In recent years, Ras Al Khaimah (RAK) has progressed rapidly and became one of the UAE’s most attractive destinations for entrepreneurs and investors. There are many reasons behind it. The emirate provides a strong business ecosystem for companies of all sizes. Its significance is based on its strategic location, affordable business setup costs, and investor-friendly policies.
One of the major accelerators of this growth is the Ras Al Khaimah Economic Zone (RAKEZ), which supports more than 30,000 businesses across over 50 industries. Whether you are a startup, SME, or global enterprise, a Ras Al Khaimah business setup offers unmatched benefits.
Here are the top 10 reasons why you should consider RAK for your business in 2025.
Strategic Location with Global Reach
RAK is just 45 minutes away from Dubai and provides direct access to some of the world’s most important markets which brings a large consumer base. With proximity to the Middle East, Africa, and Asia, the emirate is a natural hub for global trade without any doubt.
|
Connectivity Option |
Key Advantage |
|---|---|
|
Port Saqr |
The largest bulk-handling port in the Middle East which ensures smooth maritime logistics. |
|
RAK International Airport |
Provides direct connections to major global destinations. |
|
Highways |
Link Ras Al Khaimah to the rest of the UAE which supports inland trade and mobility. |
As Ras Al Khaimah is a trading and industrial hub, it is a major advantage if your company is relying on logistics, imports, and exports.
Business-Friendly Policies
One of the strongest reasons to choose RAK Free Zone is its regulatory environment. As an investor, you can benefit from:
|
Tax Benefit |
Key Advantage |
|---|---|
|
Tax-Free Environment |
100% foreign ownership, full profit repatriation, and no personal, corporate, or withholding tax. |
|
VAT Exemption |
No 5% VAT on goods and services in RAK Freezone which lowers costs for high-volume sectors like retail and hospitality. |
|
Double Taxation Treaties |
UAE has agreements with 90+ countries that prevents businesses from being taxed twice on the same income. |
The business setup in UAE process is streamlined and cost-effective. These policies not only lower barriers to entry but also ensure long-term sustainability for businesses.
Dedicated Business Zones
RAKEZ caters to every type of investor in Ras Al Khaimah. Its specialized zones cover industries from manufacturing and logistics to IT, media, and education. With this flexibility of catering to various industries, it is the perfect entrepreneurial environment.
Such diversity of business zones makes RAKEZ one of the most versatile platforms for business setup services in UAE.
On-Site Staff and Labour Accommodation
Managing employees is a critical part of running a business and we understand that. RAKEZ gives investors the option to build on-site staff and labor accommodations. This not only improves productivity but also reduces commuting time and costs. In this way, you can hire skilled workers who prefer living close to their workplace.
One-Stop Government Services
RAKEZ simplifies administrative procedures by offering a one-stop shop for all government services. If you need to visit different places for business setup process, it will be a complicated situation. Therefore, in RAKEZ, you can manage everything under one roof from visa processing and license renewals to approvals and permits.
This convenience saves your valuable time and helps your business focus on growth rather than unnecessary visits facing delays.
Access to Major Logistics Hubs
RAK’s location at the northern tip of the UAE and in the east of the Persian Gulf provides businesses with unmatched logistics support. Whether you are exporting goods to Asia, importing raw materials from Europe, or distributing products across the Middle East, RAKEZ Free Zone ensures easy connectivity to global and regional markets.
State-of-the-Art Warehousing and Facilities
Beyond paperwork and licensing, RAKEZ also delivers on physical infrastructure. You can access:
- Ready-to-use warehouses.
- Customizable storage spaces.
- Co-working areas and private offices.
These modern facilities match the operational needs of startups, SMEs, and multinational corporations.
Wide Range of Business Activities
We understand that every entrepreneur has different requirements. RAKEZ offers you licenses for an extensive list of business activities across both free zone and non-free zone jurisdictions.
|
Category |
Description |
Free Zone |
Non-Free Zone |
|---|---|---|---|
|
Commercial |
Trading in goods and services |
✔ |
✔ |
|
Educational |
Establishing schools, training centers, or consultancies |
✔ |
✘ |
|
E-Commerce |
Selling goods and services online |
✔ |
✘ |
|
General Trading |
Trading multiple goods across industries |
✔ |
✘ |
|
Industrial |
Manufacturing, importing, packaging, and exporting products |
✔ |
✔ |
|
Media |
Running media and content-related businesses |
✔ |
✘ |
|
Freelancer Permit |
For professionals in media, IT, or education |
✔ |
✘ |
Aurum can help you find the right license for your specific business needs. Our support helps you benefit from doing business in RAK.
Cost-Effective Setup and Operations
When you compare different emirates, you will find that Ras Al Khaimah business setup costs are more affordable than Dubai or Abu Dhabi. RAKEZ offers:
- Packages starting from AED 6,000.
- Flexible office options such as flexi-desks, private offices, and warehouses.
- Lower rental and living costs for entrepreneurs and staff.
This is the speciality of RAK that its affordability makes it attractive to startups, SMEs, and freelancers. RAKEZ does not compromise on quality, which is why, it is a great choice for the entrepreneurs who are looking to minimize expenses.
Growth Potential and Lifestyle Benefits
RAK isn’t just good for your business as a lucrative business landscape, it’s also a great place to live and enjoy with family. It is evident from the number of entrepreneurs increasing every passing year.
- High quality of life with affordable housing and lower living costs compared to other emirates.
- Access to premium schools, healthcare, and leisure activities.
- Scenic landscapes, including mountains and beaches, that enhance the work-life balance.
Recent Economic Developments in Ras Al Khaimah
Development Area | Key Highlights |
|---|---|
Business Growth | RAKEZ recorded a 23% increase in new registrations in Q1 2025. Over 13,000 new companies joined in 2024, with strong momentum continuing in 2025. |
Tourism Revenue | Tourism revenue rose 12% in 2024, boosting opportunities in hospitality, retail, and real estate. |
Infrastructure Projects | Major developments such as RAK Central (launching in 2026) and Wynn Al Marjan Island are attracting global attention and new investments. |
Credit Rating | Fitch reaffirmed RAK’s A+ credit rating, reflecting strong economic stability and investor confidence. |
Start Your Business in RAK Free Zone with Aurum
Starting a business in RAK is straightforward when you have expert support. At Aurum, we specialize in business setup services in UAE, guiding you through licensing, documentation, and compliance with ease.
Unlock the benefits of doing business in RAK and position your company in one of the UAE’s fastest-growing hubs.
Contact Aurum today to begin your Ras Al Khaimah business setup journey