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Establishing a business entity in one of the numerous UAE Free Zones (FTZs) can be an attractive option for foreign investors and foreign trade.

All seven Emirates already have, or are developing, such economic zones.

There are over 20,000 companies in 21 Free Zones around the UAE.

The largest Free Zones, by number of companies, are the following:

• Jebel Ali Free Zone (6,000 companies)
• Sharjah Airport International Free Zone (3,900 companies)
• Dubai Airport Free Zone (1,300 companies)
• Dubai Media City (1,200 companies)
• Dubai Internet City (1,000 companies)

The procedures for establishing a business in a Free Trade Zone are usually very straightforward and can be completed in a short space of time, especially if there are no environmental issues involved.

Individual Free Zones may have specific requirements, but general steps are:

• Questionnaire from the relevant Free Zone Authority which will assist in assessing a company’s requirements
• License application, planning documents, and a consumer request for electricity
• Provisional approval and lease agreement
• Meetings with the authority to finalize details of the project

UAE free zones, with the number of zones increasing, their impact on the uae economy has deepened.

The Jebel Ali free Zone being the first free zone in the country has created the benchmark for regulations & incentives.

Its rapid growth has also provided a powerful economic inspiration to the other emirates, which have set up their zones to attract investment.

UAE free zones main mission is to be the free zone management, consultants and advisors of choice by providing world class, technically advanced, transparent and focused business services that allow our partners and clients to thrive in the global market.

Once a legal presence has been established in UAE Free Zone, the business will need to lease premises or land and acquire an operating license from the FZA.

Different types of licenses apply in the different types of free zone, however, in general companies with trade and industrial licenses can only conduct business within the Free Zone or abroad.

To sell their products in the UAE, a UAE official agent is required.

Services and products can be obtained from and within the UAE without an agent.

Other types of license available are service licenses (e.g. banking, insurance, air shipment etc) and national industrial licenses.

For the former the services offered must be the same as those stipulated in the parent company’s license in the UAE or abroad.

The share capital of a company applying for a national industrial license must be at least 51 per cent GCC and 40 per cent of the sale value of the product must be value added.

Uae free zones offers:

• Offshore centre in Rakia
• Company formation in DIFC, DMCC, DSC, DOZ
• Company formation in Dubai technology & research park
• General trading in dubai
• Dubai studio city free zone
• Company formation in building material zone
• Nominee shareholder services required in Dubai
• Dubiotech
• Rakia offshore
• Registered Agents with Rak offshore
• Dubai design center
• Dubai energy city
• Abu Dhabi ports city
• International humanitarian city
• Dubai international academic city
• Special purpose company at DIFC
• Tecom business park
• Rak media city

The main Uae Free Zones are the following:

• United Arab Emirates Free Zones
• Jebel Ali Free Zone
• Dubai Internet City Free Zone
• Dubai Media City Free Zone
• Knowledge Village Free Zone
• Dubai Airport Free Zone
• Hamriyah Free Zone
• Sharjah Airport International Free Zone
• Ras Al khaimah FTZ
• Abu Dhabi Airport Free Zone
• Ajman Free Zone
• Fujairah Free Zone
• Dubai logistics

Among these free zones we incorporate is the Ras Al Khaimah Free Zone Company.

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Higher rents for residential and office space, increasing traffic problems and generally more stressful working environments in the bigger emirates are all factors why living and doing business in RAK is becoming more appealing.

The UAE is a federation of seven sheikhdoms: Abu Dhabi, Ajman, Dubai, Sharjah, Fujairah, Umm Al-Quwain and Ras Al Khaimah.

These sheikdoms signed the General Maritime Treaty with the UK in 1853.

Ras Al Khaimah joined the UAE federation in 1972 as the last of the seven emirates.

The ruler of the emirate, Sheikh Saqr bin Mohammed Al Qasimi, has been in power since 1948.

Since 2002, most of the day-to-day political and economic operations are carried out by the crown prince and deputy ruler, Sheikh Saud bin Saqr Al Qasimi.

In 2005, the Ras al Khaimah government announced a new policy of political liberalization. At the end of 2006, elections were held for the half of the seats of Federal National Council, while the other half will continue to be appointed by the government.

Various local government departments have been established to execute numerous functions.

Ras al Khaimah local government departments:

• Emiri Court
• Law Court
• Land Department
• Municipality Department
• Public Works and Services Department
• Economic Department
• General Accounts Department
• Ras Al Khaimah Oil and Gas Commission
• Ports and Customs Department
• Civil Aviation Department
• Information and Tourism Department
• Ras Al Khaimah Broadcasting Corporation
• Antiques and Museums Department

Having learned from the experiences of those other emirates that had started earlier, RAK’s political leaders are better able to formulate a successful development plan.

As a member of the UAE, Ras al khaimah government has access to excellent security forces, backed by the US and increasingly by Russia.

Liberalization of the ras al khaimah government continued in 2007 as well, following the election of the country’s first legislature.

While its powers are still limited, the UAE is garnering recognition worldwide for its efforts, with RAK in particular gaining notoriety through the progress it has achieved in its enfranchisement of women.

The emirate appointed nine women to the Federal National Council in February 2007, far surpassing other governments in the region. RAK has achieved equal literacy rates for both sexes in the UAE and currently counts more women enrolled in universities than men.

The Ras Al Khaimah Government established a real estate development company “RAK Properties” as a Public Joint Stock Company to oversee the development of real estate and leisure sectors in the Emirate of Ras Al Khaimah in particular, as well as other Emirates in the UAE in general.

Ras al khaimah established Rak free zone in 2000 is one of the fastest growing and most cost effective free trade zones in the uae and today is home to some 5000 companies.

Rak free zone has numerous features. Some of them are the following:

• 100% foreign ownership
• 100% income and corporate tax exemption
• 100% Capital & Profit repatriation
• Long term renewable lease
• Strategic location with access to over 1.2 billion consumers
• Transparent laws and regulations
• Promotion centers in Dubai and Abu Dhabi
• Simple and fast application procedures
• State of the art communication facilities
• Excellent Sea port and International Air port facilities
• Easy international Access
• Abundant energy supply

Etisalat has linked the Ras Al Khaimah’s eGovernment authority with nine local government departments, including the RAK Traffic Police Department, through a high-speed data cable network.

By segregating business activities according to function, operational requirements, and the needs of the surrounding communities, RAK Free Zone has created a system of three Free Zone Parks.

The three Parks:  Technology Park, Industrial Park and Business Park are spread over three different locations within the Emirate. Moving forward, the Rak free zone is expected to see more and more companies joining in.

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RAK Free Trade zone (RAK FTZ)

Most importantly, it offers a trouble free customer friendly environment, which is crucial for the success of any enterprise.

Rak free trade zone has created a name for itself around the world, following an extensive marketing and awareness campaign.

It is a world class business hub and vehicle for industrial growth and development.

The free zone also offers a range of unique services which include the legal, human resources and marketing assistance.  Strategically located in the northern part of the UAE, and only 45 minutes by road from Dubai, it provides easy access to more than 2.2 billion consumers in the region.

Rak began an ambitious phase of development including investments in infrastructure improvements, tourism, shopping and efforts to attract industrial and commercial enterprises. Among the most important of these endeavors is the establishment of Rak free trade zone.

The main objective was to source and attract environment friendly, quality companies with the emphasis on technology-oriented industries. The simple procedure and lower operational cost of Rak Free Trade zone compared to others in the region is one of the many attractive features for investors.

There are various reasons to invest in Rak free trade zone. They are the following:

• Politically safe
• Free from corporate and income taxes
• Competitive labor, office and warehouse rates
• Cheaper cost of living
• Progressive and fast growing Free Zone
• Easy road, sea and air access
• The first port when entering the Gulf
• Growing rapidly
• Beautiful coastline

With world class infrastructure, tax-free environment, hassle free procedures, value added services and all facilities in expect from a world class free zone.

RAK Free Trade zone is an alternative worthy of consideration, when planning a business in the uae.

RAK Free Trade Zone offers solutions for every kind of business. Its flexible services and products address the differing and constantly evolving demands of enterprises of all sizes from local branch offices to the head quarters of multinational companies.

The Rak Free Trade Zone contains three different business park specializing in various functions:

The first is a Business Park for trading and services which has fully-equipped offices. In addition, the RAK Exhibition Centre, a five star hotel and a shopping and entertainment complex are all within proximity.

The second section houses the Industrial Park, which was designed for heavy industrial production and warehousing of raw materials or finished products. Plot sizes are provided to suit individual client requirements and are fully serviced with water, electricity and telecommunications.

The third is a Technology Park located in a rapidly expanding area devoted to automated manufacturing and capital-intensive quality lifestyle projects such as electronics and apparel.

These three parks are offering the well-furnished offices, warehouses and land of various sizes.

Rak free trade  zone are issued four types of licenses for different types of commercial and general industries which includes commercial general trading license, consulting and service license.

Ras Al Khaimah free zone supports accomplishment of 4 types of companies, which are free zone establishment. One, is owner, second is free zone Company of 2-5 partners. Third is foreign branch (International co.) and fourth is local branch (UAE).

Ras Al Khaimah will be known as a region where businesses are welcome, successful and flourishing. Rak free trade zone can undoubtedly be called the fastest growing free trade zone in the region.

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It is the northernmost emirate, located approximately 100 kilometers north-east from Dubai to which it is connected by the dual carriage Emirates Road, a coastal highway, and by a number of small single carriage roads.

Ras Al Khaimah ranks among the smaller emirates of the UAE federation but it has always had an important position.

In the past it was a centre of traditional shipbuilding and maritime commerce, more recently as a centre of quarrying, manufacturing and tourism.

Since 2003, Ras al khaimah government has been pursuing the policy of diversification of the economy, industrialization and promotion of tourism, investment into education and public health and by investment into public utilities.

Its gas reserves are more important but revenues from gas are also of a lesser importance than in other emirates and the emirate has had to look beyond its borders to fulfill its demand for gas.

As the emirate will never be a major oil producer, RAK has instead had to concentrate on developing its industrial sector. Rak business boasts the largest rock quarry in the Gulf Region.

Cement and ceramics remain the dominant industries in RAK and officials aim to make these sections regional and global leaders in terms of production.

The Emirate is rich with the raw materials such as limestone, clay, quartz and other minerals.

Rak business is unique in the Gulf region as it has a high concentration of leading industrial units which process these natural resources and manufacture various types of cement, clinker, ceramics and other building materials.

It opened the UAE’s first cement company in the early 1970s and is now the UAE’s largest producer of cement.

The emirate formed RAK Ceramics in 1980s, which has become the world’s largest ceramics producer, and Julphar, the Gulf region’s first pharmaceuticals company.

Since the 1980, other advanced manufacturing companies have set up operations in Rak business, including companies producing glass, CD and DVD discs, air-conditioning equipment, machinery parts, metal products and others.

More traditional industries, such as fishing and agriculture, continue to play an important role in RAK’s economy.

In 1955, the first agricultural research centre in the UAE was established there, and since then, innovative methods of arid zone cultivation have made the emirate one of the leading agricultural producers in the UAE.

Ras AL Khaimah is well known for its dairy and poultry products, eggs, fodder and animal meat. In addition to this, the fertile plains in the south-east produce fruits and vegetables for the local UAE market.

Tourism is also an area of targeted development in RAK business and RAK is in the process of boosting its meetings, incentives, conferences and exhibitions (MICE) segment through several projects, the largest of which is the construction of RAK Convention and Exhibition.

The ongoing expansion of RAK International Airport will also significantly increase tourist capacity.

Alongside these ambitious development goals, the emirate is also keeping its feet on the ground and the preservation of its unique heritage remains a main priority, ensuring that visitors will be continually drawn back to this culturally rich and geographically diverse place.

The emirates location at the crossroads of Europe and Asia lends itself to attractive RAK business opportunities that should help to develop the sector further and RAK FTZA hopes to double the number of registered companies in the next three years.

Rak Free Trade Zone has created a system of four parks-Business Park, Industrial Park, Technology Park and Al Ghayl Industrial park-that offer identical advantages and benefits to investors.

The three park concept includes the Business Park, industrial park and technology park, offering offices, equipped warehouses and land facilities situated in different locations across the emirate of Ras al khaimah, each park caters to the specific business interests and activities of the Rak FTZ investors.

The growth of industrial and free zones has been impressive given the significant free zone space throughout the UAE and while the emirate’s authorities are seeking to complement rather than compete with their neighbors, it is clear industrial land availability and prices are favorable in RAK business.

Ras Al Khaimah Free Trade Zone offers numerous incentives to its companies:

• 100% foreign ownership
• 100% income and corporate tax exemption
• 100% capital & profit repatriation
• Long term renewable lease
• Strategic location with access to over 1.2 billion consumers
• Transparent laws and regulations
• Promotion centers in Dubai and Abu Dhabi
• Simple and fast application procedures
• State of the art communication facilities
• Excellent Sea port and International Air port facilities
• Easy international Access
• Abundant energy supply

As the youngest of all of the Free Zones in the UAE, Ras Al Khaimah Free Trade Zone has built its international reputation and infrastructure only after careful research, planning and development, resulting in the introduction of a unique, ambitious 3 Park concept that did not exist previously in the UAE or even within the region, and the provision of premier business facilities for RAK ftz investors within other Emirates.

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