Overview
Ajman Free Zone (AFZ) is one of the UAE’s most affordable and accessible free zones, located in the emirate of Ajman along the Arabian Gulf coast. Established in 1988, AFZ has grown to host over 10,000 companies and is particularly popular among SMEs, traders, and entrepreneurs seeking low-cost entry to the UAE market. The zone’s compact size and efficient administration enable rapid business setup.
Key Sectors
AFZ supports general trading, textiles and garments, construction materials, food and beverages, furniture, automotive parts, cosmetics, electronics, packaging, e-commerce, and professional services. The zone’s proximity to the Ajman port and its affordable warehouse facilities make it attractive for import-export businesses handling physical goods.
Setup Process
Company formation in AFZ involves selecting a licence type (trading, service, industrial, or e-commerce), submitting an application with identification documents and a business plan, choosing a facility package, and completing registration. The process is straightforward and can be completed within two to three business days. AFZ provides dedicated service counters and an online portal for administrative tasks.
Costs and Licensing
AFZ offers some of the lowest setup costs among UAE free zones. Trading licence packages start at approximately AED 7,500 per year including the licence and establishment card. Flexi-desk solutions with visa allocation start at around AED 9,000 per year. Warehouse spaces start from approximately AED 15,000 per year for smaller units. Office spaces are available from approximately AED 10,000 annually.
Benefits
AFZ provides zero corporate and personal income tax for qualifying activities, 100 percent foreign ownership, full profit and capital repatriation, affordable operating costs, proximity to Ajman port, and quick incorporation timelines. The zone offers a cost-effective alternative to Dubai and Abu Dhabi free zones while maintaining full free zone privileges.
Ownership Rules
Foreign investors can own 100 percent of AFZ entities without a local partner or sponsor. Permitted entity types include Free Zone Establishment (single shareholder), Free Zone Company (multiple shareholders), and branch offices.
Tax Regime
AFZ free zone companies benefit from zero percent corporate tax on qualifying income. No personal income tax is levied. Customs duties are waived for goods within the free zone. Standard five percent UAE VAT applies to taxable transactions.
Infrastructure
AFZ operates from a dedicated complex near the Ajman corniche and the Ajman port. Facilities include office buildings, executive suites, warehouses, open storage yards, and showrooms. The zone connects to Emirates Road and Sheikh Mohammed Bin Zayed Road, providing highway access to Dubai (approximately 25 minutes) and Sharjah (approximately 10 minutes).
Ideal Investor Profile
AFZ is best suited for small to medium traders, import-export businesses, light manufacturers, e-commerce operators, and service providers seeking a legitimate UAE free zone licence at the lowest possible cost, with warehouse or office facilities available at budget-friendly rates.