Department of Economic Development

ANNUAL
ECONOMIC
REPORT
Ajman 2013

Contents
INTRODUCTION

1
9

15

GROWTH OF THE GLOBAL ECONOMY

ECONOMIC GROWTH OF THE UNITED ARAB EMIRATES

ECONOMIC GROWTH IN THE EMIRATE OF AJMAN

(MACRO LEVEL)

19

GROSS FIXED CAPITAL FORMATION

23
27

41

PRICES
FOREIGN TRADE

SECTORAL ECONOMIC GROWTH

Business Activity
Manufacturing
Construction and real estate
Tourism
Financial sector

Introduction
The Annual Economic Report of the Emirate of Ajman
aims at monitoring and analyzing economic indicators,
data and statistics relating to the Emirate of Ajman to
serve the business community, investors, researchers
and decision-makers.
It reviews the general features of the global economic
growth and the main indicators of economic growth at
the level of the United Arab Emirates. Then deals with
economic growth at the macro level and sector wise in
the Emirate of Ajman . The report focuses on presenting
the performance of the macroeconomic indicators of
GDP , gross fixed capital formation, prices and foreign
trade. At the sectoral level, the report considers the
growth of business activity, manufacturing industries,
construction and real estate, tourism and the financial
sector.

GROWTH OF
THE GLOBAL
ECONOMY

Growth of the
global economy
Although five years have passed since the start of global
economic crisis, but the global economy is still suffering
from the slow and weak economic growth under
situations fraught with many risks and challenges.
As Global GDP fell to 3.2% in 2012 compared to 3.92%
in 2011 as a result of the slow growth in the advanced
economies and the economic recession in the Euro
zone and the United Kingdom. Also the growth in
the economies of the emerging and the developing
countries slowed down, likewise the economies of

Latin America ,the Caribbean and sub-Saharan Africa

also experienced slow growth .
The following table reflects the drop in the growth
of the economies of the regions and countries listed
below during the year 2012 compared to 2011 with
the exception of the United States, which witnessed
a slight increase in GDP from 1.8% to 2.3% and Japan
from - 0.6% to 2% and the Middle East and North Africa
from 3.5% to 5.2% during the same period.

The growth of the global economy (2011- 2014)

Table (1)

2011

2012

2013

2014

World output

3.9%

3.2%

3.5%

4.1%

Advanced economies

1.6%

1.3%

1.4%

2.2%

United States Of America

1.8%

2.3%

2%

3%

Euro zone

1.4%

-0.4%

-0.2%

1%

Germany

3.1%

0.9%

0.6%

1.4%

France

1.7%

0.2%

0.3%

0.9%

Italy

0.4%

-2.1%

-1.0%

0.5%

Spain

0.4%

-1.4%

-1.5%

0.8%

Japan

-0.6%

2%

1.2%

0.7%

United Kingdom

0.9%

-0.2%

1%

1.9%

4%

1.8%

3.2%

3.9%

6.3%

5.1%

5.5%

5.9%

Central and Eastern Europe

5.3%

1.8%

2.4%

3.1%

Independent Commonwealth States

4.9%

3.6%

3.8%

4.1%

Newly industrialized Asian

economies
Emerging and developing
economies

Russia

4.3%

3.6%

3.7%

3.8%

Asian developing economies

8.1%

6.6%

7.1%

7.5%

China

9.3%

7.8%

8.2%

8.5%

India

7.9%

4.5%

5.9%

6.4%

Latin America and the Caribbean

4.5%

3%

3.6%

3.9%

Brazil

2.7%

1%

3.5%

4%

Mexico

3.9%

3.8%

3.5%

3.5%

Middle East and North Africa

3.5%

5.2%

3.4%

3.8%

Sub-Saharan Africa

5.3%

4.8%

5.8%

5.7%

Source: International Monetary Fund: (World Economic outlook , January 2013)

The USA achieved a modest growth rate during the

year 2012 caused by the continued fiscal austerity
policies and the lack of confidence and the weakness
of the household financial position . While the Euro
zone in general has suffered the economic recession
in 2012, especially in Italy, Spain and UK which
registered negative growth rates, and the rest of the
region recorded very low growth rates due to the
contractionary fiscal policies and the weak financial
conditions resulting from the sovereign debt crisis. As
for Japans economy, it recovered from the recession
in 2012, and realized growth reached 2% as a result
of increased expenditure on reconstruction after the
earthquake incident and the measures taken by the
government to enhance private consumption.
Economic growth in the emerging economies and the
developing countries slowed down in 2012 compared
to 2011, especially in the Asian developing countries
due to the decline in exports and due to structural
challenges facing economic growth in India and China.
Whereas India suffers from inflationary pressures and
from budget deficit. According to forecasts by the
International Monetary Fund (IFM), the performance of
the global economy will improve during 2013 compared
to 2012 and global GDP is expected to achieve a growth
rate of 3.5%, since the policies and measures that have
been implemented have mitigated the debt crisis in the
Euro zone and reduced the risk of the implementation
of the restrictive fiscal policies and their adverse impact
on growth. Even though, the global economy still faces
a range of challenges , the most important of which is
the high rates of unemployment, the risk of sovereign
debt.

,then to 4.1% in 2014. The International Monetary Fund

forecasts indicates a continuation of the economic
recession in the Euro zone during 2013 with possibility
to recover by 2014. Global growth is mainly driven
by the emerging economies and the developing
countries, especially China and India, as well as the
United States during 2013 and 2014 . However the
economic performance of the emerging economies
and developing countries will be affected in turn by
the poor performance of the developed economies
through the mechanism of external demand and the
terms of trade for commodity exporters.
As for the developed economies , they also suffer
from a range of challenges that included , high rates
of unemployment , weak aggregate demand, high
sovereign debt and its implications, fragile banking
sector, weak private sector finance due to the economic
crisis and fiscal imbalances that led to the adoption
of austerity measures and programs as well as the
contraction in foreign trade and the low and slow
economic growth.
Risks stemming from challenges combined to limit
the growth of the global economy. Also the economic
difficulties faced by advanced economies affect the
developing and emerging economies through trade
and financial channels by the mechanism of weak
aggregate demand for exports and the high volatility of
capital flows and commodity prices.
An important challenge is the high rate of
unemployment in the developed economies, especially
in the Euro zone and the United States, registering a
rate of about 8%, on average, as shown below:

The global GDP is expected to grow to 3.5% in 2013

3

The current and projected unemployment rates

in the developed economies(2011 -2013)
Table (2)
ECONOMIES

2011

2012

2013

Advanced economies

7.9%

8%

8.1%

9%

8.2%

8.1%

10.2%

11.2%

11.5%

4.6%

4.5%

4.4%

8%

8.1%

8.1%

Canada

7.5%

7.3%

7.3%

Other advanced economies

4.5%

4.5%

4.6%

United States of America

The Euro zone (Europe)
Japan
United Kingdom

Source: International Monetary Fund: (World Economic outlook , January 2013)

Figure (1) Current and projected unemployment

rates in the developed economies(2011- 2013)

14%
12%
10%
8%
6%
4%
2%
0%

Advanced United States The Euro zone

economies
of America
(Europe)

2013

8.1 %

8.1 %

11.5 %

Japan

4.4 %

United
Kingdom

8.1 %

Canada

Other
advanced
economies

7.3 %

4.6 %

2012

8%

8.2 %

11.2 %

4.5 %

8.1 %

7.3 %

4.5 %

2011

7.9 %

9%

10.2 %

4.6 %

8%

7.5 %

4.5 %

The unemployment rate increased significantly and is

expected to reach about 12% by the end 2013 in the
Euro zone, which account for a large proportion of the
global economy, especially in Spain and Greece, where
unemployment affected one quarter of the workforce
and more than half of the youth are unemployed . While
the rate of unemployment declined in a few countries
within the Euro zone such as Austria, Germany,
Luxembourg and the Netherlands. The U.S. economy,
which in turn constitutes a significant weight in the
global economy, suffers as well from unemployment
with a rate exceeded 8% in 2012. Rising unemployment
is the main obstacle facing the recovery of the global
economy through curtailing wage growth hence

resulting in low consumer demand and weak aggregate

demand , adversely impacting business confidence,
increasing the ratio of non-performing. Loans and the
vulnerability of the financial sector thus impeding the
process of global economic recovery.
The UNs World Economic Situation and prospects
2012 report stated that if the global economic growth
continued at the rates expected in 2013 at the current
policies , the United States and Europe will require
about 5 years to compensate for the loss of jobs
imposed by the global crisis. This fact is illustrated by
comparing the size of the gap in jobs against the rate of
jobs before the crisis in 2007, as set out below:

Figure (2) Deficit in jobs, compared with rate of jobs in 2007

60%
50%
40%
30%
20%
10%
0%
-10%
-20%

Deficit in jobs,
compared with rate of
jobs in 2007 (Million)

2011
48 %

2012

2013

45.5 %

28.5 %

2014
9.8 %

2015
-12.1%

Source: Unite Nations : (World Economic Situation and prospects 2012)

Out of the most important problems facing the growth

of the global economy, is also the problem of sovereign
debts. The ratio of government debt to gross domestic
product (GDP) increased in many regions of the world

and is expected to continue rising .This ratio ranged

between 73 -77% on average in the Euro zone and the
United States in the years 2011 2012 successively, as
shown below:

Ratio of Government debt to GDP (2011- 2015)

Table (3)

Countries and Regions

2011

2012

2013

2014

2015

United States of America

76%

77%

76%

74%

72%

Europe

72%

74%

75%

74%

74%

Japan and other developed

countries

137%

135%

134%

132%

130%

China and India

23%

21%

20%

20%

19%

Commonwealth and Western

Asia countries

36%

38%

38%

37%

36%

Other develope countries

34%

35%

35%

35%

35%

Source: United Nations: (World Economic Situation and prospects 2012 )

Figure (3) Ratio of Government debt to GDP (2011- 2015)

160

2011
2012

140

2013
2014

120

2015

100
80
60
40
20
20

United States
of America

Europe

Japan
and other
developed
countries

The problem of Sovereign Debts grew within the

framework of the financial rescue programs for banks
following the burst of the real estate crisis, which led to
the conversion of private debt into sovereign debt. The
reasons behind the debt problem were due to several

