Succes Stories

Ras Al Khaimah demonstrates the potential of an entrepreneurial spirit. Under the dynamic leadership of Crown Prince Sheikh Saqr bin Mohammed Al Qasimi, RAK has developed a number of policies to promote private-sector growth, establish free-market principles, ensure world-class standards, move into new markets and attract foreign investment. The outstanding performance of some of the country’s top companies shows that this strategy is clearly working.

The Entrepreneurial Spirit Behind Local Success Stories

RAK companies like Julphar, RAK Ceramics, Steven Rock, White Cement and Construction Materials, Union Group, RAK Bank and RAK Insurance, among many others, are making headlines at home and abroad for their growth rates, turnover and strong brand recognition.

U.S. investors and partners are welcome in RAK, which is gearing itself to become the region’s next economic powerhouse. As Sheikh Saud comments, “The government of Ras Al Khaimah is successfully implementing a pro-investment strategy which is firmly rooted in the principles of free trade and in promoting entrepreneurship. The emirate offers tremendous opportunities for business partnerships in diverse sectors, including industry and tourism.”

With new investor-friendly mega-developments like Al Ghayl Industrial City, Gateway City, Julphar Towers, RAK Offshore and others in the works, RAK is certain to continue to produce exceptional success stories.
A look at some of RAK’s thriving enterprises demonstrates the emirate’s investment potential.

Investment and Development Office

“Helping RAK lead by differentiation”

Ras Al Khaimah’s Investment and Development Office (IDO), established in January 2004, is playing a crucial role in promoting foreign investment in the emirate and in helping RAK achieve its goal of leading by differentiation – providing innovative investment opportunities that do not exist elsewhere.

As Chief Executive Dr. Izzat Dajani explains, “We at IDO have been able to create business opportunities to the tune of USD 2 billion in the past two years. We have been very successful and one of the main reasons is our chairman Sheikh Saud, who is the entrepreneurial strength behind attracting all the investments and business developments in RAK. He is involved with every business venture we try to attract and for the next five years you will see a strong growth for the Ras al Khaimah market thanks to this enterprising spirit.”

IDO’s multi-tasked brief is to serve as an international ambassador for the emirate, to analyze investment opportunities and communicate these opportunities to potential investors, to provide one-stop-shop services for foreign investors, to advise and assist the government concerning the emirate’s economic development, to help get new projects off the ground and to help ensure that RAK’s human resources meet international standards, among many other activities.

IDO is helping to inform potential foreign investors about the many initiatives RAK has instituted over the past few years to encourage foreign investment, including streamlining the investment process, upgrading the regulatory environment, maintaining a transparent investment climate, and enabling business to succeed.

In other words, IDO is making sure that the world knows that RAK has determined to operate according to private-sector, free-market principles – in fact, as RAK Inc.

IDO offers a number of essential services to foreign investors. These include identifying new investment opportunities, helping investors create viable business plans, assisting with the details of the investment process, making contacts with potential local partners, serving as a liaison between the public and private sectors, and much more. IDO is a true one-stop shop.

Just one recent success story in which IDO played a major role was the IPO of RAK Properties, an AED 1.1 billion (USD 300 M) initiative that was oversubscribed by 57 times; IDO served as Lead Manager. IDO also played a key role in launching EDRAK, a AED 1.5 billion (USD 400M) company to make RAK a regional education hub; this venture includes the establishment of George Mason University and Tufts School of Nutrition amongst others in RAK.

Next up on IDO’s agenda is a multi-billion-dollar joint venture with American firm Argentum Development Company to create the International Hospitality Trade and Training Zone (ihottz), designed to become a regional hub for the booming international hospitality industry. “This project will enable RAK to meet all the demands of the booming hospitality industry in the region,” Dr. Dajani says.

Located on 350 acres of prime RAK real estate and supported by state-of-the-art infrastructure, the new development will include a 260-acre Hospitality Free-Trade Zone and a 90-acre campus that will be home to the Hospitality University (which will offer degree programs up to the master’s level) and the Hospitality Training Center, which will provide world-class training in a variety of fields. Ihottz is the ideal choice as a regional base for international companies in the hospitality, education and related sectors, and reflects RAK’s determination to become a leading center for education, tourism and services.

