1. THE REPORT
Ras Al Khaimah 2012
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3. 9
Profile
Diverse geography features coast, plains and mountains
Political liberalisation efforts expand rights for women
Businesses attracted to free zones and industrial parks
Key economic sectors include industry, trade and tourism
Growing population expected to reach 750,000 in 2020

4. 10 PROFILE SNAPSHOT
The local population is estimated to be around 300,000 people
A rising star
Welcoming investment to its many expanding sectors
Boasting some of the fastest-growing free trade and 1971, six emirates came together to form the
zones in the region, Ras Al Khaimah has witnessed modern-day federation of the UAE in 1971. RAK,
impressive economic expansion and diversification which was the UAE’s seventh and final emirate, joined
across key industries in recent years. The emirate is the federation soon after, in February 1972.
on its way to becoming an important investment GEOGRAPHY & CLIMATE: The UAE occupies some
destination in the region. 83,600 sq km on the southern and eastern shores
Nestled in the northern part of the UAE, RAK lies of the Gulf. RAK is the fourth-largest emirate in the
between the base of the Hajjar Mountains and the federation, containing 2478 sq km. Located along
Gulf. This location has supported the success of RAK the Gulf, near the Strait of Hormuz, RAK is just 65
as a destination of choice for investors and tourists km away from the Iranian coast, 250 km from the
alike. Endowed with kilometres of silver, sandy coast- Omani border and in close proximity to a number of
line in the west, desert plains bounded by the Haj- other Gulf states. The emirate’s geography is diverse,
jar Mountains in the east and a green belt in the south with 65 km of coastline, fertile plains, as well as the
with flourishing date palms and vegetable gardens, Hajjar Mountains, which reach heights of up to 1900
RAK has a diverse landscape that is unique in com- metres. Temperatures in the summertime often
parison to other emirates. reach the upper 40s with high humidity. In winter
RAK has strong links with the other emirates via the weather is pleasant and remains relatively dry.
its modern highway network, connections which POPULATION: According to the latest figures from
have been useful as it has pushed ahead with a drive mid-2011, the total population of the UAE stands at
for economic development in recent years. around 8.3m. Population growth is estimated to be
FOUNDATIONS: Located on historical trade routes 5.9% per year, while nearly half of nationals are
running from Europe to East Asia, RAK was a stopover under the age of 19. The government estimates the
point for merchants from as far away as China. RAK’s current population at 300,000 and will undertake a
history dates back to around 5500 BCE, and in pre- full census in 2012. The population is forecast to
Islamic and Islamic times the area was known as Jul- reach 750,000 by 2020. While UAE nationals offi-
far. RAK is the home of the Qawasim tribe, which built cially make up less than 20% of the total in the coun-
a reputation in commerce, dominating trade in the try, RAK has a higher proportion, at about half.
lower Gulf region in the 18th century. At times the POLITICS: Sheikh Saud bin Saqr Al Qasimi has been
tribe held land on various islands in the Gulf, as well the ruler of RAK since his father, Sheikh Saqr bin
as in Pakistan and other parts of the UAE. Mohammed Al Qasimi, passed away in late October
FORMATION: RAK became part of the Trucial States, 2010. Sheikh Saqr, who began his reign in 1948,
which were established by the General Maritime was one of the long-serving leaders in the region
Treaty with Britain in 1853. Their formation ush- and was responsible for the 1972 decision to join
ered in a period of stability, which was previously the UAE. On a federal level, the Supreme Council, a
threatened by the Ottomans, Portuguese and Per- body that is made up of the rulers of the constituent
sians, the dominant powers in the region at the time. emirates, runs the UAE, whose president is Sheikh
RAK’s location was used for controlling shipping Khalifa bin Zayed Al Nahyan, the ruler of Abu Dhabi.
routes to and from India, which was occupied by the The Supreme Council ratifies all the laws in the
British empire up to the 19th century. Following country, while the Council of Ministers, a 20-mem-
British withdrawal from the region between 1968 ber cabinet headed by the prime minister, is the
www.oxfordbusinessgroup.com/country/UAE: Ras Al Khaimah

5. PROFILE SNAPSHOT 11
executive branch of the government. The Federal
National Council, a 40-member consultative body,
represents the interests of each emirate when
reviewing proposed laws.
In 2005 the government announced a policy of
political liberalisation. At the end of 2006 elections
were held for half of the seats in the Federal Nation-
al Council, while the other half are appointed by the
government. Elections were held again in late Sep-
tember 2011, and the emirate currently has a total
of six representatives in the council.
ECONOMY: GDP growth in RAK was 8% in 2011 and
the government expects that growth in 2012 will be
roughly the same. According to the RAK Department
of Economic Development, in 2010, the latest year
for which figures are available, mining, quarrying and
manufacturing accounts for about 30% of GDP, fol-
lowed by financial services at 14.4% and wholesale,
retail and repair services at 11.7%. The country ben-
efits from an open economy, high per capita income
Fruits and vegetables are produced in the south-east on the fertile plains around Digdaga
levels and a large annual trade surplus on the back
of its energy exports. Unlike Abu Dhabi, RAK does from 106 countries. It is 100% tax-free and offers
not have substantial deposits of oil and gas, although 100% ownership, along with a number of other incen-
it does produce small amounts of liquefied petro- tives and value-added services.
leum gas and condensate. The formation of the RAK Investment Authority
A variety of sectors drive the emirate’s economy, (RAKIA) in 2005 has helped boost competitiveness
including industry, trade and commerce, tourism in the industry, trade, commerce, tourism and real
and real estate. Several local players have emerged estate sectors. RAKIA was set up to develop and
as international success stories over recent years manage industrial parks, which includes the free
in industries including pharmaceuticals, ceramics zones and industrial zones in Al Hamra and Al Ghail.
and cement. Capitalising on its natural resources, RAKIA has managed to attract more than $3bn in
the UAE’s first cement company opened in RAK in industrial investments and lured over 700 businesses
early 1970s and is now the country’s largest pro- from around the globe. RAKIA’s industrial parks have
ducer. Local company RAK Ceramics is the world’s businesses from a wide range of industries; cur-
largest ceramics producer, exporting to more than rently there are 4170 onshore firms and thousands
150 countries. The region’s first pharmaceuticals more registered through RAKIA’s offshore facility.
and medical supplies firm, Julphar sells its products The emirate has embarked in an ambitious devel-
on the global market, meeting standards set by bod- opment programme which has achieved total growth
ies like the US Food and Drug Administration. of more than 50% over the past four years, with a
TRADE ZONES: Established in 2000, the RAK Free positive outlook for 2012.
Trade Zone is home to more than 5000 active firms NATURAL RESOURCES: With 9% of the world’s oil
reserves and 5% of gas reserves, the UAE has one
of the highest per capita GDP levels in the world.
The lion’s share of these resources belongs to Abu
Dhabi, which has 95% of the oil and 92% of the gas
in the UAE. RAK’s total gas reserves amount to around
33.96m cu metres, and its total oil reserves are esti-
mated at some 400m barrels, or around 0.4% of the
UAE’s total estimated reserves.
RAK boasts the biggest rock quarry in the Gulf
region, and it has been blessed with high-quality
limestone and clay deposits, which underpin the
emirate’s successful cement and ceramics indus-
tries. The fertile plains in the south-east around
Digdaga produce fruits and vegetables, as well as
milk and poultry for the domestic market.
LANGUAGE: The official language of the UAE is Ara-
bic, though English is widely used in business circles.