China and
India

Commonwealth
and Western Asia
countries

Other
develope
countries

factors including the globalization of finance, the ease

in lending terms, the global financial and real estate
crisis and the implemented fiscal policies . The problem
of sovereign debt has exacerbated in the Euro zone
following the inability of many countries in the region for

repayment or refinancing, which posed a high spread

risk , especially for the European banking sector, which
holds a large proportion of such sovereign debt. By the
end of 2012, five of the 17 EU member states requested
help being affected by the sovereign debt crisis. The
European Union has adopted a set of economic policies
and financial measures to address the financial crisis
which included the program of the European financial
stability facility and the European financial stabilization
mechanism and economic reforms, that aimed at
regulating banks and providing them with direct loans.
The European Central Bank intervened to reduce the
interest rate and provided more than a trillion Euros
in a form of low-cost loans to enhance financial flows
between European banks.

the crisis and minimized the risk of its spreading

throughout the countries of the Euro zone. In spite
of this still the sovereign debt problem constitutes
a challenge facing the prospects to enhance global
economic growth at higher rates to realize , economic
recovery .
The implications of the economic policies pursued by
the major countries to tackle fiscal imbalance form an
obstacle to global economic recovery and growth. Most
of the major countries that determine the evolution
of the global economy are facing fiscal imbalance in
the form of rising budget deficit to GDP ratio during
the last period which is expected to prevail until 2015,
especially in the United States and the Euro zone as
shown below:

The measures adopted have succeeded in mitigating

Figure (4): Budget deficit as a

percentage of GDP( 2011- 2015)
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%

United States
of America

Europe

Japan and other

developed
countries

China and
India

Commonwealth
and Western Asia
countries

Other develope
countries

2011

-11%

- 6%

- 8.2%

- 3.2%

- 0.5%

- 2.2%

2012

-10.1%

- 6.8%

- 7.5%

- 3%

0.9%

- 2.4%

2013

-9.1%

- 6.5%

- 6.6%

- 3.4%

1.6%

- 2.4%

2014

-8.2%

- 5.9%

- 5.8%

- 3.4%

1.9%

- 2.5%

2015

-7.2%

- 5.4%

- 5%

- 3.4%

2.1%

- 2.4%

The United States followed contractionary fiscal

policies to address the budget deficit, but that had a
negative impact on economic growth, which led to a
reduction in the aggregate demand and higher rates
of unemployment and lowered business and consumer
confidence and adversely affected the real estate sector
by increasing mortgages foreclosures and in turn

impacted the banking sector. In addition to the above

challenges facing advanced economies, the developing
economies, especially China, are suffering from internal
problems that include weak demand for investment
, shortage of finance in some economic sectors and
a surplus productive capacity in other sectors .Risks
are envisaged in the potential sharp slowdown in
7

the developing economies that led global economic

growth especially China.
Under the situation of the slow growth of GNP in
developed economies, weak private demand and high
unemployment , more caution has to be taken towards
the continued implementation of contractionary fiscal
policies which will jeopardize global economic growth
and delay economic recovery . In order to speed up
economic recovery global focus should be made on
adopting more policies and measures that stimulate
economic and create jobs.

The policies enhancing the growth of the global

economy and accelerating the process of recovery
include strengthening the financial safetynets to face
debt risks, adopting reforms in the global financial
market and coordinating monetary policies at the
global level in order to stabilize exchange rates and
capital flows. Some global institutions forecasts indicate
that the failure to boost economic growth and to
overcome the problem of unemployment in the United
States and the sovereign debt crisis in Europe may pave
the way for a prolonged economic stagnation.

ECONOMIC
GROWTH IN THE
UNITED ARAB
EMIRATES

Growth of the Global Economy

GDP , at constant prices , in the United Arab Emirates, rose from AED 930.475 million in 2009 to AED 1025623 million
in 2012 an average annual growth rate of 3.3% as shown in the following table:

Gross Domestic Product (GDP) at constant 2007 prices

by economic sectors Million Dirham (2009 -2012)

Table (4)

2009

2010

2011

2012

Average
annual
growth
2009 2012

855,791

871,390

907,214

942,91

3.3 %

90 %

8,210

7,346

7,358

7,398

3.4 %

0.7 %

Extractive industries:

287,798

298,845

318,397

338,279

5.5 %

33 %

Crude Oil and natural gas

284,893

295,793

315,410

335,279

4.2 %

8.9 %

* Quarrying

2,904

3,052

2,987

2,993

- Manufacturing industries

81,021

83,154

90,710

91,764

- Electricity , gas & water

22,966

23,663

26,458

28,007

6.8 %

2.7 %

- Construction

106,213

105,426

102,763

102,849

- 1.0 %

.10 %

- Wholesale, retail trade

124,861

127,437

127,587

128,396

0.9 %

12.5 %

- Restaurants and hotels

17,516

17,487

18,799

19,482

3.6 %

1.9 %

87,605

88,256

91,079

93,279

2.1 %

9%

61,285

61,672

62,915

63,021

0.9 %

6%

* Telecommunications

26,320

26,584

28,164

30,258

4.8 %

3%

- Real estate and business services

99,033

98,790

101,747

108,148

3.0 %

10.5 %

Economic Activity/Year
Non-financial corporations sector
Agriculture, Livestock and Fisheries

- Transport, storage and

communications
* Transport, storage and other

Relative
contribution
(2012)

communications

10

2009

2010

2011

2012

AVERAGE
ANNUAL
GROWTH
2009 2012

-Social and Personal Services

20,569

20,984

22,316

25,316

7.2 %

2.5 %

Financial corporations sector

69,148

64,700

67,447

71,483

1.1 %

7%

Government services sector

44,080

49,697

51,628

56,397

8.6 %

5.5 %

-Domestic services of house holds

3,868

4,106

4,383

4,515

5.3 %

0.4 %

Less: Imputed bank services

42,412

43,871

47,947

49,682

Total

930,475

946,021

982,725

1,025,623

3.3 %

100.0

Total sectors except crude oil

645,582

650,226

667,316

690,344

2.3 %

67 %

Economic Activity/Year

RELATIVE
CONTRIBUTION
(2012)

Source: National Bureau of statistics

The oil and gas sector, which form about 33% of

the gross domestic product (GDP) in 2012 grew by
annual average of 5.5% during the period 2009 -2012,
while growth in the non-oil sectors slowed down , to
an annual average of 2.3% during the same period.
The non-oil sectors accounted for about 67% of the
total GDP in 2012, reflecting the effectiveness of the
economic diversification policies adopted by the UAE
. The wholesale and retail trade and repairing services
sector contributed about 13% of the GDP in 2012,
followed by real estate and business services about
,11% and construction sector 10% and the contribution
of the transport & storage and the manufacturing

industries sectors amounted to about 9% each while

the financial corporations sector contributed 7%.
The services sector achieved the highest growth during
the period 2009- 2012 where its annual average reached
9% for government services and 7% for social and
personal services, while the electricity sector recorded
about 7% and growth retreated at an average annual
rate of -1% in the construction sector and -3.4% in the
agricultural sector during the period 2009- 2012. The
transport, storage, trade and real estate sectors have
recorded annual growth rates below the overall average
during the same period.

11

Gross Fixed Capital formation in the

United Arab Emirates(Million Dirham)
Gross fixed capital formation in the UAE grew by annual average of (about 5%) during the period 20092012-, rising
from AED 269,224 million in 2009 to (309 173) in 2012, as shown below:

Gross Fixed Capital formation by economic

sectors in the UAE, 2009- 2012

Table (5)

2009

2010

2011

2012

Average
annual
growth
2009 2012

206,937

215,873

234,154

257,185

7.5 %

83 %

918

775

837

927

0.3 %

0.3 %

Extractive industries:

38,078

38,047

30,480

34,261

- 3.5 %

11 %

Crude Oil and natural gas

37,826

37,690

30,111

33,875

-3.6 %

10.9 %

252

357

369

386

15.3 %

0.1 %

- Manufacturing industries

35,695

40,336

40,809

45,583

10.6 %

14.7 %

- Electricity , gas & water

28,272

22,736

22,575

42,336

- 4.9 %

7.9 %

- Construction

11,438

13,718

11,965

12,503

3%

- Wholesale, retail trade

10,396

12,340

12,817

13,548

9.2 %

4.4 %

- Restaurants and hotels

4,661

4,097

4,270

4,847

1.3 %

1.7 %

29,754

32,068

44,421

49,974

18.9 %

16 %

24,845

28,636

37,382

42,656

19.7 %

13.8 %

* Telecommunications

4,909

3,432

7,039

7,609

15.7 %

2.5 %

-Real estate and business services

41,911

43,190

52,086

55,159

9.6 %

17.8 %

-Social and Personal Services

5,814

8,567

13,893

16,046

40.3 %

5%

Financial corporations sector

5,011

7,472

5,298

5,695

4.4 %

1.8 %

Government services sector

57,776

39,230

42,238

46,293

- 6.7 %

15 %

Total

269,224

262,575

281,690

309,173

4.7 %

Economic Activity/Year
Non-financial corporations sector
Agriculture, Livestock and Fisheries

* Quarrying

- Transport, storage and

communications
* Transport, storage and other

Relative
contribution
(2012)

4%

communications

12

Source: National Bureau of statistics

Gross fixed capital formation in the social and personal

services sector achieved the highest growth rate
which amounted to an annual average of 40%, rising
from AED 5,814 million in 2009 to AED 16046 million
in 2012. Investment in the transport, storage and
communications sector grew at an average annual
rate of about 20% during the period 2009 - 2012 while
in the manufacturing, real estate and trade sectors
(wholesale , retail and repairing services) 11%, 10% and
9% respectively, during the same period.
The growth in gross fixed capital formation registered
negative rates in the oil, gas, electricity and government

services sectors during the period 2009 - 2012 giving

annual averages of -3.5% ,- 4.9% and - 6.7% respectively.
Investment in the construction, financial services,
restaurants and hotels sectors, has grown at an average
annual rate lower than the overall average of 5%.
The extractive industries sector (oil, gas and quarrying)
accounted for 11% of gross fixed capital formation
in 2012. 64% of total investment was concentrated in
four economic diversification sectors , These included
the real estate sector 18%, transport and storage 16%
and 15% in each of the manufacturing and government
services sectors.

