RAK Who's Who

A BUSINESS WHO’S WHO OF RAS AL KHAIMAH

VISION FOR SUSTAINABLE GROWTH

HOW SHEIKH SAUD’S GOVERNMENT IS A ROLE MODEL FOR THE

PRIVATE SECTOR

WORLD ECONOMIC INTELLIGENCE

Focus International cover.indd 1 15/9/08 15:38:54

Ras Al Khaimah: A Business Who’s Who

Focus International pages 2-3.indd 2 15/9/08 15:51:20

A s Crown Prince and deputy ruler of Ras Al Khaimah, Sheikh Saud is guided by a strongly-held belief – that his government should become a role model for the private sector in terms of e!ciency and competitiveness.

His Highness is determined that Ras Al Khaimah will carve out its own future rather than just following the model of other emirates such as Dubai, Abu Dhabi and Sharjah – and it is clear that his vision is that Ras Al Khaimah may end up eclipsing its Middle East neighbours.

He states: ‘I subscribe to the view that government must act and perform like a business unit, as it is in many ways the most important company in the country – and one that we cannot a"ord to fail. It is important, therefore, to create a financial structure in the government whereby the government becomes a model for the private sector.’

But His Highness is keen for Ras Al Khaimah to go one step further than its neighbours – particularly in terms of planning and avoiding traditional development problems such as tra!c jams, inflation, and the need to constantly upgrade infrastructure. Given that Ras Al Khaimah is not yet a mature market, the opportunity still exists for Ras Al Khaimah’s leadership to learn from both the successes and failings of the other emirates.

Ras Al Khaimah (RAK) has the potential to become a regional leader itself in many sectors. His Highness recently told the press: ‘RAK has certain unique features; for example, a terrain that includes mountains, sand dunes and the sea. For these reasons RAK will always possess a distinctive selling point as a tourism destination in the region. Another benefit is logistics: RAK is close to the Gulf ’s gateway to the Indian Ocean and major shipping routes, and there is already great success in RAK with extensive industrial operations. #ese serve as catalysts for the further diversification of the economy into important areas such as technology, science and real estate.’

His Highness’s vision of a developed, educated emirate is clearly illustrated by the recent announcement that Ras Al Khaimah is to become home to the International Hospitality Trade and Training Zone, a $2.8bn joint venture between the Investment and Development O!ce of the Government of Ras Al Khaimah and the US-based Argentum Development Company.

#e collaboration will create a regional hub for the global hospitality industry, hosting around 16 world-renowned educational institutions on its campus. Talks are already underway with six major hotel groups, which are considering locating their regional training headquarters at the campus.

#is image of a modern state is further enhanced by the continued rise of women’s political and social participation within

Ras Al Khaimah. Last year, nine women were among the first democratically-elected members of the Federal National Council (FNC), an advisory body that has an important role in government. On a more basic level, women’s literacy rates in Ras Al Khaimah now match those of men, while women make up the majority of university students within the emirate. Women are today entitled to three months’ maternity pay at full rates, with a further six months at half pay – up to five times throughout their time of employment.

Talented youngsters are also being encouraged to reach their maximum potential through a system of academic scholarships developed by Sheikh Saud in the name of his father. He explains: ‘We are sponsoring scholarships to encourage the great number of bright young men and women of RAK to venture outside the

UAE in order to grow and achieve greater levels of success. Where you come from financially should not become your destiny. #e Government possesses the ability to make this a reality.’

Of course, visions need to be backed up by action – and the infrastructure of Ras Al Khaimah has developed strongly in recent years. Last year saw the opening of a new container terminal at Saqr Port, while RAK’s international airport also made huge progress when it signed a 10-year deal to host the Dubai Aerospace Enterprise University Flight School. #e airport already serves more than 300,000 passengers a year – a figure that is expected to rise sharply as more airlines begin to use the facility. #e road system has also been developing fast, with a concerted e"ort to improve safety as tra!c levels increase.

His Highness’s formula appears to be working well in terms of attracting investment. A recent landmark Sukuk Issue (a Sharia-approved investment certificate) attracted applications worth more than 1.5bn dirhams (!297m). Nearly a quarter of the issue was placed with investors outside the Gulf States – reflecting strong confidence in Ras Al Khaimah – while the investment programme received an “A”-rating from Standard and Poor’s and Fitch Ratings, the independent credit rating agencies.

Key to all this successful development, His Highness believes, is the need to constantly re-evaluate – and if necessary to make changes to the constitution of Ras Al Khaimah. He concludes: ‘#e practice of regularly amending laws is very important. I believe in looking at RAK each year to see how we can improve on the progress we have made.’