In addition, a significant portion of the expatriate
population speaks languages from the subcon-
tinent, such as Hindi, Urdu, Malayalam and Tamil.
The emirate has a long history, dating back to around 5500 BCE
THE REPORT Ras Al Khaimah 2012

6. 12 PROFILE OVERVIEW
Sheikh Saud has been promoting a reformist agenda since 2003
Mover and shaker
Encouraging economic growth with an eye towards social development
Over the past decade the emirate of Ras Al Khaimah emirates and part of present-day Oman. RAK’s loca-
has developed a reputation as an up-and-coming play- tion was primarily used for controlling shipping routes
er in the Middle East and further afield. In 2011 RAK’s to and from India during this time.
status continued to grow, despite political volatility THE MODERN ERA: In 1972 RAK joined the recently
elsewhere in the region and ongoing concerns about formed UAE – the other six emirates (Abu Dhabi, Dubai,
international financial stability. This is largely the result Ajman, Sharjah, Fujairah and Umm Al Quwain) had
of a series of ambitious development programmes put come together only a short time before – signalling
in place over the past 10 years which have positively the beginning of a long period of development and mod-
impacted a substantial number of areas, such as indus- ernisation. Sheikh Saqr bin Mohammed Al Qasimi, who
try, trade, foreign investment, education and health care. had been in power in RAK since 1948, oversaw the emi-
The government, with Sheikh Saud bin Saqr Al Qasimi rate’s accession to the new nation, and is credited with
at the helm, is expected to continue to invest in all these transforming RAK from a rural, agrarian society into
areas in the coming years. This bodes well for both ongo- the economically dynamic emirate it is today. When he
ing development and the emirate’s growing interna- passed away in October 2010, the sheikh was in his ear-
tional reputation as a business-friendly, financially ly 90s and had been in power for nearly 60 years, mak-
sound investment destination. ing him the world’s longest-serving ruler.
AN HISTORIC PAST: RAK has been an economic cen- Though Sheikh Saud formally succeeded his father
tre off and on for thousands of years, due to its geo- in 2010, he had been in charge of the day-to-day oper-
graphic location, which sits near a number of ancient ations of the emirate since 2003, when he was appoint-
trade routes between Europe and East Asia. The ear- ed crown prince and deputy ruler. Previously he served
liest of a series of archaeological finds in modern-day as chief of the Ruler’s Court and chairman of the RAK
RAK and the UAE dates back to the third millennium Municipal Council. Since 2003 Sheikh Saud has worked
BCE, when the area was home to an ancient civilisa- to roll out an ambitious reform agenda, with a focus
tion active in fishing, copper smelting and trading. Oth- on attracting foreign investment, building up major
er excavation activities in the emirate have uncovered local industries and improving inhabitants’ quality of
remnants of a number of major Sassanid-era (224-651 life, primarily by investing in large-scale health and
CE) settlements, in addition to wooden houses con- education initiatives. He has also worked to boost trans-
structed during the Qahtani empire, which was active parency in both government and the private sector.
during the 8th and 9th centuries. ONE FOR ALL: The seven emirates that make up the
In 1819 the British took control of the Northern Emi- UAE are administered from the federal seat in Abu
rates. After three years of occupation, Sheikh Sultan Dhabi, which oversees a handful of key sectors, includ-
bin Saqr Al Qasimi, the leader of the influential Al ing national security and defence, currency and fiscal
Qawasim clan (and Sheikh Saud’s ancestor) that had policy, labour relations, foreign affairs, immigration,
The seven emirates in the controlled the area since the early 18th century, signed education standards and communications policy, among
UAE are administered on a the General Maritime Treaty with Britain, establishing others. Outside of these key areas, each individual emi-
federal level from the RAK as a protectorate in exchange for protection from rate is free to undertake new developments and poli-
federation’s capital in Abu
the Ottomans, who were threatening the region. cies as it sees fit. RAK has used this autonomy to invest
Dhabi. Apart from a few
key areas, however, each From the mid-1800s through the late 1960s, RAK heavily in industry, education and health care.
emirate is largely was a member of the Trucial States, a group of British- At the national level the emirate is represented by
autonomous. aligned sheikhdoms in the Gulf that included all of the Sheikh Saud, who sits on the Supreme Council – the
www.oxfordbusinessgroup.com/country/UAE: Ras Al Khaimah

7. PROFILE OVERVIEW 13
presiding federal body – alongside the rulers of the oth-
er six emirates, including Sheikh Khalifa bin Zayed Al
Nahyan, the ruler of Abu Dhabi, who is also the UAE’s
president, and Sheikh Mohammed bin Rashid Al Mak-
toum, the ruler of Dubai, who acts as the country’s
prime minister and vice-president.
The UAE’s government is organised into executive,
judicial and legislative branches. The executive branch
comprises the Supreme Council and the Council of
Ministers, or the cabinet, which is overseen by the
prime minister and two deputy prime ministers, with
membership made up of the UAE’s 22 government
ministers. The legislative branch is overseen by the
Federal National Council (FNC), which is made up of
40 representatives, half of whom are elected by the
Electoral College – a group of prominent citizens – and
half of whom are appointed by the Supreme Council.
The number of representatives each emirate sends to
the FNC is a function of its population and size. RAK
and Sharjah, for example, each send six representa-
The government has launched a number of initiatives to boost investment, including a free trade zone
tives (three elected and three nominated by the ruler),
while Abu Dhabi and Dubai send eight and the remain- rate. A handful of RAK’s largest firms are based in
ing four emirates send four. RAKIA-operated areas, including RAK Ceramics, the
Though the FNC has been active since the UAE was largest ceramics producer in the world with an annu-
founded in the 1970s, until the mid-2000s the ruler of al output of 117m sq metres. RAK Ceramics exports to
each emirate appointed all representatives for his over 150 countries. Furthermore, RAK boasts the largest
respective area. This changed in 2006, when the UAE rock quarry in the Gulf region, as well as high-quality
staged its first-ever public election. Around 6000 promi- limestone and clay deposits, which help contribute to
nent Emiratis made up the Electoral College in the first the ceramic sector’s dominance.
contest. During the nation’s second round of nation- In addition to the industrial areas, the authority over-
al elections, which took place in late September 2011, sees RAK Offshore, a one-stop shop for setting up a
this number jumped to 129,274 (see box). Due to the business in the emirate. In 2008 and 2009 RAKIA made
infancy of electoral politics in the UAE, the FNC cur- a number of major investments in foreign markets –
rently remains an advisory body, though its powers including Georgia, Indonesia and India – though since
have grown in recent years. In December 2008, for late 2010 it has been working to divest itself of most
example, the Supreme Council introduced a package of these holdings and focus on investments at home.
of constitutional amendments that increased the FNC’s Both RAK FTZ and RAKIA have become major points of
reach and powers considerably. These included an investment and trade between RAK and a wide variety
amendment that extended representatives’ terms from of foreign entities and governments in recent years,
two years to four years and another that broadened strengthening international cooperation and trade
the FNC’s purview to include international agreements relations. In 2012, for example, Michael Corbin, the US
and treaties. The FNC is expected to continue to gain ambassador to the UAE, visited RAK FTZ and Maritime
powers in the coming years. City, among other centres of investment, in an effort
LEADING LOCAL DEVELOPMENT: While RAK is a major to highlight the importance of RAK-US trade relations.
