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In recent years an expanding population, a growing industrial base and the increasing number of tourists visiting the emirate have driven RAK’s transport infrastructure growth. Taken together with storage and communications, the transport sector contributed an estimated 6.55%, or about $313.6m, to the economy in 2010. To cater for the 40% increase in the number of registered motor vehicles over two years since 2009, road networks are expanding. New projects, such as the RAK Ring Road, will facilitate more direct travel routes and will serve to alleviate major congestion points. Moreover, the emirate also recently opened its fifth seaport, and work to upgrade the airport and expand air traffic routes is also under way. With the number of tourists visiting RAK widely expected to grow, in April 2012 airport authorities announced plans to increase passenger handling capacity from 500,000 to 2m. This chapter includes an interview with Colin Crookshank, Group General Manager of RAK Ports.

Ras Al Khaimah’s construction sector remains a key component of the emirate’s growing economy. Following the 2008-09 economic downturn, the emirate’s construction industry seems in good shape, with a number of notable projects already under way. In particular, the government is expecting to welcome 1.2m visitors in 2012, which is spurring sizeable expansion in the hotel segment. The construction and building sector was worth $620.62m in 2010 – about 10% of RAK’s overall economy, according to the RAK Department of Economic Development. Furthermore, partly as a response to the challenges of the downturn, and to stabilise their economic outlook, construction firms are adopting new strategies, such as diversification, consolidation and expansion. Authorities have also begun pushing for more environmentally friendly building practices, with oversight from the RAK Environmental Protection and Development Authority. This chapter includes an interview with Louis-Armand de Rougé, CEO of RAK Marjan Island Football.

Industry accounted for more than 30% of RAK’s GDP in 2010, reflecting the emirate’s positioning as a leading manufacturing centre within the UAE and broader region. Although the global credit crunch of 2008 did affect some of RAK’s industries, the emirate’s industrial base grew overall, which has made for a more diverse and resilient economy. RAK’s free trade zones and industrial parks continue to offer a business-friendly environment that has attracted industrial investment. Moreover, foreign ownership of companies based in free zones is unrestricted, with no income, sales or corporate taxes levied. The results of this have been clear; in 2011 RAK FTZ was home to more than 5000 firms from 106 countries. In the same year, 2033 licences were granted, an increase of 17% on the 1740 in 2010. Additionally, RAK has continued to see growth in its traditional areas of strength – including building materials and pharmaceuticals – and in new areas, such as metals. This chapter includes an interview with Dr Ayman Sahli, CEO of Julphar.

Ras Al Khaimah stands out in the Gulf as one of the region’s most diversified economies. Investment spread across manufacturing, tourism, retail, high-tech industries and construction has been underpinned by improvements in infrastructure and connectivity. Quarrying, mining and manufacturing accounted for some 30% of GDP, followed by financial services, at 14.4%. In particular, the metal sector has seen rapid expansion in recent years, with several companies setting up factories in RAK’s industrial zones to process various metals. At the same time, tourism and related sectors such as real estate and retail are expected to grow, with plans to expand RAK International Airport in the pipeline. These include new arrivals and departures lounges, cargo facilities, parking and office space. New efforts are also being made to develop long-term growth drivers within the emirate. Several local research institutions have been set up in recent years, and over the long term this will facilitate the growth of high-tech industries by improving the pool of local engineering talent. This chapter includes an interview with Jim Stewart, the CEO of RAK Investment and Development Office.

Despite the lingering effects of the 2008-09 international economic downturn and the more recent political unrest in the region, Ras Al Khaimah’s financial services sector is expected to grow substantially, fuelled by steady expansion in retail banking, Islamic financial services (IFS) and the insurance segment. Indeed, annual deposit growth at UAE banks reached a high of 16% in April 2011. However, financial institutions face a host of challenges; perhaps most notably, the real estate and construction sectors continue to face difficulty in terms of obtaining loans from banks. Local banks are under pressure from the government and central bank to increase lending further, in an effort to boost overall economic growth. Despite these issues, RAK has received consistently high ratings from two of the most prominent credit ratings agencies, thanks to its continuing development, social and political stability, and membership in the UAE.