‘I see countries failing not because they lack good laws, but because they lack good implementation of those laws. What is very important for RAK is that we not only improve the laws that we have, but also improve the practices and the way business is conducted in the emirate.’

Building an “A”-rated futureSheikh Saud’s vision of sustainable growth for Ras Al Khaimah has been translated into an economic success story


Sheikh Saud

His Highness Sheikh Saud bin Saqr Al Qasimi, Crown Prince and deputy ruler of Ras Al Khaimah.


As a close adviser to Sheikh Saud, and top executive of many companies in Ras Al Khaimah, Dr Khater Massaad could justifi ably be dubbed “Mr RAK”.

Since the appointment of Sheikh Saud as Crown Prince in 2003, every possible e! ort has been made to convert Ras Al Khaimah into a magnet for foreign investment – and Dr Massaad, who is a Swiss national and who was educated there, has been at the forefront of this transformation.

Sweeping changes have been implemented, including reforms

in government and legal systems, with a huge e! ort dedicated to speeding up decision-making processes – while major international organisations such as the World Bank were brought in to make a series of recommendations on how to make Ras Al Khaimah a place where foreign investors will feel at home.

Dr Massaad says: ‘Most businesses that have come here to establish themselves cannot believe the speed at which we do things. But once investments kick o! , we all develop a common understanding of the normal pace of our operations in Ras Al Khaimah.’

Key to the emirate’s overhaul has been the creation of " e Ras Al Khaimah Investment Authority (RAKIA), both as a vehicle for investment development and as a tool for marketing Ras Al Khaimah to the outside world.

Dr Massaad explains: ‘RAKIA is a one-stop shop that sees to the needs of investors and issues licenses for establishing their businesses. With RAKIA, investors can now get their business licences the same day they register their businesses – and their construction permits within two days of registration. Our duty is to facilitate the investment process and issue licences in the shortest possible timeframe. " e principle of RAKIA is a trustful relationship with investors, and I must say that investors are very happy to deal with a single window for processing their papers.’

Success storyDr Massaad’s success story is certainly impressive: within the last two to three years, Ras Al Khaimah has attracted more than one and a half billion euros in investments from renowned companies from all over the world. " e emirate’s gross domestic product (GDP) has grown by more than 50 per cent over the past four years, with a predicted annual growth of around 15 per cent for the next few years. What’s more, the emirate has recently been rated by fDi magazine – published by ! e Financial Times – as the world’s best investment destination.

One particular success – which has had a massive knock-on e! ect on the general fortunes of Ras Al Khaimah – is RAK Ceramics, which started operations in 1991 and has since become the largest single ceramic tile manufacturing company in the world, exporting to some 128 countries around the globe. Dr Massaad says: ‘If we can successfully produce heavy ceramic products and export 84 per cent of our production, then we consider any other manufacturing facility to be easy to establish in Ras Al Khaimah. " ere are many other success stories. For instance, there are currently seven manufacturing plants in Ras Al Khaimah, and a pharmaceutical industry has been operating extremely well for the past 25 years.

Creating a magnet for foreign investmentDr Khater Massaad, a key protagonist of the Ras Al Khaimah economic miracle, explains how sweeping changes have laid the foundations for a prosperous future

Dr Khater Massaad


Dr Khater Massaad, adviser to The Crown Prince and chief executive of RAK Investment Authority (RAKIA).


‘His Highness Sheikh Saud also created other vehicles for investment – for example RAK Properties, RAK Petroleum and RAK Airways. RAK Properties develops the real estate industry in Ras Al Khaimah; RAK Petroleum is involved in petrochemical plants and industries, producing down-stream petroleum products; RAK Airways is a development of the aviation industry here, and is also a gateway to our overseas businesses, and it

markets us to the outside world. Now, RAK Airways flies to Bangladesh, India, Sri Lanka, Lebanon – and, very soon, to Egypt, Dublin and Sofia.’

Diversification is seen as important to the future economic stability of Ras Al Khaimah, as is environmental sustainability – and the emirate has achieved its great recent successes without possessing huge reserves of hydrocarbons. Tourism, construction, manufacturing, real estate and financial services accounted for 57 per cent of GDP in 2005. And, while oil has never figured heavily in RAK’s economy, recent years have seen an increase in exploration

activity both on- and o!shore. Imports and exports are also experiencing positive growth; this trend should continue, as expansion of the emirate’s airport and port facilities is expected to boost trade figures further.

