Ras Al Khaimah lies in the northernmost portion of the United Arab Emirates (UAE). RAK is quickly emerging as the preferred option for global financiers. RAK is similar to the far eastern nations: India, China, Iran, Pakistan, and the Commonwealth of Independent States.
Apart from convenient access and trouble-free administrative procedures, Ras Al Khaimah is popular in the northern Emirates and offshoring destinations. Ras Al Khaimah is thereby considered as one of the leading destinations for business setup in the UAE.
Reasons to Invest in Ras Al Khaimah
In response to RAK's growth and expansion, it is considered as a dynamic global economic centre. The Government is committed to developing a favourable business climate that encourages business growth and promotes RAK as a centre for international business. RAK Governance represents a constant effort to streamline their processes and make it simpler and quicker for companies to set up their company they like.
The political and social structure of RAK is very powerful, and the focus of the Government is on social and economic growth and development.
With just 50 minutes from Dubai International Airport ("DXB") and 25 minutes from RAK International Airport, this rising emirate boasts spectacular and dramatic mountains, red sandy deserts, and lush green plains indented by a series of creeks and lagoons. It has a rich 5,000-year heritage that manifests in various historical sites, forts, and deserted villages. With such a kind of features, RAK is definitely is strategically advantageous for starting up a company.
Booming Business in Ras Al Khaimah
Having never found oil, RAK has had to diversify its economy from the beginning and rely on a wide variety of industries. RAK is home to more than 38,000 companies representing more than 50 sectors from 100 countries. RAK's major booming industries include real estate, tourism, construction materials, financial and insurance services, and E-Commerce.
Ras Al Khaimah's housing sector flattened slightly in 2017, but its close ties with the booming tourism industry give investors high hopes for the future. Ras Al Khaimah's real estate sector is distinguished from the rest of the UAE's value and new opportunities for prudent investors. The UAE's northernmost emirate has historically had a lower profile than Dubai and Abu Dhabi, but recent years have seen strong growth as a new wave of developments touting affordability and accessibility have sprung up. New activity in both the residential and commercial sectors has made the Ras Al Khaimah real estate sector one of the fastest-growing in the UAE. This real estate growth has given the construction sector a steady stream of new demand, and planned infrastructure development projects should help further boost the sector. A study from RAK Chamber estimated that the Ras Al Khaimah real estate market grew by 45% from 2011 to 2015, reaching USD1.3 billion in 2015 and placing the sector behind only industry and tourism for contributions to the Emirate's economy. That growth has only continued through 2019, which saw a mostly steady performance.
The Pacific Asia Travel Association (PATA) planned to organize the PATA Annual Summit 2020 from May 15-18 in Ras Al Khaimah, but the event was cancelled due to COVID-19. However, the event will be organized next year, and the Government is trying to improve the tourism sector. RAK is one of the fastest-growing tourism destinations in the United Arab Emirates (UAE).
The Government is trying to develop tourism by showcasing world-class resorts, a beautiful coastline, and an abundance of cultural and outdoor adventure experiences with a goal of attracting three million visitors by 2025. As part of a new online campaign, RAK Tourism Development Authority launched the #FindRAKLater tagline to encourage tourists to explore the emirate when the world "can meet again."
Banking and Financial Institutions
The banking sector is another lucrative industry that has given its best to the Ras Al Khaimah Emirate. The demand for loans and initial capital is in high demand due to the growing number of business entities. As previously reported, the RAK gradually turns out to be a favourable business destination; this demand is a golden opportunity for business investors who have a vision of setting up financial institutions. According to research, by the end of 2019, the RAK Bank climbed 25.7 per cent, which means the investment industry is a hot cake.
Despite the comparatively limited medical impact on the Kingdom, the threat presented by the virus – alongside efforts to maintain social distancing – has led to a significant shift in lifestyle and consumer habits, with e-commerce experiencing a rapid spike in growth. In late March, local online retailer Bin Dawood Holding told local media that, since the escalation of the Covid-19 crisis, its average sales on a 10-day basis had increased by 200%, while its average order value rose by 50% and app installations by 400%. The World Economic Forum expects the e-commerce market for the UAE in 2020 to reach a whopping 27.2bn USD. Therefore, e-commerce is unquestionably one of the most profitable markets, now and in the future.
The uncertainty created by the COVID-19 pandemic has led to the emergence of some sunrise sectors. Above mentioned sectors are likely to be reporting robust growth in the days to come. UAE is a strategic decision because choosing the right jurisdiction will decide the company's performance. The mainland provides the ability to trade with the broader UAE market while the free zones have several trading and operation restrictions. To make the right choice of business and type of business, the entrepreneurs require a reputed company formation specialist like Commitbiz.
Commitbiz is composed of a strong team of highly qualified business setup consultants who could assist the clients in all the steps of company formation in UAE right from registration to incorporation. Commitbiz has been actively supporting investors for years by offering top-notch business solutions and continues to do so flawlessly even amidst the global pandemic's challenges. Commitbiz can help the investors turn the crisis into an opportunity by setting up a business in Ras Al Khaimah or anywhere in UAE without hassles.