The United Arab Emirates (UAE) has a free zone undergoing significant expansion. This free zone, known as Ras Al Khaimah Economic Zone (RAKEZ), has become the official residence of more than 18,000 companies worldwide. According to Ramy Jallad, the CEO of RAKEZ, the free zone hosts a diverse range of industries, including over 50 different sectors, catering to small and medium-sized enterprises (SMEs) and large-scale manufacturers.
A View of RAK Freezone in the UAE
Ras Al Khaimah (RAK) in the United Arab Emirates has established itself as a desirable location for international traders. This is due to the favorable business environment and various factors that make launching and expanding business operations in RAK and accessing the Middle East and North Africa (MENA) region highly profitable.
RAK Freezone (RAKEZ) offers six specialized zones that cater to the needs of small and medium-sized enterprises (SMEs) and large manufacturers. The RAKEZ Compass Coworking Center, equipped with modern facilities, enables entrepreneurs to operate their businesses while expanding their networks by connecting with valuable contacts. Furthermore, the RAKEZ Academic Zone is home to renowned international educational institutions and service providers.
The ecosystem has grown by 1,839 new companies in the first quarter of this year, representing a 122% increase from the same period in 2022. This growth strongly indicates the economic zone’s positive start to the year.
The significant number of new businesses choosing to be a part of our ecosystem demonstrates our progressive approaches, innovative business solutions, and unwavering commitment to supporting enterprises of various sizes and types.
The fact that we are able to stay ahead of our competitors in the industry is proof of the worth we provide to our clients and our unwavering dedication to promoting their achievements.
In 2022, RAKEZ welcomed over 4,200 new companies to its business community, an 18% increase from the previous year. The CEO of RAKEZ stated that these statistics demonstrate the substantial progress made towards establishing Ras Al Khaimah as a favored hub for SMEs and industrial enterprises. The company introduced tailored setup packages, taught new products and services, and formed strategic partnerships to aid various segments in its ecosystem, especially SMEs involved in trade and e-commerce.
The economic zone witnessed a remarkable surge of 206 percent in the count of newly established general trading firms, with the issuance of 413 licenses. This growth can be attributed to the investment-conducive environment and efficient processes provided by RAKEZ, which have attracted numerous investors from various parts of the globe to Ras Al Khaimah and the UAE.
Many investors from India, Pakistan, UK, Russia, and Egypt have shown interest in the emirate’s business environment. This highlights its global appeal. Most new companies established in the economic zone are commercial and general trading companies, making up 41% of the total. This strengthens the position of Ras Al Khaimah as a hub for traders who prefer its business environment for their growth and operations.
RAKEZ grew in various sectors, including trading, services, e-commerce, and media. The increase in industrial company setups also stood out, with a 107% growth compared to Q1 of 2022. This highlights the diverse business landscape in the UAE.
Most of these companies engage in industrial activities such as refining vegetable oils, producing poultry products, manufacturing wet cell batteries, and packaging materials.