Ras Al Khaimah Economic Zone (RAKEZ) is one of the free zones in the United Arab Emirates (UAE) that offers various benefits and incentives to businesses looking to establish a presence in the region. In this article, we will explore the differences between RAKEZ and other free zones in the UAE, emphasizing its unique features and advantages.
1. Location:
RAKEZ is strategically located in the emirate of Ras Al Khaimah, which is one of the fastest-growing cities in the UAE. Its proximity to major international airports and ports makes it an ideal location for businesses seeking access to global markets. Other free zones in the UAE, such as Dubai Multi Commodities Centre (DMCC) and Abu Dhabi Global Market (ADGM), have their own advantages based on their locations, but RAKEZ’s location offers a blend of favorable economic conditions and natural beauty.
2. Cost-effectiveness:
RAKEZ stands out due to its cost-effectiveness compared to other free zones in the UAE. It offers competitive pricing on its licenses, facilities, and services, making it an attractive option for both startups and established enterprises. RAKEZ has various cost-effective packages that cater to different types of businesses, including flexi-desk options for small businesses and large-scale production facilities for industrial activities. This affordability factor allows businesses to allocate their financial resources more efficiently and invest in growth opportunities.
3. Licensing options:
RAKEZ provides a wide range of licensing options to meet the diverse needs of businesses. It offers both free zone and non-free zone licenses, providing businesses the flexibility to operate within the free zone or onshore, depending on their business model and customer base. This flexibility enables businesses to have a physical presence within the UAE and access the local market while enjoying the benefits of a free zone, such as 100% foreign ownership and exemption from corporate and personal income taxes.
4. Flexibility in business activities:
RAKEZ offers flexibility in terms of permitted business activities. It covers over 50 sectors, including industrial, commercial, and service activities, allowing businesses from diverse industries to operate under its jurisdiction. The free zone permits a wide range of activities, including manufacturing, trading, logistics, consultancy, and e-commerce, enabling businesses to explore different avenues based on their expertise and market requirements. This flexibility makes RAKEZ suitable for businesses with varying needs and niches.
5. Facilities and infrastructure:
RAKEZ provides state-of-the-art facilities and infrastructure to support businesses’ operational requirements. It offers premium office spaces, warehouses, industrial units, and land plots for lease or rent, accommodating businesses of all sizes. The free zone boasts modern infrastructure, including transport links and connectivity, which enhances accessibility and facilitates the movement of goods and services. Additionally, RAKEZ offers a one-stop-shop business center where businesses can access all the necessary government services and streamline their administrative processes.
6. Investor-friendly policies:
RAKEZ has implemented investor-friendly policies that attract local and foreign investors alike. It offers 100% foreign ownership, eliminating the requirement for a local sponsor or partner. Furthermore, it provides protection of intellectual property rights and allows businesses to repatriate 100% of their profits without any restrictions. These policies promote a favorable business environment, resulting in increased investor confidence and the establishment of sustainable business ventures.
7. Proximity to labor markets:
RAKEZ benefits from its proximity to labor markets in neighboring countries such as Oman and the Indian subcontinent. This proximity allows businesses in RAKEZ to tap into a vast pool of skilled and cost-effective labor. Furthermore, RAKEZ offers streamlined visa processes and provides support to companies for the recruitment of talent. This accessibility to a diverse labor market gives businesses a competitive edge and facilitates their growth trajectory.
8. Business support services:
RAKEZ provides a wide range of business support services to assist companies throughout their journey. It offers assistance with company setup, licensing, visa processing, and property leasing, among others. RAKEZ’s dedicated team of professionals ensures a smooth and efficient setup process, minimizing any operational disruptions. Additionally, the free zone organizes training programs, workshops, and networking events to enhance the knowledge and skills of the business community and foster collaboration among its members.
9. Ease of doing business:
RAKEZ simplifies the process of doing business within its jurisdiction. It has a streamlined online portal that enables businesses to access and complete various processes remotely. The free zone has also digitized several services, including company registration, visa applications, and licensing renewals, reducing paperwork and unnecessary delays. This ease of doing business creates a conducive environment for entrepreneurs and enables them to focus on their core operations.
10. Access to markets and incentives:
RAKEZ provides businesses with access to regional and international markets through its strategic location and strong logistics infrastructure. It offers a range of incentives, such as customs duty exemptions, with access to global markets through the UAE’s extensive network of free trade agreements. Additionally, RAKEZ has established partnerships with various organizations and institutions to facilitate market entry and expansion for businesses operating within its jurisdiction.
Feature | RAKEZ | Other UAE Free Zones |
---|---|---|
Cost-Effectiveness | Highly competitive setup and operational costs | Generally higher, especially in Dubai/Abu Dhabi |
Business Activity Flexibility | Permits 4,000+ activities | Some are restricted or industry-specific |
Specialized Zones | Six types including academic, media, etc. | Varies by location |
Tax Advantages | 0% corporate tax (with conditions) | Not all zones qualify |
Ownership | 100% foreign ownership | Standard in most zones |
Setup Process | Fast (5–10 days), minimal paperwork | Sometimes bureaucratic |
Infrastructure | Modern, scalable | Varies |
Location & Connectivity | Access to MEA, Asia, Europe | Some less strategic |