Dr Massaad’s e!orts on behalf of Ras Al Khaimah and the Crown Prince have not gone unnoticed in international circles. Last year, he received the prestigious fDi ‘Personality of the Year

– Middle East’ award at a function held in New Delhi. Previous winners of this award include the former Mexican President Vicente Fox (2003), Brazilian President Luis Inácio Lula da Silva (2004), the former Mayor of Seoul Lee Myung-bak (2005), and Ontario Premier Dalton McGuinty (2006).

"e fDi award recognises those political and business leaders around the world who have been the most proactive, dynamic and innovative in securing foreign investment and improving the business environments of their countries or regions. Regional winners are selected for Africa, Asia, Europe, Latin America, the Middle East and North America; and out of these candidates a global winner is chosen.

Commenting on winning the award, Dr Massaad says: ‘Ras Al Khaimah has put in place a world-class, pro-business regulatory regime, and the enabling infrastructure for global investors to come in and succeed. I feel honored for the global recognition of the RAK initiative that is fostering entrepreneurship and helping businesses succeed.’

But despite his undoubted achievements, Dr Massaad is keen to give much of the credit for Ras Al Khaimah’s emergence as a financial power to the Crown Prince, Sheikh Saud: ‘He is very well educated and comes from a good family. I do not work for money – my father used to tell me to always concentrate on my job and focus less on money. When Sheikh Saud was appointed Crown Prince he told me that he wanted to run the emirate like a company – the people being the shareholders and him the chairman. I am passionate about what I do, and I do the work as if I own the factory.’

Dr Khater Massaad


KLUDI RAK is a perfect example of how the investment-oriented approach taken by Ras Al Khaimah in recent years has attracted world-class businesses.

The company, which manufactures high-class bathroom !ttings, is the result of a highly-successful joint venture between the German production company KLUDI and RAK Ceramics, the world’s largest manufacturer of single ceramic tiles. KLUDI RAK has already gained a signi!cant share of the world’s ceramics and bathroom !ttings market.

The joint venture takes advantage of both the latest in European technology – with all the necessary expertise and skills for developing, designing and manufacturing top-of-the-range !ttings – and Ras Al Khaimah’s strategic location at the centre of the rapidly-expanding Middle East and South Asian markets.

Peruma Reddy, the company’s chief operating o"cer, explains that KLUDI

– along with many other German manufacturing !rms – was drawn to Ras Al Khaimah because of its reputation as a booming location for industrial growth.

He says: ‘With the help of Sheikh Saud, Ras Al Khaimah has instituted a one-stop shop for investment registrations and issuing licenses for trade and investments. This is a huge advantage because it reduces the transaction time for setting up businesses – a basic requirement for attracting investors.

‘In other investment locations around the world, there are many bureaucratic requirements that prompt many pre-negotiations and business visits for agreeing on a common business interest. In Ras Al Khaimah, the government is open and willing to integrate new business proposals in its development plan. This has encouraged many industrialists – not only KLUDI – to

come and explore opportunities for doing business here.’

In addition, as Reddy explains, there are signi!cant cost-savings associated with carrying out the production process in Ras Al Khaimah: ‘Production cost here is less than the cost of production of the same product in Germany, and this is a huge advantage to us. Secondly, if we are to bring our products from Germany, we will pay huge amounts in terms of transportation, compared to producing the same materials here. Lastly, because we are an international brand, we have an advantage in the market.’

KLUDI RAK products are currently exported to India, Bangladesh, Sri Lanka, Malaysia, and Singapore, as well as Switzerland and a number of other European countries.

For more information on RAK Ceramics, see page 13.

German venture taps into new markets

Diversi!cation is seen as important to the future economic stability of Ras Al Khaimah, as is environmental sustainability


S tevin Rock, the leading quarry operator in the Gulf region over the past 30 years, has been instrumental in the astonishing development seen in the UAE in recent times.

! e company, which is sovereign-owned and managed by an experienced multinational team, started operations in 1975 and currently its annual production exceeds 36 million tons. ! e company supplies rocks for sea defence breakwaters, coastal protection works and aggregates for concrete and asphalt production.

In October 2007, following many years of extensive diversifi cation, Stevin Rock acquired Ras Al Khaimah Rock company. Today, the combined production of the two companies exceeds 60 million tonnes a year. ! ese days, according to general manager Naser Bustami, the company is one of the top fi ve open-pit limestone quarry operators in the world. It has customers all over the Gulf region and the Indian subcontinent.

Bustami says: ‘Anywhere you look in Dubai – any iconic project – Stevin Rock has its mark on it. All the Palm Islands were partly built with our material. ! e aggregates for the concrete structure of the new Dubai metro was sourced from us, as were aggregates for the concrete for ! e Jumeirah Beach Residence towers, and the sand for the concrete for the Burj Dubai tower – which will be

the world’s tallest building very soon – and the new Dubai World Central project, which will be the world’s largest airport.’