Prices
The overall consumer price index in the United Arab Emirates rose from 116.51 in June 2012 to 117.98 in June 2013,
registering a rate of inflation of 1.25% by the end of the first half of 2013, as reflected in the following table:

Indices of Consumer Prices and inflation rates for

the United Arab Emirates June 2012 June 2013

Major expenditure groups

June 2012

June 2013

Table (6)
Inflation rate%

Consumer price Index

116.51

117.98

1.25 %

Food and soft drink

135.51

140.46

3.66 %

Beverages and tobacco

123.33

144.66

17.29 %

Textile, Clothing and footwear

108.60

109.23

0.57%

Housing,

107.89

108.19

0.28%

Furniture & household goods

125.47

127

1.22%

Medical care

106.94

107.55

0.57%

Transportation

118.96

120

0.88%

Communications

98.16

98.13

-0.3%

Recreation and culture

114.09

115.53

1.27%

Education

136.92

145

5.90%

Restaurants and hotels

138.79

139.90

0.80%

Miscellaneous goods and services

123.64

123.07

-0.46%

Source: National Bureau of statistics

13

The prices of food and soft drink increased over the last
twelve months and the other beverages and tobacco
group has recorded the highest inflation rate of 17.3%
where the consumer price index rose from 123.33 in
June 2012 to 144.66 in June 2013. The index for food
and soft drink rose from 135.51 in the first half of 2012
to 140.46 during June 2013 and the rate of inflation
for this group reached 3.6%. Also the price index for
Education group rose from 136.92 in June 2012 to
145in June 2013 at an inflation rate of about 6%.The

Price index for most of the major expenditure groups

have increased at varying rates with the exception
communication and miscellaneous goods and services
groups , which witnessed a slight drop in prices.
The Price level in the UAE is expected to rise during
the period 2014 - 2016 according to the forecast of the
National bureau of Statistics, as shown in the following
table:

Price forecast in the United Arab Emirates(2014 -2016)

Year

2014

2015

The consumer price index

119.27

119.27

122.76

% Inflation rate

1.11%

1.11 %

1.50%

Source: National Bureau of statistics

14

Table (7)
2016

ECONOMIC
GROWTH IN THE
EMIRATE OF AJMAN
(MACRO LEVEL)

Gross Domestic Product

The GDP at current prices , for the Emirate of Ajman increased at annual average rate of 4% during the period
2010 - 2012 as it rose from AED 14288 million in 2010 to AED 15460 million in 2012 as reflected in the following
table:

GDP by economic activities at current prices for the

Emirate of Ajman(Million Dirham) ( 2010- 2012 )

Table (8)

Economic Activity/Year

2010

2011

2012

Average annual
growth
2009 - 2012

Non-financial corporations sector

12924

13456

13962

3.9%

90.3%

Agriculture, Livestock and Fisheries

212

213

199

-3 %

1.3%

Manufacturing Industries

5153

5420

5681

5%

36.7%

Electricity gas and water

362

378

395

4.5%

2.6%

Construction

2135

2194

2271

3%

14.7%

1859

1915

1974

3%

12.8%

320

337

348

4.3%

2.3%

830

887

917

5.1%

5.9%

Real estate and business services

1644

1675

1714

2%

11%

Social and personal Services

409

446

463

6.4%

3%

Financial corporation sector

629

651

681

4%

4.4%

Government services sector

912

953

997

4.6%

6.4%

177

177

180

14288

14892

15460

4%

Wholesale, retail trade and repairing

services
Restaurants and hotels
Transport, storage and
communications

Domestic services of households

Less: Imputed banking services
Total
Source: National Bureau of statistics
* Preliminary forecasts

Relative
contribution
(2012)

100%

GDP of the Emirate of Ajman is composed of five major

sectors that contributed about 82% of the total value
added in 2012. The manufacturing sector comes at the
forefront of the key economic sectors where its relative
contribution amounted to about 37% of the value of
GDP in 2012.
The construction sector contributed about 15% of the

total value of GDP in 2012, followed by wholesale , retail

trade and repairing services which accounted for 13%
in the same year.
The relative share of the real estate and business
services amounted to 11% while the transport, storage
and communication sectors contributed about 6% of
the value of GDP in 2012.

Figure (5) :The structure of GDP for the Emirate of Ajman (2012)

4.4% 6.4%
3%
11%

Non-financial corporations sector

5.9%

Agriculture, Livestock and Fisheries

2.3%

Manufacturing Industries
Electricity gas and water

12.8%

Construction

90.3%

Wholesale, retail trade and repairing services

Restaurants and hotels

14.7%

Transport, storage and communications

Real estate and business services

2.6%

Social and personal Services

Financial corporation sector
Government services sector

36.7%
1.3%

The various economic sectors grown at convergent rates

during the past three years and a range of sectors has
recorded higher growth rates than the overall average
these include: the social services sector with an average
annual growth rate of 6.4%, government services 4.6%,
the manufacturing sector 5% , the electricity and gas

sector 4.5% and the tourism sector (Restaurants and

hotels) 4.3% during the same period. Growth in the
construction, trade (wholesale, retail and repairing
services)and real estate sectors fell below the overall
average registering annual growth rate in the range of
2% to 3% during the period 2010- 2012.

17

18
-3%
3%
4%
4.6 %

Total

5.1 %

Government services sector

4.3 %

Financial corporation sector

Social and personal Services

Real estate and business services

Transport, storage and communications

4.5 %

Restaurants and hotels

3%

Wholesale, retail trade and repairing services

3.9 %

Construction

5%

Electricity gas and water

Manufacturing Industries

Agriculture, Livestock and Fisheries

Non-financial corporations sector

Figure (6) Average annual growth of GNP in the Emirate of

Ajman per economic activities (Million Dirham) (2010- 2012)
6.4 %
4%

2%

GROSS FIXED
CAPITAL
FORMATION

Gross fixed capital formation

Total gross fixed capital formation in the Emirate of Ajman increased by annual average rate of 3.6% during the
period 2010 - 2012, rising from AED 3,391 million in 2010 to AED 3638 million in 2012 as shown in the following
table:

Gross fixed capital formation for the Emirate of

Ajman(Million Dirham) (2010 -2012)

Economic Activity/Year

2010

2011

2012

Average annual
growth
2009 - 2012

Non-financial corporations sector

2817

2923

3019

3.5%

83%

Agriculture, Livestock and Fisheries

21

21

21

0%

0.6%

Manufacturing Industries:

422

442

463

4.8%

12.7%

Electricity gas and water

470

491

513

4.5%

14%

Construction

109

112

116

3.2%

3.2%

162

167

172

3%

3.2%

91

96

99

4.3%

4.7%

107

120

124

7.7%

3.4%

Real estate and business services

1195

1218

1246

2%

34.2%

Social and personal Services

240

256

265

5%

7.3%

Financial corporation sector

0%

0.2%

Government services sector

565

584

610

3.9%

16.8%

Total

3391

3516

3638

3.6%

100%

Wholesale, retail trade and repairing

services
Restaurants and hotels
Transport, storage and
communications

Source: National Bureau of statistics

* Preliminary forecasts

20

Table (9)
Relative
contribution
(2012)

Transport, storage and communications sector

achieved the highest growth rate in gross fixed capital
formation, registering an annual average rate of about
8% during the period 2010 - 2012, rising from AED 107
million in 2010 to AED 120 million in 2012. Investment

has grown at an average annual rate in the range

of 3.9% -5% during the period 2010 - 2012 which
was higher than the overall average of 3.6% in each
of the manufacturing , electricity, tourism, social and
government services sectors .

Figure (7): Average annual growth of Gross fixed capital formation for
the Emirate of Ajman (Million Dirham) (2010- 2012)

7.7 %

4.8 %

5%

4.5 %

3.5 %

4.3 %
3.2 %

3.9 %

3%

3.6 %

On the other hand , investment (fixed capital formation)

remained unchanged in the financial and agricultural
sectors, while it grew at an average annual rate lower
than the overall average which ranged between 2% to
3.2% during the period 2010 - 2012 in the construction,
trade (wholesale, retail and repairing services)and
real estate sectors. The sectoral distribution of gross

Total

Government services sector

Social and personal Services

Real estate and business services

Transport, storage and communications

Restaurants and hotels

Wholesale, retail trade and repairing services

Construction

Electricity gas and water

Manufacturing Industries

Non-financial corporations sector

2%

fixed capital formation indicates that investment is

concentrated by more than 50% in real estate and
government services sectors . Investment in the real
estate sector constituted 34.2% of total investment
whereas government services which includes spending
on health and education accounted for about 17% .

21

Figure (8): Average annual growth of Gross fixed capital formation

for the Emirate of Ajman(Million Dirham) (2010- 2012)

0.002%
0.073%

0.168%
Non-financial corporations sector
Agriculture, Livestock and Fisheries
Manufacturing Industries
Electricity gas and water

0.342%

0.83%

Construction
Wholesale, retail trade and repairing services
Restaurants and hotels
Transport, storage and communications

0.034%
0.047%
0.032%
0.032%

Real estate and business services

Social and personal Services
Financial corporation sector

0.14%

0.127%

0.006%

Electricity , gas and water sector accounted for 14% of the total gross fixed capital formation in 2012, while the
share of the manufacturing sector was 12.7%. About 78% of total investment in 2012 was concentrated in real
estate and government services, electricity and manufacturing sectors .

22

PRICES

Prices
The overall consumer price index in the Emirate of Ajman increased by 3.47% from 118.07 in 2011 to 122.18 in
2012, as shown below:

Indices of consumer prices and rates of change

in the Emirate of Ajman (2011 -2012)

Major expenditure groups

Table (10)

2011

2012

Consumer price index

118.07

122.18

3.47%

Food and soft drinks

140.88

152.87

8.51%

Textile , Clothing and footwear

101.12

109.18

7.98%

Housing, water, electricity and gas

110.02

111.96

1.76%

Furniture and Household goods

123.17

127.50

3.52%

Health Services

105.10

108.18

2.93%

Transportation Services

118.82

119.43

0.51%

Communications

106.68

106.20

- 0.45%

recreation and cultural goods and

95.03

97.79

2.91%

Education

106.70

112.86

5.77%

Restaurants and hotels

152.75

155.68

1.92%

Miscellaneous goods and services

124.15

125.76

1.30%

services

Source: National Bureau of statistics

With the exception of Communication, which witnessed

a slight drop in the level of prices in 2012 compared to
2011 by less than 1%, the schedule indicates a rise in
the level of prices of all expenditure groups at varying
proportions. Food and soft drinks group registered
the highest rate of price increase where the consumer
price index rose from 140.88 in 2011 to 152.87 in

24

2012, a percentage change of 8.51%. The clothing and

footwear group ranked the second where the consumer
price index for the group increased from 101.12 in
2011 to 109.18 in 2012 at a rate of 7.98%. Prices grew
at a rate of 5.77% for the education group, where the
index increased from 106.7 in 2011 to 112.86 in 2012.
For furniture and household goods group the consumer

price index increased from 123.17 in 2011 to 127.50 in

2012 at a rate of 3.52%.

and transport services group, which registered the

lowest percentage change 0.51%.

