Industrial Area 2 is a purpose-built commercial and light industrial zone in Ajman offering gross rental yields between 6% and 8% for warehouse and showroom properties. This strategic area provides specialized infrastructure for manufacturing, logistics, and wholesale businesses with warehouse rentals starting from AED 18,000 annually for 1,000-2,000 sq ft units.

What is Industrial Area 2 Ajman?

Industrial Area 2 Ajman is a strategically planned commercial zone designed specifically for manufacturing, warehousing, and industrial operations. Unlike mixed-use areas, it features purpose-built infrastructure, including wider roads, three-phase power, and loading facilities to support business efficiency.

The zone offers designated areas for different industrial activities, creating a business ecosystem where companies benefit from like-minded neighbors and appropriate zoning regulations.

Where is Industrial Area 2 Located?

The area's positioning prioritizes logistical advantages over residential convenience, defining its business appeal.

Key Location Advantages

• Logistical Superiority: Wider roads designed for heavy vehicle access and loading operations
• Transport Connectivity: Direct connection to Emirates Road (E611) and Sheikh Mohammed Bin Zayed Road
• Port Proximity: Easy access to Ajman Port and Sharjah borders for import/export businesses
• Business Ecosystem: Natural clustering of related industries and suppliers

Practical Location Considerations

1. Limited Residential Amenities: Few services catering to daily living needs
2. Commercial Focus: Environment designed around business operations, not community living
3. Vehicle Dependency: Personal transportation is essential for access
4. 24/7 Operations: Constant industrial activity day and night

What Property Types Are Available?

Industrial Area 2 offers diverse commercial properties designed for specific business requirements.

Available Property Types:

• Warehouse Spaces: 1,000 sq ft to 10,000+ sq ft distribution centers
• Showroom Units: Combined display and storage facilities
• Industrial Workshops: Spaces designed for manufacturing and repair work
• Commercial Offices: Administrative spaces for industrial businesses
• Labor Accommodations: Approved residential spaces for company staff

Standard Commercial Features:

• High Ceilings: 40-50 foot clear heights for storage optimization
• Heavy-Duty Flooring: Concrete floors supporting industrial equipment
• Loading Docks: Dock-level loading facilities in most properties
• Three-Phase Power: Industrial electrical capacity standard
• Ample Parking: Designed for commercial vehicles and employee parking

What is the Business Environment Like?

Operating in Industrial Area 2 means joining a dedicated commercial ecosystem with distinct advantages.

Commercial Community Benefits:

• Industry Clustering: Natural grouping of related businesses creates supply chain synergies
• Extended Hours: Flexibility for 24-hour operations where required
• Heavy Vehicle Access: No restrictions on commercial truck movements
• Shared Resources: Access to common service providers and maintenance companies

What is the Investment Potential and ROI?

Industrial Area 2 presents unique commercial investment opportunities with different return profiles than residential properties.

Current Rental Price Ranges

• Small Warehouse (1,000-2,000 sq ft): AED 18,000 - AED 35,000 annually
• Medium Warehouse (2,000-5,000 sq ft): AED 35,000 - AED 80,000 annually
• Large Warehouse (5,000-10,000 sq ft): AED 80,000 - AED 160,000 annually
• Showroom Units: AED 25,000 - AED 60,000 annually

Purchase Price Ranges

• Small Commercial Units: AED 300,000 - AED 600,000
• Medium Industrial Spaces: AED 600,000 - AED 1,200,000
• Large Warehouse Facilities: AED 1,200,000 - AED 2,500,000+

Sample Investment Calculation (Medium Warehouse):

• Purchase Price: AED 900,000
• Annual Rent: AED 65,000
• Gross Rental Yield: 7.22%

What Are the Business Setup Requirements?

Operating in Industrial Area 2 requires understanding specific regulatory frameworks and licensing.

Key Regulatory Aspects:

• Industrial Licensing: Specific requirements for manufacturing operations
• Environmental Compliance: Standards for waste management and emissions
• Municipal Approvals: Additional permits for specific industrial activities
• Customs Regulations: Important for import/export businesses
• Labor Requirements: Specific rules for industrial workforce accommodation

What Infrastructure and Utilities Are Available?

The area features enhanced infrastructure designed specifically for commercial operations.

Utility Specifications:

• Power Capacity: Three-phase electrical supply standard in all units
• Water Systems: Industrial-grade water supply and drainage
• Communication: Business-grade internet and telecom services available
• Road Network: Wide roads with heavy-duty surfaces for trucks

What Are the Total Operational Costs?

Understanding complete business expenses is essential for accurate budgeting.

Monthly Operational Cost Estimates:

• Commercial Rent: AED 3,000 - AED 13,000 (depending on space size)
• Industrial Electricity: AED 800 - AED 3,000 (varies with usage intensity)
• Water and Utilities: AED 300 - AED 1,000 monthly
• Municipal Fees: AED 500 - AED 2,000 (based on business type)
• Maintenance Costs: AED 500 - AED 2,000 monthly

Additional Business Expenses:

• License Renewal: Annual fees from AED 3,000-10,000 based on activity
• Visa Costs: Approximately AED 5,000-7,000 per employee annually
• Insurance Premiums: Commercial property insurance required
• Security Services: Recommended for most industrial operations

Are There Residential Options in Industrial Area 2?

While primarily industrial, limited residential options exist with specific considerations.

Available Residential Options:

• Labor Accommodations: Purpose-built housing for company employees
• Staff Quarters: Smaller units for supervisory and management staff
• Limited Apartments: Some mixed-use buildings with residential components

Residential Reality Check:

• Business Environment: Constant commercial activity 24/7
• Limited Amenities: Few restaurants, parks, or recreational facilities
• Noise Levels: Industrial operations continue throughout the night
• Transportation: A Personal vehicle is essential for all daily needs

Who is Industrial Area 2 Best Suited For?

Ideal For:

• Manufacturing businesses requiring industrial zoning
• Logistics companies need warehouse and distribution spaces
• Wholesale traders and supply chain businesses
• Equipment repair and service centers
• Construction material suppliers and distributors

Less Suitable For:

• Retail businesses requiring high customer foot traffic
• Office-based companies without industrial operations
• Residential seekers wanting community amenities
• Food and beverage businesses targeting general public

Frequently Asked Questions

1. What is the average rental yield in Industrial Area 2?

Industrial Area 2 typically delivers gross rental yields between 6% and 8%, with well-located warehouse properties achieving approximately 7.22% based on current market rates and purchase prices.

2. Can I live in Industrial Area 2 Ajman?

Limited residential options exist primarily as labor accommodations and staff quarters. The area is not designed for conventional residential living and lacks community amenities, making it unsuitable for families seeking typical neighborhood living.

3. What business licenses are available in Industrial Area 2?

The area offers industrial, manufacturing, and commercial licenses with specific requirements for each activity. 

4. How much does a small warehouse cost in Industrial Area 2?

Small warehouse units (1,000-2,000 sq ft) typically rent for AED 18,000 to AED 35,000 annually, while purchase prices range from AED 300,000 to AED 600,000 depending on condition, location, and specific features.

5. Is Industrial Area 2 good for logistics businesses?

Excellent for logistics operations. The area offers direct highway access, 24/7 operating flexibility, and appropriate zoning for distribution activities. The cluster of related businesses also creates supply chain efficiencies for logistics companies.