RAKIA Profile Ras Al Khaimah Investment Au- t hority ... - Fidfinvest

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RAKIA Profi le
Ras Al Khaimah Investment Aut
hority (RAKIA) was established
in 2005 through Emiri Decree No.
(2)/ 2005 issued by H.H. Sheikh Saqr Bin
Mohammed Al Qassimi, Supreme Council
Member and Ruler of Ras Al Khaimah.
With a mandate to promote and oversee the
economic development of the Northern emirate,
RAKIA has literally transformed Ras Al
Khaimah into an investment magnet with
over 1900 local and foreign investors setting
up operations within the emirate in just a
short period of time.
Within just four years of its inception, RAKIA
has attracted over USD 2.3 billion in industrial
investments, powering an unprecedented
economic surge that has made Ras Al Khaimah
one of the fastest growing emirates in the
UAE and the region.
2000
1500
1000
500
0
Total no of licenses
up to
2006
up to
2007
up to
2008
up to
2009
The licenses RAKIA has issued show a remarkable
balance among key sectors – 28
per cent of licenses went to commercial companies,
26 percent to industrial fi rms, 22 per
cent to consultancy & service companies and
balance to Trading and media companies.
RAKIA has also made signifi cant investments
in infrastructure to attract world-class knowledge
based and technology companies.
RAKIA Mandate
RAKIA is a Government body formed by Emiri Decree in 2005
Promote and oversee the economic development of the emirate
Operate both free zones and non-free zones
Act as one stop shop for all investor’s needs
RAKIA Vision & Mission
Vision
To make Ras Al Khaimah a global hub for manufacturing and an investment destination
Create wealth, ensure sustainability and profi tability for every investor
Symbolize excellence and ultimate in customer service
Mission
Offer complete solutions to the needs of every investor and provide value and customer
satisfaction
Ensure minimum transaction and conversion cost and to enable businesses to fl ourish in the
quickest possible time
To make investment in RAK simple, easy and a pleasant experience
Consulting
Service
22%
Commercial
28%
Industrial
26%
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Trading
13%
RUS-CIS 2%
MISC 13%
Rest of
Middle East 28%
License type trend
Media
11%
License geographic trend
UAE 15%
USA 3%
Europe 17%
India 28%
Asia/SE Asia 7%

RAKIA Incentives
100% income and corporate tax exemptions
100% capital and profi t repatriation
100% ownership in free zones
No foreign exchange control
Strong appreciation and fully convertible currency
No trade barriers
Avoidance of double taxation with many countries
No restrictions on hiring expatriates
RAKIA Key enablers
Good infrastructure
Good logistic support
Excellent port facilities
Competitive energy cost
Easy access to GCC countries
Strategic location being near to large markets
Zero corruption and minimum bureaucracy
Stable government and investor friendly policies
Presence of local and international banks for funding project fi nance
RAKIA‘s core mission is to develop and manage
Industrial Estates including free and
non free zones in Al Hamra area about 15
kms away from Ras Al Khaimah City and in
Al Ghail, 40 kms away from Ras Al Khaimah
City.
Operating as a one-stop-shop, RAKIA proposes
free zones to foreign investors who
wish to avail full ownership of their businesses
and enjoy tax and duty exemptions.
Other key benefi ts being offered to foreign
investors are 100 per cent corporate and personal
tax exemption, 100% capital and profi t
repatriation; easy availability of labour; easy
licensing procedures; excellent port facilities;
and absence of foreign exchange controls,
trade barriers and quotas.
The state-of-the-art Rakia Business Towers
in the Al Hamra region is a multi-storey complex
that house corporate offi ces for a wide
array of clients, including IT fi rms, fi nancial
houses, consultancies and several other new
business ventures. Apart from warehouses at
Khorport, RAKIA furthermore is developing
a warehousing/Light Industrial Units complex
of nine units in the free zone and ten
within the non free zone in Al Hamra,. Apart
from this Commercial centre, studio fl ats and
workers’ accommodations are being built in
phases.
RAKIA power plant in Al Ghayl Industrial Park
RAKIA Statutory support
Licenses (Industrial, commercial, trading, consultancy, professional
services and media)
Investor & employee visa (Visit, employment & residence)
Permits
Design approvals
Occupancy certifi cates
RAKIA Products
Land for industrial activities
Warehouses / Light Industrial Units
Business Towers /offi ce space
Commercial centre & Studio fl ats
Workers’ accommodations
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Other RAKIA projects that have been designed
to enhance the business environment
within Ras Al Khaimah include power plant of
65 MW in Al Ghayl and another 45 MW power
plant in Al Hamra which have just been commissioned
and put in operation.
Commercial 11%
Industrial zones
Industrial (Mfg) 89%
Geographic trend-industrial zones MFG
UAE 35%
India 31%
Others 1% Russia-CIS 1%
Europe 6%
RAKIA is also forge partnership with investors
who prefer to invest in businesses based
outside the free zones. RAKIA has partnered
with various international companies in
strategic projects like DVD manufacturing,
Chemicals, Diapers and Cements and Steel
factory. RAKIA has attracted investment
from all over the world, in various industry
segments. These industries are diverse and
strategic and are in the areas of glass & table
ware, fl oat glass, vehicle assembly, steel
products, building materials, electrical, rubber
& plastics and food processing.
