RAK Economic Zone: business setup and best areas

RAK Economic Zone has become one of the UAE’s most competitive destinations for entrepreneurs, manufacturers, and global investors. As of 2026, RAK Economic Zone continues to attract startups and multinational firms seeking cost efficiency, strategic location, and streamlined regulation. Set within a fast-growing emirate known for industrial strength and lifestyle appeal, the zone plays a central role in Ras Al Khaimah’s economic expansion.

In this guide, know all about:

• Understanding RAK Economic Zone (RAKEZ)
• Advantages of setting up a business in RAKEZ
• Business setup process in RAKEZ
• Best zones and areas within RAKEZ for different business types
• RAK mainland vs free zone vs zone branch
• Practical tips and common pitfalls
• Key takeaways
• FAQs

Understanding RAK Economic Zone (RAKEZ)

RAK Economic Zone, commonly known as RAKEZ, is a government-backed authority established in 2017 through the merger of RAK Free Trade Zone and RAK Investment Authority. It acts as a one-stop hub for business licensing, industrial land allocation, warehousing, and corporate services. It operates within a diversified emirate shaped by strong industrial growth, expanding communities, and modern infrastructure across Ras Al Khaimah.

Ras Al Khaimah Economic Zone

RAKEZ supports more than 20,000 companies across over 100 countries. It caters to manufacturing, trading, services, e-commerce, education, and innovation-driven industries. The zone integrates industrial parks, academic clusters, and business centres under one authority.

RAKEZ differs from the former RAK Free Trade Zone in structure and scale. While RAK FTZ focused primarily on trading and industrial activity, RAKEZ unified multiple zones under one regulatory body to simplify setup, compliance, and investor services.

Explore the Available Warehouses for rent in RAK FTZ

Its industrial strength is supported by proximity to Saqr Port, one of the largest bulk-handling ports in the Middle East, and direct road connectivity to Dubai and the Northern Emirates. Ras Al Khaimah International Airport and major highways enhance export logistics and regional access.

Key sectors thriving in RAKEZ include:

• Manufacturing and heavy industry
• Logistics and supply chain
• E-commerce and trading
• Web3, robotics, and technology
• Education and research

Advantages of setting up a business in RAKEZ

RAK Economic Zone offers several structural incentives that make it competitive within the UAE landscape.

• 100 per cent foreign ownership: Businesses can retain full ownership without requiring a UAE national partner for most Free Zone activities.
• Zero customs duties: Companies operating within the Free Zone benefit from zero import and export duties on goods traded within the zone.
• Full profit repatriation: RAKEZ allows complete repatriation of profits and capital, giving international investors financial flexibility.
• No personal income tax: There is no personal income tax in the UAE. As of 2026, the federal corporate tax rate is 9 per cent on profits exceeding AED 375,000. However, Free Zone entities conducting qualifying activities and meeting compliance standards may continue to benefit from 0 per cent corporate tax under the UAE Free Zone tax framework.
• Lower operating costs: Operational costs are generally lower compared to Dubai or Abu Dhabi. Industrial land leases, warehouse rentals, and license packages are more affordable, particularly for SMEs and manufacturing firms.
• Strategic connectivity: Saqr Port handles bulk commodities, while highways link directly to Dubai in approximately one hour. This logistics efficiency supports export-oriented industries.
• Innovation-driven ecosystem: For technology-led firms, RAK Innovation City provides sector-focused licensing for Web3, blockchain, gaming, and robotics ventures, reflecting the emirate’s forward-looking economic strategy.

Business setup process in RAKEZ

Setting up in the RAK Economic Zone follows a structured but efficient pathway.

License types and legal forms

RAKEZ offers:

• Free Zone licenses: Trading, industrial, professional, innovation
• Mainland license: Available through the RAK Department of Economic Development for companies needing direct UAE market access
• Academic licenses: For universities and training institutes
• Special innovation licenses: For emerging tech sectors

Legal structures include Free Zone Establishment, Free Zone Company, a branch of a foreign company, and civil company models.

Step-by-step setup process

1. Select business activity and license type
2. Choose the appropriate cluster, such as industrial, business, academic, or innovation
3. Reserve the company name and submit the required documents
4. Apply for a visa quota and secure office, flexi-desk, or warehouse space
5. Obtain RAKEZ approval and, if required, DED RAK approval
6. Complete immigration formalities and visa processing

Documentation and compliance requirements

Applicants typically submit:

• Passport and visa copies of shareholders and managers
• Memorandum of Association or branch documentation
• Office or warehouse lease agreement
• Initial approvals for regulated sectors

Healthcare, education, and financial activities may require additional federal approvals.

Costs, timelines, and visa provisions

The full process from license issuance to visa stamping typically remains under two weeks for standard activities.

Best zones and areas within RAKEZ for different business types

The RAK Economic Zone is divided into specialised clusters.

Industrial zones

• Al Ghail Industrial Zone supports large-scale manufacturers.
• Al Hamra Industrial Zone suits light industry and logistics.
• Al Hulaila Industrial Zone caters to heavy industry.
• Khor Khwair focuses on quarrying and cement processing.

These zones offer large land plots and port proximity.

Business and commercial zones

• Al Nakheel Business Zone is suitable for professional services and trading firms.
• Al Hamra Business Zone integrates commercial and mixed-use developments.
• Business parks and flexi-desks accommodate startups and SMEs.

When relocating staff or executives, housing proximity becomes important. 

Academic and innovation clusters

• RAKEZ Academic Zone hosts universities and training centres.
• RAK Innovation City supports tech startups, Web3 ventures, and IP-driven enterprises.

Choosing the right area: Key considerations

• Nature of business activity
• Required space type and scale
• Port and highway access
• Visa quota needs
• Utility and service costs

RAK mainland vs free zone vs zone branch

Practical tips and common pitfalls

Setting up in the RAK Economic Zone is straightforward, but careful planning helps avoid delays and unexpected costs.

Tips for smooth setup

• Engage a business consultant familiar with RAKEZ zones
• Get a full cost estimate, including visas, utilities, and logistics
• Understand regulatory approvals required for specialised sectors such as healthcare, education, and financial services
• Plan for long-term scaling, including space requirements, workforce expansion, and export capacity

Common challenges and how to avoid them

• Underestimating visa quotas or labour permit timelines
• Choosing the wrong zone and later facing costly relocation
• Overlooking additional fees such as municipality charges, utility deposits, and inspection requirements
• Experiencing licensing delays due to incomplete or improperly certified documentation

Key takeaways

RAK Economic Zone offers competitive incentives, including 100 percent foreign ownership and tax efficiency. Business activity determines the most suitable cluster. Setup timelines are generally under two weeks for standard cases. Costs vary widely depending on license type, office space, and visa quota. Specialised zones such as Al Ghail, Al Hamra, and RAK Innovation City provide sector-focused ecosystems that enhance operational efficiency.

FAQs

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