Annual Economic Report Ajman 2019 1 Prepared by: Department of Planning and Economic Studies - Department of Planning and Business Development, Annual Economic Report – 2019 Copyrights and publishing @ Economic Department – Ajman Government – United Arab Emirates P.O. Box 870 Ajman - United Arab Emirates Tel.: +971 6 7033888 Fax: +971 6 7033998 Email: [email protected] Website: www.ajmanded.ae 2 His Highness Sheikh / Humaid Bin Rashid Al Nuaimi A MEMBER OF THE UAE SUPREME COUNCIL – THE RULER OF THE EMIRATE OF AJMAN 3 His Highness Sheikh / Ammar Bin Humaid Al Nuaimi CROWN PRINCE OF AJMAN AND CHAIRMAN OF THE EXECUTIVE COUNCIL, 4 His Highness Sheikh Ahmed Bin Humaid Al Nuaimi CHAIRMAN OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT – AJMAN 5 TABLE OF CONTENTS INTRODUCTION 10 SECTION I: GLOBAL & LOCAL MACROECONOMIC CHANGES 12 1. 1 INTRODUCTION 12 2. 1 ECONOMIC GROWTH IN THE WORLD 12 3. 1 INFLATION IN THE WORLD 13 4.1 FOREIGN DIRECT INVESTMENT FLOWS IN THE WORLD 13 5. 1 GLOBAL TRADE TRENDS 14 6.1 GDP OF THE UAE: 15 7.1 TOTAL FIXED CAPITAL FORMATION IN THE UAE 16 8.1 INFLATION IN THE UAE: 17 9. 1 FOREIGN TRADE IN THE UAE 17 10.1 FOREIGN DIRECT INVESTMENT IN THE UAE 18 SECTION II, LOCAL MACROECONOMIC CHANGES IN THE EMIRATE OF AJMAN 19 1.2 INTRODUCTION 20 2.2 GROSS DOMESTIC PRODUCT (GDP) 20 3.2 SECTORAL STRUCTURE OF GDP: 21 4.2 FIXED CAPITAL FORMATION: 22 5.2 INFLATION: 23 SECTION III: FOREIGN TRADE OF THE EMIRATE OF AJMAN 24 1. 3 INTRODUCTION 24 2. 3 EVOLUTION OF THE VALUE OF FOREIGN TRADE 25 3. 3 TRADE BALANCE OF THE EMIRATE OF AJMAN 25 4. 3 ANALYSIS OF THE VALUE OF AJMAN EXPORTS 26 5. 3 ANALYSIS OF THE VALUE OF RE-EXPORTS FROM THE EMIRATE OF AJMAN 27 SECTION IV, THE MANUFACTURING SECTOR 31 1.4 INTRODUCTION 31 2.4 EVOLUTION OF THE MANUFACTURING SECTOR GROWTH 31 3.4 EVOLUTION OF THE INVESTMENT IN MANUFACTURING INDUSTRIES 32 4.4 EVOLUTION OF THE NUMBER OF INDUSTRIAL ESTABLISHMENTS 33 5.4 MANPOWER IN INDUSTRIAL ACTIVITIES 35 6 SECTION V: TOURISM SECTOR 38 1.5 INTRODUCTION 38 2.5 CONTRIBUTION OF THE TOURISM SECTOR TO THE EMIRATE’S GDP 38 3.5 INVESTMENT IN THE TOURISM SECTOR 40 4.5 HOTEL ESTABLISHMENTS IN THE EMIRATE OF AJMAN 40 5.5 VISITORS 41 6.5 HOTEL NIGHTS 42 7.5 HOTEL OCCUPANCY RATES 44 SECTION VI: THE REAL ESTATE SECTOR 46 1.6 INTRODUCTION 46 2.6 CONTRIBUTION OF THE REAL ESTATE SECTOR TO THE EMIRATE’S GDP 46 3.6 INVESTMENT IN THE REAL ESTATE SECTOR 47 4.6 REAL ESTATE TRANSACTIONS 48 5.6 BUILDING PERMITS AND COMPLETION CERTIFICATES 48 6.6 REGISTERED LEASE CONTRACTS 50 SECTION VII: THE FINANCIAL ACTIVITIES AND INSURANCE COMPANIES 52 1.7 INTRODUCTION 52 2.7 CONTRIBUTION OF FINANCIAL AND INSURANCE ACTIVITIES TO THE EMIRATE’S 52 ECONOMY. 