At a time when economic uncertainty persists across the world and as most free zones strive towards creating a favourable climate for new investors with attractive packages, Ras Al Khaimah Economic Zone (RAKEZ), one of the largest free zones in the emirates, has managed to emerge as a big draw for global investors.

The business and industrial hub in the northern emirate said it has reported an impressive increase in the number of new company registrations and business expansion amidst the pandemic.

RAKEZ has witnessed a 15.38 per cent increase in the number of active companies between 2017 and 2021, rising from 13,000 in 2017 to 15,000 in 2021. In 2020 alone, the zone attracted more than 3,500 new companies operating in various business segments, according to a top official at RAKEZ.

Jallad: excited for more opportunities

“We have been managing to outperform ourselves year after year, especially in the last three years, in terms of growth in leads, sales, client retention, service delivery and many other areas,” RAKEZ Group CEO Ramy Jallad told the Gulf Industry in an exclusive interview.

The industrial hub currently hosts 15,000 companies from more than 100 countries and operating in over 50 sectors. The authority’s primary source markets for investments are: India, the UAE, the UK, Pakistan and France while the top five sectors which find the most takers are the commercial sector; followed by the services sector; general trading, the media; and the industrial sector.

“We are happy with the growth and progressions we have been seeing in our zone and we are excited for more opportunities ahead,” Jallad added.

Strategic location

What makes RAKEZ one of the most opted free zones for business setup, is perhaps its strategic location, particularly for manufacturing operations.

Its strategic location at the centre of fast-emerging markets and supported by major land, sea and air logistical hubs, ensures easy export and import activity for the companies associated with RAKEZ.

A warehouse alley at the freezone

Situated at the crossroads of fast growing markets, RAKEZ is supported by five seaports including Ras Al Khaimah’s Saqr Port, which is the largest bulk commodity port in the Middle East; international airports and multi-lane superhighways connecting to neighbouring emirates and countries.

The recent expansion of Saqr Port (free zone), has also benefitted the Ras Al Khaimah-based manufacturers and traders who are using the opportunity to strengthen their presence in the Middle East and North Africa (Mena) region.

However, most importantly, other than location, incentives and services, RAKEZ’s USP is that it is very cost-effective, an industry analyst observed.

“When it comes to the key incentives of setting up business in RAK, no other economic zone in the region can match the cost-effectiveness that RAKEZ offers,” he added.

A business centre in the hub

Manufacturing boost

All though RAKEZ caters to almost all business types, it is believed to be the most ideal for businesses involved in manufacturing activities. This is because it is one of the few free zones in the UAE that offers customisable warehouses and plots of industrial lands for development.

In the year 2021, for instance, the zone has made major gains, particularly, in the manufacturing sector. The free zone has lured a large number of high profile manufacturing companies in the last 12 months, underscoring the Ras Al Khaimah Industrial strategy 2030 that aims to boost the manufacturing sector’s contribution to its GDP by 2030. 

Currently, manufacturing in Ras Al Khaimah contributes to 26 per cent of the UAE’s GDP. In fact, manufacturing sector exports grew 58 per cent in 2019 with 137 countries importing products from Ras Al Khaimah, according to Jallad.

“Our industrial zones contributed 87.7 per cent of the total exports in the emirate in 2019. Industrial exports in Ras Al Khaimah have a great role in maintaining the economic stability,” he added.

Some of the prominent manufacturing businesses that have joined RAKEZ in the last year are: Caresoft Global, a global company specialising in automotive benchmarking and engineering solutions; Polar Manufacturing, one of the leading advanced engineering and carbon fibre manufacturers; RAD International Road Construction, a prominent road construction player; Embosal Steel Mills, a conglomerate family business established in the 1980s in UAE; and Austrian SAN Group, the group has chosen RAKEZ as the platform for its green hydrogen and farming subsidiary SAN Enertech.

Inviting Incentives

To attract the biggies, the authority has taken various initiatives to boost its manufacturing.  “Our industrial zones underwent major improvements with construction of more warehouses and staff and labour accommodations,” said Jallad.

RAKEZ has also launched  ‘Lease More, Pay Less’ which is its latest offer on warehouses that lets investors enjoy lower rates, the more space they lease. These warehouses are ideal for storage, logistics, assembly, fabrication and light manufacturing, he added.

Going forward, RAKEZ is planning to develop and establish more facilities like labour and staff accommodations as well as warehouses to meet the great demand of investors.

Additionally, RAKEZ also supports SME investors start their ventures in the UAE by offering comprehensive SME solutions at a cost effective rates.

“We recently relaunched the SME package which now comes with a free residence visa from only AED, 11,200, along with a range of exclusive benefits, a selection of workspaces and up to 40 per cent discount guaranteed for life,” said Jallad.

It has also launched RAKEZ Compass Coworking Centre, a vibrant community hotspot in the emirate. The centre welcomes SMEs, entrepreneurs, start-ups, students and freelancers aiming to switch up the way they work.

Among several initiatives to support the business community, RAKEZ is planning to develop and establish more facilities like labour and staff accommodations as well as warehouses to meet the great demand of investors.

RAKEZ is also planning to launch customised packages for investors serving different sectors to cater to their unique needs and more partnerships with third-party entities to support clients with their businesses, and more participations in roadshows and exhibitions to attract new investors.

Some other remarkable initiatives launched by the zone in the past include the Dual license structure- which allows investors to operate in both free zone and mainland jurisdictions, without the need to have an additional facility in the mainland.

The new structure has been launched by the economic zone in collaboration with Ras Al Khaimah Department of Economic Development (RAK DED).

In order to become more accessible to its clients than ever, RAKEZ launched RAKEZ Portal 360, where clients can submit service requests and applications 24/7.

In fact, the business hub has gone full-on digital on its set-up processes, allowing investors to apply with no physical presence and original documents required. It has also launched RAKEZ Mobile App - packed with wide-ranging features that allow clients to submit and track renewal requests; top-up their e-wallet; browse service catalogue; receive important updates; book an appointment with a RAKEZ representative and many more. It also provides instant online support to individuals who have RAKEZ-related queries and clarifications.

To strengthen entrepreneurship in times of uncertainty, RAKEZ continued pushing the sectors such as e-commerce which saw a boom in 2020. In 2021 too, it offered the packages launched in 2020 such as: MyBusiness Package, which comes with free UAE visa and licence for a low cost; e-commerce set-up package, for investors who wish to capitalise on the booming online selling industry; and virtual education licence, to empower education professionals who wish to train and tutor remotely;

“These enabled us to continuously see a boom in many of our sectors,” said Jallad.

Additionally, it also launched a new business set-up package called E-gaming that starts from AED 7,725, which is considered very cost-effective.