Article:
ISSUE No. 9 March - April 2008

Business Opportunities in Ras Al Khaimah
Fast growing Free Trade Zone attracts European Investors

Situated in the northern part of the Arabian Peninsula, the Emirate of Ras Al Khaimah (RAK) covers an area of 1,700 km² with a population of about 250,000 inhabitants. Since 1948 RAK is ruled by His Highness Sheikh Saqr bin Mohammed Al Qasimi. Natural beauty makes the emirate a popular holiday destination for sun loving tourists from all over the world. But RAK city also emerges as a favorable business place for foreign investments.
DiscoverME spoke with Oussama El Omari, CEO of Ras Al Khaimah Free Trade Zone Authority and member of the Board of Directors, about the strategic development of Ras Al Khaimah.

What are the characteristics of a free trade zone?

The free trade zones are backed by legislations allowing 100 per cent foreign ownership, transparent laws and 100 per cent capital and profit repatriation. The UAE has approximately 28 free zones completely operational. Those are a mix of traditional and specialized free zones.
Ras Al Khaimah Free Trade Zone in the United Arab Emirates is rapidly emerging as a preferred business hub of the Middle East. Our cost-effectiveness and commitment to investors-friendly procedures continue to prove that we are the ideal partner for free trade in the region.
With excellent infrastructure, tax-free environment, customized solutions, hassle-free procedures, value-added services and all the facilities you expect from a world-class free zone. Ras Al Khaimah Free Trade Zone is the best choice for your business venture.
RAK Free Trade Zone’s strategic location at the vantage point of world trade adds to its irresistible charm. We provide you a dynamic and flourishing business environment, enhanced by a coveted lifestyle offered by the multi-faceted emirate of Ras Al Khaimah.

How does RAK Free Trade Zone try to attract foreign investors?

Ras Al Khaimah Free Trade Zone has built up fantastic goodwill and reputation worldwide as one of the most customer-friendly investment and business destination in the world. One of the main tools used in new markets are exhibitions and road shows. In 2006 we have participated in more than 25 exhibitions worldwide. Members of our team has visited various economic centers in different countries and regions such as India, Iran, Turkey, Egypt, Jordan, Syria, Lebanon, KSA, UK, France, Italy, Germany, Hong Kong, Japan and South Korea to participate in important shows.
Ras Al Khaimah Free Trade Zone has enjoyed phenomenal success in Germany, as we continually participating in trade exhibitions and tradeshows in different cities such as Munich and Frankfurt.
We believe in customizing facilities and services to suit all the sizes of business and industries is by itself is a strong marketing tool for gaining client’s trust and faith.
RAK FTZ also offers additional range of unique services which include legal, human resources and marketing assistance in addition to simple and fast application procedures. Registrations and Licensing can be done in less than two days. Moreover we offer "International Companies Registry", which is a new scheme that allows foreign investors to register offshore companies in the Ras Al Khaimah Free Trade Zone (RAK FTZ) without the need to establish a physical presence.

How does RAK Free Trade Zone differ from other Free Zones in the UAE?

Since we have been established in May 2000, we have had ample time to understand the way other free zones operate and also the issues faced by investors. This has helped us in providing tailor made options for our investors. Hence you could say that we have benefited from the others experiences. Therefore, we, in RAK FTZ, are committed in providing world class services along hi-tech facilities.
The unique theme of "Flexi Solutions" has provided entrepreneurs an opportunity to establish and explore the business world in and around the region in a very cost-effective way. This includes hi-tech world class facilities, Flexibility, hassle free business set-up procedures. This has contributed to make RAK FTZ unique internationally and draw the attention of the investors around the world. We have more than 3,300 investors from around 100 countries around the globe. RAK FTZ’s innovative strategies have also helped to make it one of the fastest growing free zones within a short period of time.
One of the main attractions are RAK FTZ integrating FZ services with world class business center services in Ras Al Khaimah , Abu Dhabi and Dubai. This provides cost conscious investors a platform to explore the business opportunities in the region the most cost-effective way. Our hi-tech communication systems allows our clients to be mobile and totally flexible (flexi).
In addition to that, Ras Al Khaimah Free Trade Zone Authority has a unique and ambitious “four parks” concept which did not exist in the UAE. The Business Park, Industrial Park, Technology Park and Al Ghail Park, that will suit and serve every investor needs regardless of the size and type of the intended enterprise whether it is commercial business or the manufacturing industry. This has helped in segregating business activities according to function, operational requirements and the needs of the surrounding communities.
RAK FTZs innovative strategies and fast growth have been recognized and it was awarded the “The Best Emerging Free Zone” at the Middle East Logistics Awards for the year 2006 (Mela). This award was presented for performance excellence and in recognition of the industry's best practices.

From which kind of industries and from which part of the world do companies set up business in RAK?

Companies set up business in RAK from more than 100 countries worldwide, but the main countries are Iran, India, Germany, China, Egypt, and other European countries. Examples of the industries that are located in RAK FTZ are: Cable, Cement, Pharmaceutical, CD/DVD, Ceramic, Garments, Quarrying, Glass table, Packaging, Switchgear, armored vehicles, Building Materials, Cosmetic and perfumes, Fire-fighting equipment, Food stuff. "German Label", Germany’s leading abrasives manufacturer, has also established a presence the Middle East by operating in RAK FTZ.
Encouraging industries to expand their production lines is vital to the economy of the UAE. The free zone is attracting industries that are capital intensive and environment friendly.

How are your relations with German companies?

Currently we have more than 125 German companies registered with us. These companies are involved in all kinds of activities, mainly in construction material and spare parts trading as well as management and IT consultancy.
Also we have German companies manufacturing in our Technology and Industrial Park, such as the companies German Label or Reimann’s Fine Foods.
In addition, RAK FTZ has very good relations with the German Consulate and the German Industry and Commerce Office and their representatives in Dubai. We have German speaking staff to support our existing clients as well as interested companies and individuals.

How do you see RAK in 10 years from now?

The emirate of Ras Al Khaimah, with its rich culture, scenic locales and high economic activity, has established itself as a key business, commerce and investment destination in the region. We are determined to cement RAK as a de facto port of call and access point for investors looking to do business in the region. Ras Al Khaimah’s share of the region’s economic pie will grow exponentially in the coming years to position the emirate as a frontrunner in the race for global investment and attention.