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Manufacturing companies worldwide are relocating to Ras al Khaimah at an accelerating pace. In 2025, RAKEZ attracted nearly 19,000 new companies, marking a 44% increase from 2024.
The emirate now hosts over 40,000 companies from more than 100 countries, with 6,000 manufacturing firms operating across its industrial zones. For business leaders considering expansion or relocation, these figures demand examination.
This blog covers, what forces drive this movement to an emirate once considered primarily industrial, does the operational reality match the statistics, and can cost benefits justify relocating established operations.
Ras Al Khaimah’s rapidly expanding manufacturing industry is supported by a strategic, cost-effective, and investor-friendly environment designed to attract both international and local investors.
The logistics advantages of RAK are inherent in its location. Just 45 minutes from Dubai, Saqr Port facilitates direct trade links throughout Asia, Africa and Middle East. Saqr Port moves over 100 million tonnes of goods each year with a loading capacity of up to 5,300 tonnes/hour. This means that manufacturers are able to efficiently and quickly acquire their necessary inputs and have an equally rapid export capability.
With the Sheikh Mohammed Bin Salem Road (E11) recently upgraded, connectivity throughout the emirate has also been enhanced. These infrastructure improvements create lower costs for transporting goods, while also making supply chain processes much faster and easier for manufacturers, both of which increase their ability to compete within the global manufacturing landscape.
RAK offers 30-50% lower operational expenses compared to Dubai and Abu Dhabi. Business setup costs in RAKEZ start from approximately AED 6,000 annually (basic zero-visa packages) to AED 14,000-16,500 (all inclusive with visa) annually, versus higher comparable packages in Dubai South Free Zone. Real estate costs show even more advantages. For manufacturing operations where facility costs, utilities, and workforce accommodation represent major overhead, these savings translate directly to competitive advantage.
Whilst the UAE introduced 9% federal corporate tax in June 2023, qualifying Free Zone companies in RAK benefit from 0% tax on qualifying income. Manufacturing qualifies under the Qualifying Free Zone Person framework, enabling properly structured operations to operate tax-free with full profit repatriation.
RAKEZ has streamlined company formation remarkably. Business licenses can be obtained in hours to three days. The zone offers 100% foreign ownership, eliminating traditional sponsor requirements. The administrative framework operates digitally through Portal 360, with an “instant license” feature securing some business licenses in under five minutes.
Major development projects and infrastructure initiatives shaping RAK in 2026 include:
RAK Central is the largest commercial development in the Northern Emirates. It will be built by Marjan and RAKEZ and is anticipated to see main phases (including HQ office complex) completed in Q1 2027, with full rollout through 2030. It will include 3.1 million square feet of space.
The development will consist of five LEED (Leadership in Energy and Environmental Design) Gold certified office buildings designed by Gensler that offer over 800,000 square feet of grade-A leased office space. Headquarters for RAKEZ, Marjan, RAK Hospitality Holding, Al Hamra and Ras al Khaimah Tourism Development Authority will all be located in these buildings.
RAK Central will have over 4,000 residential units, three hotels with 1,000+ keys, and retail and green space facilities. It will also support more than 6,000 professional jobs and will develop a need for supporting services, logistical businesses and manufacturers.
The Wynn Al Marjan Island integrated resort, opening Spring 2027, represents the largest private investment in RAK’s history. At USD 5.1 billion, the project accounts for approximately 40% of the emirate’s GDP.
Construction shows remarkable progress. The 70-storey tower topped out in December 2025 at 352 metres, making it the Northern Emirates’ tallest structure. The tower stands complete with 79% of facade panels installed. All 1,530 guest rooms have completed structural work.
The Wynn Bridge, which connects to the E311 and E611 roads, was 48% complete. The resort will include 22 restaurants, gaming areas (the first gaming license in the UAE), and 420 meters of private beach. Wynn aims to generate employment opportunities for around 7,500 people, thus increasing the demand for suppliers of hospitality goods, furniture producers, and food processing companies.
RAK has signed a USD 3 million contract for a wastewater treatment plant in January 2026, with a Capacity of 60,000 Cubic Metres Per Day. This is the first public/private partnership project in the area and will accommodate about 300,000 residents after it opens for use.
