Exploring new markets is essential for businesses seeking growth, and Ras Al Khaimah stands out as a prime destination for investment. As one of the fastest-growing business hubs, it offers exceptional opportunities for expansion. In a recent in-depth interview with Robin Joffe, Partner and Managing Director for MEASA at Frost & Sullivan, we delved into the emirate's unique potential for fostering international investments and partnerships. Additionally, Robin shared insights on how Frost & Sullivan can guide companies towards transformational growth in the region.        

#RAKIS: Considering your extensive experience in building companies globally and your focus on the Asia Pacific region, what unique opportunities do you see for growth and business development in Ras Al Khaimah, particularly in terms of attracting international investments and partnerships? 

Robin Joffe: Ras Al Khaimah is renowned for its natural beauty, leisure activities, adventures, and authentic offerings. Despite this, it also boasts a business-friendly environment, offering various incentives and initiatives to encourage foreign direct investment and promote economic growth.

· Strategic Location: Located at the crossroads of global trade and commerce, Ras Al Khaimah is strategically positioned, providing easy access to Asia, Europe, and Africa. With excellent connectivity to major ports and airports, the city offers access to 76% of the world's population within 8 hours. Additionally, 35% of the world's seaborne oil passes through RAK Ports.

· Thriving Business Environment: Ras Al Khaimah presents diverse business opportunities and is recognized as a significant hub for manufacturing. As a free trade zone, it hosts nearly 45,000 companies, including over 6,000 manufacturing firms, fostering a thriving business environment. Known for investor-friendly policies, Ras Al Khaimah supports 100% foreign ownership, and profit repatriation, and provides incentives such as tax exemptions. The registration process for investments and property purchases is straightforward, attracting skilled talent, entrepreneurship, and innovation. Beyond oil and gas, Ras Al Khaimah offers investment opportunities in sectors like manufacturing, tourism, real estate, and renewable energy.

· Strong Connectivity and Logistical Advantages: Benefitting from its strategic UAE location, Ras Al Khaimah offers easy access to major logistics hubs, including Saqr Port, the largest bulk container port in the MENA region. It serves as a gateway to GCC markets and provides efficient connectivity to Europe and Asia. With a low-cost international airport and proximity to Dubai, Ras Al Khaimah ensures convenient logistical access.

· Initiatives by the Government: The government of Ras Al Khaimah actively supports economic development initiatives and provides comprehensive assistance to companies throughout their investment journey. This includes facilitating setup processes and offering 100% property ownership in free zones. The Ras Al Khaimah Economic Zone (RAKEZ) further enhances these advantages, catering to both free zone and non-free zone companies with tailored benefits and support structures.

Overall, Ras Al Khaimah offers a compelling combination of strategic location, business advantages, strong connectivity, government support, and diverse investment opportunities, making it an attractive destination for global investors.

Investors in Ras Al Khaimah enjoy numerous advantages:

 · Business operating costs up to 50% lower than regional averages.

· 100% foreign ownership in free zones.

· Full foreign ownership permitted for manufacturing in non-free zone areas.

· Complete repatriation of capital and profits.

· Development costs 10% lower than the regional average.

· Benefit from 115 double taxation agreements.

 Investment Opportunities in Ras Al Khaimah:

Ras Al Khaimah's supportive business environment and UAE government policies make it an attractive investment destination. Whether through free zone licences, comprehensive business setup services, customizable facilities, or value-added services, Ras Al Khaimah provides ideal conditions for investors. The city's increasing prominence among global investors is bolstered by its robust infrastructure, diverse economy, strategic location, and the advantages of its free zones.

· Trade & Logistics: Situated at the crossroads of Europe, Asia, and Africa, Ras Al Khaimah serves as a pivotal trade hub. Free zone benefits, streamlined procedures, and world-class logistics infrastructure support robust import-export activities. The use of smartphones and internet access further enhances efficiency in the fragmented UAE logistics market, which recorded a 5.5% year-on-year growth in 2023.