player on the national stage, the emirate’s rising inter- LOCAL PRIORITIES: Like the UAE as a whole, RAK’s
national reputation is primarily the result of the local economy has remained well insulated against the long-
government’s policies and development programmes. term negative effects of the 2008-09 international
The biggest firms in RAK, for example, are located in financial crisis, unlike parts of the EU and the US. With
industrial areas operated by RAK Free Trade Zone (RAK this in mind, the local government has continued to
FTZ) and the RAK Investment Authority (RAKIA), both invest heavily in social reform programmes at home.
of which were created and are overseen by the gov- In addition to launching a number of new universities
ernment. RAK FTZ, which was established by royal in recent years, the government’s ongoing higher edu-
decree in May 2000 and remains 100% government- cation improvement programme includes initiatives
owned today, is home to more than 5000 firms spread aimed at boosting the quality of education in the emi-
throughout four separate industrial parks. In 2011 the rate in an effort to better prepare local students to com-
entity saw 2033 new company registrations in total, pete in the job market (see Education chapter). The Industrial parks in the
up 17% on the 1740 firms registered in 2010. In par- Sheikh Saud bin Saqr Al Qasimi Foundation is also help- emirate are mainly run by
two institutions, both
ticular, RAK FTZ has worked to attract small and medi- ing to develop and foster research collaboration in
government-controlled:
um-sized enterprises (SMEs) in several sectors. RAKIA, both RAK and the UAE as a whole, while the RAK Cen- the RAK Free Trade Zone
set up by royal decree in 2005, operates two industri- tre for Advanced Materials is poised to become a and the RAK Investment
al parks and a variety of business entities in the emi- regional leader in high-tech science for both the UAE Authority.
THE REPORT Ras Al Khaimah 2012

8. 14 PROFILE OVERVIEW
IN THE PUBLIC SPHERE
On September 24, 2011 more than 5000 of Ras Al
Khaimah’s inhabitants – including a substantial
number of women – elected three new local rep-
resentatives to the UAE’s Federal National Coun-
cil (FNC), the 40-member organisation serving as
the national legislature. Political participation by
women has jumped substantially in recent years.
In RAK, women have benefitted from reforms that
have opened new opportunities in several areas.
EXPANDING PROFILE: Female participation in
public life has jumped substantially. Social reforms,
often with a focus on women and children, have
been a major component of Sheikh Saud bin Saqr
Al Qasimi’s rule. The number of higher education
institutions has increased rapidly as well. In 2000
RAK was home to a single university. Since then 13
A number of development initiatives are under way, while international investments are also on the rise
additional institutions have opened. These include
and the region. Similarly, in conjunction with the fed- the public RAK Women’s College, which is part of
eral Ministry of Health, RAK has been investing heavi- the federal Higher Colleges of Technology system,
ly in a project to improve the emirate’s health care in addition to a variety of private institutions.
facilities (see Health chapter). RAK’s e-government ini- The local government has also worked to encour-
tiative, launched by Sheikh Saud in 2003, has also ben- age women to start businesses and seek employ-
efitted from government support in recent years. ment, with Sheikha Hana bint Jumaa Al Majid, Sheikh
CHALLENGES: While RAK has accomplished quite a Saud’s wife, being a major advocate for entrepre-
lot over the past decade, the emirate faces a number neurship among local women. In 2008 she organ-
of ongoing challenges. As the industrial sector has ised a contest for female entrepreneurs, with a
grown, the local power network has been strained, grand prize of Dh100,000 ($27,220). Additionally,
which has been a major issue for energy-intensive she played a major role in setting up a business cen-
manufacturers and other industrial concerns. In an tre at RAK Women’s College, which offers advice,
effort to overcome this issue, the Federal Electricity mentoring and assistance with business licences.
and Water Authority (FEWA) is in the midst of a Dh1.4bn POLITICAL PARTICIPATION: The UAE’s female
($381.1m) project to develop the electricity infra- population has stepped into the limelight in recent
structure in the Northern Emirates. years. In the 2011 elections some 46% of the
The emirate’s booming industrial sector also faces 129,271 members of the Electoral College – com-
growing competition from other industrial areas with- posed of Emiratis chosen by the Supreme Council
in the UAE and throughout the region. While RAK FTZ – were female. This represents a substantial
and RAKIA have both grown substantially in recent improvement over the 2006 elections, when around
years, increasingly they vie for foreign investors with 18% of the college was female. Perhaps more impor-
well-funded industrial areas in Abu Dhabi and Dubai, tantly, 85 of the 469 Emiratis that campaigned for
for example. The UAE dominated fDi Magazine’s 2011- a spot in the FNC in 2011 were female.
12 “Free Zones of the Future” study, with 15 of the top In RAK, women accounted for 38% of the 16,850
25 free zones located in the country. RAKIA’s indus- locals chosen to vote in the 2011 elections. This
trial park took second place, while RAK FTZ took fourth. number is expected to rise in the next round of
OUTLOOK: Despite these challenges, RAK is expected national elections, tentatively scheduled for 2016.
to continue to take on a prominent role in the UAE for At the same time, RAK boasted the highest per-
the foreseeable future. Government-led economic lib- centage of female candidates. Of the 60 candi-
eralisation has resulted in a thriving industrial sector, dates that campaigned for one of the three spots
which has in turn boosted RAK’s reputation both at allocated for elected representatives from RAK on
home and abroad. A number of ongoing social reform the council, 16 were women, which equates to
programmes are expected to turn the emirate into a around 27% of the total nominees, compared to
Female participation in major regional player in the areas of higher education 21% in Umm Al Quwain (UAQ), 20.9% in Dubai,
public life has expanded, and health care in the coming years. Similarly, as inter- 18.8% in Abu Dhabi, 17% in Sharjah, 14.7% in Ajman
thanks to a number of net penetration rates continue to improve through- and 14.3% in Fujairah. When the election finished,
social reforms, the opening
out the UAE, RAK’s e-government project will have a only one women had won a spot in the FNC (Sheikha
of RAK Women’s College,
support to female growing impact. All this should help ensure RAK remains Isa Ghanem Al Ari, elected in UAQ), but the jump
entrepreneurs and an a key part of not just the UAE’s economy, but also a in female participation is a good sign for the future.
increased role in politics. vital piece of the economic framework of the region.
www.oxfordbusinessgroup.com/country/UAE: Ras Al Khaimah

9. PROFILE ANALYSIS 15
The emirate has a reputation as a stable place to do business
Season of change
The Arab Spring has the potential to create new economic
opportunities for the emirate
In his introductory remarks at the 2011 Global Arab has benefitted from ambitious development initiatives Annual real GDP growth in
Business Meeting (GABM), held at the Al Hamra Con- by Sheikh Saud, who has worked to guarantee good the Middle East is
estimated to average 4.8%
vention Centre in Ras Al Khaimah in October 2011, governance and transparency in an effort to encour-
for the 2012-15 period,
Sheikh Saud bin Saqr Al Qasimi, the ruler of RAK, spoke age economic growth. The emirate boasts a number second only to the
of new opportunities created by the unrest that has of growth drivers and other competitive advantages projections for Asia.
swept through North Africa and the Middle East in that should stand it in good stead in the post-Arab Spring
2011 and early 2012. “The real challenge is how we economic climate. Like the rest of the UAE, RAK’s local
can provide good governance to the people, which I population boasts relatively high incomes for the region.
