Ras Al Khaimah: Ras Al Khaimah has attracted some 140 industrial ventures totalling more than $1 billion in foreign direct investment (FDI) over the past two years. They range from glass bottle and truck manufacturing plants to commodity and polystyrene factories.
RAK-based companies shared their success stories at the first Ras Al Khaimah Conference, which ended last week. International companies also expressed interest in the emirate's immense business and industrial potential.
The two-day conference focused on infrastructure offerings, with sessions dedicated to ports, logistics and free zones; real estate, manufacturing, energy and petrochemicals.
RAK veterans and newcomers alike testified to the growth opportunities and advantages of operating here.
Khater Massad, CEO of RAK Ceramics, said businesses operating in RAK have thrived because of its infrastructure, labour and tax-friendly status, reflected in the government's pro-business, pro-investment outlook.
RAK Ceramics, which began operations in 1991, is currently the single largest ceramic manufacturing entity in the world and a business model for the emirate.
The publicly listed company produces more than 100 million square metres of ceramic tile and three million pieces of sanitary ware annually, and has a distribution network covering 128 countries.
The company has achieved a return on investment 200 times its initial capital, Massad added.
"We are confident these achievements could not have been replicated outside of Ras Al Khaimah."
The company, he added, was far from alone in its success story, with other RAK manufacturers reporting more than 30 per cent cost reduction in comparison with other plants located elsewhere.
Riad Bsaibes, Chief Operating Officer of Amana Contracting and Steel Buildings, and Carlo Capellano, General Manager of Domopan Gulf, also testified to the advantages of establishing their GCC operations in RAK.
"What Ras Al Khaimah offers is a lower cost base plus the same good infrastructure as the UAE, and a government that is fast to act and committed to getting things done," said Bsaibes.
Izzat Dajani, Chief Executive of the IDO, cautioned against using cost advantage as the sole deciding factor, however.
"It is not enough to compete solely on price," Dajani said.
"In Ras Al Khaimah, quality remains a primary consideration in every sphere of activity. We are committed to maintaining a reasonable cost base and improving our living and lifestyle offerings."
The RAK Conference, he added, provided a valuable insight into market expectations and awareness of the emirate.
"We are listening hard and have learned a great deal from listening to the points raised in the last two days," Dajani said. "Our next step will be to produce a working document encompassing all the issues that have been raised here."
The RAK conference, he added, also looks set to become an annual event, owing to the level of interest generated in the last few days.
By Nasouh Nazzal
© Gulf News 2007