Bustami has great respect for Germany’s reputation for engineering quality, which is why several of Stevin Rock’s major crushing plants are German-made.! e company is also in advanced negotiations for a tie-up with the largest quarrying company in Germany, Basalt AG. He says: ‘If you’re a quality producer, you’ll go with the Germans. In our case this is even more important, because our plant runs 20 hours a day, 365 days per year, so our machinery needs to be top quality to stand that pace.

‘! e joint venture with Basalt AG will have a huge impact on the quality of gabbro aggregates used in asphalt production, as the German company has mastered the art of asphalt production throughout more than 100 years of its history. ! ey will also be able to help us reduce the cost of production and produce better quality materials, because their expertise in production processes is enormous.’

Bustami concludes: ‘! is is a huge benefi t for us; the partnership will turn us into the biggest group in our industry, not only in the Middle East, but probably in all of Asia.’

Stevin Rock is all set for rapid growthRas Al Khaimah’s leading quarry fi rm is looking to German expertise for future developments

Quality focus... Naser Bustami.

Stevin Rock


STEVIN ROCK L.L.C.

Stevin Rock is the leading quarry operator in the Gulf Region, producing in ex-

cess of 36 million tonnes of aggregates and rock products each year. The Compa-

ny is Sovereign owned and multinationally managed with exacting standards for

quality of product and service, with a trading record that span more than 30 years.

Production capabilities allow Stevin Rock to produce a large selection and grade of product

to international standards, as well as being able to produce to Customer’s own specifica-

tions. Accreditation to ISO 9001:2000 assures the quality of both product and service, and

has allowed Stevin Rock to develop a reputation as a premier supplier throughout the Gulf.

Stevin Rock acquired Ras Al Khaimah Rock Company on 1st October 2007. By

acquiring Ras Al Khaimah Rock Company, we became one of the largest quarry-

ing companies in the world and producing more than 56 million tonnes per year.

Since 1973 Ras Al Khaimah Rock Company has been producing aggregates for con-

struction, cement Industry in local and Gulf region and the Indian Steel Industry.

Stevin Rock has supplied and is currently supplying products to many prestigious projects

including the Dubai Metro Rail Project, Dubai International Airport Terminal III Expan-

sion, Dubai Mall, Doha International Airport and the Burj Dubai, the World’s tallest building.

In addition, we are proud to be the lead suppliers of rock materials to Marjan Is-

land, Palm Deira, Palm Jebel Ali and the World Island projects as well as aggre-

gate suppliers to Dubai Festival City and Jumeirah Beach Residence Towers.

Stevin Rock L.L.C. continue to deliver quality, effective efficient servic-

es to our customers, we look forward to progressing through the 21st century.

P.O. Box 559 Ras Al Khaimah U.A.E.

Tel. No.: +971 7 2588666 - Fax No.: +971 7 2588777

e-mail: [email protected]

Website: www.stevinrock.ae

Stevin Rock L.L.C. P.O. Box 86 Ras Al Khaimah U.A.E.

Tel. No.: +971 7 2668251 - Fax No.: +971 7 2668894

e-mail: [email protected]

Ras Al Khaimah Rock Company


In the first half of 2008 RAK Properties, the leading property developer in Ras Al Khaimah, reported a profit of more than 225 million dirham – around 41 million euros – an astonishing 115 per cent increase on the previous year. !e company’s sales

figures are still increasing exponentially and it is currently looking to expand into regional and international markets.

!e RAK Properties portfolio boasts diverse residential, commercial and leisure facilities, with recent high-profile developments in Ras Al Khaimah including Julfar Towers – a 500m-dirham twin-tower – and Mina Al Arab, a 10bn-dirham mixed-use waterfront resort community. Meanwhile, RAK Properties is also developing RAK Tower, a 300m-dirham project, in Abu Dhabi.

Mohammed Sultan Al Qadi, managing director and chief executive o"cer of RAK Properties, explains that the company is now positioned perfectly to take advantage of the UAE’s success and to raise the bar in terms of environmental and economic sustainability. He says: ‘Mina Al Arab and Julfar Towers represent our flagship projects in Ras Al Khaimah and are proceeding to plan. !ey will introduce a new way of living and doing business in RAK, contributing substantially to the emirate’s drive to position itself as a tourism, leisure and investment destination. Mina Al Arab, in particular, will be a mixed-used development set in a resort ambience, blending Ras Al Khaimah’s natural beauty with modern amenities.’