Besides managing Industrial Parks, RAKIA
also delivers a wide range of complementary
services to ensure investors are able to
Asia-SE Asia 6%
Rest of ME 20%
Commercial 17%
Free zones
Geographic trend-free zones MFG
UAE 35%
India 30%
maximize their investment potential. RAKIA
offers investment advisory service and equity
participation on selected projects, a key
move that reinforces the investors‘ trust and
confi dence. RAKIA’s investor friendly policies
and fl exibility has certainly attracted an array
of international brands including Guardian
Glass, Arc International, Franke, Duscholux,
Mitsui, Kludi, Becker Industrie, Kempe, Ashok
Leyland to name a few.
Long term leases on land for industrial activities
and other facilities are offered by RAKIA
at the most competitive rates in the Emirate
and the region. It is the combination of this
price advantage and the quality of infrastructure
and services that led the FDI magazine
USA 1% Others 2%
Industrial 83%
Europe 9%
Asia-SE Asia 10%
Rest of ME 13%
of the FT Group to award RAKIA the 2009
‘Best FDI destination in the Middle East’.
Recently, RAKIA signed a memorandum of
co-operation with Bank of Baroda in a move
that is greatly benefi cial to investors in the
emirate. Under the agreement, the bank will
provide fi nancing to fi rms for their projects in
RAKIA industrial parks.
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Building
materials 22%
Metal Products 35%
Others 30%
RAKIA Performance Highlights …
Auto & Related 2%
Food processing 2%
Wood products 4%
Electricals 7%
Rubber & Plastics 7%
Chemicals 9%
Others 20%
Metal Products 36%
Chemicals 11%
Food processing 2%
Auto & Related 4%
Building
materials 11%
Electricals 4%
Wood products 6%
Rubber & Plastics 6%
• So far 1983 companies (May 2009) have been registered with RAKIA
• Industrial zone Phase-I, II, Extn Zone and Ceramic zone at Al Hamra of total area of 2.83 million sqm have been completely leased out to
94 companies with 90% of these are in manufacturing.
• Free Zone at Al Hamra with total area of 1.89 million sqr mtr have been completely leased out to about 114 companies registered in free
Zone out of which 89% are in manufacturing.
• “Al Ghayl” industrial park, spanning 24.3 million sq mtr of which 6.9 million sq mtr is Free Zone. Already approx 5.0 million sqm have been
leased out to 227 companies of which 93% are in manufacturing
RAKIA has also formed Rakoffshore, another
innovative initiative that establishes a true
offshore facility and regulatory body providing
complete offshore non-resident business
registration and fi nancial services. Through
registered agents, mainly well known law
fi rms and chartered accountants or auditing
companies, Rakoffshore set up International
Business Companies which wants to invest its
funds in Ras Al Khaimah. More than 50 such
agents are on board with 2500 companies.
RAKIA‘s ongoing success largely refl ects the
Ras Al Khaimah Government‘s own success
in establishing reforms, instituting new laws
and regulations and enforcing policies that
are hospitable to local, regional or international
investors. Ultimately, the government‘s
proactive support and involvement in the ongoing
new economic development approach
is aimed at raising the standard of living of
both citizens and residents of the emirate,
while ensuring long-term socioeconomic sustainability.
Major companies in RAKIA
Arc International – based in France – came
to RAK to establish a production facility in
the region for easier access to surging Middle
Eastern markets. Arc International is one of
the world’s top producers of glassware and
stemware.
Pioneer Cement Industries plant with a one
million ton per annum capacity has been
set up as a joint venture between RAK Investment
Authority (RAKIA) and the Indian
company Penna Cement Industries Limited.
The state-of-the art cement plant with latest
technology and machinery to maintain high
operational safety levels and high product
quality with low energy consumption, has
been set up in a record time of 16 months.
Zamil Steel of Saudi Arabia is an example of
a company based in the Middle East to estab-
lish a strong presence in RAK. Zamil, which is
actually one of the largest industrial groups
in the Middle East, registered with RAKIA
in 2005 and beginning production in 2006.
The company manufactures preengineered
buildings and galvanized steel for electricity
transmission towers. The pre-engineered
structures are mainly used for construction
projects’, show rooms, military bases, factories
and temporary or semi-temporary structures.
Guardian Glass of USA established Guardian
RAK with a production capacity of 700 tons
of glass per day for use in automotive and
construction applications, including highperformance
coated glass.
JBF Industries from India has teamed up with
Ras Al Khaimah Investment Authority and set
up Polyester PET Resin Packaging chips plant
in RAKIA.
