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Dubai: The value of the real estate sector in Ajman, the smallest emirate of the UAE, has gone up to Dh120 billion, according to government statistics.
Ajman Chamber of Commerce and Industry's latest report shows that foreign direct investment (FDI) has exceeded the other emirates by 300 per cent.
Ajman has eclipsed the other emirates in terms of attracting foreign investments into the country, with foreigners now owning 33 per cent of development projects established in the booming city compared to 11 per cent in the other emirates, thereby elevating Ajman's annual investment growth rate to an average of 6.7 per cent.
In addition, expatriates and GCC nationals are also being drawn to the relatively lower prices of properties in the emirate compared to the skyrocketing costs of investments in Dubai and Abu Dhabi.
Sweet Homes, a private developer, yesterday said it will launch a host of projects worth Dh2 billion in 2008. "There is a strong possibility that Ajman will be able to replicate the success it has witnessed during 2007 due to its intense focus to become a leading tourist, residential and investment destination," said Fahad Sattar Dero, CEO, Sweet Homes Group.
Focus
As more private developers are being encouraged to launch residential properties aimed at low- to middle-income end-users, especially in the Emirates City along the Emirates Road, Sweet Homes has identified Ajman as an ideal location for a large percentage of its future projects.
"Amidst the government's massive initiative to develop an investor-friendly business climate that is attracting stakeholders from all over the world, we have recognised the potential in providing a community development that addresses investor's requirements for residential and commercial built space. Ajman definitely lives up to our expectations, and we are currently on the process of developing more high profile projects in the emirate," he said.
Moreover, urban development projects worth Dh580 million, investments into maintenance services and infrastructure projects amounting to Dh174 million, and an Dh800 million sanitary water treatment project, were recently undertaken by the government in efforts to attract more local, regional and global developers and investors.
Steps: Regulatory body set up
A special department has been set up by the Government of Ajman to regulate the booming real estate sector, which has been steadily growing since 2004.
At present, freehold and escrow account laws in addition to regulations similar to those adopted in Dubai, are being drafted by the new Ajman Development and Investments Authority.
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