Free Zones diversify UAE’s business ecosystem

The free zones have played a pivotal role in promoting productive diversification within the UAE’s economy in recent years by supporting global investors seeking to expand their businesses to the Middle East and North Africa (Mena) region, top executives say.

The chief executive officers (CEOs) of leading free zones in the country opined that the UAE has created a favourable environment for various businesses and attracted global investors in the fields of e-commerce, commercial, artificial intelligence, renewable energy and smart technologies.

With 46 free zones scattered throughout the country, each governed by its own regulations and catering to specific industries, the UAE appeals to global investors, particularly those interested in commercial enterprises, include the high return on investment, stable economic climate, and supportive government regulations.

The executives are of the view that the UAE’s free zones will continue to be a hub of growth and opportunity for global investors and businesses in the years to come despite competitive environment across the globe.

Ramy Jallad, RAKEZ Group CEO, said RAKEZ has welcomed 6,000 new company registrations in the first half of 2024, marking significant year-on-year growth. This brings our total business community to over 25,000 companies, highlighting the strong appeal of our business ecosystem in Ras Al Khaimah.

The service sector leads the way, with around 2,400 new companies registered this year. This growth reflects the increasing demand for consultancy services, event management, marketing, and other professional services that are critical to a wide range of industries.

The commercial sector also saw considerable growth, with approximately 2,300 new registrations. General trading, wholesaling, and other commercial activities continue to attract a large number of new businesses to the region.

“We have also seen a surge in the e-commerce sector, with nearly 700 new companies joining, underscoring the shift towards digital business models. In addition, the media sector added around 400 new companies, reflecting the growing importance of content creation and digital media,” Jallad told BTR.

“These figures demonstrate the broad spectrum of opportunities available at RAKEZ, whether in services, commerce, e-commerce, or media. We remain committed to providing a dynamic environment that supports businesses in achieving growth and success,” he said.

Initiatives to lift growth

For the second half of 2024, Jallad said RAKEZ foresees continued growth driven by key strategic initiatives.

“Our immediate priority is enhancing infrastructure, including expanding warehouse capacity and labour accommodations within our industrial zones to meet rising demand across various sectors. Additionally, the industrial zone project, already in the pipeline, will introduce new features aimed at attracting a diverse range of industries.

“In line with our long-term vision, we are committed to responsible and sustainable growth, adopting global best practices environmentally and economically. Ras Al Khaimah will be strategically positioned as a key player in the regional and global economy, with a focus on fostering innovation, technology, and research — essential drivers of growth in today’s dynamic business environment.

He said a critical part of this strategy involves extending our support to global investors seeking to expand their businesses to the Middle East and North Africa (Mena) region through Ras Al Khaimah.

“In the upcoming months, we will be hosting several business delegations at RAKEZ and conducting roadshows in several countries, presenting investment opportunities, and highlighting how RAKEZ can serve as a gateway for businesses to enter and thrive in emerging markets. Our goal is to provide investors with the resources, infrastructure, and support they need to succeed and grow within this competitive region,” he said.

By focusing on sustainable infrastructure development, global partnerships, and innovative business ecosystems, "we are ensuring that Ras Al Khaimah continues to be a hub of growth and opportunity" for global investors and businesses alike, he said.

Thriving business community

Jallad looks confident about overall performance of RAKEZ during the year and said the group is expected to deliver sustained growth due to dedication and high-service standards maintained by its executives and officials.

“We foresee 2024 as a year of significant expansion for RAKEZ’s thriving business community. By the year’s end, we expect to further strengthen our position as a leading economic zone through strategic initiatives aimed at enhancing our services, facilities, and offerings,” he said.

“Our focus remains on continuously improving our infrastructure and business solutions to meet the evolving needs of the diverse range of companies operating within RAKEZ. Whether it’s through new coworking spaces, warehouse units, or industrial zone expansions, we are committed to creating an environment that fosters growth for businesses of all sizes and sectors.

“This sustained growth is driven by our dedication to maintaining high service standards, innovating with new solutions, and offering tailored support to help businesses succeed. With these efforts, we are confident that RAKEZ will close out 2024 on a strong note, with a larger, more dynamic business community,” Jallad said.

IFZA sees e-commerce rise

In the first half of 2024, Jochen Knecht, CEO at IFZA, said significant trends and shifts were observed across various business sectors compared to the same period last year.

He said e-commerce experienced growth, showing an increase of 18 per cent .

— muzaffarrizvi@khaleejtimes.com