|RAK Investment Authority (RAKIA)|
P.O.Box No. : 31291, Ras Al Khaimah, UAE
The RAK Investment Authority (RAKIA) was constituted as per Emiri Decree No. (2)/ 2005 issued by H.H. Sheikh Saqr Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah. The mandate for the authority is to work towards reinforcing the investment climate in the emirate and to promote its various economic sectors.
Under the direction of H.H. Sheikh Saud bin Saqr Al Qasimi, the Crown Prince & Deputy Ruler of Ras Al Khaimah, RAKIA iis pursuing the goal of making Ras Al Khaimah a regional hub for industrial manufacturing, trade and commerce. The GDP of RAK has grown significantly over the past few years. The growth is driven by increased focus on manufacturing, services, real estate, construction and tourism.
The mandate of RAKIA is to develop and manage the industrial parks which includes the free zones and industrial zones in the Al Hamra and Al Ghail areas of Ras Al Khaimah. Across this region free trade zones have traditionally been viewed as real estate ventures, primarily issuing licenses, however, RAKIA went the extra mile not only being a facility provider but also offering investment advisory services and equity participation on selected projects. This has resulted in an atmosphere of trust among investors and generated a solid network of opportunities. As a result of that within a span of 3 to 4 years of its inception, RAKIA has been instrumental and attracted over US$2.5 billion in industrial investments alone, powering an unprecedented economic surge that has made Ras Al Khaimah as one of the fastest growing emirates in the UAE and the region.
After successfully running industrial parks in Ras Al Khaimah, RAKIA is setting up a Free Industrial zone in Georgia (Eastern Europe), under the aegis of a subsidiary company of RAKIA. This is the first free zone in the Caucasus Region and is strategically located for easy access to the EU, Central Asia and Caucasus/ Eastern European markets. The free zone is being established next to the Poti Sea Port, which is also a subsidiary of RAKIA, the largest sea port in the Black Sea region and offers tremendous supply chain cost advantage for movement of goods.
Apart from Industrial Parks, RAKIA has structured itself along several other strategic business units.
Strategic Business Units
RAKIA is an investment behemoth which has structured itself along 8 strategic business units viz; (1) Industrial Parks (2) Education/ Technology (3) Real Estate (4) Transportation (5) Investments (6) Manufacturing & Energy (7) RAK Offshore and (8) RERA. Each business unit is headed by an experienced professional who is ultimately responsible for the overall performance of all the companies under their business units. They are empowered to act independently and possess the necessary authority to make executive decisions that are in the best interest of RAKIA. Each unit head has direct reporting relationship with the CEO, Dr Khater Massaad. The investment committee is made up of all the business unit heads and is chaired by the CEO. The primary mandate of the investment committee is to formulate investment strategy, investment criteria and investment guidelines for investments undertaken by RAKIA.
- 100% incomeand corporate tax exemptions
- 100% capital and profit repatriation
- 100% ownership in freezones
- No foreign exchange control
- Avoidance of double taxation with many countries
- No restrictions on hiring expatriates
RAKIA Key Enablers
- Good logistic support
- Excellent port facilities
- Easy access to GCC countries
- Strategic location being near to large markets
- Zero corruption and minimum bureaucracy
- Stable government and investor friendly policies
- Quality lifestyle at affordable cost compared to otheremirate
Types of Licenses issued by RAKIA
Activities covered: Manufacturing, processing, assembling, packaging etc.
Activities covered: Import, export, distribution, warehousing, trading (maximum 5 activities from similar product lines or 3 different activities from 2 different product lines).
Activities covered: All kinds of trading, import, export, warehousing and distribution of goods
Activities covering contracting, repairing, maintenance, renting, shops, restaurants etc.
Consulting / Services License
Activities covered: Any type of management, business, industrial consultancy or professional services including real estate consulting.
Activities covered: All kinds of media and communication services.
Clients whose activities fall under different categories will be issued separate Licenses for each category of activity (e.g. a licensee who is carrying out both trading and manufacturing will be issued two Licenses one for the trading activity and the other one for manufacturing. Whenever possible, a separate Lease will be drawn for each activity.
Types of Entities registered under RAKIA
Both Free Zone & Non Free Zone Companies
This can be formed only by one shareholder, either an individual (a person) or a non-individual (a company).
Limited Liability Company (FZ-LLC/LLC)
This type of company can be formed by a minimum of two or more partners. The partners can be individuals (people), non-individuals (companies) or a combination of individuals and companies.
Foreign or Local Branch
Under this category licenses are issued to companies holding a valid license from any licensing authority either in UAE or outside UAE.