RAKIA and Indian Business & Professional Council organise seminar on investment opportunities in Ras Al Khaimah
Indian companies currently account for 30 per cent of investments in RAKIA Free Zones and Industrial Zones
Ras Al Khaimah Investment Authority (RAKIA), the government body responsible for the socioeconomic growth of the emirate, in partnership with the Indian Business & Professional Council (IBPC), today (Monday, March 24, 2008) organised a seminar on investment opportunities in Ras Al Khaimah, at the Al Murooj Rotana Hotel & Suites in Dubai.
Senior officials from RAKIA and IBPC including Abbas Mirza, President of IBPC; Mr. Navin Kapoor, Secretary General of IBPC Dr. Khater Massaad, CEO, RAKIA; Serge Guillaume, Executive Director, RAKIA; Peter Schuster, General Manager of RAK Offshore; and the Honorable Indian Ambassador to the UAE, H.E. Mr. Talmiz Ahmad -addressed the audience during the seminar.
Delivering the keynote address, Dr. Khater Massaad, CEO, RAKIA, spoke about the long-standing trade relations between the UAE and India, and highlighted the ever-increasing potential for investment opportunities for Indian companies in the emirate of Ras Al Khaimah.
“The UAE has had trade relations with India since several decades; making the South Asian country one of the oldest trading partners of the UAE. Today, the UAE has emerged as the second largest market globally for Indian products, while Indo-UAE trade is now valued at over USD 18 billion and growing every year,” pointed out Dr. Massaad.
The UAE, a long-standing commercial and business hub of the region, has also emerged as the third major re-export center in the world after Singapore and Hong Kong. Thus, the UAE market is important to the Indian businessmen for the opportunities it provides as a major sourcing center for key markets such as Iran, Iraq, North & East Africa, CIS and Eastern European countries in addition to the GCC countries.
“The emergence of the UAE as a re-export center is reflected in our growing trade, which has shown significant growth over the past few years, with Indian exports to the UAE for the period 2006-2007 standing at USD 11.7 billion as compared to USD 7.33 billion in 2005-06,” said Dr. Massaad.
Speaking at the occasion, H.E. Mr. Talmiz Ahmad said, “Over the last few decades, Indo-UAE relations have grown impressively at all levels, resulting in a range of bilateral benefits. Seminars such as these will go a long way in strengthening relations between the two countries, while maximising investment from the Indian business community in high potential business hubs such as Ras Al Khaimah.”
Since its inception in 2005, RAKIA has been able to register more than 1150 companies from various industry segments and attract close to USD 2 billion of investment from all over the world. Approximately 30 per cent of the investments in RAKIA Free Zones and Industrial Zones have come from India in various manufacturing sectors.
RAKIA has already leased approximately eight million square meters of land for industrial use, attracting a diverse mix of industries financed by European, Arab, South East Asian and Indian investors, from manufacturing, tourism and construction, to food processing, maritime related services, and trade and commerce. Also RAK media city is being developed in Ras Al Khaimah.
Factors such as 100 per cent income and corporate tax exemptions; 100 per cent capital and profit repatriation; easy availability of labour; easy licensing procedures; excellent port facilities; and absence of foreign exchange controls, trade barriers and quotas, have attracted investors from across the globe to Ras Al Khaimah. Moreover, Ras Al Khaimah’s GDP (Gross Domestic Product) currently stands at USD 2.52 billion, having grown by more than 50 per cent over the last four years. The significant growth has been attributed to the increased focus on sectors such as manufacturing, services, real estate, construction and tourism.
The low cost of operations of doing business at Ras Al Khaimah has prompted FDI Magazine of Financial Times, London to rate Ras Al Khaimah as the most cost effective destination to do business in the region.
Further, Standard & Poor’s (S&P) Ratings Services recently designated Ras Al Khaimah an investment grade, awarding it a long-term 'A' rating and a short-term grade of 'A-1' for foreign and local currency sovereign risk. Obtaining an independent rating is a significant development for the emirate, enabling it to promote itself as an attractive investment location in its own right. S&P's stable outlook for RAK will also give a boost to companies already operating in the emirate.
Al Bawaba