The prices of some expenditure groups also have risen in

2012 compared with 2011 at rates lower than the overall
average of 3.47% these include health services2.93%,
recreation and culture group 2.91% ,restaurants and
hotels 1.92%, housing, water, electricity and gas 1.76%

Inflation in the Emirate of Ajman registered a rate less

than 1% in 2008 -2009 and started to rise systematically
during the period 2009 - 2011 , in 2011- 2012 the rate of
inflation dropped by 0.06 percentage points as shown
in the following table:

The rate of inflation in the Emirate of Ajman: (2008 - 2012)

Table (11)

Year

Inflation Rate %

2008 2009

0.56%

2009 2010

1.47%

2010 2011

3.53%

2011 2012

3.47%

Source: National Bureau of statistics

Figure (9):Inflation Rate in the

Emirate of Ajman (2008- 2012)
3.53

3.47

Inflation Rate %

1.47

.56

2008-2009

2009 -2010

2010-2011

2011-2012

25

FOREIGN TRADE

Foreign Trade
The foreign trading business in Ajman boomed during the period that followed the economic crisis, as exports
rose, including the value of re-exports from AED 3,400 million in 2009 to AED 5,915 million in the year 2011 at an
average annual growth rate of 32% during the period. On the other hand, imports grew at an average annual rate
of 19%, rising from AED 2,610 million in 2009 an annual average rate of growth of AED 3,723 million in 2011. The
balance of trade registered a surplus that increased at an annual average rate of growth of 67% during the period
2009 - 2011 as shown in the following table :

Ajman Trade (Million Dirham)(2009 - 2011)

Table (12)

Average
annual
growth rate
2009-2011

Major expenditure groups

2009

2010

2011

Exports

3,400

3,339

5,915

32 %

Imports

2,610

3,089

3,723

19 %

790

250

2,192

67 %

130 %

% 108

159 %

Trade Balance *
Ratio of exports to imports
Source: Ajman statistical year book
* Balance of trade computed

The ratio of exports to imports increased from 130% in

2009 to 159% in 2011 and the surplus in the balance
of trade started to rise again after it witnessed a
systematic decline during the period 2008 - 2010. Trade
balance surplus grew from AED 250 million in 2010
to AED 2,192 million in 2011 at a rate of 777%, which
is a clear indication of the recovery of exports and the
Emirates economy from the repercussions of the global
economic crisis.

84% of the value of Ajman exports in 2011 is composed

of five main industrial exports these include chemicals
and chemical products 25% and manufacturing of
fabricated metal products 23%, non-metallic mineral
17%, non-metal industries 11% and paper industry
around 8% as shown in the following table:

Composition of the Emirate of Ajman exports by

industrial activity 2009- 2011

Table (13)

Relative contribution%
Exports

2009

2010

2011

Average annual
growth rate
2009-2011

Food , beverages and tobacco

4.2%

5.8%

5.6%

35 %

Textile, wearing apparel and leather

13.5%

3.5%

1.8%

- 56.6 %

Wood products including furniture

1.6%

1.9%

3%

60.7 %

Paper products , printing and

2.3%

3.7%

8.1%

119.9 %

Chemical and plastic products

16.4%

160%

24.5%

43 %

Mineral products industry

20.5%

24.8%

17.2%

7.1 %

Non-metal industries

7.8%

9.5%

11.0%

39.2 %

Fabricated metal and equipment

31.5%

32.4%

23.1%

0.11 %

Other manufacturing industries

2.3%

2.5%

5.7%

83.9 %

Total

100%

100%

100%

16.9 %

publishing

Source : Annual statistical bulletin Ajman Chamber of Commerce and Industry (2009 - 2011)(growth rates computed)

Figure (10): Percentage distribution of Ajmans

exports of manufactories (2011)
24.5%

23.1%

17.2%

11%
8.1%
5.6%

5.7%
1.8%

Food ,
beverages
and tobacco

Textile,
wearing
apparel and
leather

3%

Wood
products
including
furniture

Paper
products,
printing and
publishing

Chemical
and plastic
products

Mineral
products
industry

Non-metal
industries

Fabricated
Other
metal and manufacturing
equipment
industries

29

Figure (11) Average annual growth 2009- 2011

Food , beverages and tobacco

35 %
-56.6%

Textile, wearing apparel and leather

60.7 %

Wood products including furniture

119.9 %
43 %

Paper products, printing and publishing

Chemical and plastic products

7.1 %

Mineral products industry

39.2 %

Non-metal industries

0.11 %

Fabricated metal and equipment

83.9 %

The export structure set out in the table indicates the

increase in the relative importance of the exports of
food and beverages, wood and furniture, chemicals, and
plastic products and the non-metal industries during
the period 2009 - 2010. On the other hand the relative
contribution of the exports of textile and leather , nonmetal products , fabricated metal products declined
during the same period. The value of total exports grew
at an average annual rate of 17% during the period
2009 - 2011. The exports of paper products registered
the highest growth during the period 20092011-

Other manufacturing industries

which amounted to an annual average of about 120%,

followed by wood and furniture exports 61% , then the
exports of chemicals and plastic products 43%, nonmetal exports 39% and exports of food and beverages
35%. On the other hand the export of textile, wearing
apparels and leather declined during the period 2009
-2011 at an average annual rate of -57%. About 46%
of the exports from the Emirate of Ajman in 2011 were
exported to the Arab countries, mainly GCC at 31% and
to other Arab states by 15% and to Asian countries,
which accounted for 27% as indicated below:

Destinations of Ajman Emirates exports by

geographical regions (2011)

Relative Importance% 2011

% Average Annual
Growth 2009 -2011

Gulf Cooperation Council (GCC)

31 %

15 %

Asian countries

27 %

45 %

Other Arab countries

15 %

8%

African countries

6%

41 %

European countries

4%

8%

Other countries

16 %

Country

30

Table (14)

Source : The statistical year book of Ajman Chamber of Commerce and Industry (2009- 2011)(growth rate computed)

Figure (12): Relative importance of the exports of the

Emirates of Ajman by geographical regions (2011)
16 %

31 %

4%

Gulf Cooperation Council (GCC)

Asian countries

6%

Other Arab countries

African countries
European countries
Other countries

15 %

27 %

Figure (13): Average Annual Growth rate of exports in the

Emirate of Ajmans by geographical regions (2009- 2011)

15 %

Gulf Cooperation Council (GCC)

45 %

Asian countries

8%
41 %

Other Arab countries

African countries

8%

Ajman exports to Asian countries grew at an average

annual rate of about 45% during the period 2009 - 2011.
Exports to African countries witnessed high growth at
an annual average of 41% during the period 2009 -2011

European countries

and its relative contribution increased to 6% in 2011,

likewise exports to the Gulf States grew at an increased
annual average rate of 15% during the period from
2009 to 2011.

31

Iran topped the List of the major countries receiving

Ajman exports in 2011accounting for 16% followed by
Kingdom Saudi Arabia 11%, Qatar 10%, Oman 6% then

Iraq 5% and India 4% as reflected in the following table :

Major countries receiving Emirate of Ajman exports

(2009 -2011)
Table (15)
Average annual
growth %
2009-2011

% Relative Importance
2009

2011

Iran

8%

6%

67 %

Kingdom of Saudi Arabia

17 %

11 %

-4%

Qatar

8%

10 %

30 %

Oman

3%

6%

74 %

Iraq

4%

5%

33 %

India

4%

4%

19 %

% Average annual growth

2009-2011

Source : Annual statistical bulletin Ajman Chamber of Commerce and Industry (2009 -2010 -2011 ) growth rates computed

Figure (14): Relative importance of Ajman

exports by countries (2011 )
16 %
16 %
14 %
11 %

12 %

10 %

10 %
8%

6%

5%

6%
4%

4%
2%

Iran

32

Kingdom of
Saudi Arabia

Qatar

Oman

Iraq

India

Figure (15): Average Annual growth of Ajman

exports by countries ( 2009- 2011)

70 %

74 %

67 %

60 %
50 %
40 %

33 %

30 %
30 %

19 %
20 %
10 %

-4 %

-10 %
Iran

Kingdom of
Saudi Arabia

Qatar

Ajman exports to Oman registered the highest rate of

growth at an annual average of 74% during the period
2009- 2011 consequently its relative contribution was
doubled to 6% of total exports. Also Ajmans exports to
Iran increased at an average annual rate of about 67%
during the period 2009- 2011 as its relative importance
doubled to 16% of total exports in 2011. While Ajman
exports to Iraq grew at a rate of 33% per annum, the
exports to Saudi Arabia declined at an average annual
rate of - 4% during the period 2009- 2011.