He continues: ‘!e pioneering projects are set to become major attractions in the expanding tourism portfolio of the Middle East. !e harmonious co-existence of nature and contemporary lifestyle they seek to achieve are part of the company’s vision towards promoting economic growth and transforming the emirate into one of the region’s leading destinations for tourism and real estate investment.’

!ere are serious ongoing e#orts to encourage and stimulate the property market in Ras Al Khaimah; earlier this year a decree

was passed which means developers wishing to sell o#-plan units in real estate development projects must apply to Ras Al Khaimah Investment Authority (RAKIA) to open a guarantee account, in which amounts paid by buyers towards property purchases or by project financing parties will be deposited.

As per the decree, developers licensed to carry out real estate development activities in the emirate should be included in the ‘Register of Developers’ to be prepared by RAKIA. RAK Properties itself is covered by its own separate arrangement.

To open the guarantee account, the developers must submit a set of documents including the title deed or a#ection plan of the plot, a copy of the contract executed by the master developer and the

sub- developer, conceptual designs and layouts approved by RAKIA, trade licence of the firm and a financial statement authenticated by a certified legal accountant on the revenues and expenses of the project, among others. Developers are not allowed to advertise in local or foreign media, or participate in exhibitions to promote the sale of units or properties o# the plan, until they have obtained a written permit from RAKIA.

!e decree sets further strict rules aimed at ensuring the property industry is properly regulated: any amount of money paid by buyers of o#-plan units or project financiers must be deposited in the special account opened in the name of the real estate project, while account trustees must provide RAKIA with statements for the revenues and expenses of the guarantee account on a regular basis.

!e account trustee must also retain five per cent of the total amount deposited in the account after the developer obtains the completion certificate – and there are still penalties for anyone flouting the rules: fines of not less than 100,000 dirham will be imposed on anyone who fails to meet certain provisions of the decree.

Mohammed Sultan Al Qadi concluded by expressing happiness over the consistently strong performance of the company and said that it further validates the growth strategy of RAK Properties: ‘Since its inception RAK Properties has adopted a studied approach and steadily built an impressive portfolio. As the most prominent developer in Ras Al Khaimah our continuing growth will contribute substantially to realising the vision of His Highness Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, to promote Ras Al Khaimah into the region’s leading destination for tourism and investment.’

Why RAK is a prime locationThe UAE’s track record on real estate development is a true success story – with Ras Al Khaimah leading the way

Rak Properties


The company is now positioned perfectly to take advantage of the UAE’s success and to raise the bar in terms of environmental and economic sustainability

Mohamed Sultan Al Qadi, chief executive and managing director, RAK Properties.


Real estate development in the United Arab Emirates has been moving at breakneck speed in recent years, with iconic organisations such as Dubai’s Nakheel leading the way.

But in Ras Al Khaimah a more considered revolution has been taking place, with a cautious approach to planning, as well as a desire to learn from others’ mistakes. Rakeen, which started operations in April 2006, is now pushing ahead with a number of ambitious developments, ranging from man-made islands to spa resorts and urban programmes.

A key member of Rakeen’s board of directors is Wahid Attala, a finance graduate originally from Egypt who has been living and working in the UAE for some 30 years. Before being invited to join the board of Rakeen, Attala worked for the Dubai developer Nakheel and also ran his own business.

He explains that planning was crucial to Rakeen’s success: ‘We take into account very carefully the capacity of Ras Al Khaimah to provide the required amounts of raw materials for our projects, as well as the emirate’s infrastructural capacity in terms of roads, energy, airport expansion and the like. We have been able to conduct extremely thorough research and planning for our developments, whereas other emirates that started the development race earlier were under such pressure to deliver results that they couldn’t a!ord this luxury.’

According to Attala, Rakeen has quickly gained a reputation for truly iconic developments: ‘You only have to look at the models of our projects to realise how strikingly non-standard they are – not only in terms of design and looks, but also in terms of their strong emphasis on usability, practicality and environmental friendliness.’

Indeed, environmental responsibility comes high on the list of Rakeen’s priorities. "is is an issue that comes to the fore in its flagship project – Al Marjan, a cluster of five man-made islands extending over some 2.7 million square metres and planned for completion by summer 2009. Attala explains that, through the Al Marjan development, Rakeen wants to position Ras Al Khaimah as the most environmentally-conscious emirate in the UAE.

