18% Business Growth in Ajman during 2018

May
13

Significant Recovery driven by Government Facilities and Investment-stimulating environment

Ajman DED announced the results of business licenses’ movement for the year 2018. The results showed a positive growth by 18% in issuance of new licenses, compared to the last year. Number of new licenses and renewed licenses have increased to 4831 and 25499, respectively. The DED attributes this increase to the robust local economy and investment environment attractiveness, as well as the several facilities provided by Ajman Government to investors and incentives awarded at local level, affirming its optimism that this positive growth would be maintained during 2019.

Commenting on the announcement of these results for the year 2018, H.E. Ali Eissa Alnuaimi, the DED Director General said: “the increase of movement of business licenses by 18% during 2018 proves the robust economy of the UAE in general, and the emirate of Ajman in particular. The local business environment has the capacity to attract investment due to the integrated legislative system that guarantees the rights of all parties, the easy government process, the adoption of the modern digital services which adapt to customer expectations, in addition to the availability of purchasing power factor and diverse investment opportunities, contributing to the strengthening of market recovery and high demand for all activities”.

Alnuaimi added” the DED always seeks to enhance the position of Ajman as an important destination for investment and business, through its endeavors to develop the economic performance and the provision of the best services to investors, in coordination with different government entities under the umbrella of 2021 Ajman Vision. The DED keeps pace with Ajman economic aspirations through its strategic vision towards a diversified and sustainable competitive economy based on knowledge and innovation by 2021, and through its strategic goals to support economic growth and encourage investment, develop the business conduct environment, promote commercial control and consumer protection; the goals which are integrated with each other in order to promote the leading role of the DED in the comprehensive and sustainable development in Ajman, and strengthen the competitiveness position of Ajman economy at regional and international levels”.

In his turn, Saoud Sultan Al Shamri, Director of Commercial Registration Department at the DED said: “in 2018, Ajman noticed a positive growth in business movement as a result of provision of more government facilities to investors. The increase of new licenses to 4831 is due to the high increase in professional licenses which noticed an increase by 32%, i.e. 3233, while the increase of the renewed licenses to 25499 is driven by the increase of renewed industrial licenses by 11%, i.e. 781 licenses, and the increase of professional licenses by 6%, i.e. 11764 licenses”. Al Shamri added: “these positive results were due to several incentives launched at federal and local levels including the decision to not increase federal government fees for three years, and facilities relating to the foreign investors’ residence and ownership, in addition to Federal-Law No. 19 of 2018 on Direct Foreign Investment which allowed foreigners and international companies to own 100% of business activities under specific conditions. At Ajman level, the Emiri Decision No. 1 of 2018 on amendment of DED Service Fees included important amendments which contributed to the reduction of business establishment costs. The said decision also exempted “Bidayat” licenses issued for UAE females doing business inside houses from all fees. In addition, the Emiri Decision No. 16 of 2018 exempted Ajman-based economic establishments with expired licenses up to 31 December 2017 from local fees and fines. These decisions, together with the facilities granted by the other government entities contributed to driving growth and promoting economic activity in Ajman”.

Most economic activities witnessed a high investor turn-out. However, buildings maintenance activity ranked first with 1137 new licenses issued in 2018, marking an increase of 60% as compared to 2017, followed by exterior cleaning services (building facades) activity which witnesses an eight times increase with 189 new licenses, as compared to 21 licenses during 2017. Interior design (décor) activity ranked third with 157 licenses, marking an increase of 59%, compared to 2017. For highly demanded areas during 2018, “Al Rawdha 3” came first with 381 new licenses and an increase of 99% , compared to 2017, followed by “Ajman Industrial 2” with 315 new licenses and an increase of 13% compared to the last year, then “Al Rawdha 2” with 314 licenses and an increase of 7% compared to 2017.

Masfout and Al Manama witnessed an increase in new licenses during 2018. 123 New licenses were issued in Masfout, marking an increase of 18%, while 84 new licenses were issued in Al Manama with 2.5% growth, compared to 2017.

As for the most activities in the renewed licenses, buildings maintenance activity ranked first, with 2244 licenses during 2018, followed by buildings projects contracting activity with 810 licenses, and then women tailoring with 798 licenses.

On the other hand, a total of 52739 economic permits were released during 2018, marking an increase of 19%, compared to the previous year. Such permits include the trade name boards, economic establishment billboards, permits for product distributions and promotional campaigns, etc.

DED Initiatives and efforts during the last year contributed to promoting the growth and attracting more investors, through focusing on facilitating the business setup process. The DED developed the authorized agent system, outsourcing several DED services to private centers, according to specific conditions and requirements that guarantee the service quality. The economic licensing services were outsourced to four centers providing services on morning and afternoon shift basis and subject to the distinguished service standards for customer happiness. Further, “Start your business in 15,” project was launched in collaboration with Telecommunications Regulatory Authority. This service allows investors to set up companies through e-platform within few minutes using private, easy and safe procedure. In addition, the DED achieved 100% digital transformation and launched the first stage of “One Window” Project which integrates the procedures and approvals of different government entities in charge of economic licensing in one uniform and integrated electronic system. The DED works on finalizing this project in collaboration with federal and local entities during the current year. All these projects, initiatives and efforts aims to provide distinguished services for an easy business setup process and to promote Ajman competitiveness position.

According to its competencies and axial roles in Ajman, the DED’s tasks consist in the sustainable economic development, adoption of the policies of transformation to the green economy, the organization of the economic affairs and re-energizing the business sector in the emirate through adopting integrated policies and legislations, and setting up sound plans to ensure the optimal use of material and human resources available in the emirate. The DED also provides the commercial protection and control of economic establishments and activities according to the legislations in force in UAE and Ajman, and seeks to promote the promising investment opportunities existing in Ajman and stimulate high-value added economic activities, with a view to achieving the high competitiveness and leadership levels on local, regional and international economic map. According to Ajman Strategy till 2021, the DED focuses on five main sectors: industry, tourism, transport and supply, outsourcing and media. The current year witnesses continuing efforts towards continuous growth and positive results that promote the economic position of the emirate and contribute to the community happiness.



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