RAKIA attracts AED 2.5b industrial investments in one year

The new industrial investments are spread over the RAKIA Free Zone and the Industrial Zone which have registered 86 new firms ever since its launch last year.

According to RAKIA figures, around 70% of the Free Zone land of 2.19 million sq. mts and 80% of the Industrial City (non-free zone) of 5 million sq. mts have been leased. "Additional land in Al Ghail Industrial City of 28 million sq. mts is now being offered to new investors and one million sq. mts has already been leased in 3 months", said Dr. Khater Massaad, Advisor to the RAK Crown Prince and CEO of RAKIA. He said that the new investments have generated jobs for 12,000 people as well.

"The transparent and proactive business culture promoted by H.H. Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, has captured the attention of big-ticket global investors who are now queuing up to make RAK their manufacturing base. The project costs for setting up a new factory in RAK has been about 20 % to 25 % less compared to other destinations on account of better logistics, no incidence of duties and overheads or costs incurred in bureaucratic delays", he added.

Dr. Massaad explained that the project development, regulatory compliance and start-up costs have been less than 2 % in Ras Al Khaimah whereas it varied between 5%-15% in other destinations.

Besides, RAKIA offers one-stop-shop benefits to investors like easy licensing procedures, world class infrastructure facilities and availability of land, alongside other facilities.

"Moreover the astounding success of RAK Ceramics in the global arena, with exports to more than 128 countries across five continents, is a powerful testimony to investors that RAK has all that it needs to excel in the manufacturing sector", he said.

He added that the work on the new road which will provide direct access to the companies in the RAKIA Free Zone and Industrial Zone to the Dubai -RAK Emirates Highway is almost over and will be of great benefit to the companies in the area.

Among the global industry majors which have started operations in RAK include Guardian Industries which is setting up a USD 115 m float glass plant and Falcon Technologies International which has set up a hi-tech DVD plant.

The Industrial and Technology Development Fund, announced by H.H. Sheikh Saud at the Global Investor's conference held last year is expected to provide a further boost to the industrial environment of the emirate.

"The Fund will be available for viable projects which have a funding gap or where investors, for strategic reasons, want to have a transparent and supportive business partner", said Dr. Massaad.