believe begins with transparency,” he said. “Govern- The emirate’s financial sector, dominated by the Nation-
ments should have the courage to bring in trans- al Bank of RAK (RAKBANK), fared well in the wake of
parency, which allows them to address challenges the international economic downturn (see Financial
rather than accumulating problems.” Sheikh Saud’s Services chapter). Lending at RAKBANK continued
remarks highlight an important aspect of the demon- largely unabated through 2009 and 2010.
strations – in a handful of relatively wealthy Middle East- RAK’s financial industry is underpinned by the thriv-
ern nations, including the UAE, the Arab Spring has ing local industrial sector. The emirate’s numerous
opened up new space for political dialogue and, poten- industrial zones, operated by the RAK Investment
tially, long-term economic growth. At the 2011 GABM, Authority (RAKIA) and RAK Free Trade Zone (RAK FTZ),
business leaders from all over the Arab world expressed are well positioned to benefit from foreign firms that
cautious optimism about the opportunities for sus- are looking to set up shop in the UAE due to instabili-
tainable expansion created by the ongoing protests. ty elsewhere in the region. The Arab Spring has been
The idea that the Arab Spring will act as a catalyst for especially hard on small and medium-sized enterpris-
political reform and economic expansion is increasingly es (SMEs). Both RAK FTZ and RAKBANK have worked
prevalent. According to a mid-2011 report by the Econ- to cater to SMEs in recent years, which bodes well for
omist Intelligence Unit, annual real GDP growth in the those looking to relocate to the UAE.
Middle East is expected to average 4.8% for the peri- BY THE BOOK: RAK’s reputation as an up-and-
od 2012-15, nearly twice the projected rate in North coming regional leader in higher education could also
America and second only to Asia. be a major advantage in the wake of the Arab Spring.
MOVING FORWARD: In the short-term future, the Sheikh Saud has worked to boost research activities
region’s major hydrocarbons-producing countries – in the emirate. In 2009 the École Polytechnique Fédérale
the UAE, Saudi Arabia and Qatar, in particular – stand de Lausanne (EPFL), a major Swiss technical universi-
to benefit the most from the Arab Spring. With insta- ty, partnered with RAKIA to open a campus in RAK.
bility elsewhere in the region, these countries should The government has also worked to improve the
gain both from investors looking for stable markets and, quality of education on offer in RAK, encouraging a focus With unrest linked to the
to a lesser degree, tourists looking for new destina- on teaching creative thinking and practical profes- Arab Spring affecting some
tions. The UAE, which has been working to improve pub- sional skills. This focus bodes well for RAK’s ability to countries in the region,
lic participation in government since 2005, is poised benefit from the rapidly changing regional economic Gulf states like the UAE can
expect to see increased
for rapid economic expansion. climate. Taking into account the focus on education,
interest from investors
TIME TO SHINE: RAK in particular has made a name the burgeoning industrial sector and the UAE’s advan- looking for more stable
for itself in recent years as a secure and stable place tages, RAK is well positioned to capitalise on the new markets and from tourists
to do business, especially in the industrial sector. RAK economic opportunities created by the Arab Spring. seeking new destinations.
THE REPORT Ras Al Khaimah 2012

10. 16 PROFILE INTERVIEW
Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah
Big plans
OBG talks to Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah
Which sectors will provide RAK with the great- ed to RAK, and Etihad Rail, which is being developed
est growth over the next few years, and what in concert with the other emirates. The rail project
steps are being taken to attract investors? has significant potential. Shipping cargo via the rail
SHEIKH SAUD: GDP in RAK rose by 8% in 2011, and network would simplify delivery, reduce vehicle traf-
I am confident the rate in 2012 will at least match fic and improve road safety. We are also studying
that. Two sectors in particular, industry and tourism, plans to expand the RAK airport to cater for the
will provide continued economic growth and will expected increase in demand.
allow RAK to maximise its assets. In addition to this, we are seeking to attract more
Over the years, we have not only attracted inter- investment in RAK Maritime City and have already
national groups to establish businesses here, but we seen positive feedback from foreign investors. IT
have also developed top-tier companies at home. systems are consistently reviewed to make them
Stevin Rock and RAK Rock, for instance, are good more accessible and investor-friendly. Alongside
examples of this in the building materials industry. promoting industry and tourism, we also want to fur-
They lead the market in supplying aggregates to the ther improve the quality of life in RAK by the gov-
UAE and the region. ernment’s focus on upgrading schools, hospitals
To foster further growth, industrial parks, such as and other public facilities.
Al Hamra and Ghail, free zones and a maritime city
have all been specifically designed to attract How can alternative energy strategies be used
investors. RAK has an industry-friendly tax system, to minimise the impact of energy shortages when
competitive production costs and excellent infra- it comes to economic expansion?
structure, including ports, airports and roads. For SHEIKH SAUD: The federal government is invest-
example, expansion at Saqr Port has made it the ing heavily in the upgrade of the electrical supply
largest bulk port in the Middle East. This highlights infrastructure, while at the same time a couple of
the importance our infrastructure currently has independent power projects have been initiated,
when it comes to supporting the development of which have been instrumental in addressing short-
industrial companies in RAK. ages. It is indicative of the “can do” spirit in Ras Al
With regard to tourism, the Ras Al Khaimah Tourism Khaimah that several industrial companies have
Development Authority (RAK TDA) is identifying areas turned the energy situation into an opportunity.
to increase long-term sustainable growth. The num- A number of cement companies are now under-
ber of four- and five-star hotels in RAK and their high taking waste heat recovery techniques to make their
occupancy rates point to the success of its strate- operations more efficient and become more com-
gy. Our current challenge is to build more hotels to petitive within their industry. They have switched
reach a target of 10,000 rooms by 2016. We are aim- their fuel from diesel to coal and are continually
ing for 1.2m visitors in 2013. looking for ways to become more efficient.
That said, here in RAK we want to raise the over-
What new infrastructure projects are in the all efficiency levels of our industries by reducing
pipeline for the emirate, and how have investors energy waste. In addition to conservation tech-
reacted to these proposed investments? niques, we are also looking into how the emirate
SHEIKH SAUD: The biggest projects coming up are can implement alternative methods of energy gen-
the inter-emirate road, which will soon be extend- eration across different sectors of the economy.
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11. PROFILE INTERVIEW 17
The focus on conservation extends to our munic- In what ways is the emirate working to position
ipal waste system through our waste recovery itself as a first-choice destination for tourists as
scheme. And with regard to landfill, we have iden- well as for foreign investors? What role does
tified several ways of turning waste into gas, which RAK TDA play in this?
can serve as an alternative source of energy. SHEIKH SAUD: I strongly believe that, given the
The overarching idea is to invest in feasible, sus- close proximity to key tourism source markets such
tainable projects, as it is important for the future of as Europe, Asia and Russia, RAK will be able to become
the emirate to have alternative sources of energy, a leading tourist destination.
fostering growth across all areas of the economy. By the very creation of RAK TDA, we have consol-
We have a duty to turn the very important issue of idated all tourism-related activities under one enti-
high energy consumption into a solution for our ty, establishing a one-stop shop for investors that
energy needs. can provide all of the necessary information, includ-
ing data and feasibility studies.
