Ajman's financial services sector contributed approximately $7.74bn to the UAE economy in 2005, The banking sector in particular has enjoyed remarkable growth, which intensified dramatically starting in 2002. It has included the development of retail banking and initial public offering financing in addition to sustained low interest rates. The long-standing leader in the emirate's banking sector is the Commercial Bank of  Dubai. With the opening of the Ajman Free Zone, the bank has been able to offer its complete range of services  to many foreign institutions The insurance sector has also witnessed strong growth although penetration rates are still low. This is being partly overcome with the introduction of takaful, Islamic insurance, to overcome any religious uncertainties regarding insurance  products. Growth in banking loans and insurance underwriting both look very likely to increase over the next three to five years.

 

 

Several private companies from outside the emirate are also entering Ajmans' property market. All of this has led to an increase in the mortgage market whose target customers are young people with families who are  first time buyers. Land prices have sky rocketed from just $11 per square foot to as high as $100 per sq foot in some areas. By the third quarter of 2007, developers in Ajman had announced projects with total investments of approximately Dh80bn ($21.8bn), a remarkable figure considering  the transactions market was valued at approx $950m in 2006, well up on the $118.81m seen in 2003.

 

Ajman's place in the Middle East's $1.5 trillion construction boom is assured.  In 2005, the emirate's property market was worth an estimated Dh3.5bn (approx $950m), according to property transaction records. The UAE has seen its population grow by nearly 75% in the past decade. As a result, new property laws have had to  be introduced in order to accommodate nationals and non-nationals. Ajman has led the UAE in this respect, being the first emirate to offer 100% freehold rights to non-nationals in 2004. The real estate sector has a strong government presence in the form of three major developers ontrolled by the ruling family ensuring projects will be completed to high standards and meeting deadlines.

 

Transaction values are set to increase as more property is built and the market extends it reach to new companies and expatriate workers.