Continually implementing the best practices to provide a favourable business climate to the business investors, the region of RAK has achieved several milestones in a span of a few years. It is a well-known fact that the United Arab Emirates has been turning itself into a global investment-hub to attract global investors to enhance the Foreign Direct Investment. The Emirate of Ras-Al-Khaimah, holding a historical background, has been equally evolving in grabbing the attention of investors. Covering an area of 2,478 sq.km, the region contributes significantly to enhancing the nation’s GDP and enhancing the business setup process in the UAE. If you are looking forward to an investment option, then RAK turns out to be a favourable option. This guide will help you to understand the different sectors that you can target to start a business in the region of RAK. Let’s deep dive.
The Emirate of Ras-Al-Khaimah is known as an industrial gateway to the United Arab Emirates. The region of RAK serves as a home to various well-established industries to accelerate the sector to the fullest. Ranging from initial investors to well-experienced business professionals prefer to invest in the region. The ceramic industry of RAK stands at a global level that has left its footprints in multiple countries across the world. The region is rich in limestone, clay, quartz, and other minerals that hold a great value.
The Government of UAE has been taking multiple initiatives to provide a favourable climate to the global investors, paving out an investment opportunity to them. Separate industrial zones have been developed to cater more industries into the region, which are mentioned below.
- Al Hulaila Industrial Zone
- Al Hamra Industrial Zone
- Al Ghail Industrial Zone
From manufacturing to land and warehouse, the zones turn out to be a one-stop solution for the investors. According to a report published in Khaleej Times, the real GDP growth for RAK is projected to grow 2.5 percent within 2018-2021. If you deal with the relevant industry and want to expand, or an investor seeking out for investment options, then RAK is the growing investment hub that will fetch enormous profits. To proceed ahead, you need to obtain an industrial license, which will act as a legal permit to carry out the business activities.
The growth of the manufacturing and industrial sector in RAK has got a simultaneous effect on the trading industry in the region. Ranging from ceramics, industrial products, hardware supplies for light, medium and heavy industries, foodstuff, building materials, etc. the region holds scope for every segment. When it comes to the trading business, you do have various legal forms to choose from such as:
- Limited Liability Company (LLC)
- Joint Venture Company
- Public/ Private Shareholding Company
- Free Zone Company (FZC)
- Free Zone Establishment (FZE)
- International Business Company
To proceed ahead with the trading business, you need to hold a general trading license that will allow you to carry out the trading activities within the region of RAK.
3.Banking and Financial Institutions
Another lucrative business that has been contributing its best to the Emirate of Ras Al Khaimah is the banking sector. Due to the rising number of business entities, the demand for loans and initial capital is in high demand. As stated earlier, the RAK is slowly turning out as a favourable business destination; this demand is a golden opportunity for the business investors who have a dream to establish financial institutions. According to a report, the RAK Bank climbed 13.2% by the end of 2018, which signifies that the investment sector is a hot cake. Another report published by the Gulf News states that the RAK Bank has spiked a profit of Dh 284.8 million by the Q2 of 2019, which is approximately 25.7% increase as compared to Q2 of 2018.
If you are an investment banker or a finance guru who holds a dream of establishing a finance company in the Land of Gold, then RAK is the ultimate investment option.
One of the strong pillars that contributes a considerable sum to the development of the UAE is the tourism industry. The UAE stands as one of the top-visited nations at a global count. The Emirate of Ras Al Khaimah contributes when it comes to the tourism industry. In 2018, the Emirate welcomed more than 11.2% global visitors in the first nine months, ending with a count of 7,95,000 guests and fetched a sum of 2.53 million as stated by the Ras Al Khaimah Tourism Development Authority. To boost the industry to the next level, the region has appointed Raki Phillips as the new CEO of RAKTDA. The aim is to attract 3 million visitors by the end of 2023, which will enhance the sector internationally. The Expo 2020 is also on its way, which is expected to rope in 25 million visitors in the region of UAE.
Thus, you can see the opportunity that the region holds in its arena. If you own tourism business and is looking for expansion, or an entrepreneur looking forward to investing in the tourism business, then RAK is the ultimate profitable stop.
The increasing demand for tourist in RAK has leveraged the business opportunities for the hospitality industry. In 2018, the RAK set a record of highest ever hotel occupancy with a spike of 12% in Q1. By the end of 2021, the RAKTDA aims to create an employment opportunity for more than 10,000 people in the tourism and hospitality sector and to add more than 5,000 rooms within a period of next three years. On the flip side, the World Expo 2020 is on the way, which is looked like a vast business platform, aiming to attract more than 25 million visitors. This turns out to be a booming opportunity for the hospitality industry to suffice the demand for such a huge count of tourists.
If you hold a hospitality business and want to expand, then this is the best time to go ahead and implement your idea to grab the attention of your target audience.
In a nutshell, we can say that the region of RAK holds enormous opportunities for business investors who are looking forward to a platform to invest in. By setting up a business in RAK, you can grab the international market at ease. The process of initiating a company might turn out to be a complicated task if you are not aware of the legal proceedings. The smart option that you can do to give a kick-start to your company set up in a hassle-free way is to join hands with experienced business consultants who can guide you accordingly at every step.
Commitbiz Consultants stands as one of the top business consultants in Dubai, who is dedicated to providing the best services company incorporation services to esteemed clients. We stand as a team of experts who are well-versed with the business incorporation process in UAE and can provide tailored solutions suiting your business needs. In case you have a query, do speak to our experts-we’d be glad to assist.