What efforts are being undertaken with regards RAK TDA’s primary objective is to position the emi-
to fostering the development of the education rate regionally and on a global level as a leisure,
system in the emirate? Are there any particular adventure and value-for-money destination. Its two
areas of focus? divisions, tourism and hospitality, have been active
SHEIKH SAUD: Over the past 40 years, our whole in both identifying and developing tourism projects
country has witnessed tremendous transformational to increase the number of visitors and achieve over-
changes, and we have come a long way as a result all growth for the sector.
of these changes. I have already mentioned the significant growth
Education is the foundation for growth across in the number of four- and five-star hotels and
sectors. Our aim is to refine the “pyramid of knowl- resorts. One major project – and yet another inter-
edge” and work on ways to upgrade our education national brand to come to the emirate – is the UAE’s
system by improving the overall quality of our teach- first Waldorf Astoria hotel, which is scheduled to
ers and professors in both the secondary and ter- open in late 2012.
tiary systems, as well as by revising the curricula in If location is important for tourism vis-à-vis Europe,
place in local schools. Asia and Russia, it is equally significant for indus-
The Al Qasimi Foundation for Policy Research is trial and other investments as well. You have already
at the heart of this work. The foundation has been seen the steps that we have taken in developing
working with the RAK Education Zone to assess Eng- industrial parks, free zones, ports and a maritime city.
lish language teachers in our government schools, But this is not the end of the process. It is only the
addressing any skills gaps. beginning.
The Al Qasimi Foundation is also conducting a We want to maintain a fluid business environ-
study to help understand why the proportion of Emi- ment where the government is quickly responsive
rati males who continue into higher education is to investors’ needs, monitoring new ideas and striv-
relatively small. Our aim is to give the population of ing for perpetual improvement. We are continually
RAK the choice of being able to stay in the emirate scrutinising our policies to simplify them, as well as
while still attaining a high-quality education, as increasing the level of transparency, which is right-
well as to attract students from outside the emirate. ly an extremely important issue for our investors.
THE REPORT Ras Al Khaimah 2012

12. 18 PROFILE INTERVIEW
Sheikh Mohammed bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah
Becoming a top destination
OBG talks to Sheikh Mohammed bin Saud Al Qasimi, Crown Prince of
Ras Al Khaimah
What diversification strategy is being undertak- restaurants and services offered to visitors. We want
en, particularly with regards to enhancing RAK’s tourists to visit RAK more than once, and I am confi-
attractiveness to foreign investors? dent the emirate can become a number-one desti-
SHEIKH MOHAMMED: RAK’s economy is already diver- nation as it possesses many attractions: we have the
sified and the emirate is aiming to expand further. The UAE’s longest stretch of coastline, the Hajjar Moun-
economic diversification programme implemented in tains, year-round sunshine and a history stretching
RAK has created a fairly mixed economy, and the gov- back 7000 years. Located close to the regional eco-
ernment has strived to espouse an economic vision nomic centre of Dubai, RAK differs as it is smaller and
of openness. This will help RAK become more signifi- more traditional. It is an attraction for those wanting
cant in a rapidly evolving and interconnected global to see another side of life in the Arabian Peninsula.
economy. We are concentrating on developing tourist Hotel capacity is increasing, and the airport is being
attractions, and, at the same time, we are promoting expanded to match tourism sector growth. Great
industry. We have industrial parks that allow compa- potential also lies on Marjan Island, where the Real
nies to share the success of existing industries. Madrid Island Resort is scheduled to open in 2015.
We are seeking to achieve sustainable growth We have not forgotten the main GDP contributors such
through attracting investments, taking full advan- as industry either. Given that we already have estab-
tage of RAK’s competitive advantage in terms of its lished players in the market, more entrants are look-
geographic location. Being close to the Strait of Hor- ing to come to the emirate and share the success of
muz allows for maritime bulk trade and tourism devel- its expansion. Moreover, we also aim to ensure devel-
opment. The mountains are also a great asset for the opment is environmentally friendly and we have a
tourism and industrial sectors, particularly in the field range of industry and tourism projects specifically
of cement and building materials. designed with ecology and habitat protection in mind.
Today, efforts are under way to make RAK an investor-
friendly destination. RAK is a first-choice location for How would you assess RAK’s relationship with the
investors, thanks to business-friendly legislation that other emirates as well as the wider region?
gives the investor the security to locate here. For SHEIKH MOHAMMED: While all of the emirates are
investors, RAK is accessible, corruption-free and com- different, they complement each other in various
petitive in terms of cost. To attract more foreign ways. When a visitor comes to the UAE, they see the
investors, it is essential to market the emirate abroad, diversity of the country’s topography and the beau-
and today, we are looking to develop relations with coun- ty of that diversity. On an economic level, with each
tries that are more open to making investments. emirate’s economy expanding, the Gulf states have
become better business partners for each other – not
Which sectors will provide RAK with the greatest just locally but globally. Furthermore, as countries
growth potential in the coming years? surrounding the UAE become richer, they will provide
SHEIKH MOHAMMED: I am particularly keen to see us with more opportunities to do business, which I
the tourism and industry sectors expand, as I believe regard as a motivation to develop the whole of the
these two areas will provide RAK with the best growth UAE. Each emirate has a responsibility in this expan-
potential in the coming years. With regards to the sion, and what RAK has to offer is an advantageous
tourism sector, we have already set up the Tourism fiscal policy, a strategic geographic location, politi-
Authority, and we are trying to streamline all hotels, cal stability and a competitive business environment.
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13. PROFILE ANALYSIS 19
The local government has made numerous investments in industry
Protect and preserve
Expanding the supply of power and water and promoting sustainability
As the industrial sector has expanded over the past 2003-04, soon after the local government began The UAE’s federal
decade, demand for power and water in Ras Al making major investments in the industrial sector. government is planning to
invest some $1.55bn in
Khaimah has grown exponentially. Consequently, in Securing enough energy to power a number of large-
power and water
recent years RAK, like many of the other Northern scale manufacturing plants has been a challenge infrastructure, while RAK
Emirates, has experienced sporadic power outages ever since. By 2006 RAK was suffering occasional has also added power
and water shortages. This is an issue in the emirate, blackouts, due in large part to burgeoning industri- plants to boost capacity.
as it is home to a number of energy-intensive man- al demand for power, the steadily expanding popu-
ufacturing companies and other industrial firms. lation and urbanisation. Outages normally took place
Unannounced power cuts could hurt revenue at in the summer months, when air-conditioner use
many of these firms, which rely on electricity to overloaded the power grid.
power production. Similarly, RAK’s growing popula- In 2008 and 2009 FEWA purchased electricity
tion and steadily increasing urbanisation have result- from the Abu Dhabi Water and Electricity Authori-
ed in rapidly rising demand for potable water, a very ty to make up for the local shortage. At the same
limited resource in the UAE. time, the authority began to develop plans to upgrade
The local government has been working closely the power grid in the Northern Emirates and find
with the Federal Electricity and Water Authority new sources of energy to ensure future supply. In
(FEWA), the federal utility that oversees the elec- mid-2009 RAKIA completed work on two new pow-
tricity and water supply in the Northern Emirates, er stations, which now supply power to the indus-
to overcome these shortages. In an effort to boost trial zones at Al Ghail and Al Hamra. A connection
power supply, both the RAK Investment Authority between the two plants, which have a combined
(RAKIA) and FEWA have set up new power infra- capacity of 129 MW, is being constructed so that
structure in recent years, and the emirate is expect- idle capacity can be utilised. The 40-km pipeline is
ed to benefit from a new desalination plant by 2013. due to come on-line by the end of 2012.
