RAK Free Trade Zone Sees 14.5 Percent Rise in Q2 Revenue

RAS AL KHAIMAH, United Arab Emirates - Ras Al Khaimah Free Trade Zone (RAK FTZ) posted a 14.5 percent increase in revenue in the second quarter of 2009, compared to the same period in 2008.

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New company registrations for April-June 2009 climbed to 554, a marked 14.7 percent increase from last year’s registration and a further 13.6 percent increase compared to the first quarter of this year.

“Our target for 2009 is to have 2,000 new companies by the end of the year,” says Oussama El Omari, CEO of RAK FTZ. “With 931 companies already registered in the first half of 2009, we are confident that we will reach this target. The free zone continues to attract business in industries spanning IT, Consulting, Manufacturing and Trading.”

Instead of slowing down due to the recent global recession and typical summer business sluggishness, RAK FTZ enjoyed the highest single-month registrations total since opening, with 211 new companies signing up in June. El Omari attributes this to the quality of the products and services provided by the free trade zone, especially when it comes to tailoring custom packages according to specific client needs.

In the midst of the global slowdown, RAK FTZ put measures in place to ensure that clients can easily and seamlessly set up their branch to operate in Ras Al Khaimah for a fraction of the usual cost. This was achieved through easy-to-access and dedicated business web portals as well as the opening of new liaison offices in the USA, China, Germany, Turkey and other strategic locations.

“As for clients, we try to minimise the impact of the slowdown by being flexible and trying to find creative solutions so they can continue with their business,” says El Omari. “For example, we help clients cut costs by providing a portal where they can view the status of their application instead of travelling all the way to Ras Al Khaimah. We also have offices in Dubai and Abu Dhabi and internationally where they can start the application process without travelling all the way to RAK or the UAE.”

Breaking down the numbers of the newly registered companies, 64 percent are trading companies with warehousing facilities, 26 percent offer consulting and other services, seven percent are general trading firms and three percent are industrial.

Companies from Asia make up 41 percent of the new registrations, followed by the European Union at 21 percent, the Middle East at 13 percent, the rest of Europe at six percent and other countries at 19 percent.

In the coming months, RAK Free Trade Zone will focus its efforts on small and medium sized businesses and entrepreneurs through the promotion of the shared facilities, the free zone’s entry-level product. To emphasise this, El Omari cited the current campaign being held in Jordan, which will run until the 9th of September 2009, offering the shared facility for a special package of USD 5,500. Though the UAE government has adopted a pragmatic approach to cushion the correction in the country’s property market, it is still in the early stages of recovery. Realising this, RAK FTZ aims to continuously develop its product offerings by building up customer support and upgrading its facilities and infrastructure to attract industries from the aviation repair, maintenance and overhaul sectors.

For the next five years, RAK Free Trade Zone’s strategy is to attract industrial and service companies that will trigger and aid the development of basic infrastructure and services in the emirate. RAK FTZ is encouraging various companies interested in public-private partnerships with the free zone to set up projects in the airport, seaport, tourism and education sectors.

“We are also looking at the alternative energy industry,” says El Omari. “We want to be an incubator for entrepreneurs that intend to develop and test their technologies. General efforts are focused on powering up our key value-added services for our customers through online and offline marketing, HR recruiting, and expert legal advice. Based on our strategy, RAK FTZ plans to invest AED 7.3 billion on expansion and development projects over the next five years.”

With optimistic plans to assist and encourage entrepreneurs, the multi-award winning RAK FTZ will continue to live up to its reputation of ‘best emerging free trade zone’ in the region.

Ras Al Khaimah Free Trade Zone (RAK FTZ) is a world-class business hub and a vehicle for industrial growth and development. The free trade zone, with its cutting-edge technology and keen customer focus, offers on-demand and custom-built support services to investors in a cost-effective and flexible environment. The free trade zone also offers a range of unique services, which include the legal, human resources and marketing assistance.

RAK FTZ has created a system of four Parks - Business Park, Industrial Park, Technology Park and Al Ghayl Industrial Park - which offer identical advantages and benefits to investors. Backed by legislations allowing 100 per cent foreign ownership, a tax-free environment, transparent laws and 100 per capital and profit repatriation, the free trade zone is well positioned for global commerce.

Ras Al Khaimah Free Trade Zone is one of the fastest growing free trade zones, with companies from 106 countries around the globe. For more information visit www.rakftz.com.

Contact: Cleo Eleazar Public Relations and Media Officer Ras Al Khaimah Free Trade Zone Authority (RAK FTZA) Email: c.eleazar@rakftz.com Phone: +971-7-2077173

Source: Ras Al Khaimah Free Trade Zone Authority

Contact: Cleo Eleazar, Public Relations and Media Officer, Ras Al Khaimah Free Trade Zone Authority (RAK FTZA), Email: c.eleazar at rakftz.com, Phone: +971-7-2077173