Country Profile:
Emirates: Ras Al-Khaimah
Emirates: Ras Al-Khaimah
RAK is emerging as one of the success stories of the Middle East. Although only the fourth largest of the emirates, and traditionally viewed as one of the least proactive and outward looking, it has been quietly chugging along at its own pace and has now taken a lot of observers by surprise with its booming economy, global business links and grand designs for the construction industry. “Emerging RAK 2007” provides a comprehensive and in-depth analysis of the developments in all the key economic sectors, against the wider macroeconomic and political background.
TABLE OF CONTENTS
COUNTRY PROFILE
This section provides a quick overview of some facts about the country, its population, geography, culture, education system, religion and climate.
POLITICS
RAK’s forward-looking leadership has firm and ambitious plans in place for the future. The emirate is being opened up to global opportunities and is strengthening its links with India, while on the home front attention is focused on improving education and healthcare and political reform is underway. The section includes an interview with Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras al-Khaimah. It also includes two viewpoints: one contributed by Anthony Harris, Director of Robert Fleming Insurance Brokers Middle East and former UK Ambassador to the UAE and the other by Peter Stearns, Provost of George Mason University.
THE ECONOMY
The UAE’s economy is booming and RAK, with its proactive approach to diversification and generating investment, is enjoying the benefits. Foreign investment is flowing in, and the mining, manufacturing and real estate sectors are all displaying strong growth. The emirate sees its free trade zones as a catalyst with which to energise the whole economy.
The section includes interviews with Sheikh Faisal bin Saqr Al Qasimi, Chairman of the RAK Finance Department; Oussama el-Omari, Chief Executive Officer of RAK Free Trade Zone and Izzat Dajani, Chief Executive, Investment and Development Zone.
FINANCIAL SERVICES
The robust economy has created growth opportunities for the financial services sector in RAK, and it is carving out its own identity as a regional player. Opportunities for corporate and municipal project finance should multiply over the next five years. Two quasi-government agencies, the Investment and Development Office (IDO) and the RAK Investment Authority (RAKIA), are actively helping to attract foreign investment to the emirate.
CONSTRUCTION AND REAL ESTATE
In 2006, a slew of ambitious real estate projects was announced in RAK, which, once completed, should bring in big returns from tourists and foreign residents. One example is the Mina al-Arab development, which will extend over 30m sq ft of beachfront and a group of islands. RAK has also positioned itself as a centre for film production. One sector concern is the rise in the price of materials and the problems of filling the emirate’s cement mixers as demand outstrips supply, but expansion plans are in place to fill this gap.
TRANSPORT
Rapid economic growth throughout the Gulf has left RAK behind in terms of its ports and airport. The emirate is addressing these issues through moderate investment to upgrade its facilities in order to meet its own needs. The focus of the most substantial development is Saqr Port, while al-Jazeera Port is also undergoing expansion. Meanwhile the Emirates Road has cut travel time between Dubai and RAK from two hours to 45 minutes. RAK Airways, the UAE’s fourth carrier, which was launched in 2006, is looking to carve out a distinctive niche.
TOURISM
RAK possesses many draws for tourists: the UAE’s longest stretch of coastline, the Hajar Mountains, year-round sunshine and a history stretching back 7000 years. The government is developing a tourism master plan, building large-scale developments, promoting heritage sites and highlighting sports and cultural events. Private developers are also getting in on the act: WOW RAK is a $232m entertainment and theme park planned for the Khor Qurm area. With all this excitement in the sector, the emirate hopes to attract as many as 2m visitors a year by 2010. Steve Davis, Lead Systems Engineer, Dragon Crewed Spacecraft, SpaceX, offers a viewpoint.
INDUSTRY
RAK is perfectly poised to attract the attention of major international industrial concerns with its availability of cheap land, excellent location and lack of bureaucratic red tape. Industry accounts for 8% of its GDP: the world’s largest tile producer and Hollywood’s biggest post-production studio are located in RAK while by the middle of 2007 it will be responsible for 70% of cement manufacturing in the UAE. To stay ahead of friendly rivals such as Dubai and Sharjah, it must foster its ability to create new indigenous industries. The chapter includes an interview with Khater Massaad, Chief Executive Officer of Ras al-Khaimah Investment Authority.
ENERGY
While RAK may lack the indigenous reserves of some of its neighbours, it is the fourth-largest hydrocarbons producer in the UAE and its strategic geographical position assists its energy industry, which accounted for 3.8% of GDP in 2005. Going forward, the sector must decide whether it has the potential to be considered a producer and stabilise its domestic needs. Authorities are taking action on potential gas shortages, with cross border pipeline projects in place, which appear to be reassuring foreign investors. Philip Turberville, Chief Executive Officer of RAK Petroleum, provides an interview.
HISTORY
RAK achieved lasting independence in 1921 and became an integral part of the UAE 51 years later, but the route to having its own identity has been a long and complicated one. Once the centre of an empire spanning the Arab world, its geographical location ensured that rival local powers, such as the Qawasim tribe, from whom today’s rulers are descended, and Western powers, vied to control it.
THE BUSINESS GUIDE
PricewaterhouseCoopers provides an overview of the tax legislation in RAK, focusing on corporate income tax, which is generally not collected in the northern emirates, and the UAE international double tax treaty, which currently covers 45 countries. It also examines the incentives for companies to invest in free zones. Al Tamimi & Company provides a legal overview, examining the new Electronics Transactions Law and focusing on legislation governing real estate.
THE GUIDE
This section offers a tour of Ras al-Khaimah National Museum, housed in a fort that was home to the Qawasim rulers until the 1950s. Made of stone and gypsum, it is divided into four sections: the Qawasim Rooms and the archaeology, ethnography and natural history sections. Hotels are listed in this chapter.
FACTS FOR VISITORS
This section offers useful tips for business travellers, on topics like currency, visas, language, communications, dress, business hours and electricity.
