Ras Al Khaimah Free Trade Zone (RAK FTZ) plans to expand the FTZ by attracting more companies from the Far East and Southeast Asia. Peter Fort, Chief Executive Officer, RAK FTZ talking to Janaki Krishnamoorthi, elaborates on the FTZ's unique features, advantages and future plans.
How many members does RAK FTZ have now and from which countries and business sectors do they belong to?
RAK FTZ is the business hub of choice for over 7,000 companies from 106 countries representing more than 50 industry sectors. In 2012, RAK FTZ processed 2,297 new company registrations, representing a 13 per cent increase over 2011 figures. New companies registered during first half of 2013 included business from the UK, India, Turkey, and Germany, among others. A broad range of industries were represented in the new registrations including consultancy, general trading, logistics, and industrial manufacturing.
What does RAK FTZ offer its members?
We have four specialised business parks-the Academy Zone, Business Park, Industrial Park and Technology Zone with state-of-the-art communication facilities. A suite of competitive, custom-made packages deliver flexible business solutions with fast track set-up and minimal red tape, covering a wide range of licensing services from product distribution, consultancy services to securing land for office, warehouse or industrial activities. We are the only free zone to offer promotion centres that provide marketing, sales and administrative services for visa and licence applications and renewals at key locations in Abu Dhabi and Dubai.
Our clients also benefit from 100 per cent tax exemption, 100 per cent foreign ownership, fixed foreign exchange and no restrictions on capital and profit repatriation, no custom or import duty on re-exported goods, flexible labour rules and option to source employees globally. RAK FTZ also offers support through the Mazeed service portfolio, which caters to the specific needs of its clients, covering IT, marketing, procurement and HR.
How did RAK FTZ earn the reputation of being affordable?
Our pricing is very competitive and the overall cost of living in Ras Al Khaimah is substantially lower than the UAE average. This is extremely important in today's economy, as businesses face escalating cost pressures which squeeze the bottom line.
What factors have contributed to the success of FTZs in the UAE?
Apart from the usual FTZ benefits such as 100 per cent foreign ownership, zero tax regime, wide access to qualified labour force, and stable and secure environment, the success can be attributed to the UAE government's liberal tax policy, the US dollar peg, and various trade agreements. Presently, the government is negotiating several trade agreements that would increase trade and economic cooperation between our trading partners.
What are your future plans for RAK FTZ?
Our goal is to expand the FTZ by attracting more companies from the Far East and Southeast Asia. We also have an ambitious plan to expand our office and warehouse portfolio to cater to our clients' growing needs. Additionally, we are gearing up to serve larger businesses from around the world, that are planning to set up operations in the UAE, Middle East or the other nearby emerging markets such as Africa and South Asia.
RAK FTZ was established in 2000. The first free zone in the emirate of Ras Al Khaimah, and one of the fastest-growing free zones in the UAE, RAK FTZ is perfectly positioned for easy access to established and emerging markets from Europe to Africa, Middle East and Asian countries.
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