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RAK: The rising star of UAE
Dubbed the rising star of the UAE, Ras Al Khaimah has emerged from the shadow of its prominent neighbours at a rate that is rapid even by Dubai standards.
- By Robert Ditcham, Staff Reporter
- Published: 00:00 June 14, 2007
- Image Credit:
- Images of the Financial City towers that will reshape the skyline of the Ras Al Khaimah.
Dubai: Dubbed the rising star of the UAE, Ras Al Khaimah has emerged from the shadow of its prominent neighbours at a rate that is rapid even by Dubai standards.
In the last four years the northern emirate has re-invented itself from a sleepy city reliant on the ceramics industry and export of raw materials into an economic powerhouse boasting multi-billion dirham real estate projects and investment opportunities ranging from tourism to industry.
Factors such as 100 per cent foreign ownership in free zone areas, no income tax for individuals and corporations, and low import duties have attracted both residential and commercial investment.
"It's wonderful to see the neighbouring and northern emirates rise to the challenge that Dubai has been setting and create a sustainable development profile," said Peter Penhall, CEO of property portal Gowealthy.com.
According to Emad Haffar, CEO of RAK-based property developer rakeen, the emirate's economy is being built on five main pillars — industry, real estate, tourism, financials and services — under a strategic plan set out by Shaikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah.
"His Highness has put in place a plan which integrates developments and businesses, and puts together all the essential components for a sustainable economy," said Haffar.
The tourism and real estate sectors have been the most active to date, both taking advantage of the emirate''s 40 km coastline, rugged Hajjar mountains and property prices which Penhall says are at least 40 per cent below rates in Dubai.
However, the manufacturing and industrial sector remains the emirate's key economic sector, especially in areas such as mining, agro-industry, shipping, pesticides and chemicals and building materials.
RAK's Investment and Development Office (IDO) says 60 per cent of its future investment deals will be channelled into lifestyle development.
FAST FACTS
Investment in 2006 put at Dh100b
IDO says it has attracted projects worth more than Dh20 billion into the emirate in the last two years — a figure which it aims to double by 2010.
In 2006, total foreign and domestic direct investment in Ras Al Khaimah was hovering around the Dh100 billion, Oussama Al Omari, director-general of the Ras Al Khaimah Free Trade Zone (RAKFTZ) told Gulf News.
As of last month, RAKFTZ has registered 3,186 companies with capital investments worth Dh4 billion in seven years.
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