While ramping up energy and water supply in the RECENT EVENTS: In March 2011 Sheikh Khalifa bin
Northern Emirates – and in particular RAK and Shar- Zayed Al Nahyan, the UAE’s president, announced
jah, which have seen the greatest shortages – is a that the federal government would invest Dh5.7bn
national priority, local and federal authorities are also ($1.55bn) in power and water infrastructure proj-
working to boost environmental protections at home. ects in the Northern Emirates, including building a
Balancing these two priorities has been a key focus handful of additional power plants and substations,
over the past few years. As of early 2012 the gov- improving the transmission network and boosting
ernment had managed to pursue both simultane- capacity at a number of older power stations. In
ously, primarily by focusing on developing new clean October 2011 FEWA completed work on a number
sources of energy. RAK, home to a nascent but active of smaller power stations in the Northern Emirates,
and technologically advanced sustainable energy including one in Masafi, output of which is split
sector, is leading the charge. between RAK and Fujairah; one at Al Sawan, in RAK;
POWERING UP: In the 1990s and early 2000s, RAK’s and one in Al Nuaimiya, in Ajman. Two months lat-
power supply was more than sufficient. The emi- er, in December 2011, the authority finished con-
rate was powered by a mix of gas from local fields struction at the second Al Rifaa power substation
and imports from Abu Dhabi and other energy-rich in RAK. These projects are part of the first stage of
neighbours. RAK first faced power shortages in FEWA’s overarching development plan for the area.
THE REPORT Ras Al Khaimah 2012

14. 20 PROFILE ANALYSIS
In mid-2011 parts of RAK experienced a water
shortage as a result of a desalination plant in the
central Al Nakheel area breaking down. In response
FEWA announced plans in December 2011 to build
a new desalination plant in the emirate, with a capac-
ity of 15m gallons per day. The project, which is
expected to be completed by 2014, will primarily sup-
ply water for industrial use.
Additionally, in early 2012 FEWA completed work
on two 5m-gallon reservoirs in RAK. The two tanks,
which cost Dh21m ($5.7m) to construct, will hold
enough water to supply the emirate for two full days
in an emergency situation. According to Mohammed
Mohammed Saleh, the director-general of FEWA,
the authority is also in the process of building two
10m-gallon tanks in RAK.
A CENTRE FOR SUSTAINABILITY: RAK’s recent
investments in environmental protection and alter-
native power have the potential to turn the emirate
into a regional leader in clean energy and water in
The emirate is exploring a number of solar projects, including a possible “solar island” off the coast
the coming years. The RAK Environment Protection
WATER WORLD: Water consumption in the UAE is and Development Authority (EPDA) has worked close-
higher than in almost any other nation in the world. ly with the federal Ministry of Environment and
In 2010, according to local news reports, the coun- Water to introduce programmes aimed at reducing
try’s per capita water consumption rate was around the emirate’s environmental footprint.
500 litres per day, which is some 82% higher than The authority, which was set up by royal decree
the world average. According to an early 2012 report in 2007, oversees a number of initiatives, including
released by the Abu Dhabi Environment Authority, a recurring desert clean-up effort; a programme to
annual water consumption in Abu Dhabi exceeds monitor and curb dust emissions at major industri-
local supply almost 26 times over. At the current rate al plants; and a wide variety of educational pro-
of use, local ground resources there will be deplet- gramming for schools and the general public.
ed by the end of the year 2050. In early March 2011 the EPDA organised an inter-
With this in mind, the great majority – around national conference entitled “Global Warming: Water
90% – of the UAE’s potable water supply is produced and Land Use”, which took place at the Al Hamra Con-
by desalination. After Saudi Arabia, the UAE is the vention Centre in RAK and was hosted by Sheikh
largest producer of desalinated water in the world. Saud bin Saqr Al Qasimi, the emirate’s ruler.
Six of the country’s 70 desalination plants are locat- The conference attracted guest speakers from a
ed in RAK. The newest plant – which includes desali- number of major US-based organisations, including
nation and wastewater treatment components – the National Aeronautics and Space Administration,
was set up in the Al Ghail industrial area in April 2010 the National Oceanic and Atmospheric Administra-
by RAKIA. The majority of the production coming tion, and the University of Maryland.
from the plant goes to large-scale manufacturers SOLAR WORKS: The Centre Suisse d’Électronique
and other nearby industrial firms. et de Microtechnique (CSEM), a Switzerland-based
FEWA, in conjunction with the federal govern- sustainable energy firm that established a presence
ment and the water authorities in Abu Dhabi and in RAK in 2005 as part of a joint venture with RAKIA,
Dubai, has launched a number of new water-relat- is developing a number of ambitious new solar tech-
ed projects in recent years. As part of the recently nologies and processes in the emirate.
announced Dh5.7bn ($1.55bn) federal investment The company’s flagship project involves floating
in the water and power infrastructure in the North- massive solar arrays in the shallow waters off RAK.
ern Emirates, FEWA is undertaking a handful of major The “solar island” project, which was still under devel-
water-related projects. opment as of mid-2012, has attracted attention
The authority will build a 100-km water pipeline from solar energy firms around the world.
from Kalba, in Sharjah, to Dibba, which sits at the CSEM is also working on a number of other proj-
north-eastern tip of the UAE, at a cost of Dh900m ects, including solar-powered air conditioners and
($245m). The line will supply 23m gallons of water solar polygeneration technology, which could poten-
In an effort to expand per day to Fujairah and the town of Khor Fakkan in tially boost efficiency at power and desalination
water supply, FEWA is Sharjah, which is home to a major container termi- plants. Finally, the firm is currently working to set
planning to build a 100-km
nal. FEWA is also working on a Dh300m ($81.7m), up a testing facility for new solar and new thermal
water pipeline capable of
supplying 23m gallons per 60-km pipeline that will be able to supply 18m gal- technologies, which may have the potential to even-
day, at an estimated cost lons of water per day to Umm Al Quwain and a tually attract more alternative energy firms to move
of about $245m. Dh158m ($43m), 36-km pipeline to help supply RAK. ahead with setting up their operations within RAK.
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15. PROFILE ANALYSIS 21
Proximity to a number of trade routes is an advantage for firms
Trading up
Boosting economic ties increases regional integration
A substantial number of new international econom- UAE’s other major economic centres in Dubai and RAK has a number of
ic agreements have boosted Ras Al Khaimah in recent Abu Dhabi. Additionally, RAK is not nearly as built-up competitive advantages for
industrial development,
years, largely as a result of government-led industri- as many of its neighbours. The emirate has a sub-
including a prime location
al development measures put in place over the past stantial amount of undeveloped, affordable land, on the Strait of Hormuz
decade. The emirate has established trade relation- which is a boon for industrial firms looking to set up and a substantial amount
ships with a diverse group of nations, including Tan- shop in the Gulf. Finally, RAK is home to sizeable of undeveloped, affordable
zania and the US. Rising export revenues have allowed amounts of a wide variety of mineral deposits. Exten- land.
the government to invest heavily in ambitious social sive limestone deposits in the Al Hajjar Mountains, for
reform programmes. Similarly, as the emirate’s rep- example, have resulted in the development of a thriv-
utation has grown, it has attracted an increasing ing construction materials segment, making RAK a
amount of foreign investment. main supplier in the UAE for construction materials.
