Ras Al Khaimah – Ras Al Khaimah, in the United Arab Emirates, is betting on industrialization in order to develop itself. To that end, the local government offers a series of incentives aimed at attracting foreign companies. "We want people to come here to make a profit, not to incur losses," said this Wednesday (24th) the CEO of the RAK Investment Authority (Rakia), the emirate’s investment promotion agency, Khater Massaad.
Massaad gave a lecture on existing opportunities in Ras Al Khaimah to a delegation of the Federation of Industries of the State of Santa Catarina (Fiesc) currently in the Emirates on a trade mission. According to him, ever since Rakia was established, five years ago, 7,300 enterprises have been established and industrial investment has reached US$ 3 billion. The enterprises are of different origins and in different sectors.
The flagship of the local industrialization process is RAK Ceramics, a ceramic tile manufacturer that exports 86% of its output to 140 countries. "This is what we like, companies that export to the entire world," said Massaad.
In this respect, the domestic market is not the main focus. The emirate has two industrial parks-cum-free zones in which exemption from various taxes may be obtained, and which offer the infrastructure and logistics required for a business to function. According to Massaad, the emirate of Ras Al Khaimah took its cue from Singapore and Hong Kong and its differential is easy, low-cost access, by sea or air, to Europe, Asia and Africa.
The executive claimed that the emirate’s economy grew by an average of 14% per year from 2004 and 2008 and by 9% in 2009, mostly due to the industry. At first, the strongest segments were ceramics, cement and pharmaceuticals, but now the industrial park is more diversified and even includes a bus maker.
Massaad claimed, for instance, that a company such as Embraer, a Brazilian aircraft manufacturer, could benefit from the low cost of plots and rentals, and even from low-interest loans, in order to open a warehouse in Ras Al Khaimah. Last year, the company expressed interest in having a warehouse for replacement parts in the Middle East.
He also underscored the ease of establishing a business through Rakia’s intermediation. "You fill in a few forms in the morning, get your license by noon, at 02:00 pm we show you the plot and on the following day, at 08:00 am, you may start building," he declared.
The delegation, which comprises the secretary general of the Arab Brazilian Chamber of Commerce, Michel Alaby, and representatives of the Brazilian Micro and Small Business Support Service (Sebrae) in the state of Mato Grosso, was also received by crown prince of Ras Al Khaimah, Mohammed Bin Saud Al Qasimi.
High-spirited, the young prince, son to emir Saud Bin Saqr Al Qasimi, stated that the local government wants to promote the emirate and said that the whole world has an eye out for countries such as Brazil. "It is a great nation that is thriving after the [international financial] crisis, "he claimed.
Qasimi added that the emirate’s government is ready to help Brazilian enterprises establish themselves there. "Brazil is the first letter in the BRIC acronym, and that is what we want to focus on," he said, referring to the group of large emerging countries that comprises Brazil, Russia, India and China.
*Translated by Gabriel Pomerancblum