Oman

Iraq

India

The re-export trade in the Emirate of Ajman has grown

at an annual rate of about 26% during the period 20092011 and was concentrated by 80% during the year
2011 in three main activities namely the fabricated
metal products by 43%, chemical and chemical
products 23% and mineral products 14% as reflected in
the following table:

33

Re-export composition in the Emirate of Ajman

by industrial activity (2009 2011)

Table (16)

Relative contribution %
2009

2010

2011

Average
Annual Growth
2009-2011

The food industry, beverages and tobacco

3.6%

2.5%

2.5%

5.3 %

Textile, wearing apparel and leather

21.1%

8.1%

8.1%

- 22 %

Wood products including furniture

1.6%

2.2%

2.2%

44.7 %

Paper products , printing and publishing

0.9%

0.8%

0.8%

13.9 %

Chemical and plastic products

9.6%

23.3%

23.3%

96.9 %

Mineral products industry

13.2%

13.9%

13.9%

29.7 %

Non- metal industries

0.4%

1.7%

1.6%

149.9 %

Fabricated metal and equipment

44.6%

54.8%

42.5%

23.2 %

Other manufacturing industries

4.8%

4.7%

5.1%

30.3 %

Total

100%

100%

100%

26.3 %

Re-exports

Source : Annual statistical bulletin Ajman Chamber of Commerce and Industry (2009 -2010 -2011 ) growth rates computed

Figure (16): Average Annual Growth rate in re-export

activity in the emirate of Ajman (2009- 2011 )
Food, beverages and tobacco
Textile, wearing apparel and leather

5.3 %
-22 %

Wood products including furniture

Paper products, printing and publishing

44.7 %
13.9 %

Chemical and plastic products

Mineral products industry

96.9 %
29.7 %

Non-metal industries

34

149.9 %

Fabricated metal and equipment

23.2 %

Other manufacturing industries

30.3 %

Re-export of the non - metal industries, registered the

highest growth at an annual rate of about 150% during
the period 2009 -2011, while the average annual growth
of the re-export of chemicals and plastic products was
97% during the same period. On the other hand , the
performance of re-export of textile, wearing apparel
and leather declined at an annual rate of -22%. 76%

of Ajman re-export trade in 2011 was directed to the

Arab countries distributed as follows: 34% to the GCC
and 42% to other Arab countries. The Asian countries
accounted for 15% of the total value of re-exports as
shown in the following table:

Direction of Ajman Re-export trade by

geographical regions (2009- 2011)

States

Table (17)

Average
annual growth
2009 - 2011 %

Relative Importance % 2011

Other Arab states

42 %

37 %

Gulf Cooperation Council (GCC)

34 %

26 %

Asian countries

15 %

10 %

Other countries

9%

Source : Annual statistical bulletin Ajman Chamber of Commerce and Industry (2009 -2010 -2011 ) growth rates computed

Figure (17): Relative importance of countries receiving

the re-export trading from the Emirate of Ajman (2011 )
9%

15 %

Other Arab states

42 %

Gulf Cooperation Council (GCC)

Asian countries
Other countries

34 %

35

Iraq occupied the first place among the countries

receiving Ajman re-export products with a share rising
from 6% of the total re-export value in 2009 to 25% in

2011. Ajman re-export trade grew at an average annual

rate of 155% during the period 2009 -2011 for both Iraq
and Oman, as shown below:

Major countries receiving the Emirate Ajmans

re-export products(2009 -2011)

Relative Importance %
States

Table (18)
Average annual
growth %
2009-2011

2009

2011

Iraq

25 %

6%

155 %

Saudi Arabia

22 %

22 %

26 %

Iran

12 %

16 %

10 %

Oman

6%

2%

155 %

Egypt

5%

4%

28 %

Sudan

3%

3%

35 %

Source : Annual statistical bulletin Ajman Chamber of Commerce and Industry (2009 -2010 -2011 ) growth rates computed

About 59% of the re-export trade of the Emirate of

Ajman was exported to three main countries: Iraq 25%,
followed by the Kingdom of Saudi Arabia 22% and Iran
12%. The relative importance of Iran declined in 2011
while it increased significantly for Iraq and the share
of Oman and Egypt also increased. Ajman imports
increased at an average annual rate of about 19%

36

during the period 2009 - 2011. Imports of garments

grew by an annual average rate of about 36% and that
of household goods increased by an average of 28% per
annum, footwear imports by an annual average of 25%
during the period 2009- 2011, as shown in the following
table:

Direction of Ajman Re-export trade by

geographical regions (2009- 2011)

Table (19)
Average annual
growth %
2009-2011

Relative Importance %
Statement
2009

2010

2011

26.9%

26.4%

23.8%

12.2%

Food and drinks

18%

14%

16%

11%

Garments

6.8%

7.5%

8.8%

36%

7%

7%

5.7%

7.4%

4.6%

7.9%

3.5%

3.1%

3%

3.2%

3.3%

24.7%

3.4%

3.6%

27.5%

Furniture

Air Conditioners
Petroleum derivatives
Footwear
Household goods
Source; Port and Customs

Figure (18): Relative importance of imports

in the Emirate of Ajman (2011)
25

23.8 %

20

16 %

15

8.8 %
10

5.7 %
3.5 %

3.3 %

3.6 %

Footwear

Household
goods

Furniture

Food and
drinks

Garments

Air
Conditioners

Petroleum
derivatives

37

Figure (19): Growth rate in basic imports in

the Emirate of Ajman (2009- 2011)

40

36 %

35
27.5 %

30

24.7 %

25
20
15

12.2 %

11 %

7.4 %

10

3.1 %

5
0
Furniture

Food and
drinks

Garments

Air
Conditioners

Furniture imports accounted for 24% of the total value

of Ajman imports in the year 2011, food and beverage
16% and clothing 9%. The geographical distribution of
imports of the Emirate of Ajman in 2011, illustrates that
the major supplying countries are China with a share
of 35%, Iran 8%, then Thailand and Brazil about 7%,
India 6% and Malaysia about 5%.

Petroleum
derivatives

China

Relative Importance % 2011

Table (20)
Average annual
growth %
2009-2011

34.5%

13.9%

8%

-1.7%

Thailand

6.8%

9.1%

Brazil

7.2%

-1.3%

Malaysia

5.1%

1.7%

India

5.8%

77%

Indonesia

2.8%

-9.4 %

Iran

38

Household
goods

The structure of imports in 2011 indicates that 43% of

the Emirates imports came mainly from China and Iran,
as shown in the following table:

Direction of Ajman Re-export trade by

geographical regions (2009- 2011)

Country

Footwear

Country

Average annual
growth %
2009-2011

Relative Importance % 2011

United States of America

2.9%

24%

Austria

2.3%

8.8%

France

3.8%

-3%

United Kingdom

1.9%

0.2%

Source: Ajman Port and Customs

Figure (20); Relative importance of the most

important countries importing to Ajman (2011)
3.8 %

1.9 %

2.3 %
2.9 %

China
Iran

2.8 %

Thailand
Brazil

5.8 %

Malaysia

34.5 %

India
Indonesia

5.1 %

United States of America

Austria
France

7.2 %

United Kingdom

6.8 %

8%

Figure (21): Growth rate in the imports of major countries

importing to the Emirate of Ajman (2009- 2011)
77%

80
70
60
50
40

24%

30
20

13.9%

8.8%

9.1%

1.7%

10

0.2%

0
-1.3%

-1.7%

-3%
United Kingdom

France

Austria

United States
of America

Indonesia

India

Malaysia

Brazil

Thailand

Iran

China

-9.4%

39

SECTORIAL
ECONOMIC
GROWTH

BUSINESS ACTIVITY
The business sector in the Emirate of Ajman achieved remarkable growth as per the following indicators:

Licenses and certificates of origin issued in the

Emirate of Ajman (2009- 2011)

Table (21)
Average
annual Growth
2009-2011

Statement

2009

2010

2011

Number of licenses
issued by the
municipality

17873

17063

21.799

10.4 %

The number of licenses

issued by the Free Zone

1590

1644

2386

22.5 %

Total licenses issued

19463

18692

24185

11.5 %

Number of certificates of
origin

27328

30000

29969

4.7 %

The value of the

certificates of origin
(MDH)

4996

5541

5915

8.8 %

Source : Ajman Statistical yearbook (growth rates computed)

Figure (22): Average Annual Growth rate of

Licenses and certificates of origin issued in the
Emirate of Ajman (2009- 2011)
25

22.5 %

20
15
10.4 %

11.5 %
8.8 %

10
4.7 %
5
0
Number of
The number of
licenses issued by licenses issued by
the municipality
the Free Zone

42

Total licenses
issued

Number of
certificates of
origin

The value of the

certificates of
origin (MDH)

The total number of licenses issued in and outside the

free zone increased from 19, 463 in 2009 to 24,185 in
2011 with an average annual growth rate of about 12%
. The business activity in Ajman Free Zone registered
a high annual growth rate of about 23% where the
licenses issued increased from 1590 in 2009 to 2386
in 2011, reflecting the attractiveness of the investment
environment and the services and incentives offered in
the free zone. The number of licenses issued by Ajman
Municipality witnessed a remarkable growth it increased
from 17,873 in 2009 to 21,799 in 2011 at an annual

average rate of about 10.4% . The number of certificates

of origin issued by Ajman Chamber of Commerce and
Industry increased from 27, 328 in 2009 to 29 969 in
2011 at an average annual growth rate of 5%, while the
value of certificates of origin increased at an average
annual rate of 9% during the same period. Licenses
issued by Ajman Municipality in 2011 were composed
of 54% commercial licenses, 43% professional and 3%
industrial as shown in the following table:

The number of licenses issued by Ajman

Municipality 2009- 2011

Table (22)

Type of
license

2009

2010

2011

Average
annual growth
2009-2011

Commercial

9707

9028

11688

9.7 %

New release

1239

1031

1267

1.1 %

Renewal

8468

7997

10421

10.9 %

Professional

7650

7573

9443

11.1 %

New release

977

1079

1308

15.7 %

Renewal

6673

6494

8135

10.4 %

Industrial

516

464

668

13.8 %

New release

17

28

40

54.4 %

Renewal

499

434

628

12.2 %

17873

17063

21799

10.4 %

Total

Source :Ajman Statistical Yearbook (growth rates computed)

43

Figure (23): Average Annual Growth of licenses

issued by the Municipality ( 2009 -2011)
60

54.4 %

50
40
30
20
10.9 %

11.1 %

Renewal

Professional

10

13.8 %

15.7 %
9.7 %

12.2 %

10.4 %

10.4 %

1.1 %

The number of trade licenses issued by the Municipality

of Ajman increased from 9,707 licenses in 2009 to 11,688
in 2011, at an average annual growth of about 10%.
The growth in trade licenses during the period 2009 2011 was mainly from the contribution of the renewed
licenses which has grown at an average annual rate of
about 11%, while the new trade licenses has grown at
an average annual rate of about 1%. The professional
licenses issued by Ajman Municipality registered an
average annual growth rate of about 11%, rising from
7,650 in 2009 to 9,443 in 2011. The new professional
licenses issued by the municipality has grown by
annual average rate of about 16%, while the renewed

