RAK FTZ to invest $1bn to upgrade infrastructure

The Ras Al Khaimah Free Trade Zone said it will invest at least $1 billion (Dh3.6bn) during the next five years to improve the logistics and infrastructure facilities.

Oussama El Omari, CEO of the RAK FTZ, said emphasis is being laid on inviting companies to set up manufacturing facilities within the FTZ and efforts are on to improve the critical issues such as shortage of power and other infrastructural facilities.

Speaking to Emirates Business, he said the facilities within the RAK Port and the Airport have also witnessed significant improvements and more advancements are being planned to target the increased business and trade.

According to him, RAK FTZ's strategy is to position itself as a hub for businesses willing to trade along the Seventh Corridor. The RAK FTZ bridges the two ports of RAK and Fujairah, he said.

"We play a role in bridging the Seventh Corridor. The best example is a company bringing its raw materials may be from Europe, manufacturing the product here and target markets in the CIS, Iran and Iraq," he said.

"We would like to act as a bridge between markets in Asia and Africa," he added. Commenting on the development of logistics facilities in the RAK, he said the free zone acts as a platform for the development of the port and the airport. "The port especially was in a sleepy state. We started helping the services to start upgrading itself rather than just handling bulk cement. During the past 10 years, the standard of the port and airport has grown exponentially. The port needed a lot of infrastructure and almost $150 million was pumped in to upgrade the container line. "That is one goal that we achieved and there is more that needs to be done and we will achieve it."

Initially, companies registering with the zone were given the option to choose facilities of other ports such as Jebel Ali and Khorfakkan, until the local port was developed. "Today they have started using the container lines, which they would have never done if not for the free zone," he added.

According to him, Dubai continues to offer the best logistical facilties for companies to operate. "Dubai, of course, has world-class logistics. Therefore, we are not interested in just bringing in companies and providing them storage facilities. Our intention is for companies to come to RAK and set up large factories, where they can initiate production and ship and deliver their products to local and international markets. We are specifically targeting companies that are coming here for the first time. Our intention is to increase the industrial base and thereby enable the use of logistical facilities, including the warehouses," said Omari.

The RAK FTZ is developing a five-year strategy that are being put in place. "It is being confirmed, approved and adopted by the free zone in line with the vision.

The strategy is towards building infrastructure, upgrading standards of warehouses and office and incorporate latest IT solutions. We will be spending at least $1bn in upgrading logistical and infrastructural facilities within the RAK free trade zone," he said.

"We are facing certain challenges which includes power shortage. The lack of power has hindered our growth levels. There are plans being put in place and work is progressing on a 500mw power plant, which will be complete by 2012. But we need much more than that," he added.

According to him, efforts are also on to improve the standards within the RAK FTZ. "Adopting good standards is key to success and we are in discussions with logistics and shipping association in Dubai to increase our standards," said Omari.

Follow Emirates 24|7 on Google News.