July 20, 2010
The Ras Al Khaimah Government has recently announced that it has achieved significant success in its efforts to launch socioeconomic programs that promote economic sustainability, enhance the quality of life, and preserve the emirate's abundant natural and archaeological attractions. During a press conference held today (Tuesday, July 20, 2010), Dr. Khater Massaad, CEO, RAKIA, outlined a growth roadmap to boost the economic integration and lifestyle offerings of RAKIA, RAK Ceramics and Al Hamra Village in order to achieve the long term socio-economic goals within the emirate.
The Crown Prince and Deputy Ruler of Ras Al Khaimah, H.H. Sheikh Saud Bin Saqr Al Qasimi, has been widely recognised as the architect of the emirate's new direction towards a more diversified economy. Under H.H. Sheikh Saud's leadership, the emirate's GDP, which now stands at USD 4.30 billion, achieved a remarkable average growth of 14 per cent per year from 2004 to 2008, and 9 per cent in 2009.
One of the key initiatives undertaken by H.H. Sheikh Saud was to invite the World Bank to make a series of studies on how to make Ras Al Khaimah a business-friendly and efficient investment destination, which resulted in the establishment of manufacturing, tourism, real estate, construction and services as key growth sectors of the local economy. In the last two years, Ras Al Khaimah has also achieved “A” ratings from S&P and Fitch primarily through H.H. Sheikh Saud's efforts to consolidate the RAK Government's balance sheet.
H.H. Sheikh Saud said: "The goal of the emirate is to create an atmosphere that is conducive to work and to live. The guiding principle has always been to enhance the quality of life in Ras Al Khaimah both on the social and economic fronts, and we are certainly making excellent progress towards establishing the emirate as a place where business and lifestyle converge."
The emirate's commitment to realise its long-term objectives of becoming a haven for business and home living is manifested by the success of key initiatives that have been launched by the emirate. In particular, three such success stories stand out: RAKIA, RAK Ceramics and Al Hamra Village.
RAKIA
Established by an Emiri Decree in 2005, RAKIA's mandate is to be the main vehicle that oversees the socioeconomic development of the emirate. Specifically, RAKIA is responsible for the industrial, commercial, trade, health and educational development initiatives in Ras Al Khaimah. RAKIA also manages the emirate’s three investment zones – the Industrial Zone and the Free Zone in Al Hamra, and the Industrial Park in Al Ghail, which have been developed to attract local and international investors. To date, RAKIA has generated investments close to USD 3 billion from all over the world.
Under RAKIA, infrastructure facilities were developed to cater to several high-potential investment sectors, including industrial and manufacturing; warehousing, cold stores, transport and distribution; tourism; real estate and construction; mining, minerals exploration, extraction and quarrying; food processing and dairy products; international maritime-related industries and services, including maintenance and fabrication works; and trade and commerce.
To maximise business potential of investors, RAKIA also developed a full range of business incentives that include 100 per cent income and corporate tax exemptions; 100 per cent capital and profit repatriation; 100 per cent ownership in free zones; no foreign exchange control; avoidance of double taxation with many countries; and absence of restrictions on hiring of expatriates. All goods produced in Ras Al Khaimah also enjoy a duty exemption in Gulf Cooperation Council (GCC) countries.
Highlighting the continued success story of RAKIA, a recent report revealed a 75 per cent growth in the total number of businesses registered in the emirate – comprising local and international investors – during the first quarter of 2010. In the month of March, 115 new businesses registered with RAKIA, setting an all-time record with the most number of businesses registered with the investment authority in a single month. Overall, there are more than 6,500 companies registered with RAKIA, representing investors from diverse non-oil sectors, including industrial, commercial, trading, services/consulting, and media companies. There are 3,030 on-shore companies and a total of 3,500 companies registered through RAKIA's off-shore facility, which recorded a 90 per cent growth during the first quarter of 2010 over the same period in 2009.
In addition, negotiations are underway with several more companies from countries including Belgium, UAE, USA, Kuwait, Egypt, Turkey, Italy, India, Germany, France, Pakistan and Canada to set up business ventures and investment activities in the emirate. Up to 66 per cent of businesses registered in RAKIA are from international destinations like Europe, India, USA, Russia, CIS and several Asian countries, while 19 per cent are from the rest of the Middle East. Domestic investors account for the remaining 15 per cent of business registered in the emirate.