He said: ‘"e technology we are using in the reclamation of the island minimises the impact on the environment. Rakeen does not favour “hostile dredging” to create man-made islands. Rather, we have used surface fill with coarse earth material for the Al Marjan Island. More than two million pieces of natural rock were cautiously and a carefully laid one at a time for building essential breakwaters. "is has generated home for marine life over more than 400,000 square metres of rock. "e rocks will also, in the long term, attract coral life and help a reef formation, giving birth to an underwater paradise unique to the Arabian Gulf. I was at Al Marjan recently and saw with my own eyes how the coral is starting to grow on the outer part of the rock.’

Rakeen has identified Germany as probably the most important market for Ras Al Khaimah in terms of tourism – and, indeed, probably for the whole region. Weekly charter flights between Germany and the emirate are due to start soon. In Bab Al Bahr, likely to be the first part of the Al Marjan island development to be completed, one hotel operator has already agreed terms for bi-weekly chartered flights from Germany – even if these will not start until two years after the development opens. E!orts are being made to cater specifically to the German market in terms of hospitality and entertainment.

Attala highlighted as another interesting project for the German market the RAK Convention Centre, a !292m architectural marvel that is currently being constructed. He explained: ‘We cannot ignore the fact that Germany has a great wealth of experience in the convention and exhibition industry and we are actively trying to attract German investors to operate the centre itself with Rakeen.’

"en there is the resort of Jebel Al Jais, currently being built high in the spectacular mountains of Ras Al Khaimah’s interior. Attala says: ‘Today at sea level it is 43 degrees centigrade in the shadow, but in Jebel Al Jais it is 26 degrees. I am sure that being able to have this contrast of experiences in Ras Al Khaimah will make the emirate extremely interesting for Germans in years to come.’

Planning for iconic perfectionPlaying the long game is paying dividends for real estate master developer Rakeen

Rakeen


Planning is crucial… Wahid Attala, a member of the board of directors, Rakeen.

A key member of Rakeen’s board of directors is Wahid Attala, a !nance graduate originally from Egypt who has been living and working in the UAE for some 30 years


Ras Al Khaimah’s booming economy and proximity to other major international centres such as Dubai has attracted a huge number of businesses from around the world. Indeed, in 2007 the Ras Al

Khaimah Investment Authority announced that more than 1,000 new companies had been set up in two calendar years.

Now a new organisation, RAK O!shore, is making it even more attractive for non-resident corporations, entrepreneurs and individuals worldwide to enjoy all the advantages that the emirate has to o!er.

RAK O!shore’s general manager Peter-Michael Schuster explains: ‘Our sole raison d’etre is to help businesses succeed. From the very outset RAK O!shore was conceived to unleash the entrepreneurial spirit, by making it easier to start and operate an o!shore business. Our procedures are fast and conducive to the business environment.

In Ras Al Khaimah, it takes us one hour to determine the name of the company and it takes us no more than one day to register the entire company.’

"e organisation o!ers businesses and individuals a range of comprehensive services and structures dedicated to non-residents. RAK O!shore also benefits from one of the most comprehensive lists of non-double-taxation treaties in the world, with business organisations in countries including China, India, Italy, France and Germany benefiting from the arrangement. E!ectively, this means that foreign companies can operate in RAK tax free – and even repatriate their profits tax free without paying tax to the Emirates.

Schuster, a German national himself, urged firms from his homeland to consider doing business in Ras Al Khaimah: ‘"ere is almost everything needed for such a business – labour and accommodation is readily available.

‘"ere are also negotiations going on between the ministries of finance in the UAE and Germany, both agreeing that the contractual agreement between the two countries be prolonged. "ere is every reason to believe agreement will be reached.’

He concluded: ‘"e Germans are already coming here and they see that Ras Al Khaimah is the centre for development in the Gulf countries. We are only six hours’ flight from Europe and the same number of hours from Asia. So our location is ideal, strategically, for doing business.’

There is no doubt that developments in Ras Al Khaimah – and the wider Gulf region in general – have moved at a dizzying pace in the last five years or so.

Now the Ras Al Khaimah Investment Authority (RAKIA) is looking forward to a new phase of investment and development, as its executive director Serge Guillaume explains.

‘We are now bridging the academic world and science with developments on the ground. Some of these developments include the IT and the automotive industries and, here more than anywhere else, we have it in mind with a long-term vision. We want to create a Silicon Valley without the stress of the Silicon Valley.’

Guillaume, who was born and raised in Switzerland, a country recognised for its cleanliness, environmental awareness and high standard of living, continues: ‘We are selling Ras Al

Khaimah as an environment where you would be living not far away from your working place and where people will have a nice environment with no tra#c jams, which further means we have to look into public transportation.’