Total

Renewal

licenses grew at annual average of about 10.4%

during the period 2009- 2011. The number of industrial
licenses issued by the municipality increased from 516
in 2009 to 668 in 2011, giving annual average rate of
about 14%. The highest growth is envisaged in the new
industrial licenses at an average annual rate of 54.5%,
while the renewed industrial licenses registered an
average annual growth of about 12.2%. The number of
permits and declarations issued by Ajman municipality
grew at an average annual growth rate of 7.4% during
the period 2009- 2011 as shown below:

The number of permits and declarations issued

by Ajman Municipality (2009- 2012)

Table (23)

Statement

2009

2010

2011

Average
annual Growth
2009-2011

Total permits and

declarations

5133

5549

5916

7.4%

Source : Annual statistical book fo the emirate of Ajman (2011- 2012) The executive council

44

New release

Industrial

Renewal

New release

New release

Commercial

Figure (24): Average Annual Growth of licenses

issued by the Municipality (2009 -2011)

5,916

6000
5800

5,549

5600
5400
5,133

5200
5000
4800
4600

2009

2010

2011

The total number of permits and declarations

The membership of Ajman Chamber of Commerce and Industry increased from 22,207 in 2009, to 25,716 in 2011 at
an annual average rate of about 4% as reflected in the following table:

Indicator of Membership of Ajman Chamber of

Commerce and Industry by economic sectors
(2009 -2012)
Table (24)
Sectors

Average annual
growth 2009-2012

2009

2010

2011

2012

Commercial

15,852

13,130

15,852

15,431

3.5 %

Professional

9,151

7,188

9,151

8,972

5.8 %

713

597

713

727

1.6 %

25,716

20,915

25,716

25,143

4.2 %

Industrial
Total

Source : Annual statistical book fo the emirate of Ajman (2011- 2012) The executive council

45

Figure (25): Average annual growth of Membership

of Ajman Chamber of Commerce and Industry by
economic sectors (2009 -2012)
5.8 %

6
5
4

4.2 %
3.5 %

3
1.6 %

2
1
0
Commercial

Professional

Industrial

Total

The membership of he chamber by economic sectors grew at annual average rate of 6% in professional sector, 4%
in commercial and about 2% industrial sector during the same period.

46

MANUFACTURING INDUSTRIES
The GDP of the industrial sector
The industrial survey conducted by Ajman Executive Council Statistic and Research Administration in 2012
classified industrial activity in the Emirate of Ajman into about twenty activities listed in the following table:

Industrial GDP by sectors in the

Emirate of Ajman (Million Dirham) (2012)

Industrial
activity

The value
of GDP
million
Dirham

Relative
contribution%

Industrial
activity

Table (25)

The value
of GDP
million
Dirham

Relative
contribution%

Industrial activity

The
value
of GDP
million
Dirham

Relative
contribution%

Food products

416,4

9.6%

Printing
and
Publishing

153,1

3.5%

Machinery and
equipment
manufacturer

156.7

3.6%

Tobacco
products

49,3

1.1%

Refined
petroleum
products

126

2.9%

Machinery
and electrical
appliances

105.6

2.4%

2.6%

Materials
and
chemical
products

88,8

2%

Equipment, radios, television

and communication

9.7%

Rubber
and
plastics
products

150,4

3.5%

Motor Vehicles
and Trailers

6.7

0.1%

16

0.4%

Nonmetallic
mineral
products

524,5

12%

Other
transport
equipment

9.5

0.2%

229,2

5.3%

Basic
metals
industries

114,2

2.6%

Furniture and
other products

1112,0

25.6%

Total

4348.6

100%

Textiles

garments and
dressing and
dyeing of fur
Tanning and
dressing of
leather
Wood and
wood products
Paper and
paper products

113,4

422

Structural
173,9

4%

Metal
Products

Source: Ajman industrial survey 2012 Statistic and Research Administration Ajman Executive Council

47

The data of the Industrial Survey 2012 indicates that the

metal products industry forms about 26% of the GDP
of the manufacturing sector amounting to AED 4,348.6
million . Nonmetal products ranked second in terms
of relative importance accounting for 12% of the total
value added of the manufacturing sectors. Readymade
garments , fur garments and food products contributed
10% of the total GDP of the industrial sector. The value
added of the wood and paper industries accounted for

9% of the total value added in the industrial sector and

the Furniture Industry contributed about 7%.
Capital invested in the industrial sector:
The total paid-up capital in the industrial sector
amounted to AED 1,179.9 million in 2012, distributed
among the following sectors:

The industrial capital invested in the Emirate of

Ajman by sector( Million Dirham)(2012)

Capital
invested

Relative
contribution%

Food products

115.6

10%

Tobacco
products

40.8

Industrial
activity

Textiles

garments and
dressing and
dyeing of fur

15.8

93.7

Capital
invested

Relative
contribution%

Printing
and
Publishing

48.8

4%

Machinery and
equipment
manufacturer

20.9

2%

3%

Refined
petroleum
products

18.0

2%

Machinery
and electrical
appliances

17.2

1%

1%

Materials
and
chemical
products

32.6

3%

Equipment, radios, television

and communication

8%

Rubber
and
plastics
products

34.2

3%

Motor Vehicles
and Trailers

2.5

0.2%

281.5

24%

Other
transport
equipment

34.6

3%

18.8

2%

Furniture and
other products

86.0

7%

273.7

23%

Total

Industrial
activity

Tanning and
dressing of
leather

2.7

0.2%

Nonmetallic
mineral
products

Wood and
wood products

21.0

2%

Basic
metals
industries

23.5

2%

Paper and
paper products

Industrial activity

Capital
invested

Relative
contribution%

Structural
Metal
Products

Source : Industrial survey of the Emirate of Ajman-Ajman Executive Council

48

Table (26)

1179.9

100%

The table indicates that nearly half of the total capital

invested in the industrial sector is concentrated in two
main activities: Non-metal mineral products forming
24% and metal products 23%. Capital invested in
the food industry accounted for 10% of the total
capital invested in the industrial sector, 8% in the

clothing industry and 7% in the furniture industry. The

proportion of capital invested is low in many of the
industrial activities stated in the table such as tobacco
industry, textiles, clothing, leather, wood and paper,
thus suggesting their dependence on the use of labor
intensive technique of production .

Gross fixed capital formation in the industrial sector

Total gross fixed capital formation in the industrial sector in the Emirate of Ajman amounted to around AED 180
million in 2012, distributed by industrial activities as shown below:

Gross fixed capital formation by industrial

sectors(Million Dirham)(2012)
Table (27)

Gross Fixed
capital
formation

Relative
contribution%

Food
products

12.9

7.2%

Tobacco
products

17.2

Industrial
activity

Textiles

4..8

Relative
contribution%

Printing
and
Publishing

1.3

0.7%

Machinery and
equipment
manufacturer

9.6%

Refined
petroleum
products

6.4

3.6%

Machinery
and electrical
appliances

2.7%

Materials
and
chemical
products

8.3

4.6%

Equipment, radios, television

and communication

5.1

2.8%

Motor Vehicles
and Trailers

0.06

0.03%

5.7

3.2%

Furniture and
other products

11.3

6.3%

30.7

17%

Total

180.0

Industrial
activity

garments and
dyeing of fur

0.7

0.4%

Rubber
and
plastics
products

Wood
and wood
products

3.6

2%

Basic
metals
industries

14.0

7.8%

Paper and
paper
products

Fixed
capital
formation million
(AED)

Gross Fixed
capital
formation

Metal
Products

Industrial activity

Gross Fixed capital formation

5.3

2.9%

Source: Ajman Executive Council Statistics and Research Administration

49

The transport equipment sector as indicated above

formed 24% of the total gross fixed capital formation in
the industrial sector while the metal products industry
accounted for 17% , 10% of gross fixed capital formation

is invested in the activities of tobacco products, 8% in

paper products, 7% in food products and about 6%
invested in furniture products.

Wages in the industrial sector

The distribution of total wages, which amounted to about AED 1,140 million in 2012 among the various
manufacturing activities is given below :

Wages in industrial in the Emirate of Ajman

by activities ( Million Dirham) (2012)

Total wages

Relative
contribution%

Food products

71.5

6.3%

Printing
and
Publishing

51.6

4.5%

Machinery and
equipment
manufacturer

37.0

2.8%

Tobacco
products

19.6

1.7%

Refined
petroleum
products

21.0

1.8%

Machinery
and electrical
appliances

24.2

0.02%

2.6%

Materials
and
chemical
products

26.1

2.3%

Equipment, radios, television

and communication

11.5%

Rubber
and
plastics
products

38.2

3.4%

Motor Vehicles
and Trailers

1.4

0.08%

101.7

8.9%

Other
transport
equipment

31.6

2.8%

14.7

1.3%

Furniture and
other products

103.6

9%

354.2

31%

Total

1140

Industrial
activity

Textiles

garments and
dressing and
dyeing of fur

29.1

131.1

Industrial
activity

Tanning and
dressing of
leather

3.7

0.3%

Nonmetallic
mineral
products

Wood and
wood products

28.1

2.5%

Basic
metals
industries

Paper and
paper products

Industrial activity

Total
wages

Structural
51.6

4.5%

Metal
Products

Source: Ajman Executive Council Statistics and Research Administration

50

Total
wages

Relative
contribution%

Table (28)

Relative
contribution%

The metal products activity accounted for approximately

one-third of the total wages in the industrial sector i.e.
about 31%, while the activity of garments and leather

dyeing formed around 12%, and about 9% of the wages

constituted the share the non-metal, and Furniture
products .

CONSTRUCTION AND REAL ESTATE

Construction and real estate Indexes fell during the period 2009- 2011 as reflected in the following statistics:

Lease agreements , issued building

permits and completed buildings in the
Emirate of Ajman 2009- 2011
)28(

Table (29)

2009

2010

2011

Average annual
growth 2009-2011

16,707

13,199

11020

-18.8%

Building Permits

1839

1925

1733

-2.9%

Completed buildings

1289

1129

1092

-8%

Type

Lease agreements

Source: Ajman statistical yearbook 2012

Figure (26): Tenancy contracts and building

permits issued and prefabricate hbuilding
licenses in the emirate of Ajman (2009- 2011)
Completed buildings

12000

Building Permits

11,020

Lease agreements

10000
8000

16,707
13,199

6000
4000
2000

1,839

1,289

1,925

1,129

1,733

1,092

0
2009

2010

2010

51

The number of lease agreements decreased from 16,707

in 2009 to 11,020 in 2011 at an annual average rate of
-19% thus reflecting the drop in demand for real estate
during this period. Building permits issued declined at
an annual average rate of -3% from 1,839 in 2009 to
1,733 in 2011 that is attributed to the significant drop
in maintenance licenses during this year. The growth of
completed buildings also declined from 1,289 in 2009
to 1,092 in 2011, at an annual average rate of -8%.