RAKIA is also the master developer of Bab Al Bahr, which is one of the premier development projects on Al Marjan Island. Bab Al Bahr offers six residential buildings with 992 apartments (studio, 1BR, 2BR and 3BR), a 4-star hotel and a commercial complex, all offering a 180-degree sea view. Another major development under RAKIA’s portfolio is the prestigious Banyan Tree project, which was completed and handed over in 2009. The Banyan Tree project features 31 luxurious tented villas and 70 block villas equipped with conference facilities, restaurants and bars, making it a unique desert resort.



RAK Ceramics
RAK Ceramics is a USD 1 billion global conglomerate that has been officially recognised as the world's largest ceramic tile manufacturer by the Ceramic World Review, the best known and most widely circulated international magazine devoted to ceramic tile and sanitary ware production technologies. With exports to over 150 countries, the company achieved a 16.5 per cent business growth in 2009 and a 20 per cent increase in profits despite the global recession.
In dominating the rankings of the world's top 25 ceramic tile manufacturers in 2009, RAK Ceramics achieved a total production output of 115 million square metres from 15 manufacturing facilities located in six countries. RAK Ceramics remains in a strong position to boost its current production capacity of 117 million square metres as expansion programs are underway to cater to new markets in different parts of the world. RAK Ceramics produces ceramic tiles, sanitaryware and tableware through 15 factories situated across six countries which collectively employ a workforce of 15,000 people. The state-of-the-art manufacturing facilities in Ras Al Khaimah alone produce more than 225,000 square metres of tiles per day and over 8,500 pieces of sanitary-ware. Global production exceeds 360,000 square metres of tiles and 12,000 pieces of sanitary-ware per day.
The company continues to expand its businesses through joint ventures and diversification of its product range. RAK Ceramics has joined hands with Laticrete International Inc. of USA to form LATICRETE RAK, a joint-venture that offers highly effective, strong and durable tile adhesives, grouts and epoxy-based products having tiling applications. RAK Ceramics has also partnered with Kludi of Germany to establish KLUDI RAK, which offers world-class bathroom and kitchen fittings that contribute significantly to ecological balance with its water-saving systems.
New business ventures initiated by RAK Ceramics include RAK Porcelain, which produces high-quality porcelain table ware for professional application in hospitality industry and consumer usage; and RAK Paints, which manufactures eco-friendly, water-based and epoxy-based high-quality paints with a variety of colours for industrial and residential usage.
A recipient of the Company of the Year award during the 2004 Arabian Business Achievement Awards and the Excellence in Industry award during the 2005 Mohammed Bin Rashid Al Maktoum Business Award, RAK Ceramics continues to reap various industry accolades and was recently named by the SuperBrand Council as one of the UAE SuperBrands in 2010, a distinction it has earned for the second consecutive year. The company was also recently conferred the Best Brand while Dr. Khater Massaad, RAK Ceramics was awarded the Visionary CEO 2010 award during the Middle East Business Leaders Summit and Awards.

Al Hamra Village
Al Hamra Village is a 5 million square meter coastal development built around its own yacht club and marina with water views and an 18-hole championship golf course, the longest golf course on a sea site. Offering 100 per cent freehold properties that redefine the meaning of luxury living, Al Hamra Village will feature more than 1,000 villas, town houses and 2,500 apartments on completion.
A 200-berth marina and a Palace Luxury Hotel to be built in the UAE, known as Al Hamra Palace, are among the key attractions of the coastal community. Strategically located between the Musandam mountains and the Arabian Gulf, the mixed-use project will also feature a diverse range of leisure and commercial facilities, including fine dining, refreshing spa experiences, a premium selection of shopping outlets, boutique hotels and restaurants, private beaches, water sports, the latest telecommunication facilities, and state-of-the-art on-site security to ensure safety and privacy. There is also a dedicated Business Suite and a fully equipped Business Centre, while the Al Hamra Convention Center is located just nearby.
The offerings of the Marina at Al Hamra Village include deep-sea fishing trips, catamaran rides, scuba diving and snorkelling and various other water sports like kayaks, paddle boats, parasailing, speedboats and water skiing.
The Al Hamra Mall was opened in early 2009 with retail space for at least 186 shops. The mall now features a total of 125 major retail outlets and leading brands, including Spinneys, Adidas, Starbucks and Esprit among others.
Al Hamra Village also offers a novel investment concept wherein property owners at Al Hamra Residences have the option to generate additional income through a special management agreement with Hamra Hotels and Resorts.
"RAKIA, RAK Ceramics and Al Hamra Village help perpetuate the success that Ras Al Khaimah has achieved over the years through the long-term social and economic benefits that these initiatives deliver. Ras Al Khaimah will build on these success stories to develop more innovative programs and development projects that are in line with our ultimate goal of achieving sustainable socioeconomic development for the emirate," concluded Dr. Massaad.