Indeed, Guillaume considers himself as an environmentalist. He says that the main reason for taking the job at RAKIA was to work with a government that had sustainable, environmentally-friendly economic development as a top priority. He adds: ‘We want Ras Al Khaimah to be a kind of paradise and I see no reason why we can’t manage it. "ere are, however, important environmental challenges, such as managing and recycling waste.’

Guillaume says RAKIA currently regards Europe as its prime market. He believes European investment will be increasingly important in coming years, given the emirate’s location. He explains: ‘We are very close to Asia and the transportation facilities are all here. "e UAE has the largest port for importing commodities and we are now expanding the container terminal. So Gulf countries are of strategic advantage to the world and especially for Europe.

‘As a European myself, I am very comfortable with the environment here and people are very nice. "e quality of life is also good and this is in line with what Europeans expect.’

Silicon Valley – without the stressRas Al Khaimah Investment Authority’s executive director has big plans for the next few years

New phase of investment... Serge Guillaume, executive director, RAKIA.

Serge GuillaumeRAK O!shore


Clear focus... Peter-Michael Schuster, general manager, RAK O!shore.

Offshore assistanceNon-resident firms benefit from non-double-taxation arrangements and a lack of red tape


The growth of RAK Ceramics over the last 15 years – even by the standards of Ras Al Khaimah – has been nothing short of stupendous.

"e company started operations in June 1991 and, in 15 years, has become the largest ceramic tile manufacturing company in the world. Exports to 135 countries across five continents account for 84 per cent of its production.

RAK Ceramics started with one factory, producing just 5,000 square metres of tiles per day. It now produces an impressive 100 million square metres of tiles and three million pieces of sanitaryware annually from its 15 tile and four sanitaryware factories in six countries.

"e company made a net profit of 169.7 million dirhams (31 million euros) for the year 2007 – a 10 per cent increase on its 2006 figures. Over the same period, the annual revenue of the company hit 2.27 billion dirhams (417 million euros), a 35

per cent increase on the previous year."e company’s chief executive o#cer, Dr Khater Massaad,

explains that the company’s massive success has served as a good example to other manufacturing companies in Ras Al Khaimah. He says: ‘Our best countries of export are Panama, Germany, Greece, Australia, and South Africa. If we can successfully produce heavy ceramic products and export 84 per cent of our production, then we consider any other manufacturing facility to be easy and can be successfully established in Ras Al Khaimah.

‘"ere are many other success stories – for instance, there are currently seven manufacturing plants here in Ras Al Khaimah, and a pharmaceutical industry that has been operating here for the last 25

years and doing extremely well. Now we are trying to duplicate the success story of RAK Ceramics across other industries by helping entrepreneurs set up businesses and make use of the industrial advantages o!ered by the emirate, through entities such as the Ras Al Khaimah Investment Authority (RAKIA).’

"e remarkable success story of RAK Ceramics has not just inspired others in Ras Al Khaimah but abroad as well; the company has recently entered the management study books of the MBA programme of Georgetown University in Washington DC, USA. "e case study is set for international distribution.

Beacon of successRAK Ceramics points the way forward in the industrial development of Ras Al Khaimah

RAK CeramicsGuardian RAK


Guardian Zoujaj International Float Glass Co. L.L.C. - “Guardian RAK”P.O. Box: 6297 Al Jazirah Al Hamra, Ras Al Khaimah, Tel: +971-7-205-8000 Fax: +971-7-205-8001

Export expert... Dr Khater Massaad, chief executive, RAK Ceramics.

Judged even against the stunning speed of Ras Al Khaimah’s development, RAK Guardian is an astonishing success story.

Guardian – the parent company of RAK Guardian – is a world leader in glass, automotive and building products, having been established in Michigan, USA, 75 years ago. In the last 25 years, worldwide growth has been exceptional, with one new plant being constructed each year.

In Ras Al Khaimah, the company’s new plant was completed in just over a year – the ground was broken in February 2006 and production started in September 2007. Now the factory is fully operational, it is capable of producing 700 tonnes of high-quality float-glass (made by ‘floating’ molten glass on top of molten tin) a day. More than 300 people are employed by RAK Guardian, with an estimated

1,000 jobs created in related supplier and logistics industries.Guardian RAK’s general manager, G.S. Raju explains the company

mainly provides bespoke products for the higher echelons of the market. ‘We make clear float glass from two to 15 millimetres thick. "e UAE has besen a good market for us, but it’s not a su#cient market for our products so we ship our products to other GCC (Gulf Cooperation Council) countries, to Australia and New Zealand, and to west Africa. Our sizes are unique in the region.

