Ras Al-Khaimah Economic Zone

Ras Al-Khamiah made headlines in December, not only for its planned New Years 2024 fireworks display, but with a newly announced permanent residency visa. Priced at a highly affordable 16,500 AEDs ($4,492.49 at current exchange rates), the new visa promises to put the Ras Al Khaimah Economic Zone (RAK EZ) on the map for many Small to Medium sized Enterprises (SMEs) looking at relocating to the UAE.

Location, Location, Location: The RAK EZ is Ideal for Real Estate Investors and Import/Export

A brief geographic orientation: Ras Al-Khaimah can refer to two things the Emirate of Ras Al-Khaimah, one of 7 Emirates of the UAE, or the city of Ras Al-Khaimah, which is the eponymous capitol of this region. The Emirate, and its regional capital, are in the far northeast of the country bordering Oman. North of the city is the Musandam Peninsula, also known as the Ruus al Jibal, the rocky northeastern-most point of the Arabian Peninsula that juts into the Persian Gulf. This distinct landscape is home to the Shihuh tribe, who live on both sides of the Emirati-Omani border, and who have an accent and trans-Gulf ethnic background that can slightly differ from that of the Bedouin-origin Emirati Arab majority.

Ras Al-Khaimah is considered one of the largest economic zones in the whole country, although it is not as well-known or frequented by as many tourists as Dubai and Abu Dhabi. As the 6th largest city in the UAE, it is showing promise of becoming a new international hub for Middle East business and investment. The municipality and the government of the Emirate encourage innovation and investment activities, especially in the property and tourism sectors. Thanks in part to its location only 45 minutes’ drive from the Dubai airport, Al-Marjan Island has become a tourist and luxury real estate investment hub for the region, with Wynn Resorts announcing a multi-billion dollar project. Within six years, Ras Al-Khaimah expects over 3 million tourists to visit the Emirate annually.

Easy access to the Dubai airport as well as the regional international airport for air cargo routes and the port of Ras Al-Khaimah’s strategic location near the Strait of Hormuz provides easy shipping to markets in the Middle East, Asia, Europe and Africa, making the RAK EZ an ideal location for import/export. The city is home to around 400,000 people and its GDP rivals that of many small countries, reaching $11 billion in 2023. The quality of life is generally of good caliber in the city, with an average GDP per capita of $28,500 for its residents.

As in the rest of the country, foreigners in the RAK EZ have full ownership of properties, there are no duties on imports or exports, and businessmen can expect to have full repatriation of capital and profits. For more about this topic, see ExitStrategy.World’s UAE offer on our main page.

A High-Tech Oasis in the Northeast UAE

RAK EZ is one of the numerous Free Trade Zones located in the UAE. However, RAK EZ has its own unique set of regulations, including its own special customs, tax, and import regulations. The RAK EZ is preferred by upcoming entrepreneurs and investors for its dedicated zones of business and industrial activities. In terms of technology start-ups and fintech, there are several programs and events that were created by the city authorities to appeal to such a market, like RAK Digital Assets Oasis. This zone is designed to attract digital asset companies, such as software developers, video game studios, etc.

Obtaining a visa for the RAK EZ is relatively easy, however, those who have attained a UAE residency visa cannot leave the Emirates for more than 6 months, otherwise, the residency visa will be voided.

How to Obtain Residency in the RAK EZ

A residency visa can be obtained from Ras Al-Khaimah Economic Zone in any of the following ways:

Business setup in RAK EZ – You can obtain a residency visa or permit by starting a business in the free zone. Apart from the business setup in RAK EZ, you can also purchase shares from an existing company. For this option, you must own shares with a substantial value. An investor visa will be issued in such case.

Purchasing real estate For those who plan on moving permanently to the UAE or who are considering pursuing business interests in the RAK EZ or the UAE, a great option is buying a condo or a house on a suburban lot. If you buy a residential property worth more than one million AED ($272,272 at current exchange rates), you’ll get an investor visa.

Getting hired and sponsored by a RAK EZ-registered business Long-term employee assignments within RAK EZ will require a residency visa, and there are several different detailed rules which need to be followed. A residency visa or labor card is mandatory for all nationalities except for Gulf Cooperation Council (GCC) country and Emirati nationals. Visa costs for employees are often shouldered by the employers themselves, including costs for Emirates Resident ID processing and a standard medical examination.

Requirements for RAK EZ Work/Residency Visa Obtaining a work/residency visa in RAK EZ for employment is a straightforward process. Employment visas and work permits can last a year to ten years and are processed by employers. The most important requirement for a work/residency visa Is a job offer or work contract from a business within the free economic zone.

Here is the list of the general requirements for processing the work/residency visas of employees in RAK EZ:

• Job offer and employment contract

• Duly completed application form

• Emirates ID card

• Passport size photos (must be color photographs taken recently)

• Valid commercial license for company processing work visa for employees

• Valid company card (original and copies)

• Original passport of the applicant of an employment visa

• Medical health check and certificate

• Ministry of Labor-issued entry permit

All forms and documents submitted to the free zone authority must be typewritten in Arabic. Any employment contract must also be in Arabic. For the employment contract, three copies need to be retained. One for the employer, one for the free zone authority, and one for the employee.

Please note: It’s illegal to hire an undocumented worker or work in UAE without the correct documents. If a new hire receives an offer of employment while visiting on a tourist visa, visa status must be changed before employment begins. There’s no age stipulation for work contracts; however, work permits for individuals aged 65 and older will have an extra cost of 5,000 AED or $1,360 every two years.

Indian and other South Asian nationals are advised to inquire about specifics for acquiring their residency and entry visas before accepting an offer of employment or seeking to set up their own business in the RAK EZ.

Cost of Processing Work/Residency Visas for Employees The cost of visa processing for employment is subject to change without prior notice at the sole discretion of RAK Economic Zone. The cost of visa also depends on a company’s category and whether a worker is skilled or unskilled. It is best to consult with ExitStrategy.World’s Emirati back-office experts on business setup in the UAE and RAK EZ for more updated information on the latest costs and requirements.

In RAK EZ, employees are categorized based on their skills:

Skill Level 1 Individuals that have bachelor’s degrees and higher qualifications belong to skill level 1. Qualified professionals include experienced manager, doctor, engineer, teacher, accounts clerk, accountant, marketing specialist, executive secretary, quantity surveyor, pharmacist, reservation officer, administration officer, safety officer, advertising designer, computer operator, and public relations officer.

Skill Level 2 Individuals that are under the category, Skill Level 2, are those who are in possession of a diploma in a specific field. The category is often for people who have technical and mechanical jobs.

Skill Level 3 Those who have high school/higher secondary qualifications. This includes sales executives, sales representatives, sales supervisors, correspondence clerks, site supervisors, customs clearing clerks, cash desk clerks, ticketing clerks, and tourist guides.

For more information, contact ExitStrategy.World’s team today.