There is an ongoing growth in real estate with an anticipated influx of an estimated 14,000+ new housing units to be delivered between 2026-2029. In addition to this BNW Developments has already committed $20b in investments into 12 different property developments.
Some of the exciting projects that will be available (for move-in) in 2026 are: Cape Hayat Tower 1 starting at 700,000 AED, JW Marriott Residences starting at 2.9 million AED and Nobu Residences starting at 3.6 million AED.
The RAKEZ manufacturing ecosystem consists of six distinct industrial zones, each of which is designed to accommodate different manufacturing sectors or types of businesses, as follows: Al Ghail (large scale manufacturers), Al Hamra (manufacturing from many manufacturing sectors), Al Hulaila (heavy industry), Al Nakheel (small businesses), Al Hamra Business Zone (integrated facilities), and RAKEZ Academic Zone (academic institutions).
For 2025, the split of new registrations is as follows: Services 40%, Commercial/Trading 33%, and E-commerce 17%. The success stories in manufacturing industries speak of the sector’s integrity: RAK Ceramics manufactures 118 million sq. meters of tiles every year in 23 factories worldwide, with 12,000 employees and an annual turnover of over 1 billion dollars.
Gulf Pharmaceutical industries produce over one million boxes of medicine daily. Embosal Steel Mills has migrated with an investment of AED 250 million establishing a new plant with a workforce of 450 people and an annual capacity of 1.5 million metric tons.
According to S&P Global Ratings, GDP growth for RAK will see an acceleration in real terms, with projected growth exceeding 4% between 2027 and 2028. From a projected growth rate of approximately 3.5%, for many of the projected tourism-related developments currently under development or developed in RAK over the next five years.
The manufacturing and wholesale/retail sectors together represent approximately 45% of RAK’s overall real GDP, which is forecasted to reach approximately USD 32,600 GDP per capita by 2028. And due to the increase in population by 2030, RAK’s need for housing, local services, and manufactured goods will continue to be large as well. RAK had 1.28 million visitors in 2024 with a target of 3.5 million visitors by 2030.
Whilst RAK offers efficiency, setup requires proper preparation. Companies must select appropriate legal structures, submit comprehensive documentation, and physically sign agreements at RAKEZ offices. Some consultancies note RAKEZ’s setup can be slightly more complex than certain Dubai free zones, particularly for activities requiring external regulatory approvals. Mandatory auditing requirements add to annual compliance costs.
Companies must maintain adequate substance for tax benefits, genuine presence with qualified employees and documented activities. Transfer pricing documentation and corporate tax registration through EmaraTax are mandatory.
Companies situated in Free Zones are generally restricted from conducting business in the mainland UAE and cannot typically sell directly to the mainland customer without having to procure a separate legal entity or utilize a distributor.
The total cost of forming a small-to-medium manufacturing operation will typically be between AED 50,000 to AED 150,000 for the first year. At scale, RAK has a strong cost advantage over other premium Dubai locations, resulting in savings of 40 to 50 percent.
RAK is highly effective for export-oriented manufacturers catering to the Middle Eastern, African, and Asian regions; for organizations focusing on cost management without compromising the quality of infrastructure; for operations demanding flexible infrastructure; and for organizations meeting sustainability requirements.
The emirate might not be the best fit for organizations catering mainly to the UAE market due to Free Zone constraints; for operations demanding direct access to Dubai clients, where location is more important than cost; and for organizations demanding advanced technology infrastructure that is more developed in Dubai’s specialized clusters.
The growth rate of 44% projected for 2025, is an indication that supports RAK’s emergence as an important manufacturing hub. In addition, with great new projects starting in 2026-2027 and large capital investment in infrastructure along with new residential units, there is a potential for a lot of increased business activity in this area.
Setting up a business in this region is typically much quicker than most areas, however you will need to plan properly for compliance with all laws, regulations, licenses and permits.
Additionally, tax incentives, modern infrastructure and lower operational costs mean potential significant profit.
Ultimately, you must identify if your company’s business model, market strategy and operational requirements align with RAK’s offer. Once you have identified that they do, there are ample opportunities for your company to grow during 2026 with billions being invested into infrastructure, proven industrial base and the UAE government’s ongoing commitment to diversify its economy at all levels.
