Ras Al Khaimah means business

Ras Al Khaimah: The Ras Al Khaimah Investment Authority (Rakia) said it intends to extend the emirate's stable growth path of the past couple of years by attracting more investment into its free zones.

Created in 2005, the authority has been tasked to contribute heavily to the emirate's development.

Rakia CEO Dr Khater Massaad said the authority had since raised $3 billion worth investment from around the world and licensed 6,500 businesses.

"Our aim is to assist investors to be able to operate their business in the most efficient way and achieve the best profits," he said.

International rating agencies such as Fitch and Standards and Poor's have given the emirate a rather encouraging "AA", he said.

Shaikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah said: "The critical review of government performance in different areas by those is good for us to maintain or even improve our efficiency and attract the investors we want".

"We're able to capture outside talent in addition to developing our own to prosper thanks to the freedom people can experience in the emirates," Shaikh Saud said.

RAK's leaders say they have been busy investing in speciality hospitals, educational institutions, homes and entertainment to improve the living environment and business facilities.

The Al Hamra free and industrial zones together measure 5.8 million square metres. The Al Gail Park free zone measures 3.7 million and its industrial zone 17.3 million.

Each is described as having its own power plant of 45 and 65 megawatt respectively.

Shaikh Saud said the emirate was looking at alternatives to fossil fuel and a green building code to save energy.

It had also supported a solar power study.

Massaad said RAK Minerals, which belongs to RAK Ceramics under TRIMEX, was going ahead with a coal mining project in Indonesia.

Shaikh Saud said: "Energy is a corner stone in development for the world. It's a sensible project with a huge market thanks to the energy requirements in China and India".

"Not only that the coal is low in sulphur and with that is deemed green coal.

"We're studying how that could help us here as well," Shaikh Saud said.

RAK used to grapple with a lack of power, but Massaad said the tide had turned. "We have our own power and desalination plant in addition to federal supply to satisfy the demand of investors," he said. "As Rakia today we have almost 45 megawatt excess power and are looking for investors to come so we can sell it."

In 2006 there were around 300 industry licences operating in the emirate. By 2009 this figure grown nearly nine fold, Massaad said. Trading and consulting licences led the pack last year. The former tripled from 2008 and the latter doubled.

Industrial only came fourth in 2009 and media last, Massaad said.

Maasaad said he was optimistic about filling the remaining 80 per cent of the Al Gail zone, which opened last year.

"In times of crisis investors will look for more cost-effective destinations making it a reason to relocate and we hope they will do to this area," he said.

"This year Europe — France and South Korea in particular have shown interest in investing in RAK."

Accolades

The zones have won several awards over the years as cost-effective destinations thanks to liberal labour laws, low manufacturing costs and zero tax.

This combination has attracted companies from India, Europe, UAE and other parts of the Middle East, plus Asia.

The Saqr Port has been equipped to deal with large and heavy cargo, including rocks mined from RAK's mountains to be shipped to projects across the Gulf.

RAK leaders said the port handled 150 million tons per year and was the region's largest port for bulk handling.

A British company and the UAE's federal government were working to ensure port security was tight. "We are in a federal system and responsible members of the UN," Shaikh Saud said.

"The port has been upgraded to comply with security and we're in compliance with all UN Security Council Resolutions regarding exports and imports from RAK"