RAK Steel, a joint venture of Ras Al Khaimah
Investment Authority, is a new energy effi -
cient and environment friendly steel rolling
mills. The mill produces 500,000 tonnes per
annum 8mm to 40 mm diameter ‘steel deformed
reinforcement bars (REBARS) to international
British and American standards.
Ashok Leyland of India is one of the biggest
names in industry has set up their integrated
assembly plant to build 1000 buses per year
in RAK. This will help ease demand for buses
throughout the UAE.
In Technology Field
While RAK has been expanding in industrial,
real estate, construction and tourism in recent
years, the government also been pursuing
a strategy of promoting technological
innovation. The CSEM-UAE innovation centre
is based in RAK and has been running since
2005. This project is a joint venture between
the government and the Swiss Research Cen-
tre, based in Neuchatel.
CSEM-UAE is known for its works in renewable
energy, with the centre displaying great
expertise in solar power technologies and
systems. The centre’s expertise now reaching
well out of the emirate and even in to outer
space. The centre is involved in US’s Multi-
Object Spectrometer for Infrared Exploration
(MOSFIRE) project. This project is highly
specialized one and acts as a testimony to
the centre’s international standing.
Falcon Technology International (FTI). FTI is
a joint venture investment between Swissbased
PrimusTech Investments, and a large
group of UAE investors. FTI is currently the
only digital data storage production facility in
the Middle East.
Recently RAKIA and the Swiss Federal Institute
of Technology (EPFL) have signed an
agreement for the creation of a technology
campus and to carry out applied research.
This long-term agreement will begin a new
era in this region undergoing rapid economic
and scientifi c development. The project
will create a university campus of the EPFL
to provide educational opportunities at the
university level and to develop advanced research
programs, especially for research in
the environment and energy fi eld.
Pioneer Cement Industries
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Guardian Glass of USA established Guardian
RAK with a production capacity of 700 tons
of glass per day for use in automotive and
construction applications, including highperformance
coated glass.
JBF Industries from India has teamed up with
Ras Al Khaimah Investment Authority and set
up Polyester PET Resin Packaging chips plant
in RAKIA.
RAK Steel, a joint venture of Ras Al Khaimah
Investment Authority, is a new energy efficient
and environment friendly steel rolling
mills. The mill produces 500,000 tonnes per
annum 8mm to 40 mm diameter ‘steel deformed
reinforcement bars (REBARS) to international
British and American standards.
Ashok Leyland of India is one of the biggest
names in industry has set up their integrated
assembly plant to build 1000 buses per year
in RAK. This will help ease demand for buses
throughout the UAE.
In Technology Field
While RAK has been expanding in industrial,
real estate, construction and tourism in recent
years, the government also been pursuing
a strategy of promoting technological
innovation. The CSEM-UAE innovation centre
is based in RAK and has been running since
2005. This project is a joint venture between
the government and the Swiss Research Centre,
based in Neuchatel.
CSEM-UAE is known for its works in renewable
energy, with the centre displaying great
expertise in solar power technologies and
systems. The centre’s expertise now reaching
well out of the emirate and even in to outer
space. The centre is involved in US’s Multi-
Object Spectrometer for Infrared Exploration
(MOSFIRE) project. This project is highly
specialized one and acts as a testimony to
the centre’s international standing.
Falcon Technology International (FTI). FTI is
a joint venture investment between Swissbased
PrimusTech Investments, and a large
group of UAE investors. FTI is currently the
only digital data storage production facility in
the Middle East.
Recently RAKIA and the Swiss Federal Institute
of Technology (EPFL) have signed an
agreement for the creation of a technology
campus and to carry out applied research.
This long-term agreement will begin a new
era in this region undergoing rapid economic
and scientific development. The project
will create a university campus of the EPFL
to provide educational opportunities at the
university level and to develop advanced research
programs, especially for research in
the environment and energy field.
JBF Rak
Rak Steel
Ashok Leyland
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RAKIA’s valuded clients
Company Sector/sub-sector Country of Origin Investment in million USD
Guardian Industries Float Glass USA 130
Pioneer Cement Cement India 105
Arc International Tableware France 100
Ashok Leyland Bus/Truck Assembly India 50
Duscholux Sanitary Fittings Germany 30
Dabur India Ayurvedic products India 25
Franke SS Kitchen Products Austria 55
Kirby Steel Steel Products Kuwait 30
Zamil Steel Steel Products KSA 35
RAK Ghani Glass Glass containers Pakistan 25
JBF Rak Polyester chips & films India 100
Beaufort International Diaper Switzerland 30
KGL Logistics Kuwait 50
Mitsui Japan SS Kitchen Products Japan 150
Falcon International DVD Switzerland 70
RAK Global Logistics UAE 25
Kludi Rak Sanitary Fittings Germany 30
Becker Industrial Coating Industrial Coating France 20
RAK Steel Steel Products India 25
POS-JK Steel Products Korea 30
Kempe Engineering Industrial Equipments Australia 10
Bosco Aluminium Aluminium Products India 10
Maas Profile ME Steel Products Germany 5
Unipods Building Materials KSA 30
Grand Interiors Furniture KSA 30
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