3.7 INVESTING IN FINANCIAL AND INSURANCE ACTIVITIES 53 4.7 BANKING FACILITIES 53 5.7 DEPOSITS AND LOANS BANKING 54 6.7 INSURANCE COMPANIES SECTOR 55 7.7 INSURANCE POLICIES 55 8.7 INSURANCE PREMIUMS AND COMPENSATIONS 55 SECTION VIII: WHOLESALE AND RETAIL TRADE 58 1.8 INTRODUCTION 58 2.8 CONTRIBUTION OF THE WHOLESALE AND RETAIL TRADE SECTOR TO THE 58 EMIRATE’S GDP 3.8 INVESTMENT IN THE WHOLESALE AND RETAIL TRADE SECTOR 59 4.8 LICENSES OF ECONOMIC ACTIVITIES PRACTICES 59 5.8 LICENSING MOVEMENT INDEX 62 7 LIST OF FIGURES SECTION I: GLOBAL AND LOCAL MACROECONOMIC CHANGES Figure 1-1 WORLD ECONOMIC GROWTH RATES P. 12 Figure 1-2 ANNUAL INFLATION RATES P. 13 Figure 1-3 FDI INFLOWS P. 14 Figure 1-4 GROWTH RATES OF THE WORLD TRADE VALUE P. 15 Figure 1-5 NON-OIL GDP AT CONSTANT PRICES P. 15 Figure 1-6 NON-OIL GDP SECTORAL STRUCTURE P. 16 Figure 1-7 GROSS FIXED CAPITAL FORMATION P. 17 Figure 1-8 ANNUAL INFLATION RATES P. 17 Figure 1-9 FOREIGN TRADE TRENDS P. 18 Figure 1-10 NET FDI P. 18 SECTION II Figure 1-2 THE GDP OF THE EMIRATE OF AJMAN AT CURRENT PRICES P. 20 Figure 2-2 GDP GROWTH RATES AT CURRENT PRICES P. 20 Figure 3-2 THE SECTORAL COMPOSITION OF THE GDP OF THE EMIRATE OF AJMAN P. 21 FIXED CAPITAL FORMATION IN THE EMIRATE OF AJMAN DURING 2014- Figure 4-2 P. 21 2018 Figure 5-2 SECTORAL STRUCTURE OF FIXED CAPITAL FORMATION P. 22 Figure 6-2 ANNUAL INFLATION RATES IN THE EMIRATE OF AJMAN P. 22 SECTION III EVOLUTION OF THE VALUE OF THE DIRECT FOREIGN TRADE OF AJMAN Figure 1-3 P. 25 DURING 2014-2018 EVOLUTION OF THE DEFICIT VALUE IN THE DIRECT TRADE BALANCE OF Figure 2-3 P. 25 AJMAN DURING 2014-2018 SECTION IV EVOLUTION OF THE ANNUAL GROWTH RATE OF THE MANUFACTURING Figure 1-4 INDUSTRIES SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE P. 31 UAE'S AVERAGE (2014-2018) RELATIVE DISTRIBUTION OF INVESTMENTS ON INDUSTRIAL ACTIVITIES IN Figure 2-4 P. 32 THE EMIRATE OF AJMAN IN 2018 RELATIVE DISTRIBUTION OF FOREIGN INVESTMENTS ACCORDING TO THE Figure 3-4 P. 33 INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018 EVOLUTION OF THE NUMBER OF INDUSTRIAL LICENSES IN THE EMIRATE Figure 4-4 P. 33 OF AJMAN DURING (2014-2018) RELATIVE DISTRIBUTION OF THE UAE'S SHARE OF INDUSTRIAL LICENSES IN Figure 5-4 P. 34 2017 RELATIVE DISTRIBUTION OF INDUSTRIAL LICENSES IN THE EMIRATE OF Figure 6-4 P. 34 AJMAN ACCORDING TO THE MOST IMPORTANT ACTIVITIES IN 2018 8 RELATIVE DISTRIBUTION OF INDUSTRIAL ESTABLISHMENTS LICENSES IN Figure 7-4 P. 35 THE EMIRATE OF AJMAN ACCORDING TO THE HEADCOUNT IN 2018 RELATIVE DISTRIBUTION OF WORKERS ACCORDING TO THE INDUSTRIAL Figure 8-4 P. 35 ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018 RELATIVE DISTRIBUTION OF UAE NATIONAL WORKERS ACCORDING TO Figure 9-4 P. 36 THE INDUSTRIAL ACTIVITIES IN THE EMIRATE OF AJMAN IN 2018 SECTION V ANNUAL GROWTH RATE OF THE GDP OF THE TOURISM SECTOR IN THE Figure 1-5 P. 39 EMIRATE OF AJMAN COMPARED TO THE UAE (2014-2018) EVOLUTION OF THE VISITOR'S SHARE OF THE GDP OF THE TOURISM Figure 2-5 P. 39 SECTOR IN THE EMIRATE OF AJMAN (2014-2018) ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR THE Figure 3-5 TOURISM SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE P. 40 