23/10/2014 05:44 AST
Ras Al Khaimah Investment Authority (Rakia) is targeting a 50 per cent increase in the number of firms it licences over the next five years, and “aggressive” investment in the infrastructure of its new industrial park in Al Ghail.
The ambitious growth plans were announced at an event in the emirate to celebrate the 10th anniversary of the founding of Rakia attended by Sheikh Saud bin Saqr, Ruler of Ras Al Khaimah, who said: “Rakia has made an important and lasting contribution to the success of Ras Al Khaimah.”
Rino Sabatino, the Rakia chief executive, said RAK had become one of the top investment destinations in the world. “Our goal is to extend RAK’s position as a preferred investment destination, not only for manufacturing companies, but also to businesses from a broad range of sectors including services and information technology.”
Mr Sabatino, who was appointed this year, said the emirate’s decade of expansion was thanks to the prudence and wise development plan of its rulers. “During the financial crisis, RAK maintained its ratings with the top agencies, and this didn’t happen by accident, but through wise risk management. It didn’t have too many exotic projects or excessive borrowing.”
One of the success stories over the past decade was RAK Ceramics, which has become the biggest ceramics manufacturer in the world and recently sold a 30.6 per cent stake to a group of investors led by the alternative investment group Samena Capital.
“The fact that such a sophisticated group of investors chose RAK Ceramics speaks volumes about the company,” Mr Sabatino said.
He added that there were now 7,000 registered companies in Rakia’s two industrial parks, which were home to 40,000 employees and residents. Some 95 per cent of the Al Hamra industrial park is leased out.
The aim is to attract other international companies to open in the industrial parks. Mr Sabatino said that he was in “advanced talks” with a major international company considering setting up in RAK, but he declined to name the firm.
Rakia also provides offshore financial services for private and corporate entities. “We offer setting up and domicile services in a confidential but legal way. Not all offshore jurisdictions are accepted internationally, but we are recognised around the world,” Mr Sabatino said.
At the event, Mr Sabatino announced that Rakia had recently named “best free trade zone in the GCC” by the London-based International Finance Magazine. He said: “Rakia came ahead of five shortlisted free-zone authorities based on its economic potential, promotional strategies for foreign direct investment, transportation links, incentives and cost-effectiveness.”
Sheikh Saud said: “Our vision, when we set up Rakia 10 years ago, was for it to contribute to the growth of Ras Al Khaimah by facilitating and encouraging investment here. I look forward to the next 10 years of further growth and success.”
Timothy Lefebvre, the president of Mabani Steel and co-chairman of Rakia’s tenants’ committee, said: “I would like to thank Rakia for its commitment to excellence over the years, and I wish it great success and a bright future.”
Other developments in the emirate have also contributed to its successful economic development. In its other free trade zone RAKFTZ, headed by the chief executive Peter Fort, has attracted world-class hospitality and leisure facilities with the Waldorf, Rixos and Hilton hotel chains established there.
The National
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