All types of building licenses issued during the period

2009- 2011 witnessed a remarkable growth with the
exception of maintenance licenses, which fell from 609
in 2010, and accounted for 31% of the total licenses
issued to zero in 2011, as illustrated by the following
data:

Number of building licenses

classified by type 2009- 2011

Table (30)

2009
Type of
building

2011
Average annual growth
2009-2011

Number of
licenses

Relative
importance%

Number of
licenses

Relative importance%

45.7%

784

41%

901

52%

3.5%

93

5%

148

8%

299

17.2%

79%

Industrial buildings

85

4.6%

115

6%

106

6.1%

11.7%

Government buildings

0.4%

13

1%

30

1.7%

93.7%

Maintenance

473

25.7%

609

31%

Others

340

18.5%

254

13%

397

Residential Villas
Residential and commercial buildings

Number
of licenses

Relative
importance%

840

Total
Source: Ajman statistical yearbook 2012

52

2010

1839

1925

22.9%
1733

8%
-2.9%

Figure (27): Average annual growth of

building permits (2009- 2010 )
93.7 %

100
79 %
80
60
40
20
3.5 %

1289

11.7 %

8%

0
Residential Villas

Residential and
commercial
buildings

The table indicates an increase in the number of

licenses issued for the purpose of residential villas
from 840 in 2009 to 901 in 2011 at an Average annual
growth of 3.5% consequently its relative importance
increased from about 46% to 52% of the total number
of licenses issued during the period. The number of
building licenses issued for residential and commercial
buildings grew at an average annual rate of about 79%,
rising from 93 in 2009 to 299 in 2011 and its relative
importance increased from 5% in 2009 to 17% of the
total building licenses issued in 2011. The number of

Industrial
buildings

Government
buildings

Others

licenses issued for industrial buildings Increased from

85 in 2009 to 106 in 2011 at an average annual rate of
about 12%. Licenses for government buildings also
grew by an annual average rate of about 94%, rising
from only 8 licenses in 2009 to 30 in 2011. The volume
of land transactions in the Emirate of Ajman grew from
AED 759, 290 ,633 in 2010 to AED 766, 094, 269 in 2011,
an annual rate of 0.9% as shown below:

Land transactions by volume of trade for

the Emirate of Ajman (2009- 2011)

Table (31)

Statement

2009

2010

2011

Volume

897,361,966

759,290,633

766,094,269

Source: Ajman Executive Council Statistics and Research Administration , Ajman statistical yearbook 2012

53

The number of land sales transactions increased from

789 in 2009 to 1,292 in 2011 at an average annual
growth of 30% forming 19% of the total transactions
in 2011. The number of site maps issued increased from

1,053 in 2009 to 2,634 in 2011, at an annual average rate

of 58% and accounted for 39% of the total number of
transactions in 2011 as reflected in the following table:

Relative contribution of land transactions by

type for the Emirate of Ajman (2009 -2011)

Table (32)

The number of transactions

Years
Sales

Mortgage

Waiver

Issuance of
site map

Mortgage
releases

Issuance of
bonds property

2009

789

175

132

1053

116

1,528

2010

907

141

156

1692

167

1541

2011

1292

142

148

2634

177

2350

19%

2%

2%

39%

3%

35%

30%

-10%

5.9%

58%

23.5%

24%

Relative
contribution 2011
Average annual
growth 20092011

Source: Ajman Executive Council Statistics and Research Administration , Ajman statistical yearbook 2011- 2012

Figure (28): Relative contribution of land

transactions by type for the Emirate of Ajman (2011)
19 %
35 %
2%
2%

Sales
Mortgage
Waiver
Issuance of site map
Mortgage releases
Issuance of bonds property

3%
39 %

54

Figure (29): Average annual growth for land transactions

by type in the Emirate of Ajman (2009- 2010 )
58 %

60
50
40
30 %
30

23.5 %

24 %

20
5.9 %

10
0
Sales

Waiver

Issuance of
site map

Mortgage
releases

-10 %

Issuance
of bonds
property

Mortgage

Tourism
Tourism activity in the Emirate of Ajman grew significantly as the number of hotels increased from 9 in 2005 to 27
in 2011, at an annual average growth of about 20% as shown below:

Tourism activity Indicators in the

Emirate of Ajman(2005 -2011)

Table (33)

2005

2009

2010

2011

Average annual
growth %
* 2005- 2011

21

22

27

20%

Number of hotel rooms

619

1840

1951

2078

22%

Number of beds

1441

2927

3293

3761

17%

Number of Employees

509

829

878

1074

13%

Type
Number of Hotels

Source: Ajman Executive Council Statistics and Research Administration , Ajman statistical yearbook 2011 -2012
* (Growth rates computed )

55

Figure (30): Average annual growth in Tourism

Indicators in the Emirate of Ajman(2005- 2011)
30
22 %
20 %
20

17 %
13 %

10

0
Number of
Hotels

Number of
hotel rooms

The number of hotel rooms rose from 619 in 2005 to

2,078 in 2011 at an average annual rate of 22% the
number of beds also increased at an average annual
rate of 17% and employment grew by 13% per annum
during the period 2005- 2011. The annual statistical
book of the Emirate of Ajman indicates that the number
of visitors to Ajman Museum grew at annual rate of

Number of
beds

Number of
Employees

24% which increased from 12,848 in 2009 to 19, 346 in

2011. The total number of hotel and hotel apartment
users in the Emirate of Ajman increased from 186, 010
in 2009 to 602, 033 in 2012 at an average annual growth
of about 48% as reflected in the following table:

Tourism sector Indicators including

(Hotels + Hotel Apartments) (2009 - 2012)

* Average annual
growth 2009-2012

Indicators

2009

2010

2011

2012

Annual occupancy
rate of hotels and
hotel apartments%

51%

49%

53%

57%

Annual total revenues

of hotels and hotel
apartments (AED)

245

201

194

201

Annual total revenues

of hotels and hotel
apartments (AED)

107,743,065

Number of guests of
hotels and hotel apartments

186,500

270,010

415,778

602,033

48%

Total nights ( hotels

and hotel apartments)

227,315

292,381

468,968

710,426

46%

114,897,630 138,593,518 159,640,003

Source: Tourism Development Department: tourism sector statistics.

* Growth rates computed

56

Table (34)

-6%

14%

Figure (31): Room occupancy rate of hotels and hotel

apartments in the Emirate of Ajman (2009 -2012)

57 %

58
56
53 %

54
51 %

52

49 %

50
48
46
44
0

2009

2010

2011

2012

Figure (32): Annual growth in hotels & hotel department

Indicators (2009- 2012)
60
48 %
50

46 %

40
30
20

14 %

10
0
-6 %
Annual total
revenues of
hotels and hotel
apartments
(AED)

Annual total
revenues of
hotels and hotel
apartments
(AED)

Guest nights of hotels and hotel apartments grew at

an Average annual rate of 46% during the period 20092012, resulting in growth in total annual revenues of
hotels and hotel apartments at an average annual rate
of 14% during the same period. The previous table

Number of
guests of hotels
and hotel
apartments

Total nights
(hotels and hotel
apartments)

shows a decline in prices of hotels and hotel apartments

at an average annual rate of about -6% and an increase
in the occupancy rate of hotels and hotel apartments
from 51% in 2009 to 57% in 2012.

57

Hotels
Hotels parameters reflect a steady growth in demand for tourism and the increase in tourism activity in the Emirate
of Ajman during the period 2009 -2012, as illustrated by the following statistics:

Hotels indicators in the

Emirate of Ajman (2009- 2012)

Table (35 )

2009

2010

2011

2012

Hotels annual occupancy rate %

44%

43%

51%

55%

Hotels annual average daily rates

274

210

208

218

92,800,623

95,850,093

Number of guests of hotels and

hotel apartments

147,863

229,864

255,298

283,960

24%

Hotels annual guest nights

156,831

215,283

241,216

265,061

19%

Hotels annual total revenues (AED)

111,515,823 123,153,503

Source: Tourism Development Department: tourism sector statistics.

* (growth rates computed)

Figure (33): Hotel occupancy rate in the

Emirate of Ajman (2009 - 2012)

55 %

60

51 %

50

44 %

43 %

2009

2010

40
30
20
10
0
0

58

* Average
annual
growth
2009-2012

Indicators

2011

2012

-7%
10%

Figure (34): Average annual growth in Hotels

indicators in the Emirate of Ajman (2009- 2012)
30
24 %

25

19 %

20
15
10 %
10
5
0
Hotels annual total
revenues (AED)

-7 %

Number of guests
of hotels and hotel
apartments

Hotels annual guest

nights

Hotels annual
average daily rates

The number of hotel guests increased from 147, 863 in

2009 to 283, 960 in 2012, at an average annual growth
of about 24%. Hotels annual guests nights grew at
an average annual rate of 19%, rising from 156, 831
night in 2009 to 265, 061 in 2012. Also the cost of hotel
accommodation dropped significantly during the
period 2009- 2012, thereby attracting tourists from
different nationalities to visit the Emirate. Hotels annual
average daily rates declined from AED 274 per day in
2009 to AED 218 per day in 2012 at an average annual

rate of -7%. The drop in hotel prices increased the

demand for hotels, causing hotel occupancy rate to rise
from 44% in 2009 to 55% in 2012. As a result hotels total
revenue grew at an average annual rate of 10%, from
AED 92,800,623 in 2009 to AED 123, 153, 503 in 2012.
More than 70% of hotel guests come from Russia,
Commonwealth Independent states (CIS) ,Baltic States,
Europe and Asia as reflected in the following table:

59

Hotel guests by region (2009- 2012)

Table (36)
Relative
contribution% 2009

Relative
contribution% 2010

Relative
contribution%
2011

Relative
contribution %
2012

36 %

36 %

33 %

38 %

Europe

31 %

23 %

25 %

22 %

Asia

8%

12 %

13 %

13 %

United Arab Emirates

11 %

16 %

9%

7%

Gulf Cooperation Council (GCC)

3%

4%

5%

4%

Other Arab countries

4%

4%

6%

7%

North America

4%

3%

5%

4%

Other countries

3%

2%

2%

3%

100 %

100 %

100 %

100 %

Russia and the Commonwealth

countries(CIS) and the Baltic States

Source: Tourism Development Department: tourism sector statistics.