· Consultancy: Investing in a consultancy firm in Ras Al Khaimah presents highly profitable opportunities. The business-friendly environment, high demand for consulting services, and expertise availability make consultancy a lucrative investment option. Setting up in Ras Al Khaimah requires obtaining a free zone licence from RAKEZ, offering entrepreneurs attractive benefits such as 100% ownership and zero taxes.

· Technology: Ras Al Khaimah is emerging as a hub for innovation and business growth, particularly in blockchain and digital assets. The city's initiatives, including the Ras Al Khaimah Digital Assets Oasis (RAKDAO), a government-supported ecosystem, aim to foster the development of blockchain technology and digital assets companies. RAKDAO's legislative framework supports establishing and operating virtual asset companies, positioning Ras Al Khaimah as a future-forward investment destination.

 Ras Al Khaimah's Vision for 2030: Becoming a Global Investment Hub

Ras Al Khaimah's leadership has articulated an ambitious vision to position the emirate as a premier global destination for foreign direct investment by 2030. Key objectives of this vision include:

· Attracting over AED 100 billion in cumulative foreign direct investment.

· Establishing specialised free zones dedicated to industries such as Design, Education, and Emerging Technologies.

· Expanding tourism infrastructure to accommodate 5 million visitors annually.

· Launching significant sustainable projects in real estate, agriculture, and environmental conservation.

Achieving these goals will solidify Ras Al Khaimah's stature as a regional leader across multiple sectors. For investors and developers, the emirate's economic vision offers enduring confidence in the future direction of its real estate industry.

Entering the Ras Al Khaimah market early allows stakeholders to establish a first-mover advantage as the emirate advances. Whether in residential projects, mixed-use developments, or hospitality ventures, Ras Al Khaimah presents opportunities for creation and growth well into the future.

Ras Al Khaimah Economic Zone (RAKEZ)

Business Environment: RAKEZ promotes a seamless setup and operation of businesses as a free zone, attracting both local and foreign investors. Companies benefit from zero corporate and income taxes for 50 years, along with exemptions on municipal and tourism fees. Individuals also enjoy the advantage of no personal income tax in the UAE. These tax policies stimulate investments and entice entrepreneurs to establish their presence in Ras Al Khaimah. The absence of tax burdens allows businesses, whether new ventures or expanding enterprises, to maximise their profitability in an economically viable destination.

Logistics & Manufacturing Growth: Ras Al Khaimah is positioning itself as a pivotal regional hub for logistics and manufacturing, complementing Dubai and other emirates. Integral to its maritime strategy is one of the region's largest container ports. Supported by advanced infrastructure including roads, railways, and airports, the emirate enhances connectivity within the UAE and globally. Ras Al Khaimah offers ready-built workshops and warehouses on competitive lease terms, facilitating cost-effective operations and expansion. This strategic advantage appeals to investors in automotive, consumer goods, and industrial sectors, evident in the thriving logistics clusters such as General Cargo Port and Ras Al Khaimah Container Terminal, which consistently demonstrate robust throughput, reflecting sustained demand and returns.

Knowledge-Based Industries: RAKEZ aims to transform Ras Al Khaimah into an education and innovation-driven economy, fostering the growth of knowledge-based startups and SMEs through supportive policies. The emirate hosts higher education institutions collaborating with global universities and initiates programs to equip youth with essential skills. Focus areas include AI, health tech, and education technology, among others. Supported by intellectual capital and government-backed accelerator programs, Ras Al Khaimah becomes a fertile ground for new enterprises addressing global challenges. Aspiring entrepreneurs can engage in this emerging ecosystem, discovering new avenues for investment.

Tourism Projects: While Ras Al Khaimah boasts natural wonders such as beaches, mountains, and desert landscapes, its tourism infrastructure is strategically evolving. Projects like the USD 1 billion Al Marjan Island integrated resort offer lifestyle and leisure attractions. Real estate opportunities on the island, from luxury hotels and villas to serviced apartments, present viable investment options. Additionally, the six-month Expo Centre hosts global events, positioning the emirate as a MICE (Meetings, Incentives, Conferences, Exhibitions) destination with state-of-the-art convention facilities. Investing in hotels, resorts, and attractions aligned with the master tourism development plan ensures consistent returns on capital.

