Ras Al Khaimah success stories draw attention of business, manufacturing sectors

The two-day RAK Conference focused on the emirate's infrastructure offerings on the second day, with sessions dedicated to ports, logistics and free zones; real estate, manufacturing, energy and petrochemicals. RAK veterans and newcomers alike testified to the growth opportunities and advantages of operating in the emirate.

Dr. Khater Massad, CEO of RAK Ceramics, said successful businesses operating in the emirate have thrived because of the emirate's infrastructure and logistics capacity, its energy, labour and real estate supply, tax-friendly status and the RAK government's pro-business and pro-investment outlook.

RAK Ceramics, which began operations in 1991, is currently the single largest ceramic manufacturing entity in the world and a business model for the emirate. The publicly listed company produces more than 100 million square metres of ceramic tile and three million pieces of sanitary ware annually, and has a distribution network spread across 128 countries. The company has achieved a return on investment 200 times its initial capital.

"Production capacity is only one accomplishment," Dr. Massad said. "Our quality is rated as one of the best in the world. We are confident these achievements could not have been replicated outside of Ras Al Khaimah."

'The company was far from alone in its success story, with other RAK manufacturers reporting more than 30 per cent cost reduction in comparison with other plants located outside the emirate.'

In the last two years, the emirate has attracted more than 140 industries and more than USD 1 bn in FDI. The industries range from small glass bottle and truck and bus manufacturing plants to commodity and polystyrene factories.

Riad Bsaibes, Chief Operating Officer of Amana Contracting and Steel Buildings, and Dr. Carlo Capellano, General Manager of Domopan Gulf, also testified to the advantages of establishing their GCC operations in the emirate.

"What Ras Al Khaimah offers is a lower cost base plus the same good infrastructure as the UAE, and a government that is fast to act and committed to getting things done," said Bsaibes.

Dr. Izzat Dajani, Chief Executive of the emirate's IDO, cautioned against using cost advantage as the sole deciding factor.

"It is not enough to compete solely on price," Dr. Dajani said. "In Ras Al Khaimah, quality remains a primary consideration in every sphere of activity. We are committed to maintaining a reasonable cost base and improving our living and lifestyle offerings."

The RAK Conference provided a valuable insight into market expectations and awareness of the emirate. "We are listening hard and have learned a great deal from listening to the points raised in the last two days," Dr. Dajani said. "Our next step will be to produce a working document encompassing all the issues that have been raised here."

The RAK conference, he added, also looks set to become an annual event, owing to the level of interest generated in the last few days.

The 2007 Ras Al Khaimah Conference was organized by the emirate's Investment and Development Office in association with regional business magazine MEED. More than 30 high profile international speakers and over 200 entrepreneurs and business leaders attended the two-day conference and its specialized sessions on tourism, real estate, free zones, manufacturing, energy and petrochemicals and other growth sectors.