Ajman Free Zone, UAE (FTZ )

Ajman Free Zone (FTZ ) is a free trade zone on the territory of the Emirate with the same name in the UAE. It is one of the early Government projects designed for attracting foreign investment into the national economy, which was founded in the beginning of 1996 and was aimed at accommodation of more than 10 thousand companies.

The main transport hub of the Ajman free economic zone is the Ajman shipping port, which has 12 independent piers, and which serves thousands of ships annually. Besides, there is a direct access to two international air harbours and three shipping ports.

Ajman FTZ : economic incentives for creating business

Company registration in the jurisdiction of Ajman FTZ provides the international business with a number of economic incentives for the establishment and development of the existing business, for potential investors. Among them there are:

strategically advantageous location;
accessibility and relatively low cost of resources;
possibilities to process the various products;
reasonable prices for renting the land lots and commercial premises;
a high standard of living and a favourable investment climate;
modern infrastructure of international class.

More than 200 large industrial enterprises and companies operate on the territory of the Ajman economic zone, the UAE, and the goods produced here are exported to the international market. Among the key areas of economic activity, which is implemented on the territory of the free zone, one can single out the following types:

tanning industry and textile industry;
food, tobacco and beverages;
woodworking industry and furniture manufacturing;
printing and publishing, paper products and etc.;
chemical industry and production of plastic products;
mineral products and raw materials;
metallurgical industry;
production of the professional equipment, machinery and other industries.

Advantages for potential investors

The special status of the jurisdiction of Ajman free zone, the UAE, provides for the following competitive advantages for investors:

possibility of attracting the foreign labour force;
exemption of business from import and export customs duties;
no hidden fees, and minimum costs on business maintenance;
long-term contracts for leasing land lots, with the possibility of extension up to 20 years;
long-term tax holidays;
no restrictions from the state on repatriation of the investment assets;
the region’s most minimal tariffs for utilities.

Moreover, the status of the Ajman FTZ provides international companies with the possibility of obtaining certain advantages, in particular:

no need to attract a local sponsor, 100% foreign ownership of business is possible;
simplified procedure of registration and obtaining a business license and residence visa;
preferential access to the regional markets (the Persian Gulf States).

Transport opportunities and access to the international hubs

As to the transport provision and the appropriate infrastructure, the following data can be cited:

air communication: there are two international airport harbors in a 25-minute drive from the Ajman free economic zone;
maritime traffic: there are the following shipping ports Port Rashid, Port Ajman, Port Khalid and Port Sharjah in half an hour's drive;
surface transportation: there is a modern road system, which covers the entire territory of the Emirates and provides an access to all states of the Persian Gulf.

Ajman Free Zone: licensing of economic activity

To implement a legal economic activity in the jurisdiction of the Ajman free zone, the UAE, it is necessary to obtain the relevant business license after the registration of the international company. The provisions of the corporate law of the economic zone provide for the following types of state licenses:

state license for trading activities;
industrial business license;
state license for provision of the professional services;
national industrial license.

Operation of the state license has a territorial limitation and applies only to the territory of the economic zone. The valid term of the license is one year, and it must be renewed after this period.

Accordingly, the state licenses are available for the following legal forms of international companies:

FZE: it is a company, which is registered on the territory of the Free Zone and has the sole founder who is responsible for the obligations in the frameworks of the charter capital. The minimal share capital for this form is 50 thousand US dollars;
FZC: it is a company, which is registered on the territory of the Free Zone and has from 2 to 5 founders. The liability of the founders is limited by the share in the charter capital, and both private persons and companies can serve as the founders;
branches and representative offices of the operating local or foreign companies: there are no requirements for the minimal charter capital in these legal forms.

Conclusion:

The Emirate of Ajman, which occupies the Western coast of the United Arab Emirates, has a prominent position in the economy of the country. When earlier fishing and extraction of the marine pearls were the traditional crafts for the Emirate, today, the industrial sector and international trade, tourism and agriculture are thriving here. There are grandiose constructions on the territory of the Emirate, which are designed for the development of the industrial zone and for stimulation of the economic growth by attracting the large-scale investments.

Despite the fact that the economy of this Emirate of the UAE is not supported by the oil and gas sector, Ajman develops its economic base actively and never ceases to improve the existing infrastructure. Undoubtedly, it is an ideal industrial platform for entering the international markets and for expanding the client base in the region.