Real Estate: Driven by demand from immigrants and expatriates, Ras Al Khaimah's real estate sector benefits from ongoing infrastructure enhancements to improve connectivity and lifestyle. These factors contribute to steady appreciation in property values over time. Whether interested in villas, apartments, or commercial spaces, Ras Al Khaimah's real estate market offers a robust investment avenue. Its strategic location and excellent connectivity, with proximity to Dubai and well-developed transport links, enhance attractiveness. The business-friendly policies of Ras Al Khaimah, including 100% foreign ownership in free zones and non-free zone manufacturing, zero corporate and personal income taxes, and full repatriation of capital and profits, create an attractive environment for real estate investors and developers.

Booming Tourism Industry: Ras Al Khaimah's natural landscapes, archaeological sites, and adventure sports options, coupled with competitive pricing compared to Dubai, position it favourably among regional tourists. Significant expansion plans in tourism and hospitality capacity are underway, including over 15,000 additional hotel rooms in development. Flagship projects like the forthcoming Wynn Casino Resort promise to elevate Ras Al Khaimah's profile and increase visitor footfall. For real estate investors, the expanding tourism sector suggests heightened demand and improved rental yields for residential investments, alongside new opportunities in hotel, resort, and branded residence developments.

Availability of Developable Land: Unlike more densely developed emirates, Ras Al Khaimah offers abundant open spaces for master-planned developments. Special economic zones like RAKEZ provide dedicated plots for real estate development, enabling investors to create entire residential and mixed-use districts with essential amenities and infrastructure. This availability of land facilitates value addition through master planning, enhancing financial returns on investments.

Affordability: Backed by ample land availability, residential and commercial real estate prices in Ras Al Khaimah remain highly competitive compared to Dubai and Abu Dhabi. Land rates are significantly lower, construction costs are more economical, and residential unit purchase prices can be up to 40% cheaper than in Dubai. This affordability enables developers to achieve attractive returns from residential sales while passing on cost savings to investors and end-users. Hospitality investors also benefit from lower setup costs combined with rising visitor demand.

Encouraging Government Initiatives: Ras Al Khaimah's leadership emphasises sustainable growth and foreign investment, supported by initiatives like flexible visa programs and robust digital governance infrastructure for transparent government interactions. Dedicated support from the Ras Al Khaimah Investment and Development Office (RAK IDA) facilitates expedited project execution, providing assurance and ease for real estate developers and investors.

Ongoing Innovation: Emerging as a hub for technology and innovation in the UAE, Ras Al Khaimah presents collaborative opportunities for real estate players to pioneer differentiated projects leveraging technologies like IoT and 3D printing. Innovations showcased include 3D-printed homes at Al Hamra Village and advanced drone and robot-based site inspections by Ras Al Khaimah Properties. These initiatives underscore the emirate's commitment to technological advancement and sustainability in real estate development.

Benefits of Establishing a Company in RAKEZ

· Foreign Ownership: In RAKEZ's free zone setup, companies can enjoy full ownership without the requirement of local Emirati partnership, which typically mandates 51% ownership. There are no restrictions on foreign exchange transactions and access to free zone amenities, simplifying entry for non-locals.

· Diverse Business Opportunities: Ras Al Khaimah Free Zone offers extensive business opportunities spanning manufacturing, pharmaceuticals, import-export, food industries, and robotics. Businesses can leverage diverse industrial facilities and value-added services, supported by flexible and transparent regulations that foster a business-friendly environment for growth.

· Tax Exemption: Tax exemptions serve as pivotal incentives motivating business owners, entrepreneurs, and industrialists to establish their businesses in the UAE region, including Ras Al Khaimah, where tax exemptions encourage industrial growth.

· Dedicated Industrial Zones & Business Parks: RAKEZ strategically attracts global business investors by creating dedicated zones tailored to specific industries such as Manufacturing, Trading, and Services. Key industrial zones include Al Hulaila Industrial Zone, RAKEZ Business Zone, RAKEZ Academic Zone, Al Hamra Industrial Zone, and Al Ghail Industrial Zone. Business parks cater to corporate entities, academic institutions, technology businesses, and large-scale manufacturing.

