Ajman Economy Grow by 5% with GDP at 2013 Market Prices Increase to AED 16,414 Million
Department of Economic Development Ajman Makes Available the 2014 Annual Economic Report;
Global Economy Expected to Grow by 3.8% in 2015 Predicts DED Ajman Report;
Ajman, United Arab Emirates: The Department of Economic Development in Ajman, launched its 2014 Annual Economic Report. Figures from the report state that by the end of 2013, the economy of Ajman grew by 5%, with a GDP price increase to AED 16,414 million, an increase from AED 15,690 million in 2012, whereas inflation in general in the Emirate of Ajman experienced a rise from 1.26% in 2013, to 2.39% in 2014.
The 2014 annual Economic Report of the emirate of Ajman offers analytics on the most important global economic indicators and then reviews economic growth in the United Arab Emirates in general, and the Emirate of Ajman with particular interest.
The department of DED oversees the economic activities, growth rates and investment distribution in the emirate. Ajman DED also develops promotional and marketing plans for the emirate, and its products of goods and services, and provides trade protection and inspection for all economic entities, and ensures fair competition, while exercising activities in accordance with the prevailing laws in the Emirate of Ajman.
“We at the Department of Economic Development, working under the vison of His Highness Sheikh Humaid bin Rashid Al Nuaimi Supreme Council Member and Ruler of Ajman, and H. H. Sheikh Ammar bin Humaid Al Nuaimi Crown Prince of Ajman, and the government of Ajman, offer a clear marker to anyone looking to invest in the emirate. As the economy of Ajman continues to grow, our report is a not just a key indicator for existing and new business, but also to other government departments who are also focused on developing the prosperity of Ajman, and the UAE as a whole. DED Ajman plays a key role in heling Ajman reach its true potential, and will continue to provide valuable insight and reports like these, which is beneficial to all,” commented HE Ali Issa Al Nuaimi, Director-General of the Department of Economic Development in Ajman.
The Emirate of Ajman offers healthy investment opportunities, as reflected by remarkable growth in the total number of licenses issued by the Ajman Municipality which increased from 21,799 license in 2011 to 24,525 license in 2013, at an average annual growth rate of 26% during this period, as detailed in the report.
Furthermore, the construction, real estate and business services, and financial corporation sectors grew at a rate of 8% in 2013 compared to 2012 which was higher than the average growth in the emirate. Also the wholesale, retail trade and repairing services sector grew at a rate of 6% in 2013, compared to 2012.
The report also states that, the relative share of manufacturing activity formed 35% of GDP in 2013 and the construction sector constituted 15% of GDP in 2013, which includes, general contracting and maintenance, construction and civil construction such as roads, bridges and water systems.
The relative contribution of the wholesale, retail trade and repairing services sector, which includes activities such as resale of new and used goods, repair and maintenance reached about 13% of the value of GDP in 2013.
Also, the real estate and business services sector which include services related to the management of the rental and sale of residential units and land activities contributed 11% to GDP in 2013. The contribution of transport, storage and communications sector amounted to about 6% of GDP, including various types of transport and storage operations, telecommunications services and postal services.
Prices in all expenditure groups for goods and services increased markedly in the emirate of Ajman, where the general consumer price index rose from 124.61 in December 2013, to 127.59 in October 2014, at a rate of 2.39%.
The report also looks at Inflation in the Emirate of Ajman, and education services recorded the highest rate of inflation which amounted to 6.2%, as the price index of this expenditure group rose from 123.42 in December 2013, to 131.08 in October 2014.
Expenditure group on housing, water, electricity, gas registered the lowest inflation rate of 0.03%, as there has been a slight increase in the consumer price index for this group from 112.84 in December 2013, to 112.88 in October 2014.
Also, prices for health services witnessed as well a slight increase of 0.06%, where the consumer price index rose for this group from 108.36 in December 2013, to 108.43 in October 2014. The consumer price index for the restaurants and hotels sector increased from 155.72 in December 2013, to 155.93 in October 2014 by a slight increase of 0.13%.
Food and beverage prices increased at a rate of growth exceeding the overall average price rise, where the consumer price index for this group rose from 158.3 to 166.08 in October 2014 at a percentage an increase of 4.91%.
Prices rose by higher than the overall average in the expenditure groups of transport services at a rate of 2.83%, and in recreation and culture at a rate of 2.77% during the period from December 2013 to October 2014.
Ajman exports which is essentially made of industrial goods grew at an annual average rate of 67% from AED 1,097 million dirham in 2011, to AED 3,073 million in 2013.
The exports of chemicals, petroleum products and plastics recorded the highest average annual growth rate 165% during the period from 2011 to 2013, whereas the value increased from AED 269 million in 2011, to AED 1,883 in 2013.
Export industries that have achieved high growth include food exports at an average annual growth rate of 60% and exports of textile at an annual average rate of 52% during the period 2011-2013.
Exports that has achieved a relatively low growth rate include exports of non-metallic mineral products at an annual average rate of 4% and exports of wood and furniture at a rate of 7%
Ajman exports in terms of relative importance was such that around 81% of the total value of exports in 2013 was concentrated in three industries, namely chemicals and plastic products at 61%, fabricated metal and equipment at 13%, and non-metallic mineral products industry at 7%.
Around 80% of the value of total exports of the emirate of Ajman in 2012 were exported to the Asian region, while the share of Africa amounted to about 19%.
The report also looks at the economy of United Arab Emirates and states that the country’s economy grew at an average annual growth rate of about 5% during the period from 2011 to 2013, and the GDP at constant prices rose from AED 987,318 million in 2011, to AED 1,087,246 million in 2013.
The economic diversification sectors which include all the economic sectors with the exception of crude oil grew at an annual average rate of about 4% where the GDP increased at the constant prices for these sectors to AED 671,908 million 2011, to AED 731,789 million dirham in 2013, while crude oil and natural gas sector has grown at an annual average rate of 6% during the period from 2001 to 2013.
In terms of the global economy, the report states that The International Monetary Fund (IMF) data indicate a continued recovery in the global economy from the effects of the crisis, but still weak and unbalanced, as some countries managed to recover while others are still suffering and the global economy is expected to grow at a rate of 3.3% in 2014 and at 3.8% in 2015.
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