‘"ere is no other industry in the region that produces glass at 3.2 metres by six metres – this is the first time the region has had the capability to produce this type of glass.’

G.S. Raju confirms that links with Germany have been crucial: ‘I have travelled to many countries and it serves my interest to understand the psychology of the people. I have always said, for instance, that an accountant in Germany has an engineering attitude.

‘"is is how much the engineering attitude is embedded in Germany, which is why German engineering products rank high above all else. "e phenomenal growth in the GCC region is about having a clear mission, e!ective controls and technology, which is the future for this country, and which Germans are very good at.

‘For instance, all my lines are from Germany, although I had the option of buying from other countries. Some of my controls are from Siemens. "ere are many opportunities here, and the timing is right for the development of industries and technology.’

Bespoke approachDespite being one of the emirate’s newest companies, Guardian RAK has an impressive history

Clear vision... G.S. Raju, general manager, Guardian RAK.


The property market in Ras Al Khaimah is booming – and YES Property Investment is at the forefront of developments.

In a relatively short time, it has become one of the leading companies in the property investment industry across the

UAE. Yes Property Investment has already provided consultation, design, analysis infrastructure, and sales advice for several important projects within Dubai, where it has handled investments totalling 1.8 billion dirham (330 million euros).

YES Property Investment grew from a number of individuals who had already been investing in property across the UAE – particularly in Dubai. While Dubai attracts the attention of most investors – domestic and foreign – Yes Property Investment decided to focus its activities and interests in the emirate of Ras Al Khaimah, which was an area still in the primary stages of development. YES Property Investment has worked with companies such as RAKEEN and Ras Al Khaimah Investment Authority on large projects such as !e Al Marjan Island and !e Gateway City, two of Ras Al Khaimah’s iconic developments.

Yousif Nassir, chairman, explains that investors have seen returns of 25 per cent per annum and more in recent years. Describing one example, he says: ‘We bought a number of plots in Ras Al Khaimah at the rate of AED100 per square foot and we paid only 10 per cent

as a down-payment. After six months we received proposals from serious investors to purchase these plots at the rate of AED130 – and, after more payments, we found prices exceeded AED200.’

!e Gateway City development is forecast to start a new era in property development of Ras Al Khaimah. It will be constructed where the Emirates Highway enters Ras Al Khaimah, and will eventually accommodate a population of around 250,000. !e city,

covering a total area of six square kilometres, will have its own metro rail system. !e Gateway City will also focus on becoming a totally environmentally-friendly development with almost zero carbon emissions. !e design and master planning for the development is currently underway and the infrastructure works are likely to start early in 2009, following an o"cial launch in July 2008.

Amazingly, some 80 per cent of the properties planned for !e Gateway City have already been sold – even before the o"cial launch of the project. Nassir explains: ‘Our success relied on the marketing policy we adopted for the project, which was considered distinguished and attractive to investors. !is project has been given huge support by the government of Ras Al Khaimah; with its strategic location it will be a marvellous gateway to the emirate.’

!e development of !e Gateway City will be in five stages and it will include commercial and residential towers, a huge market, and utilities buildings such as mosques, schools, hospitals and medical centres. Residents and trading companies are expected to move in within four to six years.

Yousif Nassir says there are good prospects for investors in coming years – and, particularly, encouraged German investors to consider the emirate as prospective market: ‘Germany is one of the main targeted foreign markets for Ras Al Khaimah, not least because the country’s remarkable balance between the market and the state allows it to appreciate Ras Al Khaimah’s government role in creating a convenient environment for enterprise, planning and providing enabling infrastructures, utilities and services.

‘Ras Al Khaimah’s government is an e"cient and e#ective partner, supporting and empowering the private sector and foreign investors. !is atmosphere will encourage investors from all over the world – particularly from Germany – to take advantage and choose Ras Al Khaimah as a hugely-promising market for real estate investment. I’d say to German investors: do not miss the chance as Ras Al Khaimah is a point of interest for investors from all over the world, thanks to government facilities that are rarely found in other places.’

Nassir concludes: ‘YES Property Investment is envisioned to be a pioneer in the real estate sector in the region and it will continue to expand its market share and increase sales. Our objectives are to keep its leadership and innovation in di#erent market segments, and to penetrate new markets by ensuring that the company is credible in the minds of property investors.’

Say YES to property boomInvestors are making 25 per cent returns as Ras Al Khaimah goes from strength to strength

Excellent returns… Yousif Nassir, chairman, YES Property Investment.

YES Property Investment


Amazingly, some 80 per cent of the properties planned for The Gateway City have already been sold – even before the o!cial launch of the project


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