Industry

RAK free zone reports 61% surge in new companies

By Pramod Kumar

April 26, 2024, 3:37 AM

Rakez CEO Ramy Jallad said the economic zone is committed to nurturing diverse enterprises, from SMEs to large companies

Ras Al Khaimah Economic Zone (Rakez) reported a 61 percent year on year surge in new company registrations in the first quarter of 2024.

Over the three months, 3,000 companies joined the economic zone, marking a solid start to the year.

Rakez has attracted global investors, mostly from India, Pakistan, the UK and Egypt.

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Rakez witnessed an increase in service-oriented businesses, such as consultancies offering project management, marketing research, IT solutions, legal services, and software development, constituting 38 percent of the new registrations.

“We are ready to onboard more investors in the upcoming quarters this year,” Ramy Jallad, CEO of Rakez said, highlighting that over 23,000 companies are already registered with Rakez.

American battery manufacturer Statevolt announced plans to construct a $3 billion factory in Rakez this month.

Statevolt Emirates, as the venture will be known, will generate up to 2,500 jobs at its 60-hectare facility in Al Ghail Industrial Zone in Rakez.

In November 2023, Jallad told AGBI that technology and hospitality companies are set to flock to Ras Al Khaimah to work on Wynn Al Marjan Island, a $4 billion resort now under construction.

“These companies are wanting to establish a presence in the vicinity so they can cater to the resort – and we’ve been ready, we’ve been talking with them. We’ve engaged with many vendors and suppliers that are setting up entire businesses to serve that development.”

Last October, ratings agency S&P upgraded the long-term outlook for RAK from “stable” to “positive”. Tourism and infrastructure projects, including Wynn Al Marjan Island, could strengthen the emirate’s growth prospects over the next two to three years, it said.