IDO has many other projects in the works and will continue to help make RAK one of the world’s most attractive investment targets.

Stevin Rock

“We want to preserve our environment for our children.”

Stevin Rock, owned by the Government of Ras Al Khaimah and Chaired by H.H. Sheikh Saud bin Saqr al Qasimi since 1996, has recently grown particularly rapidly, boosting its annual revenue from USD 30 million to approximately USD 150 million in less than two years.

General Manager Naser Bustami, who has overseen this growth, says that the company’s management is given free rein by the Sheikh and that an “entrepreneurial attitude” and a commitment to the highest international standards have brought Stevin Rock its outstanding success.

While other local quarries produce around two million tons of rock per year, Stevin Rock now produces more than 32 million tons of construction aggregates and coastal protection rock annually. In fact, the company’s quarry is one of the biggest in the Middle East, and rocks from Stevin Rock are being used in many of the high-profile projects now underway in Dubai, Ras al Khaimah and Arabian Gulf Countries like Kuwait, Qatar and Bahrain.

Transporting by barge and ship directly to clients’ projects

Stevin Rock handles its own distribution, delivering orders directly to clients via its fleet of barges. Bustami explains, “The rocks used in projects like The World and The Palm artificial islands have come directly from our quarry. We also supplied rocks for the Marjan Island project in Ras al Khaimah, the country’s first land-excavation project.”
Stevin Rock has formed a partnership with international tire-maker Michelin, which tests its truck and shovel tires on Stevin Rock’s heavy-duty Caterpillar and Terex trucks. “Our trucks must operate 24/7 in the roughest mountains, in intense heat. No other place in the world provides more challenges for tires, making us a perfect partner for Michelin’s tests,” Bustami says.

Implementing ISO 14001-2000

Bustami explains that the company was recently streamlined to achieve better efficiency and that all personnel undergo strict training in order to ensure that the highest standards are always met. Stevin Rock’s quarry is one of the few quarries in the Middle East to have achieved ISO 9001:2000 certification and it now aims to be certified ISO 14001-2000 while still maintaining its current production level and profits.

To achieve this ambitious goal, the company has started the investment in a conveyor belt cascade system that can transport rock directly from the quarry to the crushing plants and on to Stevin Rock Harbor for transport to customers. “We are trying to employ more environmentally friendly production processes, and the conveyor belt not only saves us further investment in trucks but is also more environmentally friendly as well as more economical,” Bustami explains. He adds, “We want to preserve our environment for our children and for Ras al Khaimah’s future.”

RAK White Cement

“RAK White Cement is a success story.”

Ras Al Khaimah Company for White Cement and Construction Materials (RAK White Cement) and its subsidiary Ras Al Khaimah Lime Company (the country’s only lime producer) employ world-class standards to create high-quality white cement, lime and other construction materials.

Established in 1982, RAK White Cement has been growing rapidly and is now ranked the top producer of white cement in the Middle East. The company achieved a 12.5 percent growth in sales in the first quarter of 2007 compared to the same period last year. Sheikh Ahmed bin Humaid Al Qassimi, Chairman, says, “I am very proud to announce that RAK White Cement is a success story. Not only have we been growing steadily in the recent past, but the future looks very bright as well. We foresee an increase in our production capacity by 200 tons per day in 2007 thus reaching an overall installed clinker capacity of 525.000 Mtpa.”

RAK White Cement has invested extensively in its production facilities and transport network. The company’s factory, certified ISO 9002 and employing the latest automation technologies, is located near Mina Saqr port, which offers deep-water berthing and easy access to the Straits of Hormuz. Employing high-quality limestone deposits found in Ras Al Khaimah’s Hajar mountains, along with some imported secondary materials, RAK White Cement currently produces 450,000 tons of international-standard white cement annually.

The company packages the cement in various formats and exports to markets throughout the Gulf region and beyond, including to the United States and Canada as well as India, Bangladesh, Sri Lanka and East Africa. In future, RAK White Cement aims to expand into new markets.

Sheikh Ahmed welcomes contacts from American companies. He says, “Due to our continuous investments in state-of-the-art technology, we are delivering a product that has the highest quality in the region, and we will sustain this quality. We invite American companies to contact us for any partnerships in exchange for technology and know-how.”