· Availability of Business and Industrial Facilities: Ras Al Khaimah offers a variety of business and industrial facilities to meet diverse professional needs. These include Flexi-desk facilities suitable for startups, SMEs, and entrepreneurs, providing customizable workstations and secretarial services, along with options for UAE Residency Visas. Land and warehouse spaces of various sizes are available for manufacturing, trading, and logistics purposes, equipped with permanent power supply, suitable for retail districts and logistical hubs, also offering UAE Residency Visas.

· Efficient Business Setup Procedures: RAKEZ Free Zone simplifies the process of starting a business with straightforward steps, enabling swift commencement of operations within a few days. It is an ideal free zone for budding enterprises aiming to expand and thrive.

· Low Setup Cost: Ras Al Khaimah offers competitive setup costs, positioning itself attractively for international business. Various setup options cater to different business needs, including low, medium, and high-sized warehouses suited for trading, manufacturing, storage, assembly, transport, utility, and security activities, providing tailored solutions beneficial for all business types.

· Convenient Hub for Government Services: Serving as a centralised hub, RAKEZ offers convenient access to various government services in one location. This streamlined approach saves time and simplifies navigating through rules and regulations for permits, licenses, and other necessary paperwork.

#RAKIS: Can you provide examples of how Frost & Sullivan has guided companies towards transformational growth, resulting in innovative growth opportunities? How can this guidance be applied to companies in Ras Al Khaimah seeking similar transformative growth?

Robin Joffe: Frost & Sullivan has addressed a wide array of challenges through its consulting and market research services. To name a few:

· We partner with a leading investment promotion agency to draw investors to a particular location.

· We engage with government agencies to strengthen their position as a premier business hub.

· We collaborate with state-of-the-art free zone authorities to drive their investment efforts.

The companies in Ras Al Khaimah are spread across multiple sectors including healthcare, information and communications technology, chemicals and materials, financial services, energy, real estate, construction, tourism and hospitality, etc. These companies face transformative changes driven by competitive intensity, disruptive technologies, geopolitical chaos, compression of value chains, transformative megatrends, internal challenges, industry convergence, and innovative business models.

Healthcare: In 2024, the adoption of AI technology to enhance clinical and operational workflows will be a primary focus for healthcare facilities. Furthermore, robust public-private collaborations in KSA and UAE will drive the uptake and deployment of digital health solutions across the Middle East. Digital

Transformation in healthcare is advancing through substantial investments in digital health infrastructure by both public and private entities. Public-Private Partnerships (PPPs) are being leveraged by governments to alleviate the burden of healthcare investments and responsibilities, supported by foreign investments.

Energy and Power: The UAE's National Energy Strategy 2050 targets a diverse, balanced, and resilient energy mix, aiming to increase clean energy's share to 30% by 2030. The Barakah nuclear plant, the first civilian nuclear facility in the region, is set to generate about 25% of the UAE's total electricity by 2024. The UAE plans to leverage nuclear power for hydrogen production and anticipates additional capacity expansions. Ras Al Khaimah aims to retrofit 3,000 buildings by 2040. Abu Dhabi also plans significant measures to enhance energy efficiency across the emirate.

Business and Financial Services: The UAE is witnessing the integration of healthcare and financial services, with companies offering bundled insurance products that provide comprehensive coverage solutions. Regulatory changes in the Middle East are driving the rise of sustainable investing. This shift promotes environmentally focused investments, reshaping the financial landscape towards sustainability. The UAE is seeing the emergence of direct-to-consumer investment platforms, allowing consumers to bypass traditional brokers and democratise investment opportunities. 

Chemicals and Materials: Quantum computing is being explored to optimise chemical reactions, potentially revolutionising the speed and precision of chemical manufacturing. New market entrants are focusing on green chemistry practices, setting new environmental standards, and reshaping competitive dynamics. 3D printing technology is being used to produce chemical compounds on demand, reducing the need for large inventories and speeding up production. The integration of biotechnology and chemical engineering is fostering the development of sustainable chemical solutions, reducing environmental impact.

