Over 1,800 Pakistani businesses register at UAE’s Ajman Zone

Pakistan happens to the be the fourth largest investor besides India, China and Russia in the UAE-based Ajman Free Zone (AFZ), thanks to the economic negatives ranging from an uncertain law and order situation to lingering energy crises.

With economic observers have long been warning of a huge flight of capital from the crises-hit Pakistan to other regional countries prominently UAE, Bangladesh and Sri Lanka, the authorities at Ajman Free Zone Authority (AFZA) Wednesday said Pakistan was among four largest investors with a “huge” investment made by over 1800 companies in the AFZ).

“Pakistan stands the fourth largest country in terms of it presence at the zone,” Ali Hussain Fahmi, head of AFZA’s customer service told Pakistan Today on sidelines of a briefing he held along with the Authority’s sales executive Mohammad Salem El Hammadi here at Karachi Press Club Wednesday.

“The investment from Pakistan constitute 20 percent of the total” at AFZ, said El Hammadi.

Earlier, Fahmi told reporters that by now over 1800 Pakistani businesses were registered in AFZ.

In total there are 9000 businesses registered at the zone that Fahmi said “speak volumes about the mutually beneficial business opportunities between the two countries”.

The AFZA official told Pakistan Today that a business unit required $ 7400 for establishing a trading facility at the zone. This rate, if applied on the number of Pakistani businesses present in AFZ, depicts that Pakistani businessmen so far have invested at least $ 13.32 million only to have a presence at the facility.

Unable to quote an exact figure, Fahmi said the investment portfolio of the 1800 Pakistani business units was “huge”.

“The Pakistani companies primarily are linked to the trade and services sector,” Fahmi said.

Asked if he deemed the prevailing security volatility and energy crises as a sort of blessing in disguise for the zone, Fahmi replied in negative. “Pakistani businessmen are mostly using AFZ as a hub for re-exporting their products to worldwide destinations. They are using the zone’s economic structure for re-exporting or assembling their products,” he explained.

Fahmi, however, said the Pakistani investors were feeling “secure” at AFZ that offers endless business opportunities in the Middle East.