- Client portfolio now accounts for 529 commercial, 507 industrial, 450 consulting/services, 288 trading and 209 media firms based in RAK
Ras Al Khaimah Investment Authority (RAKIA), the government body responsible for the socioeconomic growth of the emirate, has announced that from January to May 2009 it has issued a total of 289 licenses to businesses operating across the different free zones of the emirate, underscoring the continued success of RAKIA in promoting Ras Al Khaimah as a popular destination of global and regional investors. RAKIA further revealed that the emirate's economic diversification strategy has remained firmly on track as licenses were issued to a diverse range of businesses including industrial, commercial, consulting and services, trading and media companies.
With the addition of the newly approved businesses, the total number of licenses issued by RAKIA since 2006 has now reached 1,983. Overall, there are a total of 529 commercial companies operating in RAKIA free zones, representing 26 per cent of all licenses issued by RAKIA since 2006, while there are 507 companies in the industrial sector, or 25 per cent of all businesses. RAKIA has also issued licenses to a total of 450 consulting and services companies, 288 trading companies and 209 media companies.
Dr. Khater Massaad, CEO, RAKIA said: "With respect to the ongoing global economic challenges, we are very satisfied with the growth rate that we have achieved. The continued influx of foreign investors and the growing level of international interest in the emirate have been achieved primarily because of the proactive support of the government in terms of infrastructural development and establishing pro-investment policies."
"Furthermore, our growth strategy also hinges on the excellent range of economic benefits and strategic advantages that we offer to all investors, which make Ras Al Khaimah an incredibly popular destination for foreign capital. Moreover, while investment markets in other parts of the world have succumbed to the downturn, Ras Al Khaimah has been relatively successful in shielding its investors and the economy in general from being adversely affected, which has further improved the reputation of the emirate as a sensible, practical and strategic location to establish a business hub," added Dr. Massaad.
RAKIA likewise disclosed that the bulk of the licences issued during the first half of 2009 went to trading companies and consulting and services firms, manifesting an emerging trend that reinforces Ras Al Khaimah's status as a strategic hub for trading activities. RAKIA issued 10 trading licences in 2006, 72 in 2007 and 113 last year; this year, RAKIA is on track to again achieve a positive growth rate in the trading sector as it has already approved a total of 93 trading licenses as of May 2009. There were also 93 licenses issued to consulting and services companies so far this year, while the rest were issued to 39 media companies, 35 commercial firms and 29 industrial companies.
Meanwhile, with the increasing demand for warehousing facilities in the emirate, RAKIA also announced that it is building 186,000 square meters (sqm) of ready-to-occupy warehouses, of which almost 88,000 sqm is ready for occupancy and another 60,000 sqm is under construction. About 85 per cent of the total completed area has been leased out, with more than 80 companies occupying the units.
Aside from excellent infrastructure facilities and a highly strategic location, foreign investors in Ras Al Khaimah also benefit from 100 per cent capital and profit repatriation, high availability of labour, easy licensing procedures, excellent port and transportation facilities, and the absence of foreign exchange controls, trade barriers and quotas.
Since its establishment in 2005, RAKIA has become one of the pillars of the emirate's economic progress, generating multi-billion dollars in annual revenues through groundbreaking investment initiatives within the emirate and across international markets. RAKIA plays an important role in nurturing the emirate's investment landscape as it has been mandated to manage Ras Al Khaimah's Industrial Zone and Free Zone in Al Hamra, and the Industrial Park in Al Ghail.
