A street in the RAK Free Trade Zone

Inspirational development policies and initiatives have enabled Ras Al Khaimah’s GDP to reach $4.30 billion, denoting a remarkable average growth of 14 per cent per year from 2004 to 2008 and 9 per cent in 2009, the RAK Government reported.

The Crown Prince and Deputy Ruler of Ras Al Khaimah, Sheikh Saud Bin Saqr Al Qasimi, is widely recognised as the architect of the emirate’s push for development.

One of the key initiatives undertaken by Sheikh Saud was to invite the World Bank to make a series of studies on how to make Ras Al Khaimah a business-friendly and efficient investment destination, which resulted in the establishment of manufacturing, tourism, real estate, construction and services as key growth sectors of the local economy. In the last two years, Ras Al Khaimah has also achieved ‘A’ ratings from S&P and Fitch primarily through the sheikh’s efforts to consolidate the RAK Government’s balance sheet.

Sheikh Saud said: “The goal of the emirate is to create an atmosphere that is conducive to working
and living.”

The emirate’s commitment to realising its long-term objectives of becoming a haven for business and home living is manifested by the success of key initiatives it has launched. Three success stories particularly stand out: Ras Al Khaimah Investment Authority (Rakia), RAK Ceramics and Al Hamra Village.

Established by an Emiri Decree in 2005, Rakia’s mandate is to be the main vehicle that oversees the emirate’s socioeconomic development. It manages three investment zones – the Industrial Zone and the Free Trade Zone in Al Hamra, and the Industrial Park in Al Ghail. To date, Rakia has generated investments close to $3 billion from all over the world.

Under Rakia, infrastructure facilities have been developed to cater to several high-potential investment sectors, including industrial and manufacturing; warehousing, cold stores, transport and distribution; tourism; real estate and construction; mining, minerals exploration, extraction and quarrying; food processing and dairy products; international maritime-related industries and services, including maintenance and fabrication works; and trade and commerce.

A recent report revealed a 75 per cent growth in the total number of businesses registered in the emirate – comprising local and international investors – during the first quarter of 2010. In the month of March, 115 new businesses registered with Rakia, setting an all-time record with the most number of businesses registered with the investment authority in a single month.

Overall, there are more than 6,500 companies registered with Rakia, representing investors from diverse non-oil sectors, including industrial, commercial, trading, services/consulting, and media companies. There are 3,030 on-shore companies and a total of 3,500 companies registered through Rakia’s off-shore facility, which recorded a 90 per cent growth during the first quarter of 2010 over the same period in 2009.

Up to 66 per cent of businesses registered in Rakia are from international destinations while 19 per cent are from the rest of the Middle East. Domestic investors account for the remaining 15 per cent of business registered in
the emirate.

Rakia is also the master developer of Bab Al Bahr, which is one of the premier development projects on Al Marjan Island. Another major development under Rakia’s portfolio is the prestigious Banyan Tree project.

RAK Ceramics
RAK Ceramics, a $1 billion global conglomerate, is the world’s largest company of its kind and exports to over 150 countries. It achieved a total production output of 117 million sq m from 15 manufacturing facilities located in six countries (See story on Page 10).

Al Hamra Village
Al Hamra Village is a 5 million sq m coastal development built around its own yacht club and marina with water views and an 18-hole championship golf course, the longest golf course on a sea site. Offering 100 per cent freehold properties that redefine the meaning of luxury living, Al Hamra Village will feature more than 1,000 villas, town houses and 2,500 apartments on completion.