Economy
From The Report: Ras Al Khaimah 2012
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Ras Al Khaimah stands out in the Gulf as one of the region’s most diversified economies. Investment spread across manufacturing, tourism, retail, high-tech industries and construction has been underpinned by improvements in infrastructure and connectivity. Quarrying, mining and manufacturing accounted for some 30% of GDP, followed by financial services, at 14.4%. In particular, the metal sector has seen rapid expansion in recent years, with several companies setting up factories in RAK’s industrial zones to process various metals. At the same time, tourism and related sectors such as real estate and retail are expected to grow, with plans to expand RAK International Airport in the pipeline. These include new arrivals and departures lounges, cargo facilities, parking and office space. New efforts are also being made to develop long-term growth drivers within the emirate. Several local research institutions have been set up in recent years, and over the long term this will facilitate the growth of high-tech industries by improving the pool of local engineering talent. This chapter includes an interview with Jim Stewart, the CEO of RAK Investment and Development Office.

Articles from this Chapter

Overview

A broader view: Diversified base continues to expand as investment-friendly policies draw in FDI
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With a reputation for fiscal prudence and a strong emphasis on industry, Ras Al Khaimah stands out in the Gulf as one of the region’s most diversified economies. RAK’s government has run a consistent fiscal surplus over the last decade, enabling it to make considered investments that, in turn, have helped create a broad-based economy with a high degree of resilience. Investment spread across manufacturing, tourism, retail, high-tech industries and construction has been underpinned by…

Interview

OBG talks to Jim Stewart, CEO, Investment & Development Office, Government of Ras Al Khaimah
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Interview: Jim Stewart In terms of revenue, less than 20% of the government’s income is generated from other emirates. The majority of revenue is created in RAK itself and the proximity to other markets such as India and the wider GCC means that income sources are diverse. However, the emirate obviously benefits greatly from the infrastructure and services support which is provided by the federal government, and the proximity to our prosperous neighbours has a positive effect. Overall, RAK enjoys…

Analysis

Niche potential: Promoting research and development in high-tech industries
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Given its relative lack of natural resources, and hydrocarbons in particular, Ras Al Khaimah has had to focus its efforts outside the energy sector, building up a diversified industrial base by making use of a mixture of incentives, infrastructure investment and careful partnerships. Now, the emirate is looking to position itself as a centre for advanced manufacturing and high-tech industries over a 10- to 20-year period. As in other areas, RAK is not looking to take on regional giants such…

Analysis

New goals in sight: Encouraging foreign investment in a range of areas
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To drive economic growth and stimulate industry development, Ras Al Khaimah has long pursued a strategy of promoting outside investment. Over the past 20 years, this has proved very successful, and the emirate has developed a fairly broad range of industries, led initially by cement and ceramics factories processing local limestone. The pace of growth accelerated during the UAE’s oil and real estate boom of the past decade, which provided particular stimulus to RAK’s cement firms and…

Analysis

Moving on up: The transition towards higher-value finished and semi-finished products continues
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In the Gulf, diversification is the name of the game. Directly or indirectly, the region derives most of its income from hydrocarbons. Given that these resources are finite, governments have long sought to reduce this dependency by promoting growth in non-oil sectors, such as manufacturing, tourism and banking, with varying degrees of success. RAK has so far been one of the region’s most successful examples of diversification. Although the economy is small in absolute terms, worth Dh17.6bn…