Information and Communications Technology: The rollout of 5G networks is expected to revolutionise IoT applications and smart city implementations, offering new business opportunities in tech. Quantum computing is being explored for its potential to create unbreakable encryption, significantly enhancing data security in IT operations. The development of IoT platforms that integrate smart home technologies with energy management systems involves collaborations across tech and energy sectors. Major global tech companies are expanding into the Middle East, intensifying competition for local IT businesses.

Tourism and Hospitality: The emergence of tech-driven boutique hotels is challenging traditional chains by offering personalised experiences, compelling larger chains to innovate or lose market share.  Collaboration between airlines and hotels to offer seamless travel packages is creating integrated travel experiences, enhancing convenience, and attracting premium customers. The use of AI for real-time customer service in hotels, by implementing AI chatbots for 24/7 customer support, is reducing operational costs and improving service quality. Integration of a diverse workforce in the tourism industry in the Middle East by embracing cultural diversity enhances service quality and innovation, improving customer satisfaction. 

Construction: The emergence of tech-driven startup disruptors in the construction sector is forcing industry adaptation by leveraging technology to challenge traditional business models. The rise of sustainable construction companies is giving them a competitive edge and increasing market share.

Real Estate: The rapid advancement in real estate technologies is creating significant skill gaps among professionals, affecting growth. Real estate firms are partnering with renewable energy companies to integrate sustainable energy solutions into their properties. AI-driven platforms for dynamic pricing of rental properties are analysing market data to adjust rental prices in real time, maximising revenue for property owners.

#RAKIS: Help us understand how Frost's Growth Pipeline as a Service (GPaaS) value proposition can assist companies in Ras Al Khaimah to navigate emerging megatrends and foster sustainable economic growth within the region?

Robin Joffe: To outperform competitors and ensure long-term success, companies must achieve top-line growth by competing in the right markets, at the right times, with the right solutions.

Frost & Sullivan collaborates with organisations to accelerate their growth by eliminating strategic distractions. We assist business leaders in addressing fundamental strategy questions to build a shared vision for the future, tackle complex challenges in rapidly changing environments, optimise resource allocation, and leverage key growth opportunities. 

We accelerate your growth by seamlessly connecting the five integral phases of business development into a continuous loop of improvement and innovation.

Our framework guides organisations through a range of challenges, from specific tactical decisions to broader strategic initiatives of varying sizes, scopes, and stages. We systematically evaluate your spectrum of growth opportunities, assess critical business model factors, and link key milestones to create a comprehensive action plan for your business.

Define Key Strategies: Successful strategies are built on differentiation, cost-effectiveness, and sustainability. At Frost & Sullivan, we empower our clients to allocate their time and resources strategically toward growth opportunities that align with their core capabilities. Our rigorous analysis frameworks guide business leaders to assess their strengths, evaluate competitive landscapes, and craft effective responses. We specialise in identifying and correcting ineffective strategies that hinder profitable top-line growth while refining decision-making and implementation processes to bolster our clients' economic and competitive strength.

· Competitive Strategy: Evaluate the competitive landscape, formulate optimal responses, and drive profitable top-line growth.  

· Customer Strategy: Achieve deep customer insight, engagement, and effective communication strategies.

· Technology Strategy: Embrace innovation by integrating technology confidently into long-term plans.

· Partnership Strategy: Achieve significant performance enhancements through strategic collaborations and partnerships.

· Product Strategy: Assess product viability and determine critical success factors for successful development and launch.

· Expansion Strategy: Accelerate growth by reducing the learning curve and cultivating a robust growth pipeline.

· Merger & Acquisitions Strategy: Invest wisely with thorough research, detailed integration analysis, and coordinated due diligence.

Implementing Plan: At Frost & Sullivan, we recognize that successful strategy implementation is crucial for maximizing the value of growth initiatives. Many companies face challenges in executing their growth strategies effectively, often leading to missed opportunities and unrealized potential. That's why we offer comprehensive support and development programs designed to enhance the efficient and successful implementation of our clients' growth plans.

Our approach includes providing a suite of tools, leveraging organizational design expertise, and offering coaching capabilities tailored to assess and improve implementation skills. Through our Growth Advisory services, we partner with clients to navigate challenges, identify improvement opportunities, and execute strategies that drive tangible results.

