Earlier, a free zone company could not carry out any kind of commercial activity on the mainland. It was restricted to doing business only in the free zone it was incorporated in. If any free zone company wanted to engage in commercial activities on the mainland, it had to open a Branch on the mainland. For this, prior approval from the Department of Economic Development was necessary
The Ras Al Khaimah Economic Zone is now changing all that. It now offers a Dual License, with which a company can operate in both the RAKEZ free zone as well as on the mainland in Ras Al Khaimah, without opening a Branch on the mainland. The move has been facilitated in collaboration with the Ras Al Khaimah Department of Economic Development.
It effectively enables companies located in the Ras Al Khaimah Economic Zone to place bids for Government contracts, something that companies located in free zones were hitherto ineligible for. Incorporating a company in the Ras Al Khaimah Economic Zone allows for 100% foreign ownership, without the need for a Local Partner (as would be the case on the mainland).
Opting for the Dual License of Ras Al Khaimah Economic Zone means that you are also granted a ‘Branch of a Free Zone Company’ business license by the Ras Al Khaimah Department of Economic Development. With this, you will be able to engage in the distribution of goods and services – or offer them for sale – on the mainland in Ras Al Khaimah.
Dr. Abdulrahman Al Shayeb Al Naqbi, the Director General of Ras Al Khaimah Department of Economic Development, said that they were pleased to work together with the Ras Al Khaimah Economic Zone for the Dual License. It would help global investors to zero in on Ras Al Khaimah for setting up theircompanies, he added.
The goal remains to further increase the visibility of Ras Al Khaimah as an investment destination, a view echoed by Ramy Jallad, the Chief Executive Officer of Ras Al Khaimah Economic Zone. Ras Al Khaimah, through a series of initiatives, is already seen as welcoming towards foreign investors, and the point is to make the economy even more dynamic by cutting down on red tape.
The RAKEZ Dual License is expected to open up new markets for investors, according to Ramy Jallad. The Ras Al Khaimah Economic Zone is currently home to some14,000 companies spread across 50 industry sectors. It was adjudged the SME Free Zone of the Year in the Middle East at the fDi Global Free Zones of the Year 2020 Awards.