The relative share of Russia and the Baltic regions

increased to account for more than one-third of the
hotel guests in 2012, while that of Europe declined
from 31% in 2009 to 22% in 2012.

Also the relative importance of hotel guests from Asia

increased to 13% and from other Arab states to 7% in
2012, while the proportion of guests from United Arab
Emirates declined to 7% in the same year.

Hotel Apartments
The demand for hotel apartments witnessed high rates of growth compared to the demand for hotels as reflected
by the following indicators:

60

Hotel apartments indicators in the

Emirate of Ajman ( 2009 -2012 )
Table (37)
Indicators

* Average
annual growth
2009-2012

2009

2010

2011

2012

Number of hotel apartments guests

38,637

40,146

162,680

318,118

Hotel apartments annual guest nights

70,484

77,098

227,752

445,365

102%

Hotel apartments annual total revenues

14,942,441

19,047,537

27,077,694

36,486,500

85%

Hotel apartments annual average

daily rate AED

216

193

180

183

35%

Hotel apartments occupancy rate %

58%

54%

56%

60%

-5%

Source: Tourism Development Department: tourism sector statistics.

* Growth rates computed

Figure (35): Hotel apartments rooms occupancy

rate in the Emirate of Ajman (2009- 2012)

500 000
450 000
400 000
350 000
300 000
250 000

Number of hotel apartments guests

200 000
150 000

Hotel apartments annual guest nights

100 000
50 000
0
2009

2010

2011

2012

61

Figure (36): Hotel apartments rooms occupancy

rate in the Emirate of Ajman (2009- 2012)
60
59
58
57
56
55
54

Hotel apartments rooms occupancy rate %

2009

2010

2011

2012

58 %

54 %

56 %

60 %

The number of hotel apartments guests grew in

the Emirate of Ajman at an average annual rate of
102% from 38 ,637 in 2009 to 318, 118 in 2012. Hotel
apartments annual guest nights increased from 70, 484
in 2009 to 445, 365 in 2012 at an annual average rate
of about 85%. Hotel apartments revenues grew at an
average annual rate of 35% rising from AED 14,942,441
in 2009 to AED 36,486,500 in 2012. The annual average
daily rate of hotel apartments declined annually by -5%
falling from AED 216 in 2009 to AED 183 in 2012. The

level of hotel apartments prices is lower than that of

hotel by a percentage that range between 8% to 21%.
Hotel apartments occupancy rate increased to 60% in
2012 due to increased tourism activity in the Emirate.
The following table indicates that the vast majority of
the hotel apartments guests are from GCC countries
whose relative importance increased from 23% in 2009
to 70% in 2012:

Hotel apartments guests in the

Emirate of Ajman(2009 -2012)

Relative
contribution% 2009

Relative
contribution% 2010

Relative
contribution%
2011

United Arab Emirates

31 %

37 %

14 %

7%

Gulf Cooperation Council (GCC)

23 %

22 %

62 %

70 %

Other Arab countries

18 %

15 %

4%

3%

Asia

21 %

19 %

12 %

13 %

Other countries

7%

7%

8%

7%

100 %

100 %

100 %

Source : Tourism Development Department: tourism sector statistics.

62

Table (38)
Relative
contribution %
2012

100 %

The relative importance of hotel apartments guests from UAE declined from 31% in 2009 to only 7% in 2012 ,
likewise the percentage of guests for the other Arab states declined from 18% to 3% and from 21% to 13% for Asia
during the same period.

Restaurants
The number of restaurants increased to 230 in 2011, a percentage change of 53% compared to the previous year,
as illustrated below:

Restaurants indicators in the

Emirate of Ajman(2010 -2011)

Table (39)

Statement

2010

2011

Average annual
growth rate

Number of
restaurants

150

230

53%

Number of
employees

922

990

7%

72,464,121

120,023,750

66%

Total restaurants revenues

Source: Ajman statistical yearbook 2012 ,Executive council

Figure (37): Restaurants indicators in

the Emirate of Ajman(2010- 2011)
1000

990

922

800
600
400
200

230
150

0
2010
Number of
employees

2011
Number of
restaurants

63

Figure (38): Restaurants indicators in the

Emirate of Ajman(2010- 2011)

66 %

70
60

Average annual
growth rate

53 %

50
40
30
20
7%

10
0
Number of
restaurants

Number of
employees

Total restaurants
revenues

Revenue from the restaurants sector registered a high growth rate of 66%, rising from AED 27,464,121 in 2010 to
AED 120, 023 ,750 in 2011also employment in the sector increased by 7%.

64

THE FINANCIAL SECTOR

Banks
The number of local and foreign banks grew at an
average annual rate of about 5% from 22 in 2009 to
24 in 2011 where the local banks constituted 92% of
the total number of banks in the Emirate of Ajman.
Employment in the banking sector increased from 507
in 2009 to 515in 2011 at an average annual rate of 0.8%.
The number of nationals increased from 237 in 2009

to 247 in 2011, at an annual growth rate of 2%, while

the number of expatriates declined at an average
annual rate of about -0.4% during the same period .The
ratio of national employees formed 48% of the total
employment in the banks in the Emirate of Ajman in
2011 as reflected by the following indicators:

Employment and the number of local and foreign

banks in the Emirate of Ajman (2009- 2010)

Table (40)
* Average annual
growth 2009-2012

2009

2010

2011

Local banks

20

22

22

5%

Foreign banks

Total

22

23

24

4.5%

Nationals

237

234

247

2%

Expatriates

270

262

268

-0.4%

Total

507

496

515

0.8%

Employment

Source: Ajman statistical yearbook 2012, Executive council

Figure (39): Average annual growth of local and foreign

banks in the Emirate of Ajman(2009- 2011)
6
5

5%

4.5 %

4
3
2
1

0%

0
Local Banks

Foreign Banks

Total

65

Figure (40): Average annual growth of local and foreign

banks in the Emirate of Ajman(2009- 2011)

2%
2

0.8 %

0
Nationals

Totals

-0.4%
Expatriates

Exchange companies
Exchange companies has grown at an average annual rate of about 7%, where the number increased from 14
companies in 2009 to 16 in 2011, reflecting the growth in demand for the financial services provided by exchange
companies, as illustrated by the following indicators:

Employment, wages and the number of

exchange companies 2009- 2011

Table (41)
* Average annual
growth 2009-2012

2009

2010

2011

14

15

16

7%

Nationals

20

14

14

-16%

Expatriates

198

203

216

4.5%

Total employment

218

217

230

2.7%

9,395,376

10,752,849

11,705,468

11.6%

Number of companies
Employment

Wages (AED)

Source: Ajman statistical yearbook 2012, Executive council

66

Figure (41): Average annual growth in

employment and in number of exchange
companies in the Emirate of Ajman(2009- 2010)
Average annual
growth 2009-2012

11.6 %

12
10
8

7%

4.5 %

2.7 %

2
0
0
Number of
companies

Employment

Expatriates

Total employment in money exchange companies

increased by an annual average rate of about 3%
from 218 company in 2009 to 230 in 2011. Expatriates
have increased at an Average annual growth of about
5% from 218 employee in 2009 to 230 in 2011, while
national employment in this sector registered an

Total employment

Wages (AED)

annual average growth rate of -16% decreasing from

20 in 2009 to 14 in 2011 and its relative importance for
exchange companies declined from 10% to 7% during
the period 2009- 2011. Wages in money exchange
companies increased at an average annual rate of about
12% during the period 2009- 2011.

67

Insurance companies
Employment in insurance companies increased from 73 employee in 2009 to 102 employee in 2011, annual average
rate of 18%. Wages also have increased in the insurance sector with an Average annual growth of about 28% during
the period 2009 - 2011 as illustrated by the following indicators:

Insurance sector indicators in the

Emirate of Ajman ( 2009- 2011)

Employment
Wages (thousand Dirham (

Table (42)

2009

2010

2011

* Average annual
growth 2009-2012

73

95

102

18 %

2099

7089

3458

28.4 %

Property and liabilities Insurance operations

Total premiums during the year
(Thousand Dirham)

104,641

102,842

105,026

0.2 %

Total compensation paid

(Thousand Dirham)

61,772

84,900

85,245

17.5 %

Total compensation under the

settlement (Thousand Dirham)

38,491

14,682

16,624

- 34 %

Human life& accumulation of funds operation

Total premiums during the year
(Thousand Dirham)

219

118

94

Total compensation paid

(Thousand Dirham)

60

30

Total compensation under

settlement (Thousand Dirham)

18

16

Source: Ajman statistical yearbook 20112012-, Executive council

68

- 34.5 %

Figure (42): Insurance sector

indicators in the Emirate of Ajman
Wages AED (000)

8000

Employment

7,089

7000
6000
5000
3,458

4000
3000

2,099

2000
1000

73

95

102

0
2009

2010

2011

Figure (43): Average annual growth in

employment and wages in insurance
companies (2009- 2011)

28.4%

30

20

18%

10

0
Employment

Wages AED (000)

69

Figure (44): Properties and liabilities Insurance

transactions in the insurance companies in the
Emirate of Ajman(2009 -2011)
2009
2010
2011

Total premiums during the year

(Thousand Dirham)

Total compensation paid

(Thousand Dirham)

Total compensation under the

settlement (Thousand Dirham)

Figure (45): Human life insurance and

accumulation of funds operations in the insurance
companies in the Emirate of Ajman(2009- 2011)
Total premiums during the year
(Thousand Dirham)

250

Total compensation paid

(Thousand Dirham)

219

Total compensation under the

settlement (Thousand Dirham)

200
150

118

94

100
60
50

18

30
16

0
2009

2010

2011

Premiums paid against insuring properties and liabilities increased from AED 104,641 thousand in 2009 to AED
105,026 thousand in 2011 at annual average growth of 0.2%, while the paid up compensation increased by annual
average rate of about 18% during the period 2009 -2011.
70