BACKGROUND: Since the UAE was created in the THE LONG GAME: In addition to these natural advan-
early 1970s, trade and economic ties have been at tages, the emirate has benefitted from decades of
the centre of the country’s foreign policy. The rise of careful government oversight, with an eye to devel-
Abu Dhabi and Dubai as regional financial and tourism oping the industrial sector. RAK’s current status as a
centres, respectively, in the late 1990s and first half growing economic player in the UAE and further afield
of the 2000s was closely related to an increase in inter- is the result of a long period of economic liberalisa-
national economic cooperation between the UAE and tion, government investment and reform.
a number of major economic powers. Even in the The industrial sector, which today accounts for the
wake of the 2008-09 international financial down- great majority of the emirate’s export revenues, was
turn, which had a negative impact on the country – launched in the 1970s and 1980s by Sheikh Saqr bin
though not nearly to the extent of many Western Mohammed Al Qasimi, who ruled RAK from 1948 until
economies – the federal government has highlight- he passed away in 2010. Sheikh Saqr played an inte-
ed the importance of expanding and deepening eco- gral role in setting up the UAE’s first cement factory
nomic integration. The topic of trade ties was a cen- in 1974. He was also one of the founders of RAK
tral talking point at the 2011 Global Arab Business Ceramics in the 1980s. Today the firm is the largest
Meeting, held in RAK in early October. According to ceramics manufacturer in the world.
a speech delivered at the event by Sheikha Lubna After Sheikh Saud bin Saqr Al Qasimi, Sheikh Saqr’s
Khalid Al Qasimi, the UAE’s minister of foreign trade, son, took over the day-to-day operations of RAK in
continuing to ramp up economic integration – in par- 2003, he introduced a series of ambitious economic
ticular with nations in the Middle East and North reforms and targeted investments in the industrial
Africa – is the best way to ensure regional peace and sector. Sheikh Saud’s government has focused on
stability, not to mention steady economic growth. improving the emirate’s transport and industrial infra-
A HISTORY OF GROWTH: RAK boasts a number of structure and increasing transparency requirements
competitive advantages for industrial development. for government players and private sector firms, with The industrial sector, which
The emirate’s location on the Strait of Hormuz means the long-term goal of boosting overall economic diver- today accounts for a
majority of the emirate’s
that local exporters and trans-shipment firms have sification. In recent years RAK has benefitted from the
export revenues, is the
direct access to one of the world’s busiest shipping development of a modern transport network. RAK is result of a great deal of
lanes. The proximity of the strait translates into ship- home to five interconnected ports, an international long-term planning by the
ping prices that are considerably lower than in the airport and a series of major road links. RAK is also state.
THE REPORT Ras Al Khaimah 2012

16. 22 PROFILE ANALYSIS
and the UK. As of early 2010, around 95% of these
firms were small and medium-sized enterprises
(SMEs). In 2011 RAK FTZ saw 2033 new firms regis-
ter to do business in RAK, a 17% jump on 2010. Sim-
ilarly, in the first six months of 2011, around 800 new
companies were registered with RAKIA, up 31% over
the same period in 2010. The authority is home to
more than 3000 firms. While the majority of these
companies registered under manufacturing licences,
there has been increased interest in trade licences
in recent years as well, according to RAKIA.
MAJOR PARTNERS: While RAK does business with
companies from both hemispheres, the emirate main-
tains especially close ties with a handful of nations
and areas. China and India are both leading trading
partners, for example. Around 30% of the firms reg-
istered at RAKIA at the end of 2009 were based in
the sub-continent. Similarly, European companies
accounted for 18% of the firms registered with RAKIA,
Asian firms for 7%, US-based companies for 3%, and
Both RAKIA and RAK FTZ have seen a sizeable uptick in registration numbers over the past few years
Russian and other Commonwealth of Independent
expected to play a major role in the planned UAE-wide States-based firms for around 2%.
Etihad Railway network, which is currently in the ear- RAK’s thriving tourism market has the potential to
ly stages of development. attract new hoteliers and other tourism-related com-
INDUSTRIAL HEAVYWEIGHT: Perhaps the gov- panies from around the world in the coming years. A
ernment’s most important move in terms of devel- handful of local organisations are working to boost
oping the industrial sector was setting up the RAK Free trade ties in foreign markets. For example, in mid-May
Trade Zone (RAK FTZ) in May 2000 and, five years lat- 2012 RAK FTZ sent a delegation to Pakistan, with the
er, the RAK Investment Authority (RAKIA). These two goal of attracting Pakistani businesses to invest in the
entities, which remain 100% owned and operated by emirate, either in the form of foreign direct invest-
the government, have had a major impact on the emi- ment (FDI) or by setting up new companies in the UAE.
rate’s industrial development. RAK FTZ- and RAKIA- The delegation participated in a series of seminars in
operated industrial areas are home to the majority Karachi and road show events in smaller economic
of the emirate’s largest and most successful compa- centres throughout the country. RAK FTZ is already
nies. The planned RAK Maritime City will provide sim- home to a substantial number of Pakistan-based firms,
ilar incentives for maritime-based industry. which are active in a wide variety of industries. In an
The industrial sector, which includes steel produc- effort to boost ties with Korean and other East Asian
tion, mineral processing, limestone quarrying and firms, RAK FTZ also recently sponsored the UAE’s
manufacturing, is responsible for nearly one-third of inaugural Made In Korea exhibition, which was held
RAK’s GDP, according to the RAK Department of Eco- in Abu Dhabi in mid-May 2012. Contacts made at the
nomic Development (RAK DED). Foreign investment event are expected to eventually lead to new busi-
has stagnated slightly in other parts of the region as ness opportunities for Korean firms looking to set up
a result of the Arab Spring (see analysis), but RAK has shop in the UAE and vice versa.
remained popular among international and local Trade with the US, in particular, has ramped up
investors alike. Indeed, as costs and risks rise else- rapidly. In the past decade the UAE’s exports to the
where in the region, RAK may benefit from a bump US jumped by 18%, from $971.1m in 2000 to $1.15bn
in business. “There is a migration of companies from in 2010, according to official statistics. In 2010, the
other GCC countries and the Middle East into RAK,” most recent year for which data is available, the UAE
Alex Thomas, the general manager of marketing at was the US’s largest export market in the Middle East,
RAKIA, recently told local press. “They are conscious and the 21st-largest overall. The two countries trade
about cost.” According to RAK DED, the emirate’s a wide variety of products, including manufactured
economy grew by 8% in 2011. metals, chemicals, transport equipment, machinery
AROUND THE WORLD: While federal diplomats in and electronics, among others.
Abu Dhabi handle the UAE’s official foreign policy, each Both RAK and the US are working to encourage addi-
emirate is allowed to pursue trade and economic tional trade in the future. In early 2012 Oussama El
Trade with the US has relations with as many foreign entities as it likes. RAK Omari, the CEO of RAK FTZ, met with Michael Corbin,
ramped up considerably. In has made good use of its autonomy in this area by the US ambassador to the UAE, to discuss future
early 2012 the CEO of RAK
ramping up foreign trade in recent years. Business- cooperation plans. “The visit is an opportunity to rein-
FTZ met with the US
ambassador to the UAE to es operating in RAK hail from a variety of locations. force our positioning as a business hub geared at
discuss plans for future RAK FTZ is home to over 5000 firms from more than helping SMEs and global businesses to set up in the
cooperation. 106 countries, including, notably, India, Egypt, the US region,” El Omari told local press during the meeting.
