RAKIA Mandate - FIDFINVEST · 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

www.fidfinvest.com RAKIA PROFILE | 1

RAKIA Profi le

Ras Al Khaimah Investment Au- t 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 emir-ate, 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 industri-al investments, powering an unprecedented economic surge that has made Ras Al Khaim-ah one of the fastest growing emirates in the UAE and the region.

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

0

500

1000

1500

2000

Total no of licenses

up to2006

up to2007

up to2008

up to2009

Not

of lic

ense

The licenses RAKIA has issued show a re-markable balance among key sectors – 28 per cent of licenses went to commercial com-panies, 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 knowl-edge based and technology companies.

Industrial26%

Commercial28%

ConsultingService22%

Trading13%

Media11%

License type trend

License geographic trend

USA 3%UAE 15%

India 28%

Asia/SE Asia 7%

Europe 17%

Rest of Middle East 28%

RUS-CIS 2%

MISC 13%


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 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

RAKIA‘s core mission is to develop and man-age 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 pro-poses free zones to foreign investors who wish to avail full ownership of their busi-nesses and enjoy tax and duty exemptions. Other key benefi ts being offered to foreign investors are 100 per cent corporate and per-sonal 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 com-plex 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 com-plex 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


Other RAKIA projects that have been de-signed 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 com-missioned and put in operation.

Industrial zones

Commercial 11%

Industrial (Mfg) 89%

Free zones

Commercial 17%

Industrial 83%

Geographic trend-industrial zones MFG

Others 1%Russia-CIS 1%

Europe 6%UAE 35%

Asia-SE Asia 6%

Rest of ME 20%

India 31%

Geographic trend-free zones MFG

USA 1%Others 2%

Europe 9%UAE 35%

Asia-SE Asia 10%

Rest of ME 13%

India 30%

RAKIA is also forge partnership with inves-tors 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 & ta-ble ware, fl oat glass, vehicle assembly, steel products, building materials, electrical, rub-ber & plastics and food processing.

Besides managing Industrial Parks, RAKIA also delivers a wide range of complemen-tary services to ensure investors are able to

maximize their investment potential. RAKIA offers investment advisory service and eq-uity 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 activi-ties 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 infrastruc-ture and services that led the FDI magazine

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.


Auto & Related 2%

Metal Products 35%

Building materials 22%

Food processing 2%Wood products 4%

Electricals 7%

Rubber & Plastics 7%

Chemicals 9%

Others 30%

Auto & Related 4%

Metal Products 36%

Building materials 11%

Food processing 2%

Wood products 6%

Electricals 4%

Rubber & Plastics 6%

Chemicals 11%

Others 20%

RAKIA Performance Highlights …

• 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 provid-ing 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 interna-tional investors. Ultimately, the government‘s proactive support and involvement in the on-going 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 sus-tainability.

Major companies in RAKIAArc 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 In-vestment 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 electric-ity transmission towers. The pre-engineered structures are mainly used for construction projects’, show rooms, military bases, facto-ries and temporary or semi-temporary struc-tures.

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 highper-formance 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 de-formed reinforcement bars (REBARS) to in-ternational 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 FieldWhile RAK has been expanding in industrial, real estate, construction and tourism in re-cent years, the government also been pur-suing 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 renew-able 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 Explora-tion (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 Swiss-based 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 In-stitute 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 econom-ic 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 re-search programs, especially for research in the environment and energy fi eld.

Pioneer Cement Industries


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 highper-formance 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 de-formed reinforcement bars (REBARS) to in-ternational 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 FieldWhile RAK has been expanding in industrial, real estate, construction and tourism in re-cent years, the government also been pur-suing 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 renew-able 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 Explora-tion (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 Swiss-based 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 In-stitute 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 econom-ic 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 re-search programs, especially for research in the environment and energy field.

JBF Rak

Rak Steel

Ashok Leyland


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

Documents

RAKIA Mandate - FIDFINVEST · 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