AVERAGE (2014-2018) EVOLUTION OF THE NUMBER OF HOTEL ROOMS AND HOTEL Figure 4-5 P. 41 APARTMENTS IN THE EMIRATE OF AJMAN (2012-2017) EVOLUTION OF THE NUMBER OF GUESTS / VISITORS TO THE EMIRATE OF Figure 5-5 P. 41 AJMAN (2014-2018) RELATIVE DISTRIBUTION OF THE NUMBER OF VISITORS TO THE EMIRATE Figure 6-5 P. 42 OF AJMAN ACCORDING TO NATIONALITY DURING 2018 EVOLUTION OF THE NUMBER OF HOTEL NIGHTS IN THE EMIRATE OF Figure 7-5 P. 42 AJMAN (2014-2018) AVERAGE NUMBER OF HOTEL NIGHTS SPENT BY A VISITOR IN AJMAN Figure 8-5 P. 43 COMPARED TO DUBAI (2014-2018) AVERAGE SHARE OF HOTEL NIGHTS SPENT BY VISITORS ACCORDING TO Figure 9-5 P. 43 NATIONALITY IN AJMAN DURING 2015 AND 2018 RELATIVE DISTRIBUTION OF THE NUMBER OF HOTEL NIGHTS IN THE Figure 10-5 P. 44 EMIRATE OF AJMAN ACCORDING TO NATIONALITY DURING 2018 EVOLUTION OF THE OCCUPANCY RATES OF HOTEL ROOMS AND HOTEL Figure 11-5 P. 44 APARTMENTS IN THE EMIRATE OF AJMAN IN 2015 AND 2018 SECTION VI THE ANNUAL GROWTH RATE OF THE GDP OF THE REAL ESTATE SECTOR IN Figure 1-6 THE EMIRATE OF AJMAN COMPARED TO THE AVERAGE FOR THE UAE P. 47 (2014-2018) ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR THE REAL Figure 2-6 ESTATE SECTOR IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S P. 47 AVERAGE (2014-2018) EVOLUTION OF THE NUMBER OF REAL ESTATE SALES TRANSACTIONS Figure 3-6 P. 48 REGISTERED IN THE EMIRATE OF AJMAN DURING 2014-2018 9 EVOLUTION OF THE VALUE OF REAL ESTATE TRANSACTIONS IN THE Figure 4-6 P. 48 EMIRATE OF AJMAN DURING 2014-2018 EVOLUTION OF THE NUMBER OF BUILDING PERMITS ISSUED IN THE Figure 5-6 P. 49 EMIRATE OF AJMAN DURING 2014-2018 EVOLUTION OF THE NUMBER OF COMPLETION CERTIFICATES ISSUED IN Figure 6-6 P. 49 THE EMIRATE OF AJMAN DURING 2012-2017 EVOLUTION OF THE NUMBER OF LEASE CONTRACTS REGISTERED WITH Figure 7-6 P. 50 THE AJMAN MUNICIPALITY DURING 2014-2018 RELATIVE DISTRIBUTION OF THE NUMBER OF LEASE CONTRACTS Figure 8-6 P. 51 REGISTERED IN AJMAN (BY NATIONALITY) DURING 2018 SECTION VII ANNUAL GROWTH RATE OF THE GDP FOR FINANCIAL AND INSURANCE Figure 1-7 ACTIVITIES IN THE EMIRATE OF AJMAN COMPARED TO THE UAE'S P. 52 AVERAGE (2014-2018) ANNUAL GROWTH RATE OF FIXED CAPITAL FORMATION FOR FINANCIAL Figure 2-7 AND INSURANCE ACTIVITIES IN THE EMIRATE OF AJMAN COMPARED TO P. 53 THE UAE'S AVERAGE (2014-2018) EVOLUTION OF THE NUMBER OF LOCAL AND FOREIGN BANK BRANCHES Figure 3-7 P. 54 IN THE UAE DURING THE 2014-2018 EVOLUTION OF THE VALUE OF DEPOSITS AND LOANS BANKING IN THE Figure 4-7 P. 54 EMIRATE OF AJMAN DURING 2014-2018 RELATIVE DISTRIBUTION OF THE NUMBER OF INSURANCE POLICIES Figure 5-7 ACCORDING TO THE BRANCHES ISSUED IN THE EMIRATE OF AJMAN P. 55 DURING 2018 RELATIVE DISTRIBUTION OF THE VALUE OF UNDERWRITTEN PREMIUMS Figure 6-7 P. 56 ACCORDING TO THE BRANCHES IN THE EMIRATE OF AJMAN DURING 2018 EVOLUTION OF THE UNDERWRITTEN PREMIUMS AND PAID CLAIMS Figure 7-7 ACCORDING TO THE INSURANCE BRANCHES IN THE EMIRATE OF AJMAN P.