www.oxfordbusinessgroup.com/country/UAE: Ras Al Khaimah

23. 6 CONTENTS RAS AL KHAIMAH 2012
ISBN 978-1-907065-60-6 PROFILE
Editor-in-Chief: Andrew Jeffreys
Editorial Director: Peter Grimsditch 10 A rising star: Welcoming investment to its
Regional Editor: Oliver Cornock
many expanding sectors
Editorial Manager: Jean Charles Ben 12 Mover and shaker: Encouraging economic
Sichou
growth with an eye towards social
Chief Sub-editor: Alistair Taylor development
Deputy Chief Sub-editor: Jennie
Patterson
14 In the public sphere: Emirati women are taking
Web Editor: Barbara Isenberg on a growing role in public life
Sub-editors: Danya Chudacoff, Elyse
Franko-Filipasic, Sam Inglis, Elise
15 Season of change: The Arab Spring has the
Laker, Esther Parker, William Zeman potential to create new economic
Contributing Sub-editor: Miia
Bogdanoff
opportunities for the emirate
16 Interview: Sheikh Saud bin Saqr Al Qasimi,
Analysts: Nick Anderman, Ben
Campbell, Henry Harding
18
Ruler of Ras Al Khaimah
Interview: Sheikh Mohammed bin Saud Al
A broader view
Senior Editorial Researcher: Susan
Manoğlu
Qasimi, Crown Prince of Ras Al Khaimah Page 24
Editorial Researchers: Thomas Bacon, 19 Protect and preserve: Expanding the supply of
Owen Barron, Souhir Mzali, Adeline
Oka
power and water and promoting sustainability One of the region’s most diversified economies,
21 Trading up: Boosting economic ties to RAK boasts sizeable tourism, manufacturing,
Art Director: Yonca Ergin
Deputy Art Director: Cemre Strugo
increase regional integration high-tech, retail and construction sectors,
Art Editor: Meltem Muzmuz among others. Balance is the aim, with the state
Illustrations: Shi-Ji Liang
Photographer: Mark Hammami
ECONOMY following what is know as the “20:20” rule: no
one sector should make up more than 20% of
Production Manager: Selin Bolu
24 A broader view: Diversified base continues to GDP or more than 20% of the fiscal surplus.
Operations Manager: Yasemin Dirice expand as investment-friendly policies draw Growth is expected to continue, with a partic-
Logistics & Distribution Coordinator:
Esen Barin
in FDI ular focus on exploiting underserved niches.
Operations Assistant: Öznur Usta 33 Interview: Jim Stewart, CEO, Investment &
Development Office, Government of RAK
OBG would like to thank its local
partners for their assistance and 36 Niche potential: Promoting research and INDUSTRY & RETAIL
support in the research of this project.
development in high-tech industries
56 Finding a niche: A wide variety of
37 New goals in sight: Encouraging foreign
investment in a range of areas opportunities exist for investors
62 Interview: Dr Ayman Sahli, CEO, Julphar
39 Moving on up: The transition towards
63 A friendly location: Free zones, industrial
higher-value finished and semi-finished
products continues parks and other services cater to
foreign investors
65 Pushing production: An open-door policy
FINANCIAL SERVICES
paves the way for FDI
66 A diversifying offer: The appetite for
42 Ramping up: Solid fundamentals underpin
expansion higher-end products is growing
50 Top banks: A look at the leading financial firms
52 Building new businesses: Financing for SMEs is CONSTRUCTION & REAL ESTATE
becoming easier to come by
70 Pushing ahead: Developments are helping
to spur on projects in several new
segments
Finding a niche 75 Bouncing back: By diversifying its strategies,
the industry is overcoming difficulties
Page 56 brought about by the international financial
With the emirate’s free zones work- crisis
ing to encourage new industrial ven- 77 Interview: Louis-Armand de Rougé, CEO,
tures, RAK is positioning itself as a RAK Marjan Island Football
manufacturing centre for both the 78 The move forward: Modest gains are a positive
UAE and the wider region. While sign for future growth
ceramics remains the largest industrial 83 Accessing credit: Increased mortgage
segment, other areas are also posting options facilitate greater investment
strong numbers. Due to economic
growth, the appetite for more expen- TRANSPORT
sive goods is increasing, both for
86 Accommodating growth: Expanding capacity
the mid-market and luxury segments.
across road, rail, air and sea
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24. CONTENTS RAS AL KHAIMAH 2012 7
91 Paving the way: Roads, bridges and bus
Chairman: Michael Benson-Colpi
routes are being expanded to meet the
Director of Field Operations: Elizabeth
needs of a growing population Boissevain
93 Taking to the skies: Plans in place to make the
Regional Director: Michelle Solomon
aviation segment more competitive Country Director: Caroline Nguyen
94 Interview: Colin Crookshank, Group General
Field Operations Executive: Meltem
Manager, RAK Ports Okur
Field Operations Coordinator: Zeynep
ENERGY Akdamar
For all editorial and advertising
enquiries, or to order a copy of this
96 Securing supply: New investments in
publication, please contact us at:
generation capacity and alternative sources enquiries@oxfordbusinessgroup.com
102 Stronger together: A merger deal helps to
All rights reserved. No part of this
diversify and expand reserves publication may be reproduced,
stored in a retrieval system or trans-
103 Responding to demand: Boosting private
sector involvement in utilities Securing supply mitted in any form by any means,
without the prior written permission
of Oxford Business Group.
HEALTH Page 96 Whilst every effort has been made to
ensure the accuracy of the informa-
tion contained in this book, the
106 Healthy expansion: Addressing a growing While RAK has very limited supplies of oil and authors and publisher accept no
demand for services gas, in some ways this has worked to its advan- responsibility for any errors it may
contain, or for any loss, financial or
111 Ready for the challenge: A revamped tage, prompting it to diversify its economy. otherwise, sustained by any person
medical industry to address growing demand However, increasing demand for electricity using this publication.
means it must ensure its energy security. It aims
Updates for the
EDUCATION to do this by reactivating the Saleh gas field, information provided in this
improving the efficiency of existing power volume can be found in Oxford
Business Group’s ‘Economic Updates’
114 Steps forward: Reforming with an eye towards plants and promoting the use of renewables. service available via email or at
www.oxfordbusinessgroup.com
a stronger economy
118 Interview: Sheikh Nahyan bin Mubarak Al
Nahyan, UAE Minister of Higher Education and THE GUIDE
Scientific Research
119 Aim high: Tertiary education is set to receive 130 A line in the sand: Given its strategic location
greater attention at the entrance of the Gulf, the emirate has a
history of defending against foreign
TOURISM incursions
131 A room with a view: Details for some of the
122 Moving up the ranks: Adding new leading hotels and resorts in the emirate
infrastructure and building awareness to 134 Listings: Telephone numbers for
support continued growth government offices, chambers of commerce,
127 Interview: Victor A Louis, COO, Ras Al Khaimah foreign missions, banks, legal & accountancy
Tourism Development Authority (TDA) and services, hospitals and educational
CEO, Ras Al Khaimah Hospitality Group institutions, car hire, and more
128 Clear goals: Authorities aim for steady sector 136 Facts for visitors: Useful information for new
expansion arrivals
Moving up the ranks
Page 122
The tourism sector is growing steadily, with work
ongoing to expand hotel capacity to keep pace
with rising visitor numbers. In 2011, two gov-
ernment initiatives were started to promote and
oversee tourism. The RAK Hospitality Group,
which manages government-owned tourism
assets, is helping facilitate further investment
and growth as the emirate becomes an increas-
ingly well-known destination. Such changes go
hand-in-hand with the rising volume of tourists.
THE REPORT Ras Al Khaimah 2012