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Ajman Free Trade Zone – advantages and opportunities

Ajman-Free-Trade-Zone-advantages-and-opportunitiesThe Ajman Free Trade Zone was founded in 1988. In 1996, the Ajman Free Zone became autonomous decreed by His Highness Sheikh Humain Bin Raschid Al Nuaimi, the ruler of Ajman. The regulatory authority of Ajman Free Zone, the Ajman Free Zone Authority, is the main regulatory authority of the Free Trade Zone Ajman in the Ajman Emirate.

The establishment of the Free Trade Zone in 1996 ushered in an era of business growth in this Free Zone, thereby quadrupling the number of registered companies in the last 2 years.

Currently, a multi-million project with a size of more than a million square meters is being implemented for the space expansion and set up of more than 1500 companies.

The Ajman Free Zone has a strategically convenient location and is located next to Dubai and Sharjah, which enables the fast access to 2 international airports and 4 sea ports. The Ajman Free Zone meets more than 1000 cargo vessels per year.

Main commercial advantages

  • Strategically centralized location
  • Availability of raw materials
  • Reasonable operational expenses
  • Reasonable cost of office rent and plots of land
  • Low cost of living
  • Excellent business environment
  • Contemporary infrastructure

INDUSTRIAL GROWTH

The Ajman Free Zone has 256 industrial companies, which amounts to 20% of all industrial companies in UAE. The export of goods takes place to more than 65 countries worldwide.

The companies registered in Ajman are segregated in following categories:

  • Textile
  • Food products, soft drinks and tobacco
  • Wood
  • Paper
  • Chemical and plastic products
  • Metallurgy
  • Engineering and composites

FINANCIAL ADVANTAGES:

  • Low energy cost
  • Low cost of labor force
  • Full exemption of taxes on import and export of goods
  • Low operational costs
  • Low rental cost
  • Highly sophisticated infrastructure
  • The most reasonable tariffs in the whole region

CORPORATE ADVANTAGES:

  • 100% foreign ownership
  • 100% repatriation of capital and profit
  • Exemption from income tax
  • Exemption from tax on profit

The goods produced by companies with the National Industrial License in the Ajman Free Zone with a local partner holding 51% company’s stake, are entitled to obtain the “UAE Certificate of Origin”, which is the certificate issued by the Ministry of Trade of UAE. The customs duties are not levied in the adjacent GCC countries, provided the production value in Ajman is at least 40% from the total value of goods.

TRANSPORT

  • 2 international airports within 25 minutes from the Ajman Free Zone
  • Availability of sea ports: Ajman, Khorfakkan, Khalid, Rashid, all located within 35 minutes from the Ajman Free Zone.
  • Highways to Oman, Qatar, Bahrain, Saudi Arabia, Iran and Kuwait.

The Emirates adjacent to the Ajman Free Zone:

  • Sharjah 2km
  • Dubai 12km
  • Um-Al-Quain 21km
  • Ras-Al-Khaimah 70km
  • Fujeirah 120km
  • Abu Dhabi 180km

TYPES OF LICENSES

  • Trading license – for companies with trading activity in the Free Zone.
  • Industrial license – for companies with industrial activity in the Free Zone.
  • Professional/Service license – for companies with consulting activity in the Free Zone.
  • National Industrial License – for companies with a local partner holding 51% company’s stake and 40% of the total production process taking place in the Ajman Free Zone. This set up exempts a company from customs duties on export of goods to the adjacent GCC countries.

Amongst 35 Free Zones in UAE, the Ajman Free Zone is one of the few Free Zones in UAE providing an opportunity to register offshore and onshore companies. Other Free Zones which provide this opportunity: Jebel Ali and the Free Trade Zone in the RAK Emirate.

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