Key components of our implementation support include:

· Best Practices: Drawing from industry experiences to avoid common pitfalls, thereby saving time, reducing costs, and minimizing risks.

· Strategic Roadmap: Analysing critical success factors, outlining actionable steps, and highlighting key milestones across different time horizons (1-2 years, 2-4 years, and beyond).

· Organisational Development: Conduct baseline assessments to evaluate organizational potential, strengths, challenges, strategies, and team cohesiveness.

· Growth Think Tanks: Facilitating interactive on-site sessions designed to engage and train teams on effective implementation tools and techniques.

Monitor and Optimise: A strategic plan not only sets long-term focus but also establishes shorter-term goals, objectives, and performance measures. However, strategy is dynamic, requiring regular revisions to adapt to market shifts, industry trends, and global developments. Thoughtful adjustments ensure that an organization's growth strategy remains grounded in reality.

We collaborate closely with business leaders to advance organizations along their desired paths, integrating change management principles and fostering widespread commitment to optimizing strategic performance. Our Growth Advisory Model intricately connects the five essential phases of business development into a continuous improvement loop, laying the foundation for sustained enhancement.

· Measure Performance: We monitor the performance of core strategies against competitive benchmarks and company objectives.

· Focused Adjustments: We implement data-driven adjustments and test strategy solutions over time to refine effectiveness.

· Generate Insight: We leverage measurement insights to optimize tactics and reinforce the growth pipeline.

· Practice Innovation: We benchmark innovation practices against industry peers to identify and prioritize high-impact improvement opportunities.

 #RAKIS: What kind of significance would you give to the Ras Al Khaimah Investment and Trade Summit in shaping the regional investment landscape?

Robin Joffe: The RAK Investment and Trade Summit aims to become a premier international platform for strategic investment and development, bringing together investors, visionaries, industry leaders, companies, policymakers, and the Government of Ras Al Khaimah. The summit will devise strategies and solutions for the Emirate’s investment and development opportunities. It offers a unique opportunity to explore the region's attractive investment prospects and position Ras Al Khaimah as a regional hub for business excellence. Attendees can invest, showcase, shape the regional investment landscape, and network with industry pioneers.

Featuring a comprehensive conference program, the summit will host a top lineup of speakers who will discuss ways to place the Emirate at the center of regional and global investment and innovation dialogue. They will explore the latest trends, opportunities, and challenges in key industries such as Infrastructure and Real Estate, Manufacturing, Tourism, and Maritime Trade. The conference will provide a platform for global and regional thought leaders to share deep industry insights, exchange ideas, and facilitate knowledge transfer through panel discussions, keynote speeches, and interactive sessions.

The RAK Investment and Trade Summit will emphasize networking through interactive panel discussions, one-on-one business meetings, and other engaging programs. This creates unmatched opportunities for attendees to connect with potential partners, industry experts, and influential figures, forging lasting business connections in a conducive atmosphere and capitalizing on diverse business prospects.

Additionally, the event will host a two-day world-class exhibition where attendees can explore the latest technologies, innovative ideas, and breakthroughs across various industries. This exhibition will enable OEMs, innovators, technology solution providers, and startups to showcase their products, services, and solutions in a collaborative atmosphere, unlocking valuable investment opportunities in Ras Al Khaimah and the broader Middle East region.

Key Objectives:

· Promoting Investment: Attracting regional and international investors to Ras Al Khaimah's seven key sectors, providing them with a platform to engage with industry leaders, explore investment opportunities, and form strategic partnerships.

· Encouraging Innovation: Showcasing the latest technological advancements and innovative ideas within Ras Al Khaimah's seven key sectors, and fostering a culture of innovation and creativity in the region.

· Facilitating Collaboration: Bringing together investors, industry leaders, and entrepreneurs from around the world to network, share knowledge and expertise, and establish long-lasting business relationships.

· Supporting Sustainability: Highlighting Ras Al Khaimah's commitment to sustainability and the environment by showcasing sustainable business practices and promoting initiatives that contribute to the United Nations' Sustainable Development Goals.