• Home
• News Article

UAE still attractive place to live in, do business and invest

Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, wants to see the emirate play a greater role in the economic, social and academic development and prosperity of the UAE. His determination to make RAK a production hub has helped the economy to grow at a stable pace despite the current financial crisis.

Sheikh Saud was appointed Crown Prince by his father His Highness Sheikh Saqr bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah. In 2005, Sheikh Saud issued a decree to establish the RAK Investment Authority in a move designed to put the emirate's ambitions on a firmer foundation and encourage further development.

In this exclusive interview with Emirates Business, Sheikh Saud shares his thoughts on the global crisis and how RAK and the UAE are finding ways to deal with the financial storm.

What impact has the global crisis had on Ras Al Khaimah's economic development plans?
If we look at the roots of the crisis we will see that countries are still inter-connected. The crisis started with real estate products that became a burden on banks and economies that relied heavily on real estate investments. The decline of the US economy slowed this sector down and that had a major impact on world trade. However, the UAE is in a unique position in the region. Besides being an open country with an oil-rich economy, the transition that has taken place is amazing as industrial development and tourism have become major sectors that contribute greatly to the country's gross domestic product. The reality is that the UAE has become an international service hub. These are the factors that are helping the country to stand firm in the face of the current economic storm and the country will be in a better position once the crisis is over. As far as RAK is concerned, it has emerged as a major destination for visitors and investors in the UAE in recent years. The emirate aims to continue the development process and ensure that the growth is sustainable. Our objective from the beginning has been to become a base for a range of industries. We have focused on the role of government as a watchdog for such development. We have developed Saqr Port, which in five years has expanded 10 times in terms of trade volume. We have established a port on RAK Creek to connect the emirate with other centres in the Gulf. There are Port Thara and Holeila Port and let us not forget that work is in progress on Mina Al Arab near Al Hamra. We have devoted a great deal of attention to tourism in recent years to make the most of the emirate's natural resources and we want to connect these natural treasures with the development and life of RAK. Tourism is not only about natural places, history also plays a significant part in RAK's culture.

What steps has Ras Al Khaimah taken to minimise the impact of the global crisis on the economy?
The international crisis is like a big tent with no walls. We have announced certain measures to cope with it and to protect all parties involved in the development process in RAK. We stand shoulder to shoulder with many businesses in the emirate to let them know that we all are involved in this process. The number of tourists coming to RAK remains steady despite the difficult times, and development of several luxury hotels is on schedule. Industrial projects are also progressing well. Let us not forget the role of the federal government in standing shoulder to shoulder with the business sector. It has guaranteed bank deposits, which clearly shows that the federal government is playing a proactive role in helping the business community. The UAE has great potential in terms of tourism, trade, oil and gas and its geographic location. Plus, it is a stable and safe country. A mosaic of people live here in harmony. The UAE has been known for its open policy. All such factors are important to ensure that the country remains an attractive destination to live, do business and to invest. Every emirate is in a way a reflection of the whole country. The UAE is adjusting and reviewing itself amid the current international situation. The UAE is always keen to attract investors and become more competitive and it has strong potential to attract human resources. The UAE has amazing diversity and our role in RAK is to complement this mosaic that reflects what the UAE is all about.

Sheikh Faisal bin Saqr Al Qasimi, Chairman of RAK Finance Department, said recently that investors from the US are welcome. What is your view?
We are not just looking at America. The US is the biggest economy in the world. We believe the US will remain a creative country and they are currently working on solving their problems. We are an open country and we are friends with all nations. China is developing and promoting itself. Everybody is welcome to RAK.

Abu Dhabi, Dubai and Doha have set out their plans to brand themselves for the international community. Does Ras Al Khaimah have similar plans?
Every community or country has its own unique character. In the end there has to be something like that and everybody has to be himself. Our current Gateway City project, which is designed to house a population of 200,000, is a good example. The purpose of designing and constructing such a city is to cope with contemporary modern life where the human being is the centre and attention is paid to important factors, such as providing a better standard of living and creating a city with less traffic, lower carbon emissions and high standard of facilities and services. Bab Al Bahar - which is a Dh1.2 billion project on Marjan Island on 280 hectares of reclaimed land - is on schedule for completion during the second quarter of 2010 and will include 710 apartments of various sizes.

Is RAK planning initiatives in the real estate sector such as setting up a regulatory agency, as Dubai and Ajman have done, and establishing rent indexes?
We have no such plans at the moment. We have a real estate law that protects tenants according to the contract signed with the property owner and allows rents to be amended to the satisfaction of all parties. The government believes in open market and self regulation. Our aim is to organise and protect tenants by taking their circumstances into consideration and this is how we believe people can enjoy living here. We take all sides into consideration since they all play a major role in building a sustainable economy.

The issue of electricity shortages has been a challenge for developers in RAK. The problem recently surfaced when representatives from the Northern Emirates raised the subject at a meeting of the Federal National Council (FNC). What is happening in this regard?
Yes, representatives from the Northern Emirates took the issue to the FNC recently and pushed the matter further. The federal government is taking steps to find a solution and is currently studying the options. The FNC has established a committee to communicate with the Federal Electricity and Water Authority and plans are under way to find a solution.

There have been rumours that the Virgin Group's space travel division wishes to enter into an agreement with a government in the GCC to build a launch facility in the region. RAK has been mentioned as a possible location. Is there any truth in this?
We would welcome Virgin but there is no such agreement. Nothing has happened and I have nothing more to say on the subject.

RAK Airways is no longer operational. What will happen to its fleet and what is the situation regarding its plans to buy a stake in an airline in the Democratic Republic of Congo?
To the best of my knowledge, RAK Airways is working on a plan regarding its future. In my opinion the commercial benefits were not there and there was no point in keeping it in business. On the issue of Congo, an agreement was signed but no practical steps have been taken place so far.

What do you think RAK will be like five years from now?
The tourism and hospitality projects that are emerging will attract visitors to the emirate and the country. We see this as a positive sign towards positioning RAK on the tourism map. We look forward to seeing sons and daughters of RAK and the UAE play their part in the development of the RAK. They are becoming aware of the emirate's potential and I am confident that they can play a major part, especially if they receive good education.

Success needs education and continuous work not just continuous dreaming. With good education and hard work, the next generation can carry forward the country's development.

Profile: Sheikh Saud bin Saqr Al Qasimi Crown Prince and Deputy Ruler of Ras Al Khaimah
Sheikh Saud, who was born on February 10, 1956, has been the crown prince since 2003. He completed his primary and secondary education in Ras Al Khaimah. At 17, Sheikh Saud went to American University of Beirut to pursue his studies in economics. The breakout of civil war in Lebanon in 1975, however, made it impossible for him to complete his degree and he transferred to University of Michigan. After completing his Master's, he had planned to study further at Yale or Columbia but had to change his plans after his father asked him to return immediately to the UAE. On his return to Ras Al Khaimah in 1979, Sheikh Saud was appointed Chief of the Ruler's Court to assist his father in the administration of Ras Al Khaimah.

By Rami Eljundi

© Emirates Business 24/7 2009