Ajman Becomes Latest Emirate to Permit Short-Term Rentals

In a recent announcement, the Ajman Department of Tourism Development unveiled the introduction of a holiday homes service. The main aim of this initiative is to revitalize the tourism sector and enhance the appeal of Ajman as a top-notch destination for visitors. Ajman has also introduced comprehensive regulations to govern and supervise the operations of holiday homes throughout the emirate. These services offer property owners and hotel management companies the opportunity to lease residential units for short durations, presenting a flexible and innovative alternative to traditional long-term contracts, according to Ajman tourism. The tourism development also offers inspection and classification services for registered units, distinguishing between criteria for touristic and luxury accommodations. With the tourism sector in Ajman experiencing steady growth, the overarching objective is to expand the range of lodging choices available in the emirate.

Demand for short-term rentals in the United Arab Emirates (UAE) gained momentum last year after the implementation of new visa policies aimed at attracting more global tourists. UAE has set a target of 40 million tourists by 2030 and a sector contribution of $123 billion to the national gross domestic product (GDP). The outlook for the short-term vacation rental market remains positive as remote working and staycations gain popularity worldwide. The Dubai market, in particular, is thriving, supported by the influx of tourists visiting the country. Dubai has also introduced various reforms aimed at attracting more people to the emirate, including the remote working visa and multi-entry tourist visa, which could help this segment over the coming years.

Last year, Sharjah — one of the emirates in the country — launched its “Holiday Homes Project,” allowing residents to rent out places they own to tourists and visitors. There are estimated to be more than 300 holiday homes in the emirate, according to the Sharjah Commerce and Tourism Development Authority. Besides Airbnb units, operators such as Sonder are also present in the United Arab Emirates market. Emaar Properties, Dubai’s largest developer, as well as Accor with the SLS Dubai Hotel and Residences in Business Bay, are also getting into the short-term rentals market in the country.

Even as 91 percent of travelers in the United Arab Emirates (U