Dubai, UAE — Ras Al Khaimah Economic Zone (RAKEZ) has emerged as a pivotal destination for global investors, fostering a dynamic ecosystem conducive to manufacturing and industrial growth.
Ramy Jallad, Group CEO RAKEZ, underscores the role played by RAK ruler Sheikh Saud bin Saqr Al Qasimi’s economic vision, positioning Ras Al Khaimah as a magnet for SMEs and an epicenter of industrial innovation.
In an exclusive interview with TRENDS, Jallad unveils the transformative initiatives propelling RAKEZ to its status as the largest contributor to the GDP of Ras Al Khaimah.
RAKEZ has become the second biggest contributor to the GDP of Ras Al Khaimah under your leadership. What strategic initiatives or changes did you implement to achieve this milestone?
Obviously, under the visionary leadership of His Highness Sheikh Saud bin Saqr Al Qasimi, the UAE Supreme Council member and ruler of Ras Al Khaimah, we’ve put ourselves on the map as a strategic destination for investors from all over the world to come and be a part of Ras Al Khaimah’s ecosystem in terms of manufacturing and industry. We are one of, if not the largest, hubs for SMEs.
Aligned with His Highness’ vision for economic development, we are strategically focusing on pillars that significantly contribute to our GDP. Our aim is to evolve into a manufacturing and industrial hub that mirrors the UAE’s vision for industry and advanced technology, inspiring a future of innovation and growth.
Our strength as a sector and a location is undeniable. We have become a preferred destination for many SMEs, who choose to establish their businesses with us. This choice is a testament to the business-friendly environment we offer, allowing them to operate from Ras Al Khaimah and serve clients from all corners of the globe.
We’re a hub that’s creating the right ecosystem and services while also doing so in the most cost-effective and customer-friendly way possible.
Ras Al Khaimah is increasingly attracting both international and regional businesses. What factors do you attribute to this growth, and how is RAKEZ facilitating their establishment and expansion in the region?
Ras Al Khaimah is strategically located near several logistics’ routes, including shipping and aviation. So, we’re happy to say that there are numerous ports and airports in the UAE and Ras Al Khaimah.
Logistics and connectivity are among the most important pillars of trade. As a result, RAK serves as an ideal hub for major shipping routes, providing access to multiple ports. It is an ideal hub for reaching the Middle East, Africa, Asia, parts of Europe, and America, as well as connecting East and West, North and South. RAK offers a competitive investment environment prioritizing cost-effective solutions for investors, including SMEs, large corporations, and manufacturers seeking global expansion.
Today, looking for cost optimization is a major criterion and need. We’re all trying to save and to optimize. So, we’re promoting ourselves as a low-cost destination. We’re driving all the efforts to ensure that our investors here can operate and work out of RAK and that the cost of living, operating, and company ownership are all very competitive and cost-effective compared to other parts of the world. We take pride in providing the best customer service, which is fast, quick, and efficient, addressing our customers’ needs, opening doors, doing matchmaking for them, and creating more business opportunities. Of course, this must be accompanied by the appropriate regulations, laws, and transparency so that when you invest or start a business here, you can be confident that you are doing so.
Can we say that these factors are what distinguishes RAKEZ from other economic zones within the UAE?
I believe we are all doing the same thing in the UAE, but we take pride in our efforts. And I think we’re the most cost-effective destination and provide the best customer service. We are putting in a lot of work, a lot of digitization, and a lot of effort to ensure that we provide excellent customer service. We offer a one-stop shop service, allowing our customers to plug in and play. We are always available, and we customize our packages to the needs of our various customers because even two customers doing the same thing may have different needs and requirements, putting a strain on us.
However, we like to do this to ensure that a satisfied customer means a successful business. We conducted studies to show that starting a business in Ras Al Khaimah is still the most cost-effective option from a total ownership perspective compared to other locations worldwide or in the nearby region.
Could you share with us the growth in revenue and number of registered companies over the last 5 years?
We have been growing at an exponential rate. We have nearly 23,000 companies. In the last three years, we’ve grown to the point where we brought 4,000 companies in 2022 and 7,000 companies in 2023, and we plan to bring 10,000 on board in 2024.
In line, we have been increasing our revenues, but the real focus is on how we can help these companies grow and increase their revenues. We do this by creating business opportunities for them, matching them, introducing them to the marketplace, and ensuring that when they come to our economic zone, we can provide them with the right office, land, warehouse, or even business center, as well as the right license to keep their costs low.
At the same time, we now have a special department that sits down with our companies and customers and asks them, What do you want? What is your product? What is your business? Where do you intend to export? Where can we assist you in identifying opportunities for growth and increased revenue?
Co-working spaces have become increasingly popular, providing flexibility and resources for aspiring entrepreneurs. How do you think these spaces are changing the landscape for individuals who aspire to be their own bosses, particularly in RAK?
Everyone likes to interact with people who think like them and work in the same industry, so following COVID, many people worldwide prefer not to work in confined office spaces. Working, living, lying, and socializing are things that require a lot of learning among colleagues and people from different companies. In general, office communities and spaces revolve around networking or social space. The amenities available there enable people to mingle, eat together, work together, and interact with one another. So, the idea behind a coworking space is for SMEs, entrepreneurs, and even corporations to send their employees there to engage and have ideation, new ideas, and innovation, which happens when interacting with people from different industries, cultures, and backgrounds.
So, compared to the traditional office, co-working is gaining popularity. Our coworking space is a true testament and proof that this is occurring with SMEs, corporations, and entrepreneurs. We see many SMEs, entrepreneurs, and startups mingling. We host networking events, seminars, and even matchmaking events to introduce vendors, suppliers, and freelancers looking to work with major corporations and gain access to opportunities. It’s a gathering and learning place environment. Many of our industrial clients come to produce and demonstrate their services and products to buyers and sellers worldwide. It exemplifies the true benefits of creating a business ecosystem.
Additionally, we are currently building a second business center that will be four or five times the size of the first. It will be ready next year or at the end of the year. We’re seeing an increase in the number of people renting offices or coworking spaces. Students may also visit to become acquainted with the workplace.
What are the demographics of RAK’s registered companies and businesses?
We have investors and companies from over 100 different countries, as well as 100 different industries and segments. We have entrepreneurs, SMEs, and manufacturers from India, Saudi Arabia, the GCC, the Middle East, Europe, America, and China. Obviously, beginning with advertising, consulting, e-commerce, lifestyle, beauty products, perfumes, clothing, manufacturing, high tech, automotive, chemical, and packaging, you can’t narrow it down. We are very diverse and have a wide range of sectors, from burrata cheese to eat to carbon fiber and Formula One race cars.
Today, we are a manufacturing hub and an SME hub that does not restrict the type of activity or sector. They come here for the reasons I mentioned: cost-effectiveness, transparency, regulations, and customer service.
RAKEZ has placed a focus on technology and AI. How has this strategic emphasis made it easier for businesses to establish and operate within the economic zone?
We take pride in ourselves. We believed in AI technology and the digitization of our services before COVID, so when COVID struck, and everyone was at home, we were still able to communicate with our customers entirely digitally, in the appropriate portals, so that they could complete their transactions, do their renewals, make all of their payments online, and speak with the team and service. Everything was digitized, but COVID pushed us to the next level because we realized we needed to put in more and more. We gradually built it so that we could be proud of our digital transformation journey and communicate to ensure that our clients can interact with us online in a simple, quick, efficient, and easy way.
We are also using AI automation for many of our transactions, which are performed by robots or artificial intelligence. Specifically, as we have thousands of transactions per month, we began implementing robotics, artificial intelligence, and digital robots to perform these transactions that were previously performed manually by our team. That is how we are progressing and moving forward on our digital transformation journey, including robotics and AI.
Moreover, we are using that to predict what our customers want in the future, what areas we can speed up, and what areas we may no longer need, allowing us to improve our productivity continuously. Throughout our digital transformation journey, we constantly meet our customers’ needs using predictive and descriptive analytics. So, AI is now assisting us in predicting workloads on our staff, what days, what products, what days of the month we will be busy, what products are selling the most, and what our clients like and dislike.
What advice would you give to entrepreneurs looking to establish or expand their businesses in RAK, especially in light of the current economic climate and global trends?
I’ll focus on advising two types of clients. Firstly, I emphasize the importance of thorough research for clients residing outside their country who are entrepreneurs in SMEs. Understanding the destination, reasons for expansion, and the viability of products and services is crucial. Research aids in selecting a conducive location for growth, where business operations can thrive without the burden of unnecessary bureaucracy. The goal is to maximize time for revenue generation by focusing on core activities and delegating administrative tasks. Locations like RAK and RAKZ provide such benefits. In today’s crowded marketplace, obtaining information directly from authorities is critical.
My advice to people moving from all over the world and those already in the country is that today’s business environment is fiercely competitive. And, as an entrepreneur or SME looking to sell a product or monetize a service or product, you must ensure that the service or product is in demand by consumers and the market rather than something you believe will work. You may be passionate about a particular area but must ensure it is a marketable product or service. You can only do this by conducting feasibility or assessment studies to ensure you sell a high-demand product or service.
What are the key priorities and strategies for RAKEZ to sustain its growth trajectory and continue contributing significantly to the GDP of Ras Al Khaimah?
We will continue to be the best place and destination for all companies seeking to establish a manufacturing or SME hub. To do so, we are becoming faster, quicker, and more efficient. We are constantly improving our processes and customizing our approach to our clients. We have initiatives to build more business centers, ecosystems, and marketplaces. Understanding our customers in their industry in the same way we would understand our industry is critical because it allows us to feel and create products and services that target specific entrepreneurs or people who want to be based on their industry. I believe that these are the initiatives and programs that will allow us to do whatever we are doing much better, faster, and more efficiently.