Ras Al Khaimah Investment Authority (RAKIA)
What Was the Ras Al Khaimah Investment Authority (RAKIA)?
The term Ras Al Khaimah Investment Authority (RAKIA) alludes to a licensing and promotional organization that advanced the economic development of and investment in Ras Al Khaimah (RAK) in the United Arab Emirates.
The organization was laid out by a decree issued by the region's ruler in 2005. Its vision was to turn into the leading authority in making sound investments in RAK and partner with different parties, including international companies, to make a sustainable and developing economy. RAKIA turned out to be part of the RAK Economic Zone (RAKEZ) in April 2017.
Figuring out the Ras Al Khaimah Investment Authority (RAKIA)
Ras Al Khaimah is an emirate in the northern part of the UAE, found under an hour's drive from Dubai. The region is known for its historic locales, mosques, and strongholds.
As referenced over, the Ras Al Khaimah Investment Authority was sent off in 2005 following a decree by Sheik Saqr Bin Muhammad Al Qasimi. His intent was to lay out "a business and industrial arena offering competitive free zone and non-free zone offices" in the region. RAKIA was comprised of two industrial parks with an area of in excess of 300 million square feet and housed in excess of 500 manufacturers and small-to fair sized ventures.
The organization, also known as the RAK Investment Authority, allowed the royal family to meet its objective of making the emirate a regional hub for manufacturing, service, and the travel industry while building a strong economy with sustainable growth in the emirate.
Businesses set up in the region's free trade zones partake in several benefits, for example, complete exemption from all taxes, total repatriation of capital and profits, and land leases at profoundly concessional rates.
The United Arab Emirates has in excess of 40 free zones, which are economic areas that have special tax treatment on goods and services, and where companies are allowed to have 100% foreign ownership.
Special Considerations
In spite of what the name suggests, RAKIA was not a sovereign wealth fund (SWF). All things being equal, the government fund-raised through the financial markets and lent this capital to RAKIA.
SWFs, then again, are state-owned investment funds that utilization money produced by the government through surpluses. Overflows come from different sources, including oil and gas revenue, trade revenue, transfer payments, and bank reserves, to give some examples. SWFs are to fund various programs, for example, saving for people in the future or funding infrastructure projects.
In April 2017, the RAK government announced the merger of both RAKIA and Ras Al Khaimah Free Trade Zone (RAK FTZ) into a single entity called the Ras Al Khaimah Economic Zone (RAKEZ). RAK FTZ was laid out in 2000 as a free trade zone in the UAE with investments in excess of 100 countries. The consolidation made it quite possibly of the greatest economic zone in the region.
As of May 3, 2021, RAKEZ works with in excess of 14,000 companies in north of 100 countries in 50 distinct industries. It means to RAK an unmistakable place for investment through strategic infrastructure and business arrangements. RAKEZ gives a number of benefits to investors, including the formation of free and nonfree zone substances, complete foreign ownership, and access to Middle Eastern, Northern African, European, and Asian markets.
Features
- The organization was laid out in 2005 under a royal decree by Sheik Saqr Bin Muhammad Al Qasimi.
- Specialists merged RAKIA and the Ras Al Khaimah Free Trade Zone in April 2017 to form the RAK Economic Zone.
- RAKIA advanced the economic development of and investment in the emirate by working with different parties, including international companies.
- RAKIA was not a sovereign wealth fund yet was lent money raised by the government through financial markets.
- Ras Al Khaimah Investment Authority was a licensing and promotional organization in the Ras Al Khaimah region of the United Arab Emirates.
