Meanwhile, the number of inter-city buses fell from 16 in 2021 to 12 in 2023. Nevertheless, ridership increased over the same period from 1.9m in 2021 to 2.6m in 2023, an increase of 33.1%. Ajman housed 73 bus stops in 2020. By the close of 2023 that number had risen to 95.
Outlook
With federal-level regulatory upgrades and infrastructure development goals, the Ajman government’s focus on enhancing the emirate’s transport and logistics capabilities should enable the sector to contribute progressively more to GDP in the coming years. Such rapid expansion of Ajman’s transport infrastructure presents a challenge of balancing urban development and environmental sustainability, however. These challenges present significant opportunities for investment – particularly in leveraging PPPs, the expansion of Ajman’s road networks and a proposed seaport in the pipeline, which could further attract international financing and position the emirate as a key logistics destination in the region.
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