RAK FTZ boosts GDP growth of the Emirate; new company registrations spurt 17%

Reinforcing its reputation as the most cost-effective and one of the fastest emerging free zones in the Middle East, Ras Al Khaimah Free Trade Zone announced a significant growth in its portfolio and revenue during 2011.

Defying a challenging economic climate, RAK FTZ achieved a phenomenal growth with 2,033 new companies registering with the free zone during 2011, a 17% increase over the 1,740 company registrations in 2010. The spate of the new companies in Ras Al Khaimah will go a long way in boosting the Gross Domestic Product (GDP) of the emirate.

The free zone has achieved growth not only in new registrations, but also has registered a significant growth in renewals, with 3,776 companies renewing their licences in 2011, up from 3,271 in 2010 - an increase of 16% year-on-year. The spurt in renewals reflects the confidence on the RAK FTZ's successful model and its growth strategy.

During the year under review, new companies registering with RAK FTZ represented a wide array of sectors. Dominant industries being represented included Marketing and Management, Information Technology, Building and Construction, Food, Equipment, General Trading and Automobile, among others.

In his comments, Oussama El Omari, CEO of RAK FTZ, said: "It is a matter of immense pride that RAK FTZ has achieved such an exceptional growth. That this growth comes amidst the prevalent challenging economic order reflects the investor confidence in our business model and re-emphasises the world-class standards, facilities and services on offer at RAK FTZ. Since our inception over a decade ago, we have believed in an open door economic development policy, which has gone a long way in gaining investor confidence from across the globe. We have helped Ras Al Khaimah grow by welcoming new sectors and companies from various parts of the world, which has provided a major impetus to the capital investment into the emirate."

He added: "The environment to grow and flourish has become a hallmark of RAK FTZ and is most admired by its investors, and this is reflected in the high number of licence renewals. The cumulative number of companies that are registered with RAK FTZ is 9,933, with over 5,000 active companies from 106 plus countries. Also, the fact that our client satisfaction is an exceptional 80%, reflects the concerted efforts by our marketing, sales and management teams to reach out to the potential investors across the globe and sustain them."

RAK FTZ has a firm focus on Small and Medium-sized Enterprises (SMEs), which is reflected in the industries being represented at the free zone. "RAK FTZ provides a range of business set-up solutions that cater to the needs of the different types of clients. It offers many aspiring entrepreneurs and business owners' ideal solutions to enter the Middle East market. In fact, our economic model has helped small and medium businesses to grow even during the downturn. The fact that they also have smaller operational costs and the potential to grow has made it easier for them to weather the downturn," he added.

During the year, RAK FTZ won numerous industry accolades and awards. fDi Magazine rated RAK FTZ as the fourth best Middle East Free Zone of the Future and rated third for Best Economic Potential across the Middle East, in the 2011-2012 ranking, out of 115 free zones in the region. Previously, RAK FTZ won Best Website Award during World Free Zone Convention held in 2010, Middle East Logistics Awards for Best Emerging Free Zone, for three consecutive years, and Supply Chain and Transport Awards for Industrial Area of the Year.

The free zone is extremely bullish about the growth potential on offer in 2012 and beyond. "We have a business model that works and this is the reason why we are growing. Hence, our plan is to continue to improve our systems and services. We will continue our programmes to achieve our goals, and most importantly, to contribute to the GDP of Ras Al Khaimah. We are also focusing on researches and studies on how to improve the processes and share the best practices, especially with the other free zones around the globe," said El Omari.

RAK FTZ is also the first and only free zone to set-up offices and promotion centres in the UAE (Dubai and Abu Dhabi) and internationally (India, Turkey, Germany and the USA), a facet unmatched by any other free zone in the region. During the year, the free zone organised numerous seminars and road shows, and participated in various exhibitions to attract investment into Ras Al Khaimah. "Through our satellite offices in various countries, we make it easier for companies to enter the region and do business with us," said El Omari.

As an organisation, RAK FTZ is committed to the cause of Corporate Social Responsibility (CSR). RAK FTZ demonstrates its ongoing commitment by promoting, supporting, organising and participating in the activities that nurture the community spirit, promote a balanced lifestyle and help preserve the emirate's cultural and natural heritage. RAK FTZ follows an environmentally-active business model and specialises in green businesses, such as natural wastewater treatment, solar energy and environmental impact consultation.

Also, the free zone is committed to the cause of Emiratisation and its UAE National Empowerment Programme has been specifically designed to attract, recruit and develop the next generation of talented UAE nationals, and provide them with the opportunity to experience the free zone's professional working environment and nurturing business community, thus empowering the national cadre.