Home to more than 18,000 companies and extending across 43 square kilometres, the Ras Al Khaimah Economic Zone (Rakez) is a major hub for manufacturing and small and medium-sized enterprises (SMEs) in the UAE. CEO Ramy Jallad believes that Rakez has the wind in its sails, thanks to its tailor-made solutions, as well as efficiency and cost advantages. But he concedes that the stability provided by the UAE is another major element of success, since investors want “peace of mind”.
Q: What makes Rakez different?
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A: Our competitive edge is that we really look at the customer's needs and customise solutions for them.
The other thing is the speed of our service and our cost-effectiveness. We can issue a licence in five minutes on our digital platform.
Q: Global value chains have been restructuring. How have you adjusted your strategy?
A: Investors are looking for stability: they are looking at being in a marketplace where they can have peace of mind.
Covid-19 was a case in point. The UAE in general handled the pandemic very well. Nothing really closed. Business was sustainable. People could still access markets, and travel and do business here, which is why investors from all over the world now want to be here.
On top of that, we have strong logistics and connectivity. We have a strong brand that appeals to investors from India, Europe, Asian and China who want to diversify their international footprint. When it comes to Ras al Khaimah (RAK) specifically, the emirate is strategically located as a hub for companies to access markets in Saudi Arabia, Africa and India. We are also contributing to the UAE’s ambition to attract next-generation foreign investment, which is all about IT, data analytics, web3, blockchain and non-fungible tokens. We are attracting a lot of these young entrepreneurs and creating new solutions for them.
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Q: What are, in your view, the most disruptive trends in global trade at the moment?
A: With the rise of ecommerce, logistics is very important to manufacturing. We’re seeing more and more warehousing space, ecommerce players, distributors, third-party logistics suppliers and last-mile delivery. But the need for a manufacturing base is still there, so manufacturing is growing, especially in lifestyle products and consumer goods. The manufacturing of construction and building material also remains strong. The world is growing, people are buying new homes. I see that growing exponentially.
Another growing trend has to do with mobility. Mobility is hugely important around the world, with electric vehicles, mobility software and even drones, and the entire value chain that revolves around that.
On the SME side, people can now work from anywhere around the world. So they need accessibility. They need to be able to network. I’ve seen a lot of new entrepreneurs in the emerging digital space. When it comes to office space, they want the flexibility of going to the office or working from somewhere else, but also to have access to a place where they can network.
What I’m seeing is more and more co-working, more co-living. The old traditional office is no longer going to cut it. Today it’s more about places like business parks that allow people to network and have a work–play–live offering.
Q: Where do you see Rakez in 10 years’ time?
A: I really want to allow businessmen, manufacturers, start-ups and entrepreneurs to come here and work from RAK. From a liveability point of view, RAK is growing. At the moment, the emirate has more than 8000 hotel rooms and we are building another 9000.
The number of residential units is also increasing. In line with the business opportunities comes the liveability aspect. We’re bringing in more schools; we’re bringing in more housing. In 10 years, I expect RAK to really become a major business hub that is also a major tourist hub, and a great place to live and operate in.
Rakez in figures:
- Number of licensed companies: 18,000.
- Total extension: 43 square kilometres (sq km).
- Extension of new free zone areas under development: 3.5 sq km at the Al Hamra Industrial Zone.
- Top priority sectors:
- Armoured vehicles.
- Flexible plastic and stackable rigid packaging.
- Premium hollow glass.
- Construction, chemicals and sealants.
- Hydraulic hoses.
- Plastic chips production.
- Biggest tenants:
- Pioneer Cement Industries, (construction materials).
- ARC Middle East, France (glassware).
- VG Real Estate Management (real estate).
- Concrete Technology (construction materials).
- Zamil Steel Industries (steel).
- Extra Co. Industries (steel).
- International Armoured Group (armoured vehicles manufacturing).